TIM (TIMB) AI Stock Analysis

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TIM

(NYSE:TIMB)

Rating:82Outperform

Price Target:

$20.00

▲(11.86%Upside)

TIM S.A. achieves a strong overall score of 81.8, driven by its robust financial performance and strategic growth initiatives. The company's effective cost management and cash generation capabilities are standout strengths. Positive momentum in technical indicators and an attractive dividend yield further bolster the stock's appeal. While challenges exist in certain market segments, the overall outlook remains positive, supported by strategic focus and sustainable practices.

TIM (TIMB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.52B

Dividend Yield6.78%

Average Volume (3M)306.77K

Price to Earnings (P/E)13.9

Beta (1Y)0.35

Revenue Growth-6.63%

EPS Growth2.46%

CountryUS

Employees8,873

SectorCommunication Services

Sector Strength83

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.28

Shares Outstanding484,160,900

10 Day Avg. Volume323,761

30 Day Avg. Volume306,769

Financial Highlights & Ratios

PEG Ratio1.48

Price to Book (P/B)1.95

Price to Sales (P/S)0.00

P/FCF Ratio5.52

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$18.87

Price Target Upside5.54% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

TIM Business Overview & Revenue Model

Company DescriptionTIM S.A., a telecommunications company, provides mobile voice and data services, broadband internet access, value-added services, and other telecommunications services and products in Brazil. The company offers services for individuals, as well as corporate solutions for small, medium, and large companies. It also offers fixed-line ultra-broadband and TIM Live services, as well as WTTx technology through Ultrafibra services and IoT solutions. In addition, the company provides digital content and services in its portfolio of packages; sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, and authorized dealers; and offers co-billing services to other telecommunication service providers. As of December 31, 2021, it served a subscriber base of 52.6 million customers. The company is headquartered in Rio de Janeiro, Brazil. TIM S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

How the Company Makes MoneyTIM Brasil generates revenue primarily through its mobile services, which include voice, data, and messaging services for both prepaid and postpaid customers. The company also earns income from fixed broadband services, offering high-speed internet connections to households and businesses. Additionally, TIM benefits from the sale of telecommunications equipment and devices, as well as value-added services such as digital content and cloud solutions. Significant partnerships with technology providers and infrastructure investments enhance their service offerings and contribute to revenue growth.

TIM Earnings Call Summary

Earnings Call Date:May 05, 2025

(Q1-2025)

% Change Since: 10.58%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

The earnings call highlights strong financial performance with significant growth in mobile revenues, EBITDA, and net income. Expansion in B2B IoT and sustainability recognition further support a positive outlook. However, challenges remain in the prepaid segment and lease payments, with competitive pressures in the broadband market. Overall, the positive financial achievements outweigh the challenges faced.

Q1-2025 Updates

Positive Updates

Strong Mobile Revenue Growth

Mobile revenues increased by 6.2% year-over-year, driven by strong post-pay growth, which grew close to 14% yearly.

EBITDA and Margin Improvement

EBITDA grew by 6.7% year-over-year, with margin expansion reflecting efficient operational execution, adding 80 basis points to the margin, which surpassed 48%.

Net Income and Cash Flow Growth

Net income grew more than 50% year-over-year, marking the 80th consecutive quarter of double-digit expansion and reaching the highest net income level for the first quarter in TIM's history. Operational cash flow also saw a double-digit increase of almost 20%.

Expansion in B2B IoT Strategy

Substantial growth in contracted revenues in B2B IoT, particularly in agribusiness, logistics, and utilities, with new initiatives in the energy sector.

Sustainability Recognition

TIM was confirmed as the most sustainable company in Brazil, ranking first in the Corporate Sustainability Index of the Brazilian Stock Exchange.

Negative Updates

Challenges in Prepaid Segment

Prepaid segment continues to underperform due to market dynamics and constraints on the demand side, with a strategy focused on slowing down the decrease over time.

Lease Payment Concerns

Lease payments grew high single-digit year-over-year, with concerns about inflation impact, particularly related to lease agreements tied to IPCA.

Pressure on Broadband Market

The broadband market remains highly competitive, impacting ARPU and churn levels, with TIM Ultrafibra experiencing a decrease in revenue growth.

Company Guidance

The guidance provided in the call highlights TIM S.A.'s robust performance in the first quarter of 2025, despite external market volatility, with a focus on strategic initiatives and financial metrics. Mobile revenues saw a 6.2% year-over-year increase, driven by a strong 14% growth in the postpaid segment, contributing to a 6.7% rise in EBITDA with a margin expansion of 80 basis points, surpassing 48%. Operational cash flow also experienced a double-digit increase, nearing 20%, while net income grew by over 50%, marking the 80th consecutive quarter of double-digit expansion. The company announced R690 million as interest on capital and emphasized strategic focus areas, including enhancing the mobile value proposition, expanding the B2B IoT portfolio, and maintaining operational efficiency. Special attention is given to Sao Paolo, with initiatives like modernizing over 3,000 network sites, resulting in a 40% increase in coverage and capacity, and efforts to boost brand perception through events and a flagship store. TIM S.A. remains committed to sustainability and aims to integrate innovative solutions to elevate its value proposition further.

TIM Financial Statement Overview

Summary

TIM S.A. exhibits strong financial performance, marked by robust revenue growth and healthy profit margins. The company's balance sheet shows moderate leverage and effective equity utilization, while cash flow metrics highlight significant cash generation capabilities. Overall, TIM demonstrates solid financial health and potential for future growth.

Income Statement

Very Positive

TIM has demonstrated strong revenue growth, with a Revenue Growth Rate of approximately 6.5% from 2023 to TTM. The Gross Profit Margin is robust at 51.8%, indicating effective cost management. The Net Profit Margin has improved to 13.3% in TTM, showcasing enhanced profitability. The EBIT and EBITDA margins are healthy at 22.6% and 51.3% respectively, suggesting solid operational efficiency.

Balance Sheet

Positive

The company's Debt-to-Equity Ratio stands at 0.65, reflecting moderate leverage. The Equity Ratio is 43.3%, indicating a stable capital structure with substantial equity financing. ROE has improved to 14.0%, showing effective utilization of equity capital to generate profits. Overall, the balance sheet exhibits a healthy financial position with manageable debt levels.

Cash Flow

Very Positive

The Free Cash Flow Growth Rate is a strong 11.1%, indicating significant cash generation capability. The Operating Cash Flow to Net Income Ratio of 3.8 suggests efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio is 2.5, indicating substantial cash flow relative to net income, supporting sustainability and potential future growth.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
25.75B	25.45B	23.83B	21.53B	18.06B	17.27B
	Gross Profit
13.32B	13.55B	12.34B	10.87B	9.46B	9.27B
	EBIT
5.82B	5.85B	4.83B	3.62B	3.76B	2.81B
	EBITDA
13.21B	12.99B	12.17B	10.16B	9.84B	8.49B
	Net Income Common Stockholders
3.43B	3.15B	2.84B	1.67B	2.96B	1.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.88B	5.69B	5.04B	4.74B	9.80B	4.65B
	Total Assets
56.59B	56.33B	55.26B	56.41B	49.82B	41.65B
	Total Debt
18.15B	15.61B	16.03B	17.80B	12.91B	10.72B
	Net Debt
14.59B	12.35B	12.95B	15.25B	7.68B	8.15B
	Total Liabilities
31.38B	29.92B	29.24B	31.01B	24.71B	18.47B
	Stockholders Equity
25.22B	26.40B	26.02B	25.40B	25.11B	23.18B
Cash Flow		Free Cash Flow
8.65B	7.78B	7.92B	4.70B	4.79B	4.78B
	Operating Cash Flow
13.18B	12.33B	12.42B	9.43B	12.76B	8.67B
	Investing Cash Flow
-5.55B	-4.95B	-4.68B	-8.62B	-9.37B	-5.29B
	Financing Cash Flow
-6.77B	-7.20B	-7.21B	-3.49B	-735.37M	-3.09B

TIM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.88

Price Trends

50DMA

16.16

Positive

100DMA

14.65

Positive

200DMA

14.11

Positive

Market Momentum

MACD

0.41

Positive

RSI

63.90

Neutral

STOCH

83.07

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIMB, the sentiment is Positive. The current price of 17.88 is above the 20-day moving average (MA) of 17.29, above the 50-day MA of 16.16, and above the 200-day MA of 14.11, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 83.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TIMB.

TIM Risk Analysis

TIM disclosed 40 risk factors in its most recent earnings report. TIM reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

TIM Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	82 Outperform	$8.52B	13.89	13.18%	6.78%	-6.63%	2.46%
VIV	81 Outperform	$17.17B	16.54	7.95%	4.17%	-5.69%	-0.05%
TKC	76 Outperform	$5.45B	12.75	6.74%	2.46%	14.09%	-11.43%
SKM	73 Outperform	$8.21B	9.12	11.08%	5.22%	-2.34%	12.31%
KT	70 Outperform	$9.03B	21.39	3.81%	3.14%	-4.85%	-43.88%
TEF	64 Neutral	$30.11B	―	-0.55%	4.49%	1.18%	―
Sector *	61 Neutral	$14.35B	5.84	-4.31%	3.69%	2.75%	-35.67%

* Communication Services Sector Average

Performance Comparison

TIMB

TIM

17.88

3.96

28.45%

19.66

6.12

45.20%

SKM

Sk Telecom

21.26

0.30

1.43%

VIV

Telefonica Brasil

10.30

2.32

29.07%

TEF

Telefonica

5.34

0.93

21.09%

TKC

Turkcell Iletisim

6.19

-1.06

-14.62%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.