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

FairStock Score: 71/100 — STEADY

Key Financials

Strengths

• Generates $6.1 billion in annual free cash flow (49.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 17.1% above cost of capital
• Attractive 9.0% dividend yield providing steady income returns
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TIM S.A. American Depositary Shares (Each representing 5 Common Shares) is a mid-cap communication services company valued at $12.4 billion. The business generates $26.6 billion in annual revenue with a 5.0% net margin and $6.1 billion in free cash flow. From a quality standpoint, TIM shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is attractively valued at 14.6x earnings, with trades above its Graham Number with a negative 30% margin. Growth dynamics show revenue growing at 4.4% and profit growth of 27.0%. The 9.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates TIM's consistent 17% ROE at just 15x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $6.1 billion in annual free cash flow (49.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Sluggish 4% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer