Share count
2.4Bpeak FY2020
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TIMB, TIM S.A.
Telecom Operators capital-intensive
A telecom carrier, renting access to a network that must be constantly rebuilt.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
R$26.6B
+4.6% YoY · 9% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue R$26.6B 5-yr avg R$23.1B
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Gross margin has run about 53% and operating margin about 20% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. Capital spending runs about 22% of sales, below what it charges for depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. Read this kind of business on subscribers, revenue per user, and network capex. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2018–2025
realized figures from each filing · older years to the left| 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||
| R$17.0B | R$17.4B | R$17.3B | R$18.1B | R$21.5B | R$23.8B | R$25.4B | R$26.6B | R$26.6B | RevenueRevenue |
| 55% | 57% | 54% | 53% | 51% | 52% | 53% | 54% | 54% | Gross marginGross mgn |
| R$2.4B | R$4.5B | R$2.8B | R$3.8B | R$3.2B | R$4.7B | R$5.5B | R$6.3B | R$6.3B | Operating incomeOp. inc. |
| 14.2% | 26.0% | 16.2% | 20.8% | 14.7% | 19.8% | 21.6% | 23.8% | 23.8% | Operating marginOp. mgn |
| R$2.5B | R$3.6B | R$1.8B | R$3.0B | R$1.7B | R$2.8B | R$3.2B | R$4.3B | R$4.3B | Net incomeNet inc. |
| — | — | 8% | 5% | 3% | 11% | 13% | 5% | 5% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||
| R$6.1B | R$7.1B | R$8.7B | R$9.9B | R$9.2B | R$12.4B | R$12.3B | R$13.4B | R$13.4B | Operating cash flowOp. cash |
| R$4.0B | R$5.1B | R$164M | R$5.7B | R$6.8B | R$7.1B | R$7.0B | R$7.1B | R$7.1B | DepreciationDeprec. |
| (R$370M) | (R$1.7B) | R$6.7B | R$1.3B | R$664M | R$2.5B | R$2.2B | R$2.1B | R$2.1B | Working capital & otherWC & other |
| R$3.8B | R$3.9B | R$3.9B | R$5.3B | R$4.7B | R$4.5B | R$4.6B | R$4.5B | R$4.5B | CapexCapex |
| 22.6% | 22.2% | 22.5% | 29.3% | 22.0% | 18.9% | 17.9% | 17.1% | 17.1% | Capex / revenueCapex/rev |
| R$2.3B | R$3.2B | R$8.5B | R$4.6B | R$4.4B | R$7.9B | R$7.8B | R$8.9B | R$8.9B | Owner earningsOwner earn. |
| 13.5% | 18.5% | 49.3% | 25.6% | 20.6% | 33.2% | 30.6% | 33.4% | 33.4% | Owner earnings marginOE mgn |
| R$2.3B | R$3.2B | R$4.8B | R$4.6B | R$4.4B | R$7.9B | R$7.8B | R$8.9B | R$8.9B | Free cash flowFCF |
| 13.5% | 18.5% | 27.7% | 25.6% | 20.6% | 33.2% | 30.6% | 33.4% | 33.4% | Free cash flow marginFCF mgn |
| R$588M | R$770M | R$1.2B | R$1.0B | R$1.2B | R$2.2B | R$2.7B | R$5.4B | R$5.4B | Dividends paidDiv. paid |
| 13% | 16% | 8% | 12% | 7% | 11% | 12% | 18% | 18% | Return on equityROE |
| 10% | 13% | 3% | 8% | 2% | 3% | 2% | −4% | −4% | Retained to equityRetained/eq |
| Balance sheet | |||||||||
| R$1.1B | R$2.3B | R$2.6B | R$5.2B | R$2.5B | R$3.1B | R$3.3B | R$3.6B | R$3.6B | Cash & investmentsCash+inv |
| — | R$3.2B | R$3.1B | R$3.1B | R$3.4B | R$3.7B | R$4.7B | R$4.9B | R$4.9B | ReceivablesReceiv. |
| — | R$203M | R$247M | R$203M | R$236M | R$332M | R$294M | R$357M | R$357M | InventoryInvent. |
| — | R$3.4B | R$3.3B | R$3.3B | R$3.7B | R$4.0B | R$5.0B | R$5.3B | R$5.3B | Operating working capitalOper. WC |
| — | R$8.5B | R$10.4B | R$15.4B | R$10.4B | R$11.4B | R$12.7B | R$13.5B | R$13.5B | Current assetsCur. assets |
| — | R$8.1B | R$8.3B | R$10.6B | R$13.1B | R$12.9B | R$12.8B | R$15.2B | R$15.2B | Current liabilitiesCur. liab. |
| — | 1.0× | 1.3× | 1.5× | 0.8× | 0.9× | 1.0× | 0.9× | 0.9× | Current ratioCurr. ratio |
| — | R$40.3B | R$41.7B | R$49.8B | R$56.4B | R$55.3B | R$56.3B | R$56.9B | R$56.9B | Total assetsAssets |
| 2.5× | 3.2× | 2.3× | 2.2× | 1.1× | 1.7× | 2.0× | 1.9× | 1.9× | Interest coverageInt. cov. |
| R$19.8B | R$22.4B | R$23.2B | R$25.1B | R$25.4B | R$26.0B | R$26.4B | R$24.0B | R$24.0B | Shareholders’ equityEquity |
| Per share | |||||||||
| 2.42B | 2.42B | 2.42B | 2.42B | 2.42B | 2.42B | 2.42B | 2.41B | 2.41B | Shares out (diluted)Shares |
| R$7.02 | R$7.18 | R$7.13 | R$7.46 | R$8.90 | R$9.85 | R$10.52 | R$11.03 | R$11.03 | Revenue / shareRev/sh |
| R$1.05 | R$1.50 | R$0.76 | R$1.22 | R$0.69 | R$1.17 | R$1.30 | R$1.79 | R$1.79 | EPS (diluted)EPS |
| R$0.95 | R$1.33 | R$3.52 | R$1.91 | R$1.83 | R$3.27 | R$3.22 | R$3.69 | R$3.69 | Owner earnings / shareOE/sh |
| R$0.95 | R$1.33 | R$1.98 | R$1.91 | R$1.83 | R$3.27 | R$3.22 | R$3.69 | R$3.69 | Free cash flow / shareFCF/sh |
| R$0.24 | R$0.32 | R$0.48 | R$0.43 | R$0.50 | R$0.90 | R$1.12 | R$2.22 | R$2.22 | Dividends / shareDiv/sh |
| R$1.58 | R$1.59 | R$1.61 | R$2.18 | R$1.95 | R$1.86 | R$1.88 | R$1.88 | R$1.88 | Cap. spending / shareCapex/sh |
| R$8.18 | R$9.27 | R$9.58 | R$10.37 | R$10.49 | R$10.75 | R$10.91 | R$9.93 | R$9.93 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 7-yr | 5-yr | |
|---|---|---|
| Revenue / share | +6.7%/yr | +9.1%/yr |
| Owner earnings / share | +21.4%/yr | +1.0%/yr |
| EPS | +7.9%/yr | +18.8%/yr |
| Dividends / share | +37.2%/yr | +36.1%/yr |
| Capital spending / share | +2.5%/yr | +3.2%/yr |
| Book value / share | +2.8%/yr | +0.7%/yr |
The record, charted
FY2018–2025Each measure over its full record; the current point and the worst year marked.
Gross margin
54%low FY2022
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
R$8.9Bowner earningsvs.R$4.3Bnet incomelow FY2018
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2018FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business turned R$4.3B of profit into R$8.9B of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | R$4.3B | R$3.2B | R$2.8B | R$1.7B | R$3.0B |
| Depreciation & amortizationnon-cash charge added back | +R$7.1B | +R$7.0B | +R$7.1B | +R$6.8B | +R$5.7B |
| Working capital & othertiming of cash in and out, other non-cash items | +R$2.1B | +R$2.2B | +R$2.5B | +R$664M | +R$1.3B |
| Cash from operations | R$13.4B | R$12.3B | R$12.4B | R$9.2B | R$9.9B |
| Capital expenditurecash put back in to keep running and to grow | −R$4.5B | −R$4.6B | −R$4.5B | −R$4.7B | −R$5.3B |
| Owner earnings | R$8.9B | R$7.8B | R$7.9B | R$4.4B | R$4.6B |
| Owner-earnings marginowner earnings ÷ revenue | 33% | 31% | 33% | 21% | 26% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- ThinOperating income R$6.3B ÷ interest expense R$3.4B
What this means
Operating profit covers interest, but with little room. A bad year, a refinancing at higher rates, or a revenue wobble closes the gap fast.
- Debt under-captured — leverage unknown, not low
What this means
This company pays far more interest than its tagged debt implies (the rest sits under segment dimensions the data source strips), so its net cash or net debt cannot be read honestly: the gap is unknown, not zero, and 'net cash' here would be exactly the fiction the figure is meant to prevent. Judge it on the record and owner earnings instead.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- Debt under-capturedIndustry peers: median 6%
What this means
This company's interest bill implies far more debt than its filings tag at the consolidated level (the rest sits under segment dimensions the data source strips), so invested capital, and the return on it, cannot be read honestly. Judge this one on Owner Earnings and the record instead.
- High through the cycle8-yr median margin, range 14%–49%; latest R$8.9B = operating cash R$13.4B − maintenance capex R$4.5BIndustry peers: median 6%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 33% of revenue this year, a 26% median across 8 years.
- Cash-backedCash from ops R$13.4B ÷ net income R$4.3B
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Returns about halfDividends + buybacks R$5.4B ÷ Owner Earnings R$8.9B
What this means
Of R$8.9B Owner Earnings, R$5.4B (60%) went back to shareholders, R$5.4B dividends, R$0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
- Investing or harvesting? 0.64×HarvestingCapex R$4.5B ÷ depreciation R$7.1B
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 4 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · R$26.6B
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity MissCurrent ratio ≥ 2× · 0.89×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt —Debt ≤ working capital · —
What this means
The filings tag only a fraction of the debt this company's interest bill implies (much of it sits under segment dimensions the data source strips), so this test can't be run honestly.
- Earnings stability PassA profit every year (8-yr record) · no losses
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record PassUninterrupted dividends · paid every year (8)
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth NearEarnings +33% over the record · +29%
What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are R$1.44/share (latest year R$1.80), the averaged base the calculator's gate runs on, and book value is R$10.02/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2018–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 8 of 8
What this means
Never lost money over the record, the earnings stability Graham insisted on.
- Operating margin 19% → 22% (3-yr avg ends)
In the filing’s words The filing ties gains to its own pricing, but names price competition too — pricing power that is real yet contested, not unopposed. The margin shows who is winning.
What this means
Through the cycle the operating margin widened — about 19% early to 22% lately, median 20% — pricing power intact or improving.
- Owner earnings growth +17%/yr
What this means
Owner earnings grew about 17% a year over the record.
- Worst year 2018 · 14.2% op. margin
What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
- Share count −0.0%/yr
What this means
Roughly flat share count, little dilution, little buyback.
- Dividend record rising
What this means
Paid and raised the dividend across the record, the continuity Graham prized.
- How management talks about it Promotional
What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Framed as a capability
The filing positions AI as something the company uses, not something it fears.
“These pillars are supported by transversal enablers, including Efficiency, with strict discipline in cost control and capital allocation; Artificial Intelligence, applied across operations to enhance customer experience, productivity and data-driven decision-making; and ESG, inte…”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assetsR$13.5B
- Cash & short-term investmentsR$3.6B
- ReceivablesR$4.9B
- InventoryR$357M
- Other current assetsR$4.6B
Current liabilitiesR$15.2B
- Debt due within a yearR$926M
- Other current liabilitiesR$14.3B
Current ratio0.89×all current assets ÷ what's due · Graham looked for 2×
Quick ratio0.86×stricter: inventory excluded
Cash ratio0.24×strictest: cash alone against what's due
Working capital(R$1.7B)the cushion left after near-term bills
Debt due this year vs. cashR$926M due · R$3.6B cash
covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet
Deeper floors
Tangible book valueR$24.0Bequity stripped of goodwill & intangibles
Net current asset value(R$19.5B)Graham's net-net: current assets less all liabilities
Debt incl. operating leasesR$16.5BR$13.8B of it operating leases
From the company's latest filing.
How the cash was used, 2018–2025
Over the record, the business generated R$79.1B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.
- ReinvestedR$35.2B · 44%
- DividendsR$15.0B · 19%
- Retained (debt / cash)R$28.9B · 37%
- Returned to ownersR$15.0B
31% of the owner earnings the business produced over the span, R$15.0B as dividends and R$0 as buybacks.
- Net change in share count−0.3%
The diluted count barely moved (2420M to 2414M): buybacks roughly offset the stock issued to staff.
- Dividend recordR$2.22/sh
Paid in 8 of the years on record, the per-share dividend growing about 37% a year. It was never cut over the span.
- Return on what it retained45%
Of the earnings it kept rather than paid out (R$7.9B over the span), annual owner earnings (first three years vs last three) grew R$3.5B, so each retained R$1 added about 0.45 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Inverting the record
Invert: instead of why TIM S.A. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2018–2025.
None of the 3 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.
Each test came back clean
- Is it less profitable than it was?
- Did the share count rise anyway?
- Did reported profit become cash?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Telecom Operators
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| VZVerizon Communications | $138.2B | 84% | 22.0% | 11% | 6% |
| TAT&T Inc. | $125.6B | 52% | 15.4% | 6% | 15% |
| TMUST-Mobile US Inc. | $88.3B | 87% | 12.1% | 8% | 1% |
| WBDWarner Bros. Discovery, Inc. | $37.3B | 63% | 13.4% | 5% | 20% |
| PARAParamount Global | $29.2B | — | 17.8% | 13% | 6% |
| PSKYParamount Skydance Corporation | $29.2B | — | -18.0% | -19% | 2% |
| TIMBTIM S.A. | R$26.6B | 53% | 20.3% | — | 28% |
| LUMNLumen Technologies | $11.3B | 52% | 3.3% | 2% | 10% |
| Group median | — | 58% | 14.4% | — | 8% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares , as evidenced by American Depositary Receipts, each representing five Common”; TIM S.A. reports in BRL, so every figure in this tool is stated per ADS and translated at BRL 1 = $0.197 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in BRL.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what TIM S.A. has delivered.
TIM S.A.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.
$
Through the cycle, TIM S.A. earns about $1.5B on its 28.1% median owner-earnings margin. This year’s 33.4% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25+17%/yr
Owner-earnings growth · ’18→’25+17%/yr
Owner-earnings growth · ’18→’25+17%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $1.8B on 478M shares outstanding, per the 20-F cover, as of 2025-12-31; net cash $164M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "TIM S.A. (TIMB), the owner's record," https://ownerscorecard.com/c/TIMB, data as of 2026-07-09.
Manual order: ← TIGR its page in the Manual TJGC →
Industry order: ← TIGO the Telecom Operators chapter TLK →