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MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis

NASDAQ:TIGO - Nasdaq - LU0038705702 - Common Stock

27.45  +0.44 (+1.63%)

Premarket: 27.5 +0.05 (+0.18%)

Fundamental Rating

4

Overall TIGO gets a fundamental rating of 4 out of 10. We evaluated TIGO against 22 industry peers in the Wireless Telecommunication Services industry. There are concerns on the financial health of TIGO while its profitability can be described as average. TIGO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

TIGO had positive earnings in the past year.
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.
TIGO had a positive operating cash flow in each of the past 5 years.
TIGO Yearly Net Income VS EBIT VS OCF VS FCFTIGO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B

1.2 Ratios

TIGO's Return On Assets of 1.12% is in line compared to the rest of the industry. TIGO outperforms 52.38% of its industry peers.
TIGO has a Return On Equity (4.15%) which is comparable to the rest of the industry.
The Return On Invested Capital of TIGO (7.55%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIGO is in line with the industry average of 6.49%.
The 3 year average ROIC (4.64%) for TIGO is below the current ROIC(7.55%), indicating increased profibility in the last year.
Industry RankSector 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%
TIGO Yearly ROA, ROE, ROICTIGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

With a Profit Margin value of 2.70%, TIGO perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
TIGO has a better Operating Margin (19.64%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of TIGO has grown nicely.
TIGO's Gross Margin of 74.91% is amongst the best of the industry. TIGO outperforms 85.71% of its industry peers.
TIGO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
TIGO Yearly Profit, Operating, Gross MarginsTIGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

2

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.
The number of shares outstanding for TIGO has been increased compared to 5 years ago.
Compared to 1 year ago, TIGO has an improved debt to assets ratio.
TIGO Yearly Shares OutstandingTIGO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
TIGO Yearly Total Debt VS Total AssetsTIGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

TIGO has an Altman-Z score of 1.20. This is a bad value and indicates that TIGO is not financially healthy and even has some risk of bankruptcy.
TIGO has a Altman-Z score (1.20) which is comparable to the rest of the 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.
TIGO's Debt to FCF ratio of 9.98 is in line compared to the rest of the industry. TIGO outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 1.79 is on the high side and indicates that TIGO has dependencies on debt financing.
The Debt to Equity ratio of TIGO (1.79) is worse than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.79
Debt/FCF 9.98
Altman-Z 1.2
ROIC/WACC1.13
WACC6.67%
TIGO Yearly LT Debt VS Equity VS FCFTIGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

TIGO has a Current 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.
Looking at the Current ratio, with a value of 0.93, TIGO is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that TIGO may have some problems paying its short term obligations.
TIGO's Quick ratio of 0.89 is on the low side compared to the rest of the industry. TIGO is outperformed by 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.89
TIGO Yearly Current Assets VS Current LiabilitesTIGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

4

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

Based on estimates for the next years, TIGO will show a very strong growth in Earnings Per Share. The EPS will grow by 58.66% on average per year.
Based on estimates for the next years, TIGO will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
EPS Next Y544.49%
EPS Next 2Y186.54%
EPS Next 3Y110.9%
EPS Next 5Y58.66%
Revenue Next Year3.41%
Revenue Next 2Y2.33%
Revenue Next 3Y2.16%
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.
TIGO Yearly Revenue VS EstimatesTIGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
TIGO Yearly EPS VS EstimatesTIGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 29.84, which means the current valuation is very expensive for TIGO.
Based on the Price/Earnings ratio, TIGO is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of TIGO to the average of the S&P500 Index (28.29), we can say TIGO is valued inline with the index average.
With a Price/Forward Earnings ratio of 9.21, the valuation of TIGO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TIGO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
TIGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.84
Fwd PE 9.21
TIGO Price Earnings VS Forward Price EarningsTIGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TIGO is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIGO indicates a rather cheap valuation: TIGO is cheaper than 80.95% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.5
EV/EBITDA 4.6
TIGO Per share dataTIGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

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 110.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y186.54%
EPS Next 3Y110.9%

4

5. Dividend

5.1 Amount

TIGO has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.35, TIGO has a dividend in line with its industry peers.
TIGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 3.7%

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
TIGO Yearly Dividends per shareTIGO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

DP0%
EPS Next 2Y186.54%
EPS Next 3Y110.9%
TIGO Yearly Income VS Free CF VS DividendTIGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M

MILLICOM INTL CELLULAR S.A.

NASDAQ:TIGO (1/21/2025, 8:00:02 PM)

Premarket: 27.5 +0.05 (+0.18%)

27.45

+0.44 (+1.63%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-06 2025-02-06/amc
Inst Owners5.16%
Inst Owner Change1%
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap4.72B
Analysts80
Price Target32.73 (19.23%)
Short Float %0.07%
Short Ratio0.86
Dividend
Industry RankSector Rank
Dividend Yield 3.7%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-03 2025-01-03 (1)
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)3.14%
PT rev (3m)8.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.35%
Valuation
Industry RankSector Rank
PE 29.84
Fwd PE 9.21
P/S 0.81
P/FCF 6.5
P/OCF 3.06
P/B 1.24
P/tB N/A
EV/EBITDA 4.6
EPS(TTM)0.92
EY3.35%
EPS(NY)2.98
Fwd EY10.86%
FCF(TTM)4.22
FCFY15.39%
OCF(TTM)8.98
OCFY32.73%
SpS34
BVpS22.12
TBVpS-17.51
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.2
F-Score8
WACC6.67%
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 Y544.49%
EPS Next 2Y186.54%
EPS Next 3Y110.9%
EPS Next 5Y58.66%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y10.72%
Revenue growth 5Y7.48%
Sales Q2Q%0.49%
Revenue Next Year3.41%
Revenue Next 2Y2.33%
Revenue Next 3Y2.16%
Revenue Next 5Y2.92%
EBIT growth 1Y44.53%
EBIT growth 3Y46.19%
EBIT growth 5Y12.99%
EBIT Next Year194.58%
EBIT Next 3Y46.93%
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%