MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
USA - NASDAQ:TIGO - LU0038705702 - Common Stock
47.53 USD
+0.37 (+0.78%)
47.53 USD
0 (0%)
Overall TIGO gets a fundamental rating of 5 out of 10. We evaluated TIGO against 22 industry peers in the Wireless Telecommunication Services industry. TIGO has an excellent profitability rating, but there are concerns on its financial health. TIGO is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
TIGO had positive earnings in the past year.
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
TIGO has a better Return On Assets (6.35%) than 85.71% of its industry peers.
With an excellent Return On Equity value of 26.92%, TIGO belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
TIGO has a better Return On Invested Capital (9.03%) than 80.95% 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 6.09%.
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's Profit Margin of 16.98% is amongst the best of the industry. TIGO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TIGO has grown nicely.
The Operating Margin of TIGO (24.96%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of TIGO has grown nicely.
Looking at the Gross Margin, with a value of 76.50%, TIGO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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
TIGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TIGO has about the same amount of shares outstanding.
TIGO has more shares outstanding than it did 5 years ago.
TIGO has a better debt/assets ratio than last year.
2.2 Solvency
TIGO has an Altman-Z score of 1.29. This is a bad value and indicates that TIGO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TIGO (1.29) is better than 66.67% of its industry peers.
TIGO has a debt to FCF ratio of 7.86. This is a slightly negative value and a sign of low solvency as TIGO would need 7.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.86, TIGO is in line with its industry, outperforming 42.86% of the companies in the same industry.
TIGO has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.08, TIGO is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.26
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TIGO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, TIGO is doing worse than 76.19% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that TIGO may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, TIGO is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| 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.
Measured over the past years, TIGO shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.40% on average per year.
Looking at the last year, TIGO shows a decrease in Revenue. The Revenue has decreased by -4.09% in the last year.
TIGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
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
Based on estimates for the next years, TIGO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.14% on average per year.
TIGO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.70% yearly.
EPS Next Y138.22%
EPS Next 2Y70.2%
EPS Next 3Y41.81%
EPS Next 5Y23.14%
Revenue Next Year-4.35%
Revenue Next 2Y1.41%
Revenue Next 3Y-0.19%
Revenue Next 5Y1.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
TIGO is valuated rather expensively with a Price/Earnings ratio of 23.19.
TIGO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TIGO is valued at the same level.
With a Price/Forward Earnings ratio of 11.16, the valuation of TIGO can be described as very reasonable.
66.67% of the companies in the same industry are more expensive than TIGO, based on the Price/Forward Earnings ratio.
TIGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIGO indicates a somewhat cheap valuation: TIGO is cheaper than 61.90% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TIGO is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.88 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
The 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 41.81% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y70.2%
EPS Next 3Y41.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.36%, TIGO is a good candidate for dividend investing.
TIGO's Dividend Yield is a higher than the industry average which is at 5.30.
TIGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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
DPN/A
EPS Next 2Y70.2%
EPS Next 3Y41.81%
47.53
+0.37 (+0.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners35.78%
Inst Owner Change6.93%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap7.94B
Analysts80
Price Target44.49 (-6.4%)
Short Float %2.28%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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)6%
PT rev (3m)18.33%
EPS NQ rev (1m)-37.59%
EPS NQ rev (3m)-43.59%
EPS NY rev (1m)17.37%
EPS NY rev (3m)14.4%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-4.11%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.42 | ||
| P/FCF | 7.88 | ||
| P/OCF | 4.73 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.61 |
EPS(TTM)2.05
EY4.31%
EPS(NY)4.26
Fwd EY8.96%
FCF(TTM)6.03
FCFY12.7%
OCF(TTM)10.04
OCFY21.12%
SpS33.55
BVpS21.17
TBVpS-20.8
PEG (NY)0.17
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
WACC7.14%
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 Y138.22%
EPS Next 2Y70.2%
EPS Next 3Y41.81%
EPS Next 5Y23.14%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-5.9%
Revenue Next Year-4.35%
Revenue Next 2Y1.41%
Revenue Next 3Y-0.19%
Revenue Next 5Y1.7%
EBIT growth 1Y31.73%
EBIT growth 3Y47.85%
EBIT growth 5Y25.43%
EBIT Next Year107.34%
EBIT Next 3Y29.14%
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%