MILLICOM INTL CELLULAR S.A. (TIGO) Stock Fundamental Analysis
NASDAQ:TIGO - Nasdaq - LU0038705702 - Common Stock - Currency: USD
Taking everything into account, TIGO scores 5 out of 10 in our fundamental rating. TIGO was compared to 21 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TIGO was profitable.
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.
In the past 5 years TIGO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TIGO (2.59%) is better than 61.90% of its industry peers.
With a Return On Equity value of 10.45%, TIGO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
TIGO's Return On Invested Capital of 9.64% is amongst the best of the industry. TIGO outperforms 85.71% of its industry peers.
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 6.34%.
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
With a decent Profit Margin value of 6.22%, TIGO is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Profit Margin of TIGO has grown nicely.
TIGO has a better Operating Margin (24.39%) than 90.48% of its industry peers.
In the last couple of years the Operating Margin of TIGO has grown nicely.
The Gross Margin of TIGO (76.21%) is better than 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 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) just above the Cost of Capital (WACC), TIGO is creating some value.
TIGO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TIGO has more shares outstanding
TIGO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that TIGO is in the distress zone and has some risk of bankruptcy.
TIGO has a Altman-Z score of 1.32. This is in the better half of the industry: TIGO outperforms 66.67% of its industry peers.
The Debt to FCF ratio of TIGO is 6.61, which is on the high side as it means it would take TIGO, 6.61 years of fcf income to pay off all of its debts.
TIGO has a better Debt to FCF ratio (6.61) than 71.43% of its industry peers.
TIGO has a Debt/Equity ratio of 1.98. This is a high value indicating a heavy dependency on external financing.
TIGO's Debt to Equity ratio of 1.98 is on the low side compared to the rest of the industry. TIGO is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.35
WACC7.12%
2.3 Liquidity
A Current Ratio of 0.72 indicates that TIGO may have some problems paying 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.
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
The Earnings Per Share has grown by an impressive 6833.33% over the past year.
The Earnings Per Share has been decreasing by -0.40% on average over the past years.
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 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-4.57%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.32%
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 19.21.
Compared to the rest of the industry, the Price/Earnings ratio of TIGO indicates a somewhat cheap valuation: TIGO is cheaper than 66.67% of the companies listed in the same industry.
TIGO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 12.20, which indicates a correct valuation of TIGO.
TIGO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. TIGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIGO is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
TIGO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TIGO is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
TIGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TIGO has a very decent profitability rating, which 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)0.19
PEG (5Y)N/A
EPS Next 2Y49.22%
EPS Next 3Y36.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.01%, TIGO is a good candidate for dividend investing.
TIGO's Dividend Yield is rather good when compared to the industry average which is at 5.11. TIGO pays more dividend than 100.00% of the companies in the same industry.
TIGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.01% |
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%
39.95
+0.81 (+2.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners35.18%
Inst Owner Change5.14%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap6.88B
Analysts81.33
Price Target40.14 (0.48%)
Short Float %1.66%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.01% |
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)1.47%
PT rev (3m)13.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.99%
EPS NY rev (1m)-2.54%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.13%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 12.2 | ||
| P/S | 1.21 | ||
| P/FCF | 6.38 | ||
| P/OCF | 4.02 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.15 |
EPS(TTM)2.08
EY5.21%
EPS(NY)3.27
Fwd EY8.19%
FCF(TTM)6.26
FCFY15.66%
OCF(TTM)9.94
OCFY24.89%
SpS33.07
BVpS19.67
TBVpS-20.09
PEG (NY)0.19
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 | 1.32 |
F-Score7
WACC7.12%
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)6833.33%
EPS 3Y-37.04%
EPS 5Y-0.4%
EPS Q2Q%115.09%
EPS Next Y102.96%
EPS Next 2Y49.22%
EPS Next 3Y36.05%
EPS Next 5Y23.02%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.85%
Revenue growth 5Y6.01%
Sales Q2Q%-7.6%
Revenue Next Year-4.57%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.32%
Revenue Next 5Y1.89%
EBIT growth 1Y51.53%
EBIT growth 3Y44.3%
EBIT growth 5Y23.61%
EBIT Next Year107.81%
EBIT Next 3Y29.27%
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%