MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
NASDAQ:TIGO - Nasdaq - LU0038705702 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TIGO. TIGO was compared to 21 industry peers in the Wireless Telecommunication Services industry. TIGO scores excellent on profitability, but 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
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.
Each year in the past 5 years TIGO had a positive operating cash flow.
1.2 Ratios
TIGO has a better Return On Assets (2.59%) than 61.90% of its industry peers.
TIGO has a Return On Equity of 10.45%. This is comparable to the rest of the industry: TIGO outperforms 57.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.64%, TIGO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TIGO is in line with the industry average of 6.34%.
The 3 year average ROIC (6.51%) for TIGO is below the current ROIC(9.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 10.45% | ||
| ROIC | 9.64% |
ROA(3y)0.84%
ROA(5y)0.73%
ROE(3y)3.19%
ROE(5y)3.14%
ROIC(3y)6.51%
ROIC(5y)4.92%
1.3 Margins
TIGO has a Profit Margin of 6.22%. This is in the better half of the industry: TIGO outperforms 61.90% of its industry peers.
TIGO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.39%, TIGO belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of TIGO has grown nicely.
With an excellent Gross Margin value of 76.21%, TIGO belongs to the best 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 | 24.39% | ||
| PM (TTM) | 6.22% | ||
| GM | 76.21% |
OM growth 3Y30.18%
OM growth 5Y16.61%
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.
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
Based on the Altman-Z score of 1.30, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
TIGO has a Altman-Z score of 1.30. This is in the better half of the industry: TIGO outperforms 61.90% of its industry peers.
TIGO has a debt to FCF ratio of 6.61. This is a slightly negative value and a sign of low solvency as TIGO would need 6.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.61, TIGO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
TIGO has a Debt/Equity ratio of 1.98. This is a high value indicating a heavy dependency on external financing.
TIGO has a Debt to Equity ratio of 1.98. This is in the lower half of the industry: TIGO underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.36
WACC7.11%
2.3 Liquidity
TIGO has a Current Ratio of 0.72. 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 0.72, TIGO is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that TIGO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, TIGO is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
TIGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 6833.33%, which is quite impressive.
TIGO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.40% yearly.
TIGO shows a decrease in Revenue. In the last year, the revenue decreased by -1.52%.
TIGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
EPS 1Y (TTM)6833.33%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%115.09%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-7.6%
3.2 Future
TIGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.02% yearly.
Based on estimates for the next years, TIGO will show a small growth in Revenue. The Revenue will grow by 1.89% on average per year.
EPS Next Y103.22%
EPS Next 2Y54.22%
EPS Next 3Y39.02%
EPS Next 5Y23.02%
Revenue Next Year-4.57%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.32%
Revenue Next 5Y1.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.22, TIGO is valued on the expensive side.
TIGO's Price/Earnings ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 66.67% of the companies in the same industry.
TIGO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 10.84, which indicates a very decent valuation of TIGO.
TIGO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 61.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIGO to the average of the S&P500 Index (21.90), we can say TIGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than TIGO, based on the Enterprise Value to EBITDA ratio.
71.43% 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 | 6.06 | ||
| EV/EBITDA | 5.07 |
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.
The decent profitability rating of TIGO may justify a higher PE ratio.
TIGO's earnings are expected to grow with 39.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y54.22%
EPS Next 3Y39.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.86%, TIGO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.99, TIGO pays a bit more dividend than its industry peers.
TIGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
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 2Y54.22%
EPS Next 3Y39.02%
37.9
-0.23 (-0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners35.18%
Inst Owner Change389.12%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap6.52B
Analysts82.67
Price Target40.14 (5.91%)
Short Float %0.47%
Short Ratio0.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
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)-23.83%
Min EPS beat(2)-74.67%
Max EPS beat(2)27.01%
EPS beat(4)1
Avg EPS beat(4)-27.2%
Min EPS beat(4)-74.67%
Max EPS beat(4)27.01%
EPS beat(8)2
Avg EPS beat(8)0.86%
EPS beat(12)4
Avg EPS beat(12)20.17%
EPS beat(16)6
Avg EPS beat(16)61.04%
Revenue beat(2)0
Avg Revenue beat(2)-6.68%
Min Revenue beat(2)-8.89%
Max Revenue beat(2)-4.48%
Revenue beat(4)0
Avg Revenue beat(4)-5.22%
Min Revenue beat(4)-8.89%
Max Revenue beat(4)-3.57%
Revenue beat(8)1
Avg Revenue beat(8)-3.54%
Revenue beat(12)1
Avg Revenue beat(12)-4.51%
Revenue beat(16)1
Avg Revenue beat(16)-11.06%
PT rev (1m)11.63%
PT rev (3m)14.81%
EPS NQ rev (1m)-18.29%
EPS NQ rev (3m)17.54%
EPS NY rev (1m)-2.41%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 10.84 | ||
| P/S | 1.15 | ||
| P/FCF | 6.06 | ||
| P/OCF | 3.81 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.07 |
EPS(TTM)2.08
EY5.49%
EPS(NY)3.5
Fwd EY9.23%
FCF(TTM)6.26
FCFY16.51%
OCF(TTM)9.94
OCFY26.23%
SpS33.07
BVpS19.67
TBVpS-20.09
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 10.45% | ||
| ROCE | 12.21% | ||
| ROIC | 9.64% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 27.47% | ||
| OM | 24.39% | ||
| PM (TTM) | 6.22% | ||
| GM | 76.21% | ||
| FCFM | 18.92% |
ROA(3y)0.84%
ROA(5y)0.73%
ROE(3y)3.19%
ROE(5y)3.14%
ROIC(3y)6.51%
ROIC(5y)4.92%
ROICexc(3y)7%
ROICexc(5y)5.32%
ROICexgc(3y)20.81%
ROICexgc(5y)16.19%
ROCE(3y)8.24%
ROCE(5y)6.23%
ROICexcg growth 3Y21.08%
ROICexcg growth 5Y34.7%
ROICexc growth 3Y40.23%
ROICexc growth 5Y19.39%
OM growth 3Y30.18%
OM growth 5Y16.61%
PM growth 3Y-31.97%
PM growth 5Y4.87%
GM growth 3Y1.43%
GM growth 5Y0.99%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 6.61 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 52.97% | ||
| Cap/Sales | 11.14% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 66.19% | ||
| Profit Quality | 304.24% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.3 |
F-Score7
WACC7.11%
ROIC/WACC1.36
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)6833.33%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%115.09%
EPS Next Y103.22%
EPS Next 2Y54.22%
EPS Next 3Y39.02%
EPS Next 5Y23.02%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-7.6%
Revenue Next Year-4.57%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.32%
Revenue Next 5Y1.89%
EBIT growth 1Y51.53%
EBIT growth 3Y44.3%
EBIT growth 5Y23.61%
EBIT Next Year107.81%
EBIT Next 3Y29.27%
EBIT Next 5Y16.34%
FCF growth 1Y300.37%
FCF growth 3Y125.44%
FCF growth 5YN/A
OCF growth 1Y40.59%
OCF growth 3Y18.8%
OCF growth 5Y15.14%