Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Key Takeaways AI fears dragged major indexes lower, prompting a shift toward dividend-growth stocks.Agnico Eagle Mines projects 28% revenue growth for 2026 with 33.8% long-term EPS growth.TIM S.A. offers a 5.20% yield and 10.3% projected 2026 revenue growth. Major U.S. stock market indices tumbled on Feb. 12, 2026, as fears about AI disruption spilled into sectors, such as real estate, transportation and software. Decline across all “Magnificent Seven” heavyweights dragged the technology sector down, weighi ...

Core Viewpoint - The recommendation to "Hold" TIM S.A. (TIMB) shares is reiterated following the release of the fourth quarter results, indicating a cautious stance on the stock's performance [1]. Company Analysis - The article continues the coverage initiated on May 14, 2024, reflecting a long-term perspective on TIM S.A. and its market position [1]. - The analyst has over 7 years of experience in equity analysis in Latin America, suggesting a depth of knowledge in the regional market dynamics [1]. Investment Insights - The research aims to provide clients with in-depth insights to facilitate informed investment decisions, highlighting the importance of thorough analysis in the investment process [1].

Core Viewpoint - The recommendation to "Hold" TIM S.A. (TIMB) shares is reiterated following the release of the fourth quarter results, indicating a cautious stance on the stock's performance moving forward [1]. Company Analysis - The article continues the coverage initiated on May 14, 2024, reflecting a long-term perspective on TIM S.A. and its market position [1]. - The analyst has over 7 years of experience in equity analysis within the Latin American market, suggesting a depth of knowledge in regional investment dynamics [1]. Investment Insights - The research aims to provide clients with in-depth insights to facilitate informed investment decisions, highlighting the importance of thorough analysis in the investment process [1].

Core Viewpoint - TIM S.A. Sponsored ADR (TIMB) has shown strong stock performance, with a 23.7% increase over the past month and a 29.7% gain since the start of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Wireless Non-US industry [1][2]. Financial Performance - TIM has consistently exceeded earnings expectations, reporting an EPS of $0.52 against a consensus estimate of $0.48 in its last earnings report [2]. - For the current fiscal year, TIM is projected to achieve earnings of $1.75 per share on revenues of $5.26 billion, reflecting a 9.38% increase in EPS and a 10.3% increase in revenues. For the next fiscal year, earnings are expected to rise to $1.90 per share on revenues of $5.48 billion, indicating year-over-year changes of 8.76% and 4.2%, respectively [3]. Valuation Metrics - TIM's current valuation metrics indicate a trading multiple of 14.4X current fiscal year EPS estimates, which is above the peer industry average of 13.6X. The stock trades at 6.5X trailing cash flow compared to the peer group's average of 7X, and it has a PEG ratio of 0.77, positioning it favorably for value investors [7]. Zacks Rank and Style Scores - TIM holds a Zacks Rank of 2 (Buy), supported by positive earnings estimate revisions from analysts. The stock also has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6][8].

Financial Performance - Service revenue grew by 5.2% year-on-year, exceeding inflation [3] - EBITDA increased by 7.5%, with an EBITDA margin reaching 51% [3][12] - Operating cash flow expanded by 16%, closing the year with a margin of 22.7% [3][14] - Total shareholder remuneration amounted to BRL 4 billion in cash and BRL 750 million in share buybacks, achieving a payout ratio of 139% [3][14] Business Line Performance - Mobile service revenues increased by 5.4%, with postpaid revenues growing by 9.5% in Q4 [5][6] - Postpaid ARPU reached almost BRL 55, reflecting a year-on-year growth of 3.1% [6] - Prepaid segment showed signs of stabilization, with revenue decline decelerating for the third consecutive quarter [7] - Broadband revenues returned to growth in Q4, with UltraFibra revenues increasing by 6.2% year-on-year [8][9] Market Performance - TIM remains the leader in 5G in Brazil, covering over 1,000 cities, which is 52% more than the second player [4] - B2B solutions surpassed BRL 1 billion in total contracted value, confirming its role as a structural growth engine [10] Company Strategy and Industry Competition - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [16][17] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [19][24] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [15] - The company is focused on maintaining a disciplined capital allocation strategy while exploring new growth avenues [17] Other Important Information - Operating costs grew only 1.8% year-on-year, reflecting ongoing cost optimization efforts [12] - The company completed a significant network modernization project in São Paulo, enhancing service quality [8] Q&A Session Summary Question: Margin and efficiency - Inquiry about the structural versus temporary nature of margin expansion and the strategic implications of the I-Systems acquisition [21] Answer - Management indicated that the margin expansion is largely structural, with the I-Systems acquisition enhancing operational control and efficiency [23][24] Question: Network and interconnection expenses - Questions regarding the drivers behind decreased network and interconnection expenses and the impact of mobile portability [31] Answer - Management noted stable churn levels and attributed the increase in portability to competitors' practices, while also highlighting ongoing cost optimization efforts [34][36] Question: Personal expenses and broadband ARPU - Inquiry about the sustainability of gains from tax over overtime hours and the improvement in broadband ARPU [39] Answer - Management clarified that the ARPU improvement is primarily due to internal optimization efforts rather than overall market dynamics [40][42] Question: Tower leases and tax reform - Questions about the evolution of tower lease negotiations and the impact of Brazil's tax reform [49] Answer - Management confirmed ongoing negotiations to maintain lease costs below revenue growth and indicated that the tax reform would have a neutral impact on free cash flow in 2027 [54][55]

Financial Data and Key Metrics Changes - Service revenue grew above inflation with a year-on-year expansion of 5.2% [3] - EBITDA margin expanded to 51%, with EBITDA increasing by 7.5% [3] - Operating cash flow grew at double-digit, closing the year with a 16% increase [3] - The company delivered BRL 4 billion in cash dividends and BRL 750 million in share buybacks, achieving a 139% payout ratio [14] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.4% year-on-year, with postpaid revenues growing by 9.5% in Q4 [5][6] - Postpaid ARPU reached almost BRL 55, growing 3.1% year-on-year [6] - Prepaid segment showed signs of stabilization, with revenue decline decelerating for the third consecutive quarter [7] - Broadband revenues returned to growth in Q4, with UltraFibra revenues increasing by 6.2% year-on-year [9] Market Data and Key Metrics Changes - TIM remains the leader in 5G in Brazil, covering over 1,000 cities, which is 52% more than the second player [4] - In B2B, total contracted value surpassed BRL 1 billion across various verticals [4][10] Company Strategy and Development Direction - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [16][17] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [15] - The company is prepared to capture new opportunities in B2B with a scalable portfolio integrating connectivity and digital services [16] Other Important Information - Operating costs grew only 1.8% year-on-year, reflecting ongoing efficiency programs [12] - The company completed a significant network modernization project in São Paulo, enhancing service quality [8] Q&A Session Questions and Answers Question: On margins and efficiency, how much of the efficiency is structural? - Management indicated that the efficiency gains are largely structural, with some temporary effects in Q4 due to interconnection costs and taxation changes [21][26] Question: Regarding the acquisition of I-Systems, what does this suggest about the company's commitment to the asset? - Management clarified that the acquisition provides control over operations and is not indicative of a potential sale of the fiber business, emphasizing a focus on value generation [24][25] Question: What are the main drivers behind the decrease in network and interconnection expenses? - Management noted that while visitor interconnection costs decreased, there were increases in costs related to digital content providers and network expansion [31][37] Question: Can you provide more details on the price increases planned for Q1? - Management confirmed that price adjustments for postpaid customers are underway, similar to previous years, with adjustments occurring in phases [59] Question: What is the outlook for tower lease negotiations and expenses? - Management stated that ongoing negotiations are aimed at maintaining lease costs below revenue growth, despite pressures from inflation and network expansion [50][52]

Financial Data and Key Metrics Changes - Service revenue grew by 5.2% year-on-year, exceeding inflation [2] - EBITDA increased by 7.5%, with an EBITDA margin reaching 51% [2][10] - Operating cash flow expanded by 16%, closing the year with a margin of 22.7% [2][11] - The company returned BRL 4 billion in cash dividends and BRL 750 million in share buybacks, achieving a payout ratio of 139% [2][11] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.4%, with postpaid revenues growing by 9.5% in Q4 [4][5] - Postpaid ARPU reached almost BRL 55, reflecting a year-on-year growth of 3.1% [4] - Broadband revenues returned to growth in Q4, with a 6.2% year-on-year increase [6][7] - B2B solutions surpassed BRL 1 billion in total contracted value, confirming its role as a growth engine [3][8] Market Data and Key Metrics Changes - TIM remains the leader in 5G coverage in Brazil, with coverage in over 1,000 cities, 52% more than the second player [3] - The company achieved significant milestones in various sectors, including agribusiness and logistics, enhancing its market position [7][8] Company Strategy and Development Direction - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [13][14] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [16][21] - The focus remains on strengthening profitability and improving customer experience in mobile services [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [12] - The company is prepared for potential challenges in the competitive landscape, particularly regarding mobile portability and pricing adjustments [30][32] Other Important Information - The company completed a network modernization project in São Paulo, enhancing 5G and 4G coverage [6] - The efficiency program has been a core part of operations, with operating costs growing below inflation at 1.8% year-on-year [10] Q&A Session Summary Question: On margins and efficiency, how much of the efficiency is structural? - Management indicated that the efficiency gains are largely structural, with some temporary effects in the fourth quarter [18][23] Question: Regarding the acquisition of I-Systems, what does this suggest about the company's commitment to the asset? - The acquisition is seen as a strategic move to enhance operational efficiency and customer service, with no plans to sell the broadband operation [21][22] Question: What are the main drivers behind the decrease in network and interconnection expenses? - Management noted that while some costs decreased, others, such as those related to content providers, increased due to new offers [28][34] Question: How does the company view mobile competition and portability trends? - The company maintains stable churn levels and believes the market remains rational despite increased portability [30][32] Question: Can you provide insights on the upcoming price increases? - Price adjustments for postpaid customers are underway, with a similar magnitude to previous years [55][56] Question: What is the outlook for CapEx in the coming years? - CapEx is expected to remain in line with guidance, with opportunities for efficiency and anticipation of investments [55][57]

This presentation contains declarations that constitute forward-looking statements regarding the intent, belief or current expectations of value creation, customer base dynamics, estimates regarding future financial results and other aspects of the activities. Classificado como Uso Interno Disclaimer Analysts and investors are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation. TIM S.A. undertakes no obligation to release publicly ...

Industry Overview - The Zacks Wireless Non-US industry is positioned to benefit from strong demand trends driven by the increasing need for connectivity in the digital age, despite facing challenges such as high capital expenditures, margin erosion, and supply chain disruptions [1][5] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Growth Opportunities - Companies like América Móvil, TIM, and SK Telecom are expected to capitalize on long-term growth opportunities due to rising demand for scalable infrastructure and the proliferation of IoT and 5G deployment [2] - The industry is focusing on network optimization to meet the growing demand for coverage, speed, and quality, necessitating significant investments in advanced networking architecture [4] Challenges - The industry is currently facing challenges such as a shortage of chips, high raw material prices due to geopolitical conflicts, and increased competition from over-the-top service providers, which are impacting profitability [5] - Price-sensitive competition is expected to intensify, affecting customer retention and overall financial results [5] Strategic Focus - Industry players are taking steps to enhance subscriber growth and manage churn, including geographical expansion and strategic acquisitions [6] - Companies are adopting unlimited plans to improve average revenue per user and are focusing on increasing customer loyalty and handset connections [6] Market Performance - The Zacks Wireless Non-US industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, gaining 51.7% over the past year compared to 16.5% and 22.9% for the S&P 500 and sector, respectively [9] - The industry currently holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 Zacks industries, indicating positive near-term prospects [7][8] Valuation Metrics - The industry has a trailing 12-month EV/EBITDA ratio of 4.37X, significantly lower than the S&P 500's 18.88X and the sector's 19.01X, suggesting potential undervaluation [12] Notable Companies - **SK Telecom**: A leading telecommunications provider in South Korea, focusing on 5G and AI technologies, with a stock gain of 38.2% over the past year and a Zacks Rank of 1 (Strong Buy) [14] - **América Móvil**: The largest telecommunications provider in Latin America, with a stock gain of 47.1% and a Zacks Rank of 2 (Buy) [17] - **TIM**: A major communication service provider in Brazil, focusing on 5G rollout and achieving a stock gain of 76% over the past year, with a long-term earnings growth expectation of 18.7% [20]