TIMBTIM S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.2×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margin-driven, fat margins on slower asset turns. ROE 18% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TIMB?
TIM S.A. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 24%
Operating margin · Telecom Services median 11% · fiscal year to FY2025
- Cash conversion
- 2.24×
Cash conversion · 2.57× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.24%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 21% |
| FY2022 | 15% |
| FY2023 | 20% |
| FY2024 | 22% |
| FY2025 | 24% |
Details›
- Gross marginfiscal year to FY2025
- 54%
- Operating marginfiscal year to FY2025
- 24%
- Net marginfiscal year to FY2025
- 16%
- Free cash flow margin
- 33%
- Revenue, trailing twelve months
- $26.6B
- Free cash flow, trailing twelve months
- $8.90B
- Net income, trailing twelve months
- $4.31B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.