MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
NASDAQ:TIGO - Nasdaq - LU0038705702 - Common Stock - Currency: USD
Overall TIGO gets a fundamental rating of 4 out of 10. We evaluated TIGO against 22 industry peers in the Wireless Telecommunication Services industry. While TIGO is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TIGO.
1. Profitability
1.1 Basic Checks
In the past year TIGO was profitable.
TIGO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TIGO reported negative net income in multiple years.
In the past 5 years TIGO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TIGO (1.12%) is comparable to the rest of the industry.
TIGO has a Return On Equity of 4.15%. This is comparable to the rest of the industry: TIGO outperforms 52.38% of its industry peers.
With a decent Return On Invested Capital value of 7.55%, TIGO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIGO is in line with the industry average of 6.52%.
The last Return On Invested Capital (7.55%) for TIGO is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 4.15% | ||
| ROIC | 7.55% |
ROA(3y)1.53%
ROA(5y)0.59%
ROE(3y)8.48%
ROE(5y)2.98%
ROIC(3y)4.64%
ROIC(5y)3.84%
1.3 Margins
TIGO has a Profit Margin of 2.70%. This is comparable to the rest of the industry: TIGO outperforms 47.62% of its industry peers.
Looking at the Operating Margin, with a value of 19.64%, TIGO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of TIGO has grown nicely.
Looking at the Gross Margin, with a value of 74.91%, TIGO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
TIGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.64% | ||
| PM (TTM) | 2.7% | ||
| GM | 74.91% |
OM growth 3Y32.03%
OM growth 5Y5.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIGO is creating some value.
Compared to 1 year ago, TIGO has about the same amount of shares outstanding.
Compared to 5 years ago, TIGO has more shares outstanding
Compared to 1 year ago, TIGO has an improved debt to assets ratio.
2.2 Solvency
TIGO has an Altman-Z score of 1.19. This is a bad value and indicates that TIGO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.19, TIGO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
TIGO has a debt to FCF ratio of 9.98. This is a negative value and a sign of low solvency as TIGO would need 9.98 years to pay back of all of its debts.
The Debt to FCF ratio of TIGO (9.98) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.79 is on the high side and indicates that TIGO has dependencies on debt financing.
TIGO's Debt to Equity ratio of 1.79 is on the low side compared to the rest of the industry. TIGO is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.13
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.93 indicates that TIGO may have some problems paying its short term obligations.
TIGO has a Current ratio of 0.93. This is in the lower half of the industry: TIGO underperforms 66.67% of its industry peers.
TIGO has a Quick Ratio of 0.93. This is a bad value and indicates that TIGO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TIGO (0.89) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 318.18% over the past year.
TIGO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
Measured over the past years, TIGO shows a small growth in Revenue. The Revenue has been growing by 7.48% on average per year.
EPS 1Y (TTM)318.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1588.25%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y10.72%
Revenue growth 5Y7.48%
Sales Q2Q%0.49%
3.2 Future
TIGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 58.66% yearly.
The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y539.54%
EPS Next 2Y183.93%
EPS Next 3Y108.09%
EPS Next 5Y58.66%
Revenue Next Year3.12%
Revenue Next 2Y1.93%
Revenue Next 3Y1.75%
Revenue Next 5Y2.92%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.25, TIGO can be considered very expensive at the moment.
TIGO's Price/Earnings ratio is a bit more expensive when compared to the industry. TIGO is more expensive than 61.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. TIGO is around the same levels.
Based on the Price/Forward Earnings ratio of 9.25, the valuation of TIGO can be described as reasonable.
TIGO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, TIGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIGO is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
80.95% of the companies in the same industry are more expensive than TIGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | 4.54 |
4.3 Compensation for Growth
TIGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TIGO has a very decent profitability rating, which may justify a higher PE ratio.
TIGO's earnings are expected to grow with 108.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y183.93%
EPS Next 3Y108.09%
5. Dividend
5.1 Amount
TIGO has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.05, TIGO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
TIGO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y183.93%
EPS Next 3Y108.09%
26.91
+0.26 (+0.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners5.16%
Inst Owner Change36.41%
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap4.63B
Analysts80
Price Target33.14 (23.15%)
Short Float %0.84%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.56%
Min EPS beat(2)-50.43%
Max EPS beat(2)-10.7%
EPS beat(4)1
Avg EPS beat(4)76.65%
Min EPS beat(4)-225.08%
Max EPS beat(4)592.81%
EPS beat(8)2
Avg EPS beat(8)-2.4%
EPS beat(12)5
Avg EPS beat(12)181.14%
EPS beat(16)6
Avg EPS beat(16)41.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.77%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-3.57%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-2.77%
Revenue beat(12)1
Avg Revenue beat(12)-6.96%
Revenue beat(16)1
Avg Revenue beat(16)-14.7%
PT rev (1m)1.24%
PT rev (3m)5.27%
EPS NQ rev (1m)10.58%
EPS NQ rev (3m)10%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-5.02%
Revenue NQ rev (1m)-1.77%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.79 | ||
| P/FCF | 6.37 | ||
| P/OCF | 3 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.54 |
EPS(TTM)0.92
EY3.42%
EPS(NY)2.91
Fwd EY10.81%
FCF(TTM)4.22
FCFY15.7%
OCF(TTM)8.98
OCFY33.38%
SpS34
BVpS22.12
TBVpS-17.51
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 4.15% | ||
| ROCE | 9.55% | ||
| ROIC | 7.55% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 20.6% | ||
| OM | 19.64% | ||
| PM (TTM) | 2.7% | ||
| GM | 74.91% | ||
| FCFM | 12.43% |
ROA(3y)1.53%
ROA(5y)0.59%
ROE(3y)8.48%
ROE(5y)2.98%
ROIC(3y)4.64%
ROIC(5y)3.84%
ROICexc(3y)5.04%
ROICexc(5y)4.23%
ROICexgc(3y)16.97%
ROICexgc(5y)12.11%
ROCE(3y)5.88%
ROCE(5y)4.86%
ROICexcg growth 3Y66.68%
ROICexcg growth 5Y19.16%
ROICexc growth 3Y33.95%
ROICexc growth 5Y2.77%
OM growth 3Y32.03%
OM growth 5Y5.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.39%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 9.98 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 63.98% | ||
| Cap/Sales | 14% | ||
| Interest Coverage | 1.8 | ||
| Cash Conversion | 63.65% | ||
| Profit Quality | 460.13% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.19 |
F-Score8
WACC6.66%
ROIC/WACC1.13
Cap/Depr(3y)72.37%
Cap/Depr(5y)73.39%
Cap/Sales(3y)18.32%
Cap/Sales(5y)19.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)318.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1588.25%
EPS Next Y539.54%
EPS Next 2Y183.93%
EPS Next 3Y108.09%
EPS Next 5Y58.66%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y10.72%
Revenue growth 5Y7.48%
Sales Q2Q%0.49%
Revenue Next Year3.12%
Revenue Next 2Y1.93%
Revenue Next 3Y1.75%
Revenue Next 5Y2.92%
EBIT growth 1Y44.53%
EBIT growth 3Y46.19%
EBIT growth 5Y12.99%
EBIT Next Year193.41%
EBIT Next 3Y46.51%
EBIT Next 5Y25.17%
FCF growth 1Y127.19%
FCF growth 3YN/A
FCF growth 5Y57.24%
OCF growth 1Y20.41%
OCF growth 3Y14.21%
OCF growth 5Y8.91%