Stock analysis · Bull Rankings model

TIMB analysis

TIM S.A.Telecom Services. Scored on the same transparent model behind the daily rankings.

TIMB
TIM S.A. · Telecom Services
FCF$1.8bC+
Rev+4.6%C+
D/E0.66B
P/E10.9xA-
PEG1.30B
60.7Score
$19.12$9.1B
1Y Target$25.39Analyst consensus · 8 analysts
5Y Target$32.06Compound horizon
10Y Target$41.11Long-dated conviction
FCF$1.8bTTM · 06/26
C+
FCF $1.8b — respectable but not differentiating · TTM computed from 4 most-recent quarters (TTM · 06/26).
Rev+4.6%TTM YoY
C+
Revenue +4.6% — steady but below market-beating range
D/E0.66
B
D/E 0.66 — near the Communication Services debt median (≈60th pctile)
P/E10.9x
A-
P/E 10.9 — cheaper than most Communication Services peers (≈25th pctile)
PEG1.30
B
PEG 1.30 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 60.7
Quality0.83
Growth0.68
Value0.54
Why this score
  • Durable high returns
  • Cut its dividend
  • Foreign reporter (BRL)
Entry · Margin of safety
52-week rangeNear 52-week low
32% off the 12-month high
vs DCF fair value75% belowest. fair value ~$77
What the price assumes: free cash flow compounding at ~-22% a year for the next decade — vs the ~18% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability25% · Bgross profit ÷ total assets (Novy-Marx)
ROIC18.7% · A-return on invested capital — not score-weighted
Why now
Telecom Services · market cap $9.1b. Down 32% from 52-week high of $28.22 — deep drawdown territory. 8 sell-side analysts rate this a Hold with a mean 1-yr target of $25.39 (implying +33% upside).
Moat
Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 18% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Down 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 89% of earnings on a 8.1% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
Horizon
1-3 yr $25.39 (8-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $32.06 at ~11% CAGR — dividend + buyback compounding. 10 yr $41.11 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
-2.5 over 31 daily scores
From 63.2 (Jun 22) → 60.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
104
Position size
$1,988
4.0% of portfolio
Stop price
$14.34
25% below $19.12
$ at risk if stopped
$497.12
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

TIM S.A. (TIMB): score, valuation & FAQ

TIM S.A. (TIMB) is a Telecom Services company that scores 60.7 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A-). On valuation, TIMB sits about 75% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -22% annual free-cash-flow growth over the next decade.

Is TIMB a good stock to buy?

Bull Rankings scores TIMB 60.7 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (A-). A score is a quantitative screen of TIM S.A.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does TIMB score 60.7 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). TIMB earns its highest marks on P/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is TIMB overvalued or undervalued?

Based on $19.12, TIMB sits about 75% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -22% annual free-cash-flow growth over the next decade. It trades at a 10.9x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in TIMB?

Down 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 89% of earnings on a 8.1% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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