TIMTIMB +0.50%87 Gross Margin % is 52.37% as of Mar. 2026, which is 2% below its 10-year median of 53.26. GuruFocus rates TIMB with a GF Score™ of 87/100 and a GF Value™ of $19.58 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 344 Telecommunication Services companies, TIM ranks better than 54.36% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TIM's Gross Profit for the
three
months ended in Mar. 2026 was $682 Mil. TIM's Revenue for the
three
months ended in Mar. 2026 was $1,301 Mil. Therefore, TIM's Gross Margin % for the quarter that ended in Mar. 2026 was 52.37%.
The historical rank and industry rank for TIM's Gross Margin % or its related term are showing as below:
TIMB'
s Gross Margin % Range Over the Past 10 Years
Min: 48.99 Med: 53.26 Max: 57.22
Current: 54.05
During the past 13 years, the highestGross Margin % of TIM was 57.22%. The lowest was 48.99%. And the median was 53.26%.
TIMB's Gross Margin % is ranked better than 54.36% of 344
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs TIMB: 54.05
TIM had a gross margin of 52.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TIM was 0.10% per year.
TIM (NYSE:TIMB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TIM had a gross margin of 52.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TIM Gross Margin % Related Terms
TIM Gross Margin % Historical Data
* Premium members only.
The historical data trend for TIM's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, TIM's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TIM Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, TIM's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TIM's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TIM (TIMB) has a Gross Margin % of 52.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TIM and its competitors. This is near median its historical median of 53.26. Over the past decade, TIM's Gross Margin % has ranged from 48.99 to 57.22. According to the industry distribution chart, TIM ranks #157 out of 344 companies in the Telecommunication Services industry, placing it in the top 45.6%.
Is TIM's Gross Margin % too high?
TIM's current Gross Margin % of 52.37% is near median its 10-year median of 53.26. Over the past 10 years, this metric has ranged from a low of 48.99 to a high of 57.22. The Telecommunication Services industry median Gross Margin % is 51.42. TIM's value of 52.37% is 1.9% above this industry median. Based on the distribution chart, TIM ranks #157 out of 344 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, TIM has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TIM's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, TIM ranks #157 out of 344 companies for Gross Margin %. This puts TIM in the upper half of its industry. The industry median Gross Margin % is 51.42. TIM's value of 52.37% is 1.9% above this benchmark. Historically, TIM's own Gross Margin % has ranged from 48.99 to 57.22 over the past decade. While the company's 10-year median is 53.26 vs. the industry median of 51.42, TIM has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TIM's current Gross Margin % of 52.37% is 1.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on TIM and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TIM's current Gross Margin % is 52.37%, which is near median its own 10-year median of 53.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TIM stock overvalued right now?
Based on GuruFocus' analysis, TIM (TIMB) is currently considered Modestly Overvalued. The stock's GF Value™ is $19.58, compared to a current price of $22.03 — trading 12.5% above its estimated fair value. The current Gross Margin % is 52.37%, which is near median its 10-year median of 53.26 and 1.9% above the Telecommunication Services industry median of 51.42. TIM's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For TIM (TIMB), the current Gross Margin % is 52.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TIM (TIMB) Overvalued in 2026?
Based on GuruFocus' analysis, TIM stock appears to be overvalued.
The current stock price of $22.03 is trading 12.5% above its estimated GF Value™ of $19.58.
GuruFocus considers TIM to be Modestly Overvalued.
Key valuation signals for TIMB:
Gross Margin %: 52.37% (near median its 10-year median of 53.26)
GF Value™: $19.58 vs. price of $22.03 (12.5% above fair value)
Industry Position: 1.9% above the Telecommunication Services median (#157 of 344)
No single metric tells the full story. See the TIMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TIM, which is 67%-owned by Telecom Italia, is the third-largest wireless carrier in Brazil, with 62 million subscribers, equal to about 23% of the market. The firm owns 49% of I-Systems, an infrastructure partnership that is expanding its network footprint across Brazil. I-Systems can provide broadband service to about 8 million locations, including 6.5 million with fiber, equal to 10%-15% of the country. TIM leases capacity on the venture's network to serve retail broadband customers under the UltraFibra brand, but it has agreed to buy out its joint venture partner in 2026 and will take full ownership of these assets. TIM also resells fiber network access from other providers.
87GF Score
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