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%)
Overall TIGO gets a fundamental rating of 5 out of 10. We evaluated TIGO 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.
TIGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIGO has a Return On Assets of 6.35%. This is amongst the best in the industry. TIGO outperforms 86.36% of its industry peers.
With an excellent Return On Equity value of 26.92%, TIGO belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
The Return On Invested Capital of TIGO (9.03%) is better than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIGO 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
TIGO has a Profit Margin of 16.98%. This is amongst the best in the industry. TIGO outperforms 95.45% of its industry peers.
TIGO's Profit Margin has improved in the last couple of years.
TIGO has a Operating Margin of 24.96%. This is amongst the best in the industry. TIGO outperforms 95.45% of its industry peers.
In the last couple of years the Operating Margin of TIGO has grown nicely.
Looking at the Gross Margin, with a value of 76.50%, TIGO belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIGO is still creating some value.
Compared to 1 year ago, TIGO has about the same amount of shares outstanding.
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 better Altman-Z score (1.29) than 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.
TIGO has a Debt to FCF ratio (7.86) which is comparable to the rest of the industry.
TIGO has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
TIGO has a worse Debt to Equity ratio (2.08) than 68.18% of its industry peers.
| 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.
The Current ratio of TIGO (0.91) is worse than 72.73% of its industry peers.
TIGO has a Quick 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.
The Quick ratio of TIGO (0.87) is worse than 72.73% 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.
The Revenue has decreased by -4.09% 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)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
TIGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.14% yearly.
Based on estimates for the next years, TIGO will show a small growth in Revenue. The Revenue will grow by 1.70% on average per year.
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
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
The Price/Earnings ratio is 23.11, which indicates a rather expensive current valuation of TIGO.
The rest of the industry has a similar Price/Earnings ratio as TIGO.
The average S&P500 Price/Earnings ratio is at 26.89. TIGO is around the same levels.
The Price/Forward Earnings ratio is 12.00, which indicates a very decent valuation of TIGO.
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.
When comparing the Price/Forward Earnings ratio of TIGO to the average of the S&P500 Index (22.99), we can say TIGO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIGO is on the same level as its industry peers.
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.
The excellent 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 39.36% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y63.9%
EPS Next 3Y39.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.32%, TIGO is a good candidate for dividend investing.
TIGO's Dividend Yield is comparable with the industry average which is at 8.51.
TIGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| 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 Change6.23%
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.