TIM Participacoes Return On Equity vs. Net Income

TIMB Stock  USD 12.89  0.37  2.79%   
Based on TIM Participacoes' profitability indicators, TIM Participacoes SA may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess TIM Participacoes' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.10906475
Current Value
0.0726
Quarterly Volatility
0.04100093
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, TIM Participacoes' Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 86.79, whereas EV To Sales is forecasted to decline to 2.06. At present, TIM Participacoes' Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 5.1 B, whereas Total Other Income Expense Net is projected to grow to (1.6 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.610.5176
Fairly Up
Slightly volatile
Net Profit Margin0.07150.119
Way Down
Very volatile
Operating Profit Margin0.10.2029
Way Down
Pretty Stable
Pretax Profit Margin0.0880.1336
Way Down
Pretty Stable
Return On Assets0.03920.0513
Way Down
Slightly volatile
Return On Equity0.07260.1091
Way Down
Slightly volatile
For TIM Participacoes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TIM Participacoes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TIM Participacoes SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TIM Participacoes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TIM Participacoes SA over time as well as its relative position and ranking within its peers.
  
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Is Wireless Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TIM Participacoes. If investors know TIM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TIM Participacoes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.067
Dividend Share
0.271
Earnings Share
1.09
Revenue Per Share
51.84
Quarterly Revenue Growth
0.06
The market value of TIM Participacoes is measured differently than its book value, which is the value of TIM that is recorded on the company's balance sheet. Investors also form their own opinion of TIM Participacoes' value that differs from its market value or its book value, called intrinsic value, which is TIM Participacoes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TIM Participacoes' market value can be influenced by many factors that don't directly affect TIM Participacoes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TIM Participacoes' value and its price as these two are different measures arrived at by different means. Investors typically determine if TIM Participacoes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TIM Participacoes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

TIM Participacoes Net Income vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining TIM Participacoes's current stock value. Our valuation model uses many indicators to compare TIM Participacoes value to that of its competitors to determine the firm's financial worth.
TIM Participacoes SA is rated third in return on equity category among its peers. It is rated below average in net income category among its peers making up about  22,937,930,477  of Net Income per Return On Equity. At present, TIM Participacoes' Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the TIM Participacoes' earnings, one of the primary drivers of an investment's value.

TIM Net Income vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

TIM Participacoes

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

TIM Participacoes

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.84 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

TIM Net Income Comparison

TIM Participacoes is currently under evaluation in net income category among its peers.

TIM Participacoes Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in TIM Participacoes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TIM Participacoes will eventually generate negative long term returns. The profitability progress is the general direction of TIM Participacoes' change in net profit over the period of time. It can combine multiple indicators of TIM Participacoes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.8 B2.6 B
Operating Income4.8 B5.1 B
Income Before Tax3.2 B3.3 B
Total Other Income Expense Net-1.7 B-1.6 B
Net Income2.8 BB
Income Tax Expense346.6 M178.2 M
Net Interest Income-1.5 B-1.4 B
Interest Income954.3 M623.2 M
Net Income From Continuing Ops2.3 B2.3 B
Net Income Applicable To Common Shares1.9 B1.9 B
Change To Netincome3.5 B3.7 B
Net Income Per Share 1.17  1.23 
Income Quality 4.38  5.89 
Net Income Per E B T 0.89  1.10 

TIM Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on TIM Participacoes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TIM Participacoes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TIM Participacoes' important profitability drivers and their relationship over time.

Use TIM Participacoes in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TIM Participacoes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TIM Participacoes will appreciate offsetting losses from the drop in the long position's value.

TIM Participacoes Pair Trading

TIM Participacoes SA Pair Trading Analysis

The ability to find closely correlated positions to TIM Participacoes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TIM Participacoes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TIM Participacoes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TIM Participacoes SA to buy it.
The correlation of TIM Participacoes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TIM Participacoes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TIM Participacoes moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TIM Participacoes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your TIM Participacoes position

In addition to having TIM Participacoes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Broad Market ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Market ETFs theme has 62 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Broad Market ETFs Theme or any other thematic opportunities.
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When determining whether TIM Participacoes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of TIM Participacoes' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Tim Participacoes Sa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Tim Participacoes Sa Stock:
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You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
To fully project TIM Participacoes' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TIM Participacoes at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TIM Participacoes' income statement, its balance sheet, and the statement of cash flows.
Potential TIM Participacoes investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although TIM Participacoes investors may work on each financial statement separately, they are all related. The changes in TIM Participacoes's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on TIM Participacoes's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.