Millicom International Cellular S.A.
Millicom International Cellular S.A. Fundamental Analysis
Millicom International Cellular S.A. (TIGO) shows moderate financial fundamentals with a PE ratio of 10.15, profit margin of 19.59%, and ROE of 31.55%. The company generates $5.6B in annual revenue with weak year-over-year growth of 2.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TIGO's fundamental strength across five key dimensions:
Efficiency Score
WeakTIGO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTIGO trades at attractive valuation levels.
Growth Score
WeakTIGO faces weak or negative growth trends.
Financial Health Score
WeakTIGO carries high financial risk with limited liquidity.
Profitability Score
ExcellentTIGO achieves industry-leading margins.
Key Financial Metrics
Is TIGO Expensive or Cheap?
P/E Ratio
TIGO trades at 10.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TIGO's PEG of 0.66 indicates potential undervaluation.
Price to Book
The market values Millicom International Cellular S.A. at 3.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.32 times EBITDA. This is generally considered low.
How Well Does TIGO Make Money?
Net Profit Margin
For every $100 in sales, Millicom International Cellular S.A. keeps $19.59 as profit after all expenses.
Operating Margin
Core operations generate 26.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.55 in profit for every $100 of shareholder equity.
ROA
Millicom International Cellular S.A. generates $7.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Millicom International Cellular S.A. generates strong operating cash flow of $1.79B, reflecting robust business health.
Free Cash Flow
Millicom International Cellular S.A. generates strong free cash flow of $1.15B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.90 in free cash annually.
FCF Yield
TIGO converts 10.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How TIGO Stacks Against Its Sector Peers
| Metric | TIGO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.15 | 21.66 | Better (Cheaper) |
| ROE | 31.55% | 1190.00% | Weak |
| Net Margin | 19.59% | -55754.00% (disorted) | Strong |
| Debt/Equity | 2.53 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.92 | 1.59 | Weak Liquidity |
| ROA | 7.03% | -202359.00% (disorted) | Weak |
TIGO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Millicom International Cellular S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.66%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
153.69%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
50.50%
Industry Style: Growth, Technology, Streaming
High Growth