MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
USA - NASDAQ:TIGO - LU0038705702 - Common Stock
50.33 USD
-0.07 (-0.14%)
50.33 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TIGO. TIGO was compared to 22 industry peers in the Wireless Telecommunication Services industry. While TIGO has a great profitability rating, there are quite some concerns on its financial health. TIGO has a correct valuation and a medium growth rate.
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.
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.
1.2 Ratios
TIGO's Return On Assets of 7.03% is amongst the best of the industry. TIGO outperforms 86.36% of its industry peers.
TIGO's Return On Equity of 32.78% is amongst the best of the industry. TIGO outperforms 90.91% of its industry peers.
TIGO has a better Return On Invested Capital (9.61%) than 86.36% 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 5.83%.
The 3 year average ROIC (6.73%) for TIGO is below the current ROIC(9.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 32.78% | ||
| ROIC | 9.61% |
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 (19.59%) than 90.91% of its industry peers.
In the last couple of years the Profit Margin of TIGO has grown nicely.
TIGO's Operating Margin of 26.62% is amongst the best of the industry. TIGO outperforms 100.00% of its industry peers.
TIGO's Operating Margin has improved in the last couple of years.
The Gross Margin of TIGO (76.96%) is better than 86.36% of its industry peers.
TIGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.62% | ||
| PM (TTM) | 19.59% | ||
| GM | 76.96% |
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.
TIGO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TIGO has been increased compared to 5 years ago.
TIGO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
TIGO has a Altman-Z score of 1.26. This is in the better half of the industry: TIGO outperforms 63.64% of its industry peers.
The Debt to FCF ratio of TIGO is 8.59, which is on the high side as it means it would take TIGO, 8.59 years of fcf income to pay off all of its debts.
TIGO has a Debt to FCF ratio (8.59) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.33 is on the high side and indicates that TIGO has dependencies on debt financing.
The Debt to Equity ratio of TIGO (2.33) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.34
WACC7.18%
2.3 Liquidity
TIGO has a Current Ratio of 0.92. This is a bad value and indicates that TIGO is not financially healthy enough and could expect problems in meeting its short term obligations.
TIGO's Current ratio of 0.92 is on the low side compared to the rest of the industry. TIGO is outperformed by 63.64% of its industry peers.
A Quick Ratio of 0.89 indicates that TIGO may have some problems paying its short term obligations.
TIGO has a Quick ratio of 0.89. This is comparable to the rest of the industry: TIGO outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.26% 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 -4.39% in the last year.
Measured over the past years, TIGO shows a small growth in Revenue. The Revenue has been growing by 6.01% on average per year.
EPS 1Y (TTM)153.26%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%93.33%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-0.77%
3.2 Future
The Earnings Per Share is expected to grow by 23.14% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y212.18%
EPS Next 2Y63.9%
EPS Next 3Y39.36%
EPS Next 5Y23.14%
Revenue Next Year-4.03%
Revenue Next 2Y1.72%
Revenue Next 3Y0.11%
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
A Price/Earnings ratio of 21.60 indicates a rather expensive valuation of TIGO.
TIGO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TIGO to the average of the S&P500 Index (25.89), we can say TIGO is valued inline with the index average.
The Price/Forward Earnings ratio is 12.75, which indicates a correct valuation of TIGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIGO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.59. TIGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TIGO.
Based on the Price/Free Cash Flow ratio, TIGO is valued a bit cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 5.64 |
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 39.36% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y63.9%
EPS Next 3Y39.36%
5. Dividend
5.1 Amount
TIGO has a Yearly Dividend Yield of 5.95%, which is a nice return.
TIGO's Dividend Yield is comparable with the industry average which is at 8.86.
Compared to an average S&P500 Dividend Yield of 2.36, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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 2Y63.9%
EPS Next 3Y39.36%
50.33
-0.07 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners41.09%
Inst Owner Change19.14%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap8.41B
Revenue(TTM)5.59B
Net Income(TTM)1.10B
Analysts76.67
Price Target47.96 (-4.71%)
Short Float %2.77%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.93%
Min EPS beat(2)-37.08%
Max EPS beat(2)-6.78%
EPS beat(4)1
Avg EPS beat(4)-22.88%
Min EPS beat(4)-74.67%
Max EPS beat(4)27.01%
EPS beat(8)2
Avg EPS beat(8)26.88%
EPS beat(12)3
Avg EPS beat(12)-9.23%
EPS beat(16)6
Avg EPS beat(16)130.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-8.89%
Max Revenue beat(4)-0.56%
Revenue beat(8)1
Avg Revenue beat(8)-3.05%
Revenue beat(12)1
Avg Revenue beat(12)-3.28%
Revenue beat(16)1
Avg Revenue beat(16)-6.3%
PT rev (1m)7.79%
PT rev (3m)18.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.48%
EPS NY rev (1m)15.01%
EPS NY rev (3m)53.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 12.75 | ||
| P/S | 1.5 | ||
| P/FCF | 8.55 | ||
| P/OCF | 4.94 | ||
| P/B | 2.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)2.33
EY4.63%
EPS(NY)3.95
Fwd EY7.85%
FCF(TTM)5.88
FCFY11.69%
OCF(TTM)10.2
OCFY20.26%
SpS33.49
BVpS20.01
TBVpS-22.46
PEG (NY)0.1
PEG (5Y)N/A
Graham Number32.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 32.78% | ||
| ROCE | 12.16% | ||
| ROIC | 9.61% | ||
| ROICexc | 11.12% | ||
| ROICexgc | 33.75% | ||
| OM | 26.62% | ||
| PM (TTM) | 19.59% | ||
| GM | 76.96% | ||
| FCFM | 17.57% |
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%
ROICexgc growth 3Y24.05%
ROICexgc 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 59.7% | ||
| Cap/Sales | 12.87% | ||
| Interest Coverage | 2.62 | ||
| Cash Conversion | 63.19% | ||
| Profit Quality | 89.69% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.26 |
F-Score6
WACC7.18%
ROIC/WACC1.34
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)153.26%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%93.33%
EPS Next Y212.18%
EPS Next 2Y63.9%
EPS Next 3Y39.36%
EPS Next 5Y23.14%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-0.77%
Revenue Next Year-4.03%
Revenue Next 2Y1.72%
Revenue Next 3Y0.11%
Revenue Next 5Y1.7%
EBIT growth 1Y29.59%
EBIT growth 3Y47.85%
EBIT growth 5Y25.43%
EBIT Next Year109.55%
EBIT Next 3Y29.6%
EBIT Next 5Y16.4%
FCF growth 1Y191.69%
FCF growth 3Y125.44%
FCF growth 5YN/A
OCF growth 1Y37.12%
OCF growth 3Y18.8%
OCF growth 5Y15.14%
MILLICOM INTL CELLULAR S.A. / TIGO FAQ
What is the ChartMill fundamental rating of MILLICOM INTL CELLULAR S.A. (TIGO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TIGO.
What is the valuation status for TIGO stock?
ChartMill assigns a valuation rating of 6 / 10 to MILLICOM INTL CELLULAR S.A. (TIGO). This can be considered as Fairly Valued.
Can you provide the profitability details for MILLICOM INTL CELLULAR S.A.?
MILLICOM INTL CELLULAR S.A. (TIGO) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TIGO stock?
The Price/Earnings (PE) ratio for MILLICOM INTL CELLULAR S.A. (TIGO) is 21.6 and the Price/Book (PB) ratio is 2.51.
What is the expected EPS growth for MILLICOM INTL CELLULAR S.A. (TIGO) stock?
The Earnings per Share (EPS) of MILLICOM INTL CELLULAR S.A. (TIGO) is expected to grow by 212.18% in the next year.