Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian mobile telecom company TIM Participacoes (NYSE: TSU ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at TIM's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Rio de Janeiro (1998)|
|Market Cap||$10.7 billion|
|Industry||Wireless telecommunication services|
|Trailing-12-Month Revenue||$9.4 billion|
|Management||CEO Luca Luciani (since 2008)
CFO Claudio Zezza (since 2008)
|Return on Equity (average, past 3 years)||13.7%|
|Cash/Debt||$1.2 billion / $2.0 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 159 members who have rated TIM believe the stock will outperform the S&P 500 going forward. These bulls include ajbakerjr and All-Star kkconway, who is ranked in the top 2% of our community.
A few months ago, ajbakerjr nicely summed up the TIM bull case:
As Brazil continues its own version of the mobile telephony renaissance that we have already experienced in the US, companies in this space that know and serve the local market will flourish. Fundamentally, [TIM] is one of the standouts in this space and its nicely priced to boot.
In fact, TIM currently sports a particularly paltry price-to-cash flow of 3.6. That represents a discount to other foreign telecom plays such as America Movil (NYSE: AMX ) (6.5), China Mobile (NYSE: CHL ) (5.5), and Vodafone (Nasdaq: VOD ) (8.1).
CAPS All-Star kkconway elaborates on the opportunity:
Seen on non-Fool technically oriented, newsletters, but the fundamentals, growth trajectory and political stability of late in Brazil (always a wild card) seem to align this one with the stars -- long enough some decent green CAPs points. I was buying options in real life until I noticed how thin it's traded for a 6 billion dollar telecom. The big boys are not hedging their buys with puts; yet another fantastic sign, I hope.
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