MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
USA - NASDAQ:TIGO - LU0038705702 - Common Stock
47.38 USD
-0.08 (-0.17%)
47.38 USD
0 (0%)
TIGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
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
TIGO's Return On Assets of 6.35% is amongst the best of the industry. TIGO outperforms 81.82% of its industry peers.
TIGO has a Return On Equity of 26.92%. This is amongst the best in the industry. TIGO outperforms 90.91% of its industry peers.
TIGO's Return On Invested Capital of 9.03% is amongst the best of the industry. TIGO outperforms 81.82% of its industry peers.
TIGO had an Average Return On Invested Capital over the past 3 years of 6.73%. This is in line with the industry average of 5.84%.
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
Looking at the Profit Margin, with a value of 16.98%, TIGO belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
TIGO's Profit Margin has improved in the last couple of years.
TIGO's Operating Margin of 24.96% is amongst the best of the industry. TIGO outperforms 95.45% of its industry peers.
In the last couple of years the Operating Margin of TIGO has grown nicely.
TIGO has a better Gross Margin (76.50%) than 86.36% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIGO is creating some value.
TIGO has about the same amout of shares outstanding than it did 1 year ago.
TIGO has more shares outstanding than it did 5 years ago.
TIGO has a better debt/assets ratio than last year.
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.
TIGO has a Altman-Z score of 1.29. 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 7.86, which is on the high side as it means it would take TIGO, 7.86 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.86, TIGO perfoms like the industry average, outperforming 45.45% 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 68.18% 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
WACC7.17%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TIGO may have some problems paying its short term obligations.
TIGO has a worse Current ratio (0.91) than 68.18% of its industry peers.
A Quick Ratio of 0.87 indicates that TIGO may have some problems paying its short term obligations.
TIGO has a Quick ratio of 0.87. This is in the lower half of the industry: TIGO underperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
TIGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 230.65%, 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 decrease in Revenue. The Revenue has decreased by -4.09% in the last year.
The Revenue has been growing slightly by 6.01% on average over the past years.
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 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.
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
A Price/Earnings ratio of 23.11 indicates a rather expensive valuation of TIGO.
Compared to the rest of the industry, the Price/Earnings ratio of TIGO is on the same level as its industry peers.
TIGO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.00, 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 68.18% of the companies are valued more expensively.
TIGO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 12 |
4.2 Price Multiples
TIGO's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 7.85 | ||
| EV/EBITDA | 5.62 |
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 39.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y63.9%
EPS Next 3Y39.36%
5. Dividend
5.1 Amount
TIGO has a Yearly Dividend Yield of 6.32%, which is a nice return.
Compared to an average industry Dividend Yield of 8.51, TIGO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
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 2Y63.9%
EPS Next 3Y39.36%
47.38
-0.08 (-0.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners41.09%
Inst Owner Change7.65%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap7.91B
Revenue(TTM)5.61B
Net Income(TTM)952.00M
Analysts78.33
Price Target44.49 (-6.1%)
Short Float %2.76%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
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)0%
PT rev (3m)10.83%
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)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 12 | ||
| P/S | 1.41 | ||
| P/FCF | 7.85 | ||
| P/OCF | 4.72 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.62 |
EPS(TTM)2.05
EY4.33%
EPS(NY)3.95
Fwd EY8.33%
FCF(TTM)6.03
FCFY12.74%
OCF(TTM)10.04
OCFY21.19%
SpS33.55
BVpS21.17
TBVpS-20.8
PEG (NY)0.11
PEG (5Y)N/A
Graham Number31.25
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%
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-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
WACC7.17%
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 Y212.18%
EPS Next 2Y63.9%
EPS Next 3Y39.36%
EPS Next 5Y23.14%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-5.9%
Revenue Next Year-4.03%
Revenue Next 2Y1.72%
Revenue Next 3Y0.11%
Revenue Next 5Y1.7%
EBIT growth 1Y31.73%
EBIT growth 3Y47.85%
EBIT growth 5Y25.43%
EBIT Next Year109.55%
EBIT Next 3Y29.6%
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%
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 23.11 and the Price/Book (PB) ratio is 2.24.
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.