MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
NASDAQ:TIGO - Nasdaq - LU0038705702 - Common Stock - Currency: USD
TIGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 2.59%, TIGO is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
TIGO's Return On Equity of 10.45% is in line compared to the rest of the industry. TIGO outperforms 57.14% of its industry peers.
With an excellent Return On Invested Capital value of 9.64%, TIGO belongs to the best 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 6.35%.
The 3 year average ROIC (6.73%) 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)6.73%
ROIC(5y)5.05%
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.
In the last couple of years the Profit Margin of TIGO has grown nicely.
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.
TIGO's Operating Margin has improved in the last couple of years.
TIGO has a Gross Margin of 76.21%. This is amongst the best in the industry. TIGO outperforms 85.71% of its industry peers.
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 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.
TIGO has about the same amout of shares outstanding than it did 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 1.35, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
TIGO has a Altman-Z score of 1.35. This is in the better half of the industry: TIGO outperforms 71.43% 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.
The Debt to FCF ratio of TIGO (6.61) is better than 71.43% of its industry peers.
A Debt/Equity ratio of 1.98 is on the high side and indicates that TIGO has dependencies on debt financing.
The Debt to Equity ratio of TIGO (1.98) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.35
WACC7.13%
2.3 Liquidity
A Current Ratio of 0.72 indicates that TIGO may have some problems paying its short term obligations.
With a Current ratio value of 0.72, TIGO is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that TIGO may have some problems paying its short term obligations.
The Quick ratio of TIGO (0.68) is worse than 85.71% of its industry peers.
| 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 243.55%, which is quite impressive.
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 been growing slightly by 2.53% in the past year.
The Revenue has been growing slightly by 6.01% on average over the past years.
EPS 1Y (TTM)243.55%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%10.87%
Revenue 1Y (TTM)2.53%
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 23.02% on average per year.
TIGO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y102.96%
EPS Next 2Y49.22%
EPS Next 3Y36.05%
EPS Next 5Y23.02%
Revenue Next Year-4.55%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.31%
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.
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
TIGO is valuated rather expensively with a Price/Earnings ratio of 20.42.
61.90% of the companies in the same industry are more expensive than TIGO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.41, TIGO is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.29, which indicates a correct valuation of TIGO.
Based on the Price/Forward Earnings ratio, TIGO is valued a bit cheaper than 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, TIGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than TIGO, based on the Enterprise Value to EBITDA ratio.
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 | 6.95 | ||
| EV/EBITDA | 5.38 |
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.
The decent profitability rating of TIGO may justify a higher PE ratio.
A more expensive valuation may be justified as TIGO's earnings are expected to grow with 36.05% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y49.22%
EPS Next 3Y36.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.13%, TIGO is a good candidate for dividend investing.
TIGO's Dividend Yield is rather good when compared to the industry average which is at 51.43. TIGO pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.13% |
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 2Y49.22%
EPS Next 3Y36.05%
NASDAQ:TIGO (8/12/2025, 9:37:00 AM)
43.49
+0.96 (+2.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners35.78%
Inst Owner Change9.32%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap7.48B
Analysts81.33
Price Target40.44 (-7.01%)
Short Float %2.23%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.13% |
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)0.73%
PT rev (3m)12.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.9%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-5.46%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 13.29 | ||
| P/S | 1.32 | ||
| P/FCF | 6.95 | ||
| P/OCF | 4.37 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.38 |
EPS(TTM)2.13
EY4.9%
EPS(NY)3.27
Fwd EY7.53%
FCF(TTM)6.26
FCFY14.39%
OCF(TTM)9.94
OCFY22.86%
SpS33.07
BVpS19.67
TBVpS-20.09
PEG (NY)0.2
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)6.73%
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 Turnover0.42
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 | 1.35 |
F-Score7
WACC7.13%
ROIC/WACC1.35
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)243.55%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%10.87%
EPS Next Y102.96%
EPS Next 2Y49.22%
EPS Next 3Y36.05%
EPS Next 5Y23.02%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-5.9%
Revenue Next Year-4.55%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.31%
Revenue Next 5Y1.89%
EBIT growth 1Y51.53%
EBIT growth 3Y47.85%
EBIT growth 5Y25.43%
EBIT Next Year107.34%
EBIT Next 3Y29.14%
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%