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. A decent growth rate in combination with a cheap valuation! Better keep an eye on TIGO.
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
With a decent Return On Assets value of 2.59%, TIGO is doing good in 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.
Looking at the Return On Invested Capital, with a value of 9.64%, TIGO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
TIGO had an Average Return On Invested Capital over the past 3 years of 6.51%. This is in line with the industry average of 6.29%.
The 3 year average ROIC (6.51%) 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)6.51%
ROIC(5y)4.92%
1.3 Margins
TIGO has a better Profit Margin (6.22%) than 61.90% 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 24.39%, TIGO belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
TIGO's Operating Margin has improved in the last couple of years.
The Gross Margin of TIGO (76.21%) is better 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 | 24.39% | ||
| PM (TTM) | 6.22% | ||
| GM | 76.21% |
OM growth 3Y30.18%
OM growth 5Y16.61%
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) below the Cost of Capital (WACC), TIGO is destroying 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.
TIGO has a better debt/assets ratio than last year.
2.2 Solvency
TIGO has an Altman-Z score of 1.29. This is a bad value and indicates that TIGO is not financially healthy and even has some risk of bankruptcy.
TIGO has a better Altman-Z score (1.29) than 61.90% 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.
TIGO's Debt to FCF ratio of 6.61 is fine compared to the rest of the industry. TIGO outperforms 76.19% 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.
TIGO has a worse Debt to Equity ratio (1.98) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.98
WACC9.86%
2.3 Liquidity
TIGO has a Current Ratio of 0.72. 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 0.72, TIGO is doing worse than 85.71% of the companies in the same industry.
TIGO has a Quick Ratio of 0.72. This is a bad value and indicates that TIGO is not financially healthy enough and could expect problems in meeting its short term obligations.
TIGO's Quick ratio of 0.68 is on the low side compared to the rest of the industry. TIGO is outperformed by 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 6833.33%, 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 decreased by -1.52% 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)6833.33%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%115.09%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-7.6%
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 21.97% on average per year.
TIGO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y108.24%
EPS Next 2Y49.44%
EPS Next 3Y33.37%
EPS Next 5Y21.97%
Revenue Next Year-3.48%
Revenue Next 2Y-0.75%
Revenue Next 3Y0.25%
Revenue Next 5Y2.27%
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.
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
Based on the Price/Earnings ratio of 17.56, the valuation of TIGO can be described as rather expensive.
TIGO's Price/Earnings ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 71.43% of the companies in the same industry.
TIGO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.12 indicates a reasonable valuation of TIGO.
61.90% of the companies in the same industry are more expensive than TIGO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.25. TIGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIGO indicates a somewhat cheap valuation: TIGO is cheaper than 76.19% of the companies listed in the same industry.
71.43% of the companies in the same industry are more expensive than TIGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.84 | ||
| EV/EBITDA | 4.98 |
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.
TIGO's earnings are expected to grow with 33.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y49.44%
EPS Next 3Y33.37%
5. Dividend
5.1 Amount
TIGO has a Yearly Dividend Yield of 4.75%, which is a nice return.
TIGO's Dividend Yield is comparable with the industry average which is at 5.22.
Compared to an average S&P500 Dividend Yield of 2.38, TIGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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 2Y49.44%
EPS Next 3Y33.37%
36.52
-0.05 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners6.79%
Inst Owner Change388.86%
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap6.29B
Analysts81.25
Price Target35.96 (-1.53%)
Short Float %0.39%
Short Ratio0.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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)1.8%
PT rev (3m)8.86%
EPS NQ rev (1m)-5.75%
EPS NQ rev (3m)4.46%
EPS NY rev (1m)1.68%
EPS NY rev (3m)8.07%
Revenue NQ rev (1m)-4.93%
Revenue NQ rev (3m)-5.18%
Revenue NY rev (1m)-1.78%
Revenue NY rev (3m)-3.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.1 | ||
| P/FCF | 5.84 | ||
| P/OCF | 3.67 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.98 |
EPS(TTM)2.08
EY5.7%
EPS(NY)3.28
Fwd EY8.99%
FCF(TTM)6.26
FCFY17.14%
OCF(TTM)9.94
OCFY27.22%
SpS33.07
BVpS19.67
TBVpS-20.09
PEG (NY)0.16
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)6.51%
ROIC(5y)4.92%
ROICexc(3y)7%
ROICexc(5y)5.32%
ROICexgc(3y)20.81%
ROICexgc(5y)16.19%
ROCE(3y)8.24%
ROCE(5y)6.23%
ROICexcg growth 3Y21.08%
ROICexcg growth 5Y34.7%
ROICexc growth 3Y40.23%
ROICexc growth 5Y19.39%
OM growth 3Y30.18%
OM growth 5Y16.61%
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 | 1.29 |
F-Score7
WACC9.86%
ROIC/WACC0.98
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)6833.33%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%115.09%
EPS Next Y108.24%
EPS Next 2Y49.44%
EPS Next 3Y33.37%
EPS Next 5Y21.97%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-7.6%
Revenue Next Year-3.48%
Revenue Next 2Y-0.75%
Revenue Next 3Y0.25%
Revenue Next 5Y2.27%
EBIT growth 1Y51.53%
EBIT growth 3Y44.3%
EBIT growth 5Y23.61%
EBIT Next Year107.81%
EBIT Next 3Y29.27%
EBIT Next 5Y15.97%
FCF growth 1Y300.37%
FCF growth 3Y125.44%
FCF growth 5YN/A
OCF growth 1Y40.59%
OCF growth 3Y18.8%
OCF growth 5Y15.14%