TIM S.A. American Depositary Shares (Each representing 5 Common Shares) (TIMB)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable economics and a margin of safety. TIM S.A. is a Brazilian telecom operator offering landline, mobile, and multimedia services. The data does not give me market share or pricing power, so I cannot confirm a wide competitive advantage. In the second quarter of 2026, revenue was $7.0B and net income was $969.6M, a 13.92% margin. The provided data does not show strong profit momentum, so growth is not the main attraction here. Financial health is mixed. FairStock's calculations show a return on equity of 17.25% and a return on capital employed of 7.75%, with debt-to-equity of 0.66. FairStock's Piotroski F-Score is 8/9, which suggests improving fundamentals, but FairStock's Altman Z-Score is 0.43, a serious red flag about financial distress risk. Trailing-twelve-month free cash flow is listed at $9.1B. At the 2026-10-13 close of $18.18, FairStock's FCF yield is 73.5% and EV/EBITDA is 1.70; those numbers look extraordinarily cheap unless there is a hidden risk not visible in these figures. Also at that close, FairStock's P/E is 10.39 and P/B is 1.81, while the Graham Number is $20.30, giving a 10.44% margin of safety. The dividend yield is 8.46%, and the stock is near the low end of its 52-week range of $17.14 to $28.22. I would want more years of filed results; the Lynch category is none because only 0 years of filed results are available, and I need at least 3 to judge consistency. The price looks modestly cheap, but the low Altman score and stalled profit keep this from being a clear bargain.

In plain English: TIM S.A. provides phone, mobile, internet, and long-distance services in Brazil. In the second quarter of 2026, revenue was $7.0B and net income was $969.6M; the business earns a solid return on shareholder money and pays a high dividend, but profit momentum is weak. At the recent price of $18.18 on 2026-10-13, the stock looks modestly inexpensive compared with its earnings and accounting value, though its balance-sheet safety score is a warning.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer