MILLICOM INTL CELLULAR S.A. (TIGO)
LU0038705702 - Common Stock
We assign a fundamental rating of 3 out of 10 to TIGO. TIGO was compared to 22 industry peers in the Wireless Telecommunication Services industry. While TIGO is still in line with the averages on profitability rating, there are concerns on its financial health. TIGO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TIGO has reported negative net income.
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
Looking at the Return On Assets, with a value of -0.56%, TIGO is doing worse than 76.19% of the companies in the same industry.
TIGO has a Return On Equity of -2.32%. This is in the lower half of the industry: TIGO underperforms 76.19% of its industry peers.
TIGO has a Return On Invested Capital of 5.08%. This is in the better half of the industry: TIGO outperforms 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIGO is below the industry average of 7.50%.
The 3 year average ROIC (4.64%) for TIGO is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.32% | ||
| ROIC | 5.08% |
ROA(3y)1.53%
ROA(5y)0.59%
ROE(3y)8.48%
ROE(5y)2.98%
ROIC(3y)4.64%
ROIC(5y)3.84%
1.3 Margins
The Operating Margin of TIGO (13.85%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of TIGO has grown nicely.
TIGO has a better Gross Margin (73.38%) than 85.71% 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 | 13.85% | ||
| PM (TTM) | N/A | ||
| GM | 73.38% |
OM growth 3Y32.03%
OM growth 5Y5.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TIGO is destroying 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
TIGO has an Altman-Z score of 0.94. This is a bad value and indicates that TIGO is not financially healthy and even has some risk of bankruptcy.
TIGO has a Altman-Z score (0.94) which is comparable to the rest of the industry.
TIGO has a debt to FCF ratio of 44.74. This is a negative value and a sign of low solvency as TIGO would need 44.74 years to pay back of all of its debts.
TIGO's Debt to FCF ratio of 44.74 is on the low side compared to the rest of the industry. TIGO is outperformed by 71.43% of its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that TIGO has dependencies on debt financing.
With a Debt to Equity ratio value of 2.08, TIGO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 44.74 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.76
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.82 indicates that TIGO may have some problems paying its short term obligations.
TIGO has a worse Current ratio (0.82) than 85.71% of its industry peers.
A Quick Ratio of 0.79 indicates that TIGO may have some problems paying its short term obligations.
The Quick ratio of TIGO (0.79) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for TIGO have decreased strongly by -131.58% in the last year.
Looking at the last year, TIGO shows a small growth in Revenue. The Revenue has grown by 0.66% in the last year.
TIGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.48% yearly.
EPS 1Y (TTM)-131.58%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-212.12%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y10.72%
Revenue growth 5Y7.48%
Revenue growth Q2Q6.81%
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 74.78% on average per year.
Based on estimates for the next years, TIGO will show a small growth in Revenue. The Revenue will grow by 3.08% on average per year.
EPS Next Y449.82%
EPS Next 2Y152.76%
EPS Next 3Y93.01%
EPS Next 5Y74.78%
Revenue Next Year3.48%
Revenue Next 2Y2.58%
Revenue Next 3Y2.51%
Revenue Next 5Y3.08%
3.3 Evolution
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
The Price/Earnings Ratio is negative for TIGO. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 12.26, which indicates a correct valuation of TIGO.
The rest of the industry has a similar Price/Forward Earnings ratio as TIGO.
TIGO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.26 |
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 more expensive than the industry average as 61.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.48 | ||
| EV/EBITDA | 4.94 |
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's earnings are expected to grow with 93.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y152.76%
EPS Next 3Y93.01%
5. Dividend
5.1 Amount
TIGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MILLICOM INTL CELLULAR S.A.
NASDAQ:TIGO (5/1/2024, 7:25:47 PM)
After market: 20.59 0 (0%)20.59
+0.12 (+0.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
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Market Cap3.54B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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OCF(TTM)
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SpS
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PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.85% | ||
| PM (TTM) | N/A | ||
| GM | 73.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
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PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-131.58%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y449.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.66%
Revenue growth 3Y10.72%
Revenue growth 5Y
Revenue growth Q2Q
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Revenue Next 5Y
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