One-glance verdict
Undervalued
$91.95 our estimate vs market $18.67
Wall Street consensus: $23.06 (-74.9% lower than our fair-value estimate)
80% below our estimate, below the bear case
Fundamentals snapshot
TIM S.A.
TIMB · NYQ · Communication Services · Telecom Services
Current price
$18.67
52-week range
$15.94 - $28.22
Market cap
$8.87B
Balance sheet
Stretched
2.90x Stretched
Net debt $1.89B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 16.3% on equity, ahead of 40% of its peers.
- Risk Stock trades 317.8% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
TIM S.A.
TIM S.A. is a big phone and internet company in Brazil, offering services like landline phones and mobile plans. Most of their money comes from people paying monthly for these communication services, which is important because it shows they have steady income even if new customers don't sign up. This steady income helps them keep their operations running smoothly and invest in improving their network.
How the company got here
TIM S.A. began its journey in Brazil in 1998, initially as part of the global TIM SpA. [16] Over the years, it has grown to become one of Brazil's leading telecommunications companies. [3, 8] A significant part of its history involves consolidating its national presence, becoming the first mobile operator in all Brazilian states. [16] The company has also undergone corporate reorganizations to streamline its structure and improve efficiency. [12] TIM S.A. is now a publicly traded entity on both Brazilian and U.S. stock exchanges. [6, 7]
What it actually does
TIM S.A. is a telecommunications company that provides a wide range of services to individuals and businesses in Brazil. [4, 8] Its core offerings include mobile voice and data plans, allowing customers to make calls, send messages, and access the internet on their mobile devices. [1, 3] The company also offers fixed broadband internet services for homes and businesses, providing high-speed internet connectivity. [2, 3] Beyond basic connectivity, TIM S.A. provides various value-added services and digital solutions designed to enhance the customer experience and meet evolving technological needs. [1, 4]
Mobile Services
This is TIM S.A.'s largest business segment, making up about 65% of its revenue. [5] It encompasses all aspects of mobile communication, including voice calls, text messaging, and mobile data plans for both prepaid and postpaid customers. [2, 3] This segment serves a broad customer base, from individual smartphone users to families, and is crucial for the company's overall performance. [3] TIM S.A. generates revenue in this segment through monthly subscription fees, usage-based charges, and add-on services. [3]
Fixed Broadband
This segment focuses on providing internet access to homes and small businesses, representing approximately 15% of TIM S.A.'s revenue. [2, 5] The company offers high-speed internet services, primarily through fiber optic connections, under brands like TIM Live and TIM UltraFibra. [1, 2] Customers pay monthly subscription fees for internet access, with options for bundled services that can enhance revenue for the company. [3] This business line is key to meeting the growing demand for reliable and fast home internet.
Business Solutions (B2B)
Making up about 12% of TIM S.A.'s revenue, this segment provides tailored telecommunications and digital solutions for companies of all sizes. [2, 5] These services include corporate mobile lines, dedicated network services, and interconnection services for other telecom operators. [3] TIM S.A. also offers advanced solutions like Internet of Things (IoT) services, cloud computing, cybersecurity, and digital transformation support to help businesses operate more efficiently and innovatively. [1, 5] Revenue is generated through contracts with businesses and public institutions for these specialized services.
Value-Added Services and Digital Platforms
This segment, which accounts for about 3% of TIM S.A.'s revenue, includes a variety of services that go beyond basic connectivity. [5] It encompasses digital content, advertising-enabled platform services, and data monetization. [5] TIM S.A. also offers services like Open Gateway APIs, which allow developers to integrate telecom functionalities into their applications. [5] This segment aims to create additional revenue streams by leveraging the company's network and customer data in innovative ways.
What management is betting on now
TIM S.A.'s current strategy focuses on sustainable growth and strengthening its market position. [10] Management is prioritizing the preservation of its mobile business while aiming for a recovery in broadband growth and a significant expansion of its business-to-business (B2B) segment, with a focus on higher-value solutions. [10] The company is also investing in digitalization and artificial intelligence initiatives to improve efficiency and drive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization – a measure of a company's operating performance) growth and expand its profit margins (the percentage of revenue left after all costs). [10] Efficient capital allocation and continued investment in network quality and technological evolution are also key priorities, aiming to boost operating cash flow (the cash generated from a company's normal business operations) and accelerate shareholder returns. [10, 9]
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $91.95 vs current price $18.67
Wall Street consensus is the average analyst price target: $23.06 (-74.9% lower than our fair-value estimate).
Our most-likely fair value is $91.95 a share — about 392.5% above today's price of $18.67, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $1.9B. Interest coverage 2.9x.
Net debt
$1.89B
Interest coverage
2.90x
TIM S.A.'s profit covers its interest bill about 2.9 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
TIMB
BASELINE
TIM S.A.
Total debt $2.82B Interest coverage 2.90x This is the baseline the peer rows are being compared against.
Total debt $3.56B Interest coverage 12.48x +330% vs TIMB Carries about 4.3x more debt cushion than TIMB.
Total debt $37.78B Interest coverage 2.43x -16% vs TIMB Carries about 1.2x less debt cushion than TIMB.
Total debt $12.04B Interest coverage 2.55x -12% vs TIMB Has roughly the same debt cushion as TIMB.
Total debt $3.89B Interest coverage 1.80x -38% vs TIMB Carries about 1.6x less debt cushion than TIMB.
Total debt $4.93B Interest coverage 2.65x -9% vs TIMB Has roughly the same debt cushion as TIMB.
What you should know
The case for and against TIMB
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.6% last year.
-
Returns 16.3% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 317.8% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.98x
Forward P/E
9.59x
P/B
1.80x
P/S
0.32x
EV/EBITDA
1.47x
PEG ratio
1.44x
Profitability
How much profit each dollar creates
Gross margin
54.8%
Operating margin
23.0%
Net margin
14.8%
ROE
16.3%
ROA
7.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
0.86x
Quick ratio
0.76x
Total debt
$2.82B
Total cash
$927.79M
Growth
How the business has been compounding
Revenue TTM
$4.97B
Revenue 5Y CAGR
7.3%
EPS TTM
1.70
EPS 5Y CAGR
37.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.41B
Free CF TTM
$1.59B
FCF margin
32.1%
Dividend
Shareholder payout
Yield
8.5%
Payout ratio
88.2%
Last ex-div date
2026-09-28