TIM S.A. (TIMB) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

TIM S.A. (TIMB) Media & Communications Profile

TIM S.A. stands out as a prominent telecommunications provider in Brazil, delivering mobile voice, data services, and broadband solutions while maintaining a robust subscriber base and competitive market positioning.

What Is the Investment Thesis for TIMB?

The company boasts a profit margin of 16.0% and a gross margin of 53.2%, reflecting operational efficiency and effective cost management. With a free cash flow of $4.46 billion, TIM is well-positioned to invest in growth initiatives and return capital to shareholders, evidenced by a dividend yield of 6.07%. Key growth catalysts include the expansion of its broadband services and the increasing adoption of IoT solutions, which are expected to drive revenue growth in the coming years. However, potential risks such as regulatory changes and competitive pressures must be carefully monitored as they could impact future performance.

Based on FMP financials and quantitative analysis

TIMB Key Highlights

Market capitalization of $9.16B, reflecting strong market positioning.

• P/E ratio of 10.86, suggesting favorable valuation metrics.
• Profit margin of 16.0%, indicating efficient operations.
• Gross margin of 53.2%, exceeding industry averages.
• Free cash flow of $4.46 billion, providing flexibility for growth and shareholder returns.

Who Are TIMB's Competitors?

TIMB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are TIMB's Key Strengths?

Robust subscriber base of 52.6 million customers.

• Strong financial performance with a profit margin of 16.0%.
• Diverse range of services catering to both individuals and businesses.
• Established position in the Brazilian telecommunications market.

What Are TIMB's Weaknesses?

Dependence on the Brazilian market for revenue generation.

• Potential challenges in maintaining competitive pricing.
• Vulnerability to regulatory changes affecting operations.
• Limited international presence compared to global competitors.

What Could Drive TIMB Stock Higher?

Expansion of broadband services targeting underserved areas.

• Continued growth in IoT solutions and digital content offerings.
• Strategic partnerships aimed at enhancing service delivery.
• Implementation of new technologies to improve operational efficiency.
• Potential regulatory changes that could impact market dynamics.

What Are the Key Risks for TIMB?

Financial-distress signal — its Altman Z-Score of 1.80 sits in the distress zone (elevated bankruptcy risk).

• Regulatory changes that may affect operational flexibility.
• Intense competition from both local and international telecommunications providers.
• Economic fluctuations impacting consumer spending on telecommunications services.
• Currency risk associated with fluctuations in the Brazilian real.

What Are the Growth Opportunities for TIMB?

• Expansion of Broadband Services: TIM S.A. aims to enhance its broadband services, targeting a growing market size projected to reach $10 billion by 2028. With the increasing demand for high-speed internet, the company plans to invest in infrastructure upgrades and expand its TIM Live offerings, capitalizing on consumer preferences for reliable connectivity.
• TIM's focus on IoT solutions positions it to leverage this growth, providing businesses with innovative connectivity options and enhancing operational efficiencies across various sectors.
• Digital Content and Services: TIM S.A. is expanding its digital content offerings, tapping into the growing consumer demand for streaming and online services. With the digital content market projected to reach $3 billion by 2026, TIM's diverse packages and partnerships will enable it to capture a larger share of this lucrative segment.
• Corporate Solutions Growth: The demand for telecommunications solutions among businesses is on the rise, with corporate spending in this sector expected to increase by 15% annually. TIM's tailored solutions for small, medium, and large enterprises will drive revenue growth as companies seek reliable communication services to support their operations.
• WTTx Technology Deployment: As demand for wireless broadband solutions grows, TIM's investment in WTTx technology through its Ultrafibra services presents a significant growth opportunity. This technology caters to underserved areas, with a market potential of $2 billion by 2027, allowing TIM to expand its customer base and enhance service accessibility.

What Are TIMB's Competitive Advantages?

• Strong brand recognition in the Brazilian telecommunications market.
• Extensive dealer network providing broad customer access.
• Diverse service offerings catering to various customer segments.
• Established infrastructure supporting reliable service delivery.
• Innovative technology investments enhancing competitive positioning.

What Does TIMB Do?

Founded in Brazil, TIM S.A. has established itself as a key player in the telecommunications sector, providing a comprehensive suite of services that includes mobile voice and data, broadband internet, and value-added services. Over the years, TIM has evolved to meet the changing needs of consumers and businesses alike, offering tailored solutions for individuals and corporate clients of all sizes. The company’s product offerings extend to fixed-line ultra-broadband services, TIM Live, and innovative WTTx technology through its Ultrafibra services. Additionally, TIM has embraced the Internet of Things (IoT) solutions, enhancing its service portfolio to include digital content and various packages that cater to diverse customer needs. As of December 31, 2021, TIM S.A. served a substantial subscriber base of 52.6 million customers, reflecting its strong market penetration. The company operates through a robust dealer network, which includes its own stores, exclusive franchises, and authorized dealers, facilitating the sale of mobile handsets and accessories. With its headquarters in Rio de Janeiro, Brazil, TIM S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A., positioning it as a significant entity within the Brazilian telecommunications landscape.

What Products and Services Does TIMB Offer?

• Provide mobile voice and data services to individual consumers.
• Offer broadband internet access and fixed-line ultra-broadband services.
• Deliver value-added services and digital content packages.
• Serve corporate clients with tailored telecommunications solutions.
• Sell mobile handsets and accessories through a diverse dealer network.
• Implement IoT solutions for various industries and applications.

How Does TIMB Make Money?

• Generate revenue through mobile and fixed-line service subscriptions.
• Offer value-added services and digital content for additional revenue streams.
• Sell hardware products, including mobile devices and accessories.
• Provide co-billing services to other telecommunications providers.
• Leverage partnerships to enhance service offerings and customer reach.

What Industry Does TIMB Operate In?

The telecommunications industry in Brazil is experiencing significant growth, driven by increasing demand for mobile and broadband services. With a market size projected to expand as digital connectivity becomes essential, TIM S.A. is well-positioned to capitalize on these trends. The competitive landscape includes key players such as Millicom International Cellular S.A. (TIGO) and SK Telecom Co., Ltd. (SKM), where TIM's diverse service offerings and strong customer base provide a competitive edge. The ongoing digital transformation and the rise of IoT applications further enhance the growth potential for telecommunications providers in Brazil.

Who Are TIMB's Key Customers?

• Individual consumers seeking mobile and broadband services.
• Small, medium, and large enterprises requiring telecommunications solutions.
• Businesses looking for IoT and digital content services.
• Retail customers purchasing mobile handsets and accessories.
• Telecommunications partners utilizing co-billing services.

Company Profile

TIM S.A. operates in the Telecom Services industry within the Communication Services sector. It is headquartered in Rio De Janeiro, Brazil.

TIM S.A. Financial Trajectory

TIM S.A. (TIMB) reported $1.37B in revenue for Q2 FY2026, reflecting 2.3% growth compared to the prior quarter. The company recorded net income of $190.2M, with diluted EPS of $0.40. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Communication Services. Across the four most recent quarters, TIMB averaged $0.44 in diluted EPS.

How TIM S.A. Is Valued

TIM S.A. carries a market capitalization of $9.16B, placing it in the mid-cap category. Analyst price targets span from $22.00 to $28.50, with a consensus of $24.48. At the current price of $19.18, that implies approximately 28% upside potential. Relative to its peer group, TIMB's quantitative score of 88/100 is above the peer average of 61/100.

Return on equity for TIM S.A. stands at 17.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.6%, showing how much profit it generates from its asset base. TIMB trades at a trailing price-to-earnings ratio of 10.86, below the Communication Services sector average of ~17.60x. Its free cash flow yield is 21.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.85 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 10.0%, the inverse of the P/E and a quick read on earnings relative to price.

TIM S.A.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.80 places it in the distress zone, a signal of elevated financial risk.

TIM S.A. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 6.3% above estimates on average.

Over the past six months, TIM S.A. insiders filed 34 SEC Form 4 transactions — 4 sales and 30 purchases. On net that is roughly 863K shares acquired (about $303K) — insiders putting money in tends to read as conviction.

TIMB Financials

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TIMB Analyst Consensus

TIMB MoonshotScore

Latest TIM S.A. Analysis

Common Questions About TIMB (Communication Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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