MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
NASDAQ:TIGO - Nasdaq - LU0038705702 - Common Stock - Currency: USD
Overall TIGO gets a fundamental rating of 5 out of 10. We evaluated TIGO against 21 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
TIGO had positive earnings in the past year.
TIGO had a positive operating cash flow in the past year.
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
The Return On Assets of TIGO (1.84%) is comparable to the rest of the industry.
TIGO has a Return On Equity (6.97%) which is comparable to the rest of the industry.
TIGO's Return On Invested Capital of 8.99% is amongst the best of the industry. TIGO outperforms 80.95% of its industry peers.
TIGO had an Average Return On Invested Capital over the past 3 years of 6.51%. This is in line with the industry average of 6.19%.
The last Return On Invested Capital (8.99%) for TIGO is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 6.97% | ||
| ROIC | 8.99% |
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
The Profit Margin of TIGO (4.36%) is comparable to the rest of the industry.
TIGO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.21%, TIGO is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of TIGO has grown nicely.
TIGO has a better Gross Margin (75.53%) than 85.71% of its industry peers.
TIGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.21% | ||
| PM (TTM) | 4.36% | ||
| GM | 75.53% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIGO is still creating some value.
TIGO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TIGO has more shares outstanding
TIGO has a better debt/assets ratio than last year.
2.2 Solvency
TIGO has an Altman-Z score of 1.26. 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 (1.26) is better than 61.90% of its industry peers.
TIGO has a debt to FCF ratio of 7.29. This is a slightly negative value and a sign of low solvency as TIGO would need 7.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.29, TIGO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that TIGO has dependencies on debt financing.
The Debt to Equity ratio of TIGO (1.75) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 7.29 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.25
WACC7.16%
2.3 Liquidity
TIGO has a Current Ratio of 0.73. 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 has a worse Current ratio (0.73) than 85.71% of its industry peers.
A Quick Ratio of 0.70 indicates that TIGO may have some problems paying its short term obligations.
TIGO has a Quick ratio of 0.70. This is amonst the worse of the industry: TIGO underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
TIGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 406.25%, 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.
Looking at the last year, TIGO shows a small growth in Revenue. The Revenue has grown by 2.53% in the last year.
The Revenue has been growing slightly by 6.01% on average over the past years.
EPS 1Y (TTM)406.25%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%148.65%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-3.19%
3.2 Future
The Earnings Per Share is expected to grow by 21.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, TIGO will show a small growth in Revenue. The Revenue will grow by 2.27% on average per year.
EPS Next Y104.8%
EPS Next 2Y53.77%
EPS Next 3Y37.22%
EPS Next 5Y21.97%
Revenue Next Year-1.73%
Revenue Next 2Y0.03%
Revenue Next 3Y0.53%
Revenue Next 5Y2.27%
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
Based on the Price/Earnings ratio of 22.77, the valuation of TIGO can be described as rather expensive.
61.90% of the companies in the same industry are more expensive than TIGO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. TIGO is around the same levels.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of TIGO can be described as reasonable.
Based on the Price/Forward Earnings ratio, TIGO is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIGO to the average of the S&P500 Index (20.86), we can say TIGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
TIGO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 76.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIGO indicates a somewhat cheap valuation: TIGO is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 4.69 |
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 37.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y53.77%
EPS Next 3Y37.22%
5. Dividend
5.1 Amount
TIGO has a Yearly Dividend Yield of 5.17%, which is a nice return.
Compared to an average industry Dividend Yield of 5.42, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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
DP0%
EPS Next 2Y53.77%
EPS Next 3Y37.22%
33.47
-0.38 (-1.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners6.79%
Inst Owner Change0.24%
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap5.76B
Analysts81.25
Price Target35.33 (5.56%)
Short Float %1.84%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-62.55%
Min EPS beat(2)-74.67%
Max EPS beat(2)-50.43%
EPS beat(4)1
Avg EPS beat(4)114.25%
Min EPS beat(4)-74.67%
Max EPS beat(4)592.81%
EPS beat(8)1
Avg EPS beat(8)-14.21%
EPS beat(12)4
Avg EPS beat(12)22.11%
EPS beat(16)6
Avg EPS beat(16)63.15%
Revenue beat(2)0
Avg Revenue beat(2)-4.22%
Min Revenue beat(2)-4.48%
Max Revenue beat(2)-3.96%
Revenue beat(4)1
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-4.48%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-2.86%
Revenue beat(12)1
Avg Revenue beat(12)-5.04%
Revenue beat(16)1
Avg Revenue beat(16)-12.9%
PT rev (1m)1.03%
PT rev (3m)6.61%
EPS NQ rev (1m)51.72%
EPS NQ rev (3m)12.1%
EPS NY rev (1m)2.1%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 11.12 | ||
| P/S | 0.99 | ||
| P/FCF | 6.21 | ||
| P/OCF | 3.59 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.69 |
EPS(TTM)1.47
EY4.39%
EPS(NY)3.01
Fwd EY8.99%
FCF(TTM)5.39
FCFY16.11%
OCF(TTM)9.31
OCFY27.83%
SpS33.72
BVpS21.08
TBVpS-19.06
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 6.97% | ||
| ROCE | 11.37% | ||
| ROIC | 8.99% | ||
| ROICexc | 9.58% | ||
| ROICexgc | 27.33% | ||
| OM | 22.21% | ||
| PM (TTM) | 4.36% | ||
| GM | 75.53% | ||
| FCFM | 15.99% |
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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 7.29 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 54.7% | ||
| Cap/Sales | 11.63% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 63.54% | ||
| Profit Quality | 366.8% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.26 |
F-Score8
WACC7.16%
ROIC/WACC1.25
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)406.25%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%148.65%
EPS Next Y104.8%
EPS Next 2Y53.77%
EPS Next 3Y37.22%
EPS Next 5Y21.97%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-3.19%
Revenue Next Year-1.73%
Revenue Next 2Y0.03%
Revenue Next 3Y0.53%
Revenue Next 5Y2.27%
EBIT growth 1Y64.41%
EBIT growth 3Y44.3%
EBIT growth 5Y23.61%
EBIT Next Year108.29%
EBIT Next 3Y29.33%
EBIT Next 5Y15.97%
FCF growth 1Y436.42%
FCF growth 3Y125.44%
FCF growth 5YN/A
OCF growth 1Y31.07%
OCF growth 3Y18.8%
OCF growth 5Y15.14%