Daily Stock Analysis: TIM SA

By Fredrik Arnold

Thursday, April 20, 2023 7:49 AM EST

TIM SA, bears the ticker symbol (TIMB), and this is my first mention of TIMB for this Viking Portfolio or any of my previous seven dog of the week portfolios.

Freepik

TIM is one of the top three wireless carriers by subscribers in Brazil, with 52 million subscribers, equal to about 20% of the market.

TIM also owns some fixed-line assets, including an extensive long-haul fiber network and local networks that reach about 6.7 million locations (a bit less than 10% of the country).

The firm is investing to expand its fiber network to more customer locations, including through its minority ownership in an infrastructure partnership. TIM leases capacity on the venture's network to serve retail customers.

The company is 67%-owned by Telecom Italia.

TIM S.A is founded in 2013 and is based in Rio de Janeiro, Brazil.

The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.

Three key data points gauge TIM SA, or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

TIMB Price

TIM’s price per share was $27.10 at Wednesday’s market close. In the past year, TIM’s share price fell $1.14 or 7.8%.

If TIM’s stock trades in the range of $10.00 to $16.00 this next year, its recent $13.54 share price might fall to $13.50 by next year. It could go up about the same amount. My Downside estimate of $0.04 is well-under the average annual price loss go $0.76 for TIMB over the past ten years. No analysts cover TIMB’s stock for brokers. So average upside/downside is the best indicator.

TIMB Dividend

TIMB’s most recent quarterly dividend of $.1814 paid-out January 31, 2023 to shareholders of record December 22. No new dividends have been declared.

TIMB Returns

Adding a $0.54 estimated annual estimated TIMB dividend to my $0.04 estimated price downside, reveals a $0.50 potential gross gain per share if a dividend is paid.

At Wednesday’s $13.54 closing price, a little over $1000 would buy 74 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $0.50 gross gain estimate makes a net amount of $0.36 X 74 shares = $26.64 or a 2.6% net gain.

In the next year our $1K investment in shares of TIMB might generate $39.90 in dividends. Furthermore, a single share of TIMB at Wednesday’s $13.54 price is near 3 times below the annual estimated dividend income from $1000.00 invested.

So, by my dogcatcher ideal, this may be a prime time to consider TIMB shares, based on their dividends for 2023. The dividend from $1k invested is 2.95 times greater than TIMBs single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of TIM SA. Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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