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TIM
(NYSE:TIMB)
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Rating:75Outperform
Price Target:
$21.50
â–²(18.26% Upside)
Action:Reiterated
Date:10/06/26
The score is driven primarily by strong financial performance (healthy margins and robust free cash flow) and supportive valuation (low P/E and high dividend yield). Earnings-call commentary reinforces the outlook via maintained CapEx plans and continued growth, though acquisition-related leverage/integration and mobile churn/competition risks cap upside. Technicals are mixed, with near-term strength but weaker long-term trend signals.
Positive Factors
Strong profitability and cash generation
TIM combines strong operating profitability with substantial cash generation, giving it resources to fund network investment, strategic initiatives and shareholder distributions. This financial capacity can support competitive resilience and sustain growth over the next several quarters.
Negative Factors
Mobile base contraction and elevated churn
Subscriber losses and elevated churn threaten the scale and recurring economics of TIM’s core mobile business. Continued competitive pressure could require greater promotions or slower pricing actions, limiting service-revenue growth and weakening customer lifetime value.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
TIM combines strong operating profitability with substantial cash generation, giving it resources to fund network investment, strategic initiatives and shareholder distributions. This financial capacity can support competitive resilience and sustain growth over the next several quarters.
Read all positive factors
TIM (TIMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.68B
Dividend Yield7.72%
Average Volume (3M)552.44K
Price to Earnings (P/E)10.1
Beta (1Y)0.19
Revenue Growth13.99%
EPS Growth29.93%
CountryUS
Employees8,873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.05
Shares Outstanding478,425,170
10 Day Avg. Volume745,866
30 Day Avg. Volume552,438
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)2.14
Price to Sales (P/S)1.93
P/FCF Ratio5.78
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit0.84
Enterprise Value/Ebitda0.82
Forecast
1Y Price Target
$23.00Price Target Upside26.51% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.74
Revenue Forecast (FY)$5.40B
TIM Business Overview & Revenue Model
Company Description
TIM S.A. is a prominent telecommunications provider in Brazil, delivering an extensive portfolio of services. Its core operations include mobile voice and data communication, high-speed broadband internet access, and various supplementary telecomm...
How the Company Makes Money
TIM primarily makes money by selling telecommunications services delivered over its mobile network. Its key revenue streams are (1) service revenues from mobile plans and usage: recurring monthly fees from postpaid subscriptions and prepaid top-up...
TIM Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented multiple encouraging operational and financial indicators — revenue growth, margin expansion, strong cash generation, platform and B2B momentum, successful product launches and AI-driven efficiency gains — while acknowledging near-term execution challenges: mobile base contraction, churn and competitive promotional pressures, bad-debt volatility and integration costs from recent acquisitions. Management provided mitigation plans (new commercial offers, CapEx optimization, asset monetization, AI initiatives) and reiterated confidence in absorbing I-Systems CapEx and supporting dividend policy. Overall, positive fundamental trends and clear strategic actions outweigh the near-term operational headwinds.Positive Updates
Revenue Near BRL 4 Billion and Service Revenue Growth
Total revenue approaching BRL 4 billion in the quarter; service revenue increased around 6% in the first half, reflecting broader contribution across business lines.
Negative Updates
Mobile Base Contraction and Market Share Pressure
Mobile subscriber base contracted this quarter and market share fell; net additions were weaker due to softer gross adds and elevated churn following price increases in Q1 and Q2.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Near BRL 4 Billion and Service Revenue Growth
Total revenue approaching BRL 4 billion in the quarter; service revenue increased around 6% in the first half, reflecting broader contribution across business lines.
Read all positive updates
Company Guidance
Management reiterated that they will preserve existing CapEx guidance despite the I‑Systems acquisition (no material incremental CapEx; I‑Systems to be monetized and a capital increase announced to address its debt) and that they have sufficient cash to fund declared CapEx and shareholder distributions; they pointed to quarter and H1 metrics including revenue approaching BRL4.0 billion, service revenues +≈6% in H1, EBITDA +≈7% in H1 (EBITDA after leases ≈+8%), net income >BRL1.0 billion in the quarter (+≈6% YoY), operating cash flow >BRL3.0 billion in H1 (double‑digit growth), mobile service revenue growth mid‑single digit (~4.7%) with postpaid ≈70% of mobile service revenue, B2B ≈7% of service revenues, platform revenues more than doubled in Q2, and AI engaging >2 million customers to lift collections; they also expect bad‑debt to plateau, roaming costs to normalize seasonally, churn to have improved in June versus April, and plan to drive broadband and convergence growth organically and through selective M&A.TIM Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.40B | 26.62B | 25.45B | 23.83B | 21.53B | 18.06B |
| Gross Profit | 14.95B | 14.36B | 13.55B | 12.34B | 10.87B | 9.62B |
| EBITDA | 15.31B | 13.74B | 12.99B | 12.41B | 10.79B | 10.25B |
| Net Income | 4.33B | 4.31B | 3.15B | 2.84B | 1.67B | 2.96B |
Balance Sheet | ||||||
| Total Assets | 57.19B | 56.94B | 56.33B | 55.26B | 56.41B | 49.82B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 5.88B | 5.69B | 5.04B | 4.74B | 9.80B |
| Total Debt | 16.50B | 28.59B | 15.61B | 16.03B | 17.80B | 12.91B |
| Total Liabilities | 32.17B | 32.96B | 29.92B | 29.24B | 31.01B | 24.71B |
| Stockholders Equity | 25.02B | 23.98B | 26.40B | 26.02B | 25.40B | 25.11B |
Cash Flow | ||||||
| Free Cash Flow | 9.15B | 8.90B | 7.78B | 7.92B | 4.43B | 4.62B |
| Operating Cash Flow | 13.75B | 13.44B | 12.33B | 12.42B | 9.16B | 9.91B |
| Investing Cash Flow | -4.06B | -3.56B | -4.95B | -4.68B | -8.35B | -6.52B |
| Financing Cash Flow | -10.01B | -9.53B | -7.20B | -7.21B | -3.49B | -735.37M |
TIM Technical Analysis
Negative
18.18
Price Trends
18.20
Negative
19.82
Negative
21.96
Negative
Market Momentum
>-0.01
Negative
44.78
Neutral
44.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIMB, the sentiment is Negative. The current price of 18.18 is below the 20-day moving average (MA) of 18.44, below the 50-day MA of 18.20, and below the 200-day MA of 21.96, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.68B | 10.06 | 17.54% | 7.72% | 13.99% | 29.93% | |
72 Outperform | $19.55B | 14.73 | 9.70% | 7.18% | 16.10% | 24.13% | |
70 Outperform | $5.66B | 11.78 | 9.66% | 2.49% | 33.24% | ― | |
68 Neutral | $13.32B | 19.97 | 21.02% | 5.35% | 29.10% | -29.84% | |
67 Neutral | $65.47B | 13.11 | 21.99% | 2.78% | 13.40% | 75.68% | |
63 Neutral | $36.33B | -70.93 | -0.79% | 3.45% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TIMB
TIM
17.98
-1.61
-8.22%
AMX
America Movil
21.32
0.50
2.38%
TEO
Telecom Argentina
12.37
4.74
62.23%
VIV
Telefonica Brasil
12.20
0.98
8.77%
VOD
Vodafone
15.56
4.81
44.73%
TIGO
Millicom International Cellular SA
79.48
34.58
77.02%
TIM Corporate Events
TIM S.A. Files Routine Form 6-K with U.S. SEC on September 10, 2026
Sep 11, 2026
TIM S.A. is a Brazilian telecommunications operator headquartered in Rio de Janeiro, providing mobile and fixed telecom services and digital connectivity solutions to consumers and businesses. As a foreign private issuer listed in the U.S., it acc...
TIM S.A. Details Insider and Controlling Shareholder Stakes in August 10 Form 6-K Filing
Aug 10, 2026
On August 10, 2026, TIM S.A. filed a Form 6-K in the U.S. disclosing consolidated information on securities and derivatives positions held by directors, executive management, fiscal council members, advisory bodies, the controlling shareholder and...
TIM S.A. Board Approves Up to R$670 Million Capitalization for Key Subsidiaries
Jul 29, 2026
On July 27, 2026, TIM S.A.’s board of directors met at the company’s Rio de Janeiro headquarters, receiving reports from its ESG, Control and Risks, and Statutory Audit committees on recent activities and oversight. The board also took...
TIM S.A. Fiscal Council Clears Q2 2026 Financials After EY Review
Jul 28, 2026
On July 27, 2026, TIM S.A.’s Fiscal Council met at the company’s Rio de Janeiro head office, in a joint session with the Statutory Audit Committee, to review tax, regulatory, civil and labor contingencies and examine the company’...
TIM S.A. Injects R$670 Million into Subsidiaries to Optimize Capital Structure
Jul 28, 2026
On July 27, 2026, TIM S.A.’s board approved capital contributions of up to R$600 million to its infrastructure arm I-Systems and up to R$70 million to V8 Consulting, both wholly owned subsidiaries. The injections, funded entirely from TIM...
TIM S.A. Posts Strong 1H26 Revenue Growth and Pushes Convergent, B2B and AI Strategies
Jul 28, 2026
In the first half of 2026, TIM delivered solid operational and financial performance, with service revenue up 6.1% year on year, driven by 5.1% growth in mobile and 24.9% growth in fixed services, while EBITDA-AL rose 7.8% and operating cash flow ...
TIM S.A. Delivers Strong 2Q26 Results and Injects R$670 Million into Key Subsidiaries
Jul 28, 2026
TIM S.A. reported solid second-quarter 2026 results, with net revenue rising 5.5% year on year to R$6.97 billion and service revenue up 5.7%, driven by strong mobile and a 27% jump in fixed-line revenue, particularly TIM Ultrafibra and B2B service...
TIM S.A. Files Mid-2026 Quarterly Financials Highlighting Stable Balance Sheet
Jul 28, 2026
TIM S.A. reported its individual and consolidated quarterly information for the period ended June 30, 2026, as furnished to the U.S. Securities and Exchange Commission on July 27, 2026. The filing includes balance sheets, income statements, cash f...
TIM S.A. Confirms Stable Control Structure in July 10 SEC Filing
Jul 10, 2026
On July 10, 2026, TIM S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission detailing its consolidated information on director and related-party transactions in the company’s shares. The filing outlines holdings and movement...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.