TIM Group (TIIAY) AI Stock Analysis

• Market Cap: $12.82B
• Dividend Yield: N/A
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 125.9
• Beta (1Y): 0.45
• Revenue Growth: -9.37%
• EPS Growth: N/A
• Country: US
• Employees: 26,282
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 1,532,946,700
• 10 Day Avg. Volume: 2,169
• 30 Day Avg. Volume: 1,419
• PEG Ratio: 0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 1.27
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 7.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $6.00 ▲(2.92% Upside)

The overall stock score reflects a mixed outlook. The most significant factor is the company's financial performance, which shows challenges in profitability and high debt levels. Technical analysis suggests positive momentum, but the high P/E ratio indicates potential overvaluation. The earnings call provided some positive insights, but also highlighted ongoing challenges.

TIM Group Business Overview & Revenue Model

Company Description

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. In addition, it is involved in customer care, operating credit support, loyalty, and retention activities. The company has a strategic partnership with Google Cloud. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.

How the Company Makes Money

TIM Group generates revenue through multiple streams, primarily from its mobile and fixed-line services. The company earns money by charging customers for voice and data plans, broadband subscriptions, and television services. Additionally, TIM Group capitalizes on its extensive network infrastructure by offering wholesale services to other telecom operators. Significant partnerships with technology firms and content providers also contribute to its earnings, allowing TIM to bundle services and create value-added offerings. Furthermore, the company's initiatives in digital services, such as cloud solutions and IoT applications, are emerging revenue sources that align with the growing demand for digital transformation in various sectors.

TIM Group Financial Statement Overview

Summary

TIM Group's financial statements reflect challenges in profitability and cash flow management. Despite some improvement in leverage and revenue growth, persistent negative net income and high debt levels are concerning. The company needs to improve operational efficiency and reduce debt to enhance financial stability.

Income Statement

The income statement shows a declining trend in gross profit margin from 64.08% in 2020 to 42.53% in TTM 2025, indicating reduced efficiency in generating profit from revenue. Net profit margin has been negative since 2021, with a slight improvement in TTM 2025, but still negative at -2.42%. Revenue growth is inconsistent, with a minor increase of 1.38% in TTM 2025. The EBIT and EBITDA margins have shown some stability, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, peaking at 2.31 in 2023, indicating significant leverage. Although it has improved to 1.27 in TTM 2025, it remains a risk factor. Return on equity has been negative since 2021, reflecting poor returns for shareholders. The equity ratio has been stable, but the high leverage poses a potential risk to financial stability.

Cash Flow

Cash flow analysis shows a negative free cash flow in TTM 2025, with a significant decline in free cash flow growth rate. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.98B	14.44B	16.30B	15.79B	15.32B	15.80B
Gross Profit	5.95B	6.73B	8.08B	9.13B	9.25B	10.13B
EBITDA	3.48B	4.80B	5.71B	5.51B	1.16B	7.25B
Net Income	-96.00M	-610.00M	-1.44B	-2.92B	-8.65B	7.22B
Balance Sheet
Total Assets	36.45B	37.66B	62.16B	62.03B	69.19B	73.23B
Cash, Cash Equivalents and Short-Term Investments	2.88B	4.46B	4.97B	5.00B	9.15B	5.92B
Total Debt	13.37B	14.72B	31.55B	31.19B	32.10B	29.95B
Total Liabilities	23.25B	24.30B	44.65B	43.30B	47.15B	44.39B
Stockholders Equity	11.86B	11.96B	13.65B	15.06B	17.41B	26.21B
Cash Flow
Free Cash Flow	-286.00M	402.00M	-25.00M	-1.41B	323.00M	1.85B
Operating Cash Flow	2.34B	3.25B	3.94B	4.89B	4.34B	6.55B
Investing Cash Flow	6.47B	4.94B	-4.15B	-5.33B	-5.12B	-3.08B
Financing Cash Flow	-6.58B	-7.41B	-456.00M	-2.87B	3.16B	-2.01B

TIM Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIIAY, the sentiment is Positive. The current price of 5.83 is above the 20-day moving average (MA) of 5.64, above the 50-day MA of 5.37, and above the 200-day MA of 4.20, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TIIAY.

TIM Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	80 Outperform	$11.02B	17.31	13.78%	6.40%	-7.99%	2.16%
VIV	76 Outperform	$20.52B	20.24	8.20%	4.51%	-6.51%	-0.21%
TLK	74 Outperform	$19.62B	14.02	17.71%	6.40%	-5.13%	-5.90%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TIIAY	59 Neutral	$12.82B	125.85	-1.91%	―	-9.37%	―
TEF	56 Neutral	$29.90B	―	-3.55%	6.27%	-4.73%	-251.31%
VOD	54 Neutral	$28.26B	―	-7.17%	4.22%	0.89%	-494.16%

TIM Group Corporate Events

Telecom Italia S.P.A. Reports Stable Q2 Earnings

The recent earnings call for Telecom Italia S.P.A. (TIM) painted a picture of stability and positivity, despite some challenges. The company reported significant achievements in revenue growth and strong enterprise performance, alongside successful price adjustments. However, potential risks were noted due to challenges in connectivity and the resignation of key executives.

Telecom Italia S.P.A. Reports Mixed H1 2025 Results

Telecom Italia S.P.A., operating in the telecommunications sector, is a leading provider of telecommunication services in Italy and Brazil, known for its extensive network infrastructure and innovative solutions.