MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
USA - NASDAQ:TIGO - LU0038705702 - Common Stock
47.49 USD
-0.13 (-0.27%)
47.49 USD
0 (0%)
TIGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. TIGO scores excellent on profitability, but there are concerns on its financial health. TIGO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TIGO was profitable.
In the past year TIGO had a positive cash flow from operations.
In multiple years TIGO reported negative net income over the last 5 years.
Each year in the past 5 years TIGO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.35%, TIGO belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.92%, TIGO belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
TIGO has a Return On Invested Capital of 9.03%. This is amongst the best in the industry. TIGO outperforms 81.82% of its industry peers.
TIGO had an Average Return On Invested Capital over the past 3 years of 6.73%. This is in line with the industry average of 5.84%.
The 3 year average ROIC (6.73%) for TIGO is below the current ROIC(9.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 26.92% | ||
| ROIC | 9.03% |
ROA(3y)0.84%
ROA(5y)0.73%
ROE(3y)3.19%
ROE(5y)3.14%
ROIC(3y)6.73%
ROIC(5y)5.05%
1.3 Margins
TIGO has a better Profit Margin (16.98%) than 95.45% of its industry peers.
In the last couple of years the Profit Margin of TIGO has grown nicely.
TIGO has a better Operating Margin (24.96%) than 95.45% of its industry peers.
TIGO's Operating Margin has improved in the last couple of years.
The Gross Margin of TIGO (76.50%) is better than 86.36% of its industry peers.
In the last couple of years the Gross Margin of TIGO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.96% | ||
| PM (TTM) | 16.98% | ||
| GM | 76.5% |
OM growth 3Y33.38%
OM growth 5Y18.32%
PM growth 3Y-31.97%
PM growth 5Y4.87%
GM growth 3Y1.43%
GM growth 5Y0.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIGO is still 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
The debt/assets ratio for TIGO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, TIGO is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
The Debt to FCF ratio of TIGO is 7.86, which is on the high side as it means it would take TIGO, 7.86 years of fcf income to pay off all of its debts.
TIGO's Debt to FCF ratio of 7.86 is in line compared to the rest of the industry. TIGO outperforms 45.45% of its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that TIGO has dependencies on debt financing.
The Debt to Equity ratio of TIGO (2.08) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.26
WACC7.15%
2.3 Liquidity
TIGO has a Current Ratio of 0.91. 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 Current ratio of TIGO (0.91) is worse than 72.73% of its industry peers.
TIGO has a Quick Ratio of 0.91. 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 (0.87) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 230.65% over the past year.
The Earnings Per Share has been decreasing by -0.40% on average over the past years.
The Revenue has decreased by -4.09% in the past year.
The Revenue has been growing slightly by 6.01% on average over the past years.
EPS 1Y (TTM)230.65%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%-6.52%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-5.9%
3.2 Future
TIGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.14% yearly.
Based on estimates for the next years, TIGO will show a small growth in Revenue. The Revenue will grow by 1.70% on average per year.
EPS Next Y171.44%
EPS Next 2Y69.41%
EPS Next 3Y40.76%
EPS Next 5Y23.14%
Revenue Next Year-4.01%
Revenue Next 2Y2.14%
Revenue Next 3Y0.02%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.17, which indicates a rather expensive current valuation of TIGO.
Compared to the rest of the industry, the Price/Earnings ratio of TIGO is on the same level as its industry peers.
TIGO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.35.
Based on the Price/Forward Earnings ratio of 11.26, the valuation of TIGO can be described as reasonable.
Based on the Price/Forward Earnings ratio, TIGO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. TIGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
TIGO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TIGO is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 5.63 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TIGO's earnings are expected to grow with 40.76% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y69.41%
EPS Next 3Y40.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.34%, TIGO is a good candidate for dividend investing.
TIGO's Dividend Yield is a higher than the industry average which is at 8.56.
TIGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
5.2 History
TIGO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y69.41%
EPS Next 3Y40.76%
47.49
-0.13 (-0.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners41.09%
Inst Owner Change4.55%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap7.93B
Analysts78.33
Price Target44.49 (-6.32%)
Short Float %2.68%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.04%
Min EPS beat(2)-37.08%
Max EPS beat(2)27.01%
EPS beat(4)1
Avg EPS beat(4)-33.79%
Min EPS beat(4)-74.67%
Max EPS beat(4)27.01%
EPS beat(8)2
Avg EPS beat(8)15.23%
EPS beat(12)3
Avg EPS beat(12)-21.16%
EPS beat(16)6
Avg EPS beat(16)125.02%
Revenue beat(2)0
Avg Revenue beat(2)-6.1%
Min Revenue beat(2)-8.89%
Max Revenue beat(2)-3.31%
Revenue beat(4)0
Avg Revenue beat(4)-5.16%
Min Revenue beat(4)-8.89%
Max Revenue beat(4)-3.31%
Revenue beat(8)1
Avg Revenue beat(8)-3.36%
Revenue beat(12)1
Avg Revenue beat(12)-3.68%
Revenue beat(16)1
Avg Revenue beat(16)-8.82%
PT rev (1m)4.55%
PT rev (3m)10.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.48%
EPS NY rev (1m)13.95%
EPS NY rev (3m)33.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 11.26 | ||
| P/S | 1.42 | ||
| P/FCF | 7.87 | ||
| P/OCF | 4.73 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.63 |
EPS(TTM)2.05
EY4.32%
EPS(NY)4.22
Fwd EY8.88%
FCF(TTM)6.03
FCFY12.71%
OCF(TTM)10.04
OCFY21.14%
SpS33.55
BVpS21.17
TBVpS-20.8
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 26.92% | ||
| ROCE | 11.43% | ||
| ROIC | 9.03% | ||
| ROICexc | 10.09% | ||
| ROICexgc | 28.01% | ||
| OM | 24.96% | ||
| PM (TTM) | 16.98% | ||
| GM | 76.5% | ||
| FCFM | 17.98% |
ROA(3y)0.84%
ROA(5y)0.73%
ROE(3y)3.19%
ROE(5y)3.14%
ROIC(3y)6.73%
ROIC(5y)5.05%
ROICexc(3y)7.23%
ROICexc(5y)5.46%
ROICexgc(3y)21.48%
ROICexgc(5y)16.59%
ROCE(3y)8.52%
ROCE(5y)6.4%
ROICexcg growth 3Y24.05%
ROICexcg growth 5Y36.67%
ROICexc growth 3Y43.68%
ROICexc growth 5Y21.14%
OM growth 3Y33.38%
OM growth 5Y18.32%
PM growth 3Y-31.97%
PM growth 5Y4.87%
GM growth 3Y1.43%
GM growth 5Y0.99%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 7.86 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 56.22% | ||
| Cap/Sales | 11.94% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 105.88% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.29 |
F-Score7
WACC7.15%
ROIC/WACC1.26
Cap/Depr(3y)66.21%
Cap/Depr(5y)68%
Cap/Sales(3y)15.35%
Cap/Sales(5y)17.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)230.65%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%-6.52%
EPS Next Y171.44%
EPS Next 2Y69.41%
EPS Next 3Y40.76%
EPS Next 5Y23.14%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-5.9%
Revenue Next Year-4.01%
Revenue Next 2Y2.14%
Revenue Next 3Y0.02%
Revenue Next 5Y1.7%
EBIT growth 1Y31.73%
EBIT growth 3Y47.85%
EBIT growth 5Y25.43%
EBIT Next Year109.55%
EBIT Next 3Y29.6%
EBIT Next 5Y16.4%
FCF growth 1Y327.12%
FCF growth 3Y125.44%
FCF growth 5YN/A
OCF growth 1Y39.29%
OCF growth 3Y18.8%
OCF growth 5Y15.14%