Tim S.a. (TIMB)

Price$18.43Cached quoteAs of 2026-09-05 23:10 UTC

AI: Undervalued

Price checkTIM looks modestly cheap because strong cash generation and shareholder payouts exceed what its earnings multiple suggests.

At the observed market value, TIM trades at about 10.2 times 2025 earnings and about 4.9 times simple 2025 free cash flow. Simple free cash flow means operating cash after capital spending; the supplied figures give R$8.9 billion for 2025. Management guides to R$5.3-R$5.5 billion of 2026 shareholder remuneration, roughly 12%-13% of current equity value. One ADR equals five shares, and the U.S. quote aligns closely with the Brazilian listing after currency conversion. That combination supports an Undervalued verdict, although the cash-return plan must remain funded by durable operations.

Big pictureRevenue, profit, and cash flow have climbed steadily, while telecom subscriptions soften economic swings.

From 2020 to 2025, revenue rose 54%, operating income 126%, and net income 136% in the supplied history. Operating cash flow reached R$13.4 billion in 2025, against R$4.5 billion of capital spending. The latest quarter extended that pattern: second-quarter 2026 revenue rose 5.5%, normalized operating profit before interest, tax, depreciation and amortization rose 7.0%, and normalized net income rose 6.2%. Connectivity demand is relatively recurring, but prepaid revenue fell 6.9% and the customer base shrank slightly, showing that competition can still pressure growth.

Business strengthTIM has financial breathing room and returns cash without meaningful dilution, though leases still matter.

At 2025 year-end, the supplied history showed R$3.6 billion cash versus R$2.8 billion debt, giving R$0.8 billion net cash, while shares outstanding fell 1.2% and dividends paid more than doubled to R$3.1 billion. The 2025 buyback acquired about 33.5 million shares, so dilution was not the issue. However, June 2026 reporting showed roughly R$13.8 billion of lease liabilities and R$4.8 billion of suspended Fistel fees, items not captured by the simple net-cash measure. TIM therefore has good financial flexibility, but its balance sheet is less debt-free than the headline suggests.

What could change the storyThe thesis improves if mobile pricing steadies, but weak prepaid trends could erase the valuation cushion.

The bull case is continued mix improvement: postpaid customers grew 6.8% year over year, fixed-service revenue grew 27%, and full ownership of I-Systems gives TIM more control of its fiber network. The bear case is weaker mobile economics: prepaid revenue fell 6.9%, monthly churn rose to 3.0%, and market share slipped about 0.9 percentage points. Management still targets about 5% service-revenue growth, 6%-8% operating-profit growth before depreciation, and 11%-14% growth in operating cash generation. Missing those goals or cutting cash returns would quickly shrink the valuation cushion.

AI: News

Second-quarter results resetSecond-quarter growth stayed solid, but slower mobile momentum and a small earnings miss disappointed investors.

On July 27, TIM reported second-quarter revenue of R$6.97 billion, up 5.5%, normalized operating profit before interest, tax, depreciation and amortization of R$3.59 billion, up 7.0%, and normalized net income of R$1.04 billion, up 6.2%. U.S.-reported earnings per ADR were slightly below consensus, while the ADR fell about 5.2% the next session. The timing is consistent with investors focusing on slower mobile growth and churn, but it does not prove the earnings release alone caused the decline.

I-Systems deal closesTIM bought the rest of I-Systems, gaining full control of a major fiber-network platform.

TIM completed the purchase of the remaining 51% of I-Systems on May 6 for R$947 million, taking ownership to 100%. I-Systems has a neutral fiber network reaching roughly nine million homes. In July, TIM also approved up to R$600 million of capital support to I-Systems, mainly to repay obligations early and reduce financing costs. Full ownership can improve coordination and broadband economics, but it also ties more cash and lease-related exposure to fiber. No reliable source linked a specific one-day stock move solely to the closing.

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Revenue

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2021

2022

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2024

2025

Net income

2018

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2025

Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	R$26.62B	R$25.45B	R$23.83B	R$21.53B	R$18.06B	R$17.27B	R$17.38B	R$16.98B
Gross profit	R$14.36B	R$13.55B	R$12.34B	R$10.87B	R$9.62B	R$9.27B	R$9.94B	R$9.28B
Gross margin	53.93%	53.26%	51.76%	50.51%	53.25%	53.69%	57.22%	54.65%
Operating expenses	R$19.96B	R$19.60B	R$19.00B	R$18.06B	R$14.79B	R$14.11B	R$5.43B	R$6.86B
Operating income	R$6.34B	R$5.51B	R$4.72B	R$3.16B	R$3.76B	R$2.80B	R$4.51B	R$2.42B
Operating margin	23.83%	21.64%	19.79%	14.68%	20.80%	16.23%	25.98%	14.24%
EBITDA	R$13.42B	R$12.53B	R$11.83B	R$9.99B	R$9.45B	R$2.97B	R$9.64B	R$6.37B
EBITDA margin	50.41%	49.25%	49.65%	46.39%	52.32%	17.18%	55.50%	37.52%
Net income	R$4.31B	R$3.15B	R$2.84B	R$1.67B	R$2.96B	R$1.83B	R$3.62B	R$2.55B
Net profit margin	16.20%	12.39%	11.90%	7.76%	16.38%	10.59%	20.84%	14.99%
Basic EPSper basic share	R$1.79	R$1.30	R$1.17	R$0.69	R$1.22	R$0.76	R$1.50	R$1.05
Diluted EPSper diluted share	R$1.78	R$1.30	R$1.17	R$0.69	R$1.22	R$0.76	R$1.50	R$1.05

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of TIMB
Holder	Shares held
Robeco Institutional Asset Management B.V.	3.82M
RENAISSANCE TECHNOLOGIES LLC	1.73M
ALLIANCEBERNSTEIN L.P.	1.62M
BlackRock, Inc.	1.1M
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	1.04M
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	817.89K
AMERICAN CENTURY COMPANIES INC	792.48K
UBS Group AG	687.61K
STATE STREET CORP	658.06K
ASSETMARK, INC	654.39K
Crossmark Global Holdings, Inc.	617.71K
Connor, Clark & Lunn Investment Management Ltd.	595.18K
JPMORGAN CHASE & CO	577K
O'SHAUGHNESSY ASSET MANAGEMENT, LLC	428.96K
Tredje AP-fonden	378.45K
VANGUARD CAPITAL MANAGEMENT LLC	351.97K
Qube Research & Technologies Ltd	346.09K
Creative Planning	245.77K
SCHRODER INVESTMENT MANAGEMENT GROUP	223.12K
CITADEL ADVISORS LLC	210.92K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)4$303.1K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 23, 2026Form 4	Viegas Marques Andrea PalmaChief Financial Officer	SellCommon Shares	35.0K	$4.32	$151.2K	83.3K
May 18, 2026Form 4	Lima Auana MattarChief Information Officer	SellCommon Shares	8.2K	$4.42	$36.2K	36.7K
Mar 26, 2026Form 4	Ferreira Vicente De MoraesInvestor Relations Officer	SellCommon Shares	68	$5.14	$349.52	0
Mar 24, 2026Form 4	Ferreira Vicente De MoraesInvestor Relations Officer	SellCommon Shares	22.3K	$5.17	$115.3K	68

Review ownership filings at SEC.gov ↗

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Tim S.a. (TIMB)

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