MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
NASDAQ:TIGO - LU0038705702 - Common Stock
47.15 USD
-0.76 (-1.59%)
47.15 USD
0 (0%)
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. While TIGO belongs to the best of the industry regarding profitability, there are concerns on its financial health. TIGO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TIGO was profitable.
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.
In the past 5 years TIGO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TIGO (6.35%) is better than 85.71% of its industry peers.
TIGO has a better Return On Equity (26.92%) than 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 9.03%, TIGO belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIGO is in line with the industry average of 6.09%.
The last Return On Invested Capital (9.03%) for TIGO is above the 3 year average (6.73%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (16.98%) than 100.00% of its industry peers.
TIGO's Profit Margin has improved in the last couple of years.
The Operating Margin of TIGO (24.96%) is better than 100.00% of its industry peers.
TIGO's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIGO is still creating some value.
The number of shares outstanding for TIGO remains at a similar level compared to 1 year ago.
The number of shares outstanding for TIGO has been increased compared to 5 years ago.
The debt/assets ratio for TIGO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.29, TIGO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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.
TIGO has a Debt to FCF ratio (7.86) which is comparable to the rest of the industry.
TIGO has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TIGO (2.08) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.26
WACC7.14%
2.3 Liquidity
TIGO has a Current Ratio of 0.91. This is a bad value and indicates that TIGO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TIGO (0.91) is worse than 76.19% of its industry peers.
TIGO has a Quick Ratio of 0.91. This is a bad value and indicates that TIGO is not financially healthy enough and could expect problems in meeting 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.
The Revenue has decreased by -4.09% in the past 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)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
TIGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.14% yearly.
The Revenue is expected to grow by 1.70% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 23.00, the valuation of TIGO can be described as rather expensive.
TIGO's Price/Earnings is on the same level as the industry average.
TIGO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 11.07, the valuation of TIGO can be described as 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 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 11.07 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.81 | ||
| 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.
TIGO's earnings are expected to grow with 41.81% in the coming years. This may justify a more expensive valuation.
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 6.26%, TIGO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.44, TIGO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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 2Y70.2%
EPS Next 3Y41.81%
47.15
-0.76 (-1.59%)
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 Cap7.88B
Analysts80
Price Target42.55 (-9.76%)
Short Float %2.28%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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 | ||
| Fwd PE | 11.07 | ||
| P/S | 1.41 | ||
| P/FCF | 7.81 | ||
| P/OCF | 4.7 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.61 |
EPS(TTM)2.05
EY4.35%
EPS(NY)4.26
Fwd EY9.03%
FCF(TTM)6.03
FCFY12.8%
OCF(TTM)10.04
OCFY21.29%
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%