# Tim (TIMS3.SA)

Canonical: https://gigainvestors.com/s/TIMS3.SA

Analysis as of: 2026-10-16T07:36:14.295Z. Financial observations: FY1998–FY2026.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 18.64 per share; close as of 2026-10-15.

Estimated value: low BRL 10.03 per share, central BRL 10.60 per share, high BRL 11.26 per share. Buy at or below the central value BRL 10.60 per share. Valuation as of 2026-10-16T07:36:14.295Z; scenarios are not confidence intervals.

Expected annual return: 10.2% at the stated quote. About 10.2% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.14×

- FY2019: 0.26×

- FY2020: 0.16×

- FY2021: 0.21×

- FY2022: 0.17×

- FY2023: 0.20×

- FY2024: 0.23×

- FY2025: 0.24×

- LTM to Jun 2026: 0.25×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.4%

- ROIC, second-lowest year: 8.5%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 52.4%

- Recent gross margin (lower of latest and 3-year median): 50.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 22.4%

- ROIC including acquisitions, ten-year median: 8.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.7%

- FY2017: 8.5%

- FY2018: 12.1%

- FY2019: 13.0%

- FY2020: 9.3%

- FY2021: 12.9%

- FY2022: 9.9%

- FY2023: 12.7%

- FY2024: 15.3%

- FY2025: 19.5%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.74×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 11B

- Net income, five-year total: BRL 15B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 8.4 pp

- Working capital / revenue, final three-year average: 2.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.15×

- FY2022: 0.72×

- FY2023: 1.06×

- FY2024: 0.99×

- FY2025: 0.95×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.5% vs 15.3%

- Per-share earnings: 0.51 to 1.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: BRL 32B

- Cumulative retained earnings: BRL 7.3B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.4%

- Per-share value change: BRL 0.79

- Per-share value, starting three-year median: BRL 0.51

- Per-share value, ending three-year median: BRL 1.30

- Buybacks concentrated in cheaper years (correlation): 0.10

- Average buyback yield: 0.3%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 8.7B

- Cumulative net income, 10 years: BRL 25B

- ROIC, first three-year median: 8.5%

- ROIC, last three-year median: 15.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.31

- FY2017: BRL 0.51

- FY2018: BRL 1.05

- FY2019: BRL 1.50

- FY2020: BRL 0.76

- FY2021: BRL 1.22

- FY2022: BRL 0.69

- FY2023: BRL 1.17

- FY2024: BRL 1.30

- FY2025: BRL 1.80

### accounting: pass

- Sloan accruals: -15.8%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.61×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.2%

- FY2017: -12.8%

- FY2018: -11.2%

- FY2019: -8.5%

- FY2020: -16.4%

- FY2021: -19.7%

- FY2022: -13.8%

- FY2023: -17.3%

- FY2024: -16.3%

- FY2025: -15.8%

## Holders

## Price story

Down 33% since Feb 2026 · sales +2.9%

Story as of 2026-10-16T10:00:07.101Z; price observation 2026-10-15.

Price needs cash profits to grow 10.3% a year for ten years

### Sales · FY2025–2026

sales +2.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: BRL 16B 

- FY2018: BRL 17B 

- FY2019: BRL 17B 

- FY2020: BRL 17B 

- FY2021: BRL 18B 

- FY2022: BRL 22B 

- FY2023: BRL 24B 

- FY2024: BRL 25B 

- FY2025: BRL 27B 

- FY2026: BRL 27B 

### Gross margin · FY2025

gross margin 50.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 50.7% 

- FY2017: 52.3% 

- FY2018: 54.6% 

- FY2019: 57.2% 

- FY2020: 53.7% 

- FY2021: 52.4% 

- FY2022: 50.5% 

- FY2023: 51.8% 

- FY2024: 53.3% 

- FY2025: 50.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are BRL 26.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2025: revenue 26624721000; grossProfit 13505945000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TIMS3.SA: TIM S.A. engages in the telecommunications sector in Brazil. It offers landline switched telephone services in local, national, and international long-distance modes, as well as personal mobile and multimedia communication services. The company is based in Rio de Janeiro, Brazil. TIM S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

### Why customers stay

Margins ranged from 50.7% to 53.3% during 2023–25; it earns 12.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2023: grossProfit / revenue = 51.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2024: grossProfit / revenue = 53.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2025: grossProfit / revenue = 50.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); 10-year return on capital observations [[2016,0.056783712077236016],[2017,0.08536941052466307],[2018,0.12081370139774751],[2019,0.12979858385592374],[2020,0.09320955188205533],[2021,0.12901134447998008],[2022,0.09944522390603057],[2023,0.12711360037004826],[2024,0.15283546543098184],[2025,0.19462637027171711]]; median 0.12396365088389788. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 51% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); Gross margin observations: [[2021,0.5238279907323209],[2022,0.5050819985749717],[2023,0.5176433409346933]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back BRL 748.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2016: growth capex 0; upkeep 4502397000; owner earnings 33202000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2017: growth capex 134236000; upkeep 4013671000; owner earnings 1234507000. Growth capex / owner earnings = 0.10873652397272758.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2018: growth capex 0; upkeep 3831906000; owner earnings 2667516000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2019: growth capex 0; upkeep 3853484000; owner earnings 4897624000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2020: growth capex 0; upkeep 3891306000; owner earnings 3463960000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2022: growth capex 0; upkeep 4730223000; owner earnings 1201334000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2023: growth capex 0; upkeep 4504314000; owner earnings 2998781000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2024: growth capex 0; upkeep 4550379000; owner earnings 3114367800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2025: growth capex 0; upkeep 4541495000; owner earnings 4095202400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); Dividend observations: [[2016,460309000],[2017,332658000],[2018,588247000],[2019,770139000],[2020,1153054000],[2021,1042976000],[2022,1199201000],[2023,2174929000],[2024,2720095000],[2025,5360083000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); FY2025: cash repurchases 748268000 BRL.

### Are managers owners

Insiders own 67.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TIMS3.SA SharesStats.PercentInsiders = 67.75999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.3% yearly over ten years; actual growth was 20%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:14.295Z); Ten-year compound average after fade. Initial solved rate 0.13510451923286737. Price 18.64; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.27636838871565056 → FY2025 1.705012948298402. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-10: BRL 8.86 per share

- 2016-11: BRL 8.30 per share

- 2016-12: BRL 7.83 per share

- 2017-01: BRL 8.95 per share

- 2017-02: BRL 9.76 per share

- 2017-03: BRL 10.10 per share

- 2017-04: BRL 10.26 per share

- 2017-05: BRL 9.92 per share

- 2017-06: BRL 9.79 per share

- 2017-07: BRL 10.64 per share

- 2017-08: BRL 11.28 per share

- 2017-09: BRL 11.55 per share

- 2017-10: BRL 12.13 per share

- 2017-11: BRL 11.80 per share

- 2017-12: BRL 13.10 per share

- 2018-01: BRL 13.50 per share

- 2018-02: BRL 14.10 per share

- 2018-03: BRL 14.40 per share

- 2018-04: BRL 15.95 per share

- 2018-05: BRL 13.41 per share

- 2018-06: BRL 13.18 per share

- 2018-07: BRL 12.40 per share

- 2018-08: BRL 12.29 per share

- 2018-09: BRL 11.73 per share

- 2018-10: BRL 11.59 per share

- 2018-11: BRL 11.86 per share

- 2018-12: BRL 11.85 per share

- 2019-01: BRL 12.40 per share

- 2019-02: BRL 11.82 per share

- 2019-03: BRL 11.79 per share

- 2019-04: BRL 11.69 per share

- 2019-05: BRL 11.00 per share

- 2019-06: BRL 11.63 per share

- 2019-07: BRL 12.22 per share

- 2019-08: BRL 12.30 per share

- 2019-09: BRL 11.91 per share

- 2019-10: BRL 11.42 per share

- 2019-11: BRL 13.54 per share

- 2019-12: BRL 15.67 per share

- 2020-01: BRL 16.75 per share

- 2020-02: BRL 16.13 per share

- 2020-03: BRL 12.44 per share

- 2020-04: BRL 12.76 per share

- 2020-05: BRL 13.62 per share

- 2020-06: BRL 14.20 per share

- 2020-07: BRL 15.75 per share

- 2020-08: BRL 14.32 per share

- 2020-09: BRL 13.06 per share

- 2020-10: BRL 11.85 per share

- 2020-11: BRL 13.49 per share

- 2020-12: BRL 14.65 per share

- 2021-01: BRL 13.30 per share

- 2021-02: BRL 12.80 per share

- 2021-03: BRL 12.67 per share

- 2021-04: BRL 12.19 per share

- 2021-05: BRL 12.17 per share

- 2021-06: BRL 11.53 per share

- 2021-07: BRL 11.32 per share

- 2021-08: BRL 12.46 per share

- 2021-09: BRL 11.75 per share

- 2021-10: BRL 11.22 per share

- 2021-11: BRL 13.80 per share

- 2021-12: BRL 13.15 per share

- 2022-01: BRL 13.27 per share

- 2022-02: BRL 13.61 per share

- 2022-03: BRL 13.79 per share

- 2022-04: BRL 13.48 per share

- 2022-05: BRL 14.40 per share

- 2022-06: BRL 12.76 per share

- 2022-07: BRL 12.59 per share

- 2022-08: BRL 11.83 per share

- 2022-09: BRL 12.08 per share

- 2022-10: BRL 13.20 per share

- 2022-11: BRL 13.00 per share

- 2022-12: BRL 12.40 per share

- 2023-01: BRL 11.79 per share

- 2023-02: BRL 12.26 per share

- 2023-03: BRL 12.58 per share

- 2023-04: BRL 14.00 per share

- 2023-05: BRL 13.96 per share

- 2023-06: BRL 14.62 per share

- 2023-07: BRL 14.34 per share

- 2023-08: BRL 14.41 per share

- 2023-09: BRL 14.89 per share

- 2023-10: BRL 15.17 per share

- 2023-11: BRL 17.24 per share

- 2023-12: BRL 17.93 per share

- 2024-01: BRL 17.34 per share

- 2024-02: BRL 18.17 per share

- 2024-03: BRL 17.80 per share

- 2024-04: BRL 17.61 per share

- 2024-05: BRL 15.86 per share

- 2024-06: BRL 15.88 per share

- 2024-07: BRL 17.49 per share

- 2024-08: BRL 17.86 per share

- 2024-09: BRL 18.73 per share

- 2024-10: BRL 16.58 per share

- 2024-11: BRL 15.84 per share

- 2024-12: BRL 14.48 per share

- 2025-01: BRL 15.61 per share

- 2025-02: BRL 16.17 per share

- 2025-03: BRL 18.00 per share

- 2025-04: BRL 18.95 per share

- 2025-05: BRL 19.49 per share

- 2025-06: BRL 22.05 per share

- 2025-07: BRL 20.71 per share

- 2025-08: BRL 22.75 per share

- 2025-09: BRL 23.50 per share

- 2025-10: BRL 24.29 per share

- 2025-11: BRL 25.33 per share

- 2025-12: BRL 21.34 per share

- 2026-01: BRL 24.52 per share

- 2026-02: BRL 27.90 per share

- 2026-03: BRL 27.46 per share

- 2026-04: BRL 25.75 per share

- 2026-05: BRL 21.90 per share

- 2026-06: BRL 21.87 per share

- 2026-07: BRL 19.43 per share

- 2026-08: BRL 18.61 per share

- 2026-09: BRL 18.33 per share

- 2026-10: BRL 18.20 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 3.70 per share, central BRL 3.80 per share, high BRL 3.92 per share

- FY2017: low BRL 2.97 per share, central BRL 3.08 per share, high BRL 3.20 per share

- FY2018: low BRL 2.27 per share, central BRL 2.38 per share, high BRL 2.51 per share

- FY2019: low BRL 4.52 per share, central BRL 4.97 per share, high BRL 5.27 per share

- FY2020: low BRL 8.53 per share, central BRL 9.04 per share, high BRL 9.57 per share

- FY2021: low BRL 10.99 per share, central BRL 11.55 per share, high BRL 12.12 per share

- FY2022: low BRL 10.33 per share, central BRL 11.10 per share, high BRL 11.80 per share

- FY2023: low BRL 9.50 per share, central BRL 10.25 per share, high BRL 10.87 per share

- FY2024: low BRL 9.86 per share, central BRL 10.38 per share, high BRL 10.99 per share

- FY2025: low BRL 10.36 per share, central BRL 10.92 per share, high BRL 11.56 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:57.376Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.