MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
USA - NASDAQ:TIGO - LU0038705702 - Common Stock
48.23 USD
+0.43 (+0.9%)
48.23 USD
0 (0%)
Taking everything into account, TIGO scores 5 out of 10 in our fundamental rating. TIGO was compared to 22 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TIGO had positive earnings in the past year.
In the past year TIGO had a positive cash flow from operations.
In multiple years TIGO reported negative net income over the last 5 years.
TIGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIGO's Return On Assets of 6.35% is amongst the best of the industry. TIGO outperforms 90.91% of its industry peers.
TIGO has a Return On Equity of 26.92%. This is amongst the best in the industry. TIGO outperforms 95.45% of its industry peers.
TIGO has a better Return On Invested Capital (9.03%) than 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 5.96%.
The 3 year average ROIC (6.73%) for TIGO is below the current ROIC(9.03%), indicating increased profibility in the last year.
| 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
The Profit Margin of TIGO (16.98%) is better than 100.00% of its industry peers.
TIGO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.96%, TIGO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TIGO has grown nicely.
The Gross Margin of TIGO (76.50%) is better 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.
Compared to 1 year ago, TIGO has about the same amount of shares outstanding.
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 1.30, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
TIGO has a better Altman-Z score (1.30) than 72.73% of its industry peers.
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 in line with its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that TIGO has dependencies on debt financing.
TIGO has a worse Debt to Equity ratio (2.08) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.26
WACC7.15%
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.
Looking at the Current ratio, with a value of 0.91, TIGO is doing worse than 72.73% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that TIGO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, TIGO is doing worse than 72.73% of the companies in the same industry.
| 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.
TIGO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.40% yearly.
TIGO shows a decrease in Revenue. In the last year, the revenue decreased by -4.09%.
TIGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
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.
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y171.44%
EPS Next 2Y69.41%
EPS Next 3Y40.76%
EPS Next 5Y23.14%
Revenue Next Year-4.01%
Revenue Next 2Y2.14%
Revenue Next 3Y0.02%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TIGO is valuated rather expensively with a Price/Earnings ratio of 23.53.
The rest of the industry has a similar Price/Earnings ratio as TIGO.
TIGO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.43 indicates a reasonable valuation of TIGO.
TIGO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.89. TIGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
TIGO's Enterprise Value to EBITDA ratio is in line with the industry average.
TIGO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 5.68 |
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 40.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y69.41%
EPS Next 3Y40.76%
5. Dividend
5.1 Amount
TIGO has a Yearly Dividend Yield of 6.28%, which is a nice return.
Compared to an average industry Dividend Yield of 8.55, TIGO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
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 2Y69.41%
EPS Next 3Y40.76%
48.23
+0.43 (+0.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners41.09%
Inst Owner Change6.93%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap8.06B
Analysts80
Price Target44.49 (-7.75%)
Short Float %2.91%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
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)2.95%
PT rev (3m)10.83%
EPS NQ rev (1m)38.64%
EPS NQ rev (3m)-13.48%
EPS NY rev (1m)13.95%
EPS NY rev (3m)33.57%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 11.43 | ||
| P/S | 1.44 | ||
| P/FCF | 7.99 | ||
| P/OCF | 4.8 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.68 |
EPS(TTM)2.05
EY4.25%
EPS(NY)4.22
Fwd EY8.75%
FCF(TTM)6.03
FCFY12.51%
OCF(TTM)10.04
OCFY20.82%
SpS33.55
BVpS21.17
TBVpS-20.8
PEG (NY)0.14
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 | 1.3 |
F-Score7
WACC7.15%
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 Y171.44%
EPS Next 2Y69.41%
EPS Next 3Y40.76%
EPS Next 5Y23.14%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-5.9%
Revenue Next Year-4.01%
Revenue Next 2Y2.14%
Revenue Next 3Y0.02%
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%