NasdaqGS:TIGO

Stock Analysis Report

Millicom International Cellular

Executive Summary

Millicom International Cellular S.A. provides cable and mobile services in Latin America and Africa.

Snowflake

Fundamentals

Second-rate dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Millicom International Cellular's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

NasdaqGS:TIGO

-0.4%

US Wireless Telecom

0.8%

US Market


1 Year Return

-10.7%

NasdaqGS:TIGO

6.5%

US Wireless Telecom

1.9%

US Market

TIGO underperformed the Wireless Telecom industry which returned 6.3% over the past year.

TIGO underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

TIGOIndustryMarket
7 Day-0.8%-0.4%0.8%
30 Day2.4%1.4%3.4%
90 Day-6.5%-3.6%2.1%
1 Year-6.5%-10.7%7.7%6.5%4.2%1.9%
3 Year12.5%0.4%37.7%32.3%46.7%37.2%
5 Year-30.0%-42.2%38.4%24.7%62.3%44.5%

Price Volatility Vs. Market

How volatile is Millicom International Cellular's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Millicom International Cellular undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Millicom International Cellular's share price is below the future cash flow value, and at a moderate discount (> 20%).

Millicom International Cellular's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Millicom International Cellular is loss making, we can't compare its value to the US Wireless Telecom industry average.

Millicom International Cellular is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Millicom International Cellular, we can't assess if its growth is good value.


Price Based on Value of Assets

Millicom International Cellular is overvalued based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is Millicom International Cellular expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

47.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Millicom International Cellular's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Millicom International Cellular's earnings are expected to grow significantly at over 20% yearly.

Millicom International Cellular's revenue growth is positive but not above the United States of America market average.

Millicom International Cellular's earnings growth is expected to exceed the United States of America market average.

Millicom International Cellular's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Millicom International Cellular is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Millicom International Cellular performed over the past 5 years?

-70.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Millicom International Cellular does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Millicom International Cellular's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Millicom International Cellular's 1-year growth to the US Wireless Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Millicom International Cellular has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Millicom International Cellular used its assets less efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Millicom International Cellular improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Millicom International Cellular's financial position?


Financial Position Analysis

Millicom International Cellular's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Millicom International Cellular's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Millicom International Cellular's level of debt (194.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (131.4% vs 194.6% today).

Debt is not well covered by operating cash flow (15%, less than 20% of total debt).

Millicom International Cellular is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is Millicom International Cellular's current dividend yield, its reliability and sustainability?

5.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Millicom International Cellular's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Millicom International Cellular's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.7x coverage).


Next Steps

Management

What is the CEO of Millicom International Cellular's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Mauricio Ramos Borrero (51yo)

4.4yrs

Tenure

0

Mr. Mauricio Ramos Borrero has been the Chief Executive Officer of Millicom Cable Costa Rica, S.A. since April 1, 2015. Mr. Ramos serves as a Member of the Management Board of Chellomedia. Mr. Ramos served ...


Management Age and Tenure

4.4yrs

Average Tenure

47yo

Average Age

The tenure for the Millicom International Cellular management team is about average.


Board Age and Tenure

1.0yrs

Average Tenure

58yo

Average Age

The average tenure for the Millicom International Cellular board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mauricio Ramos Borrero (51yo)

    President & CEO

    • Tenure: 4.4yrs
  • Bruno Nieuwland (47yo)

    Director of Administration

    • Tenure: 0yrs
  • Tim Pennington (59yo)

    Senior EVP & CFO

    • Tenure: 5.3yrs
  • Michel Morin

    Vice President of Investor Relations

    • Tenure: 2.5yrs
  • Xavier Rocoplan (45yo)

    Executive VP and Chief Technology & Information Officer

    • Tenure: 6.8yrs
  • Salvador Escalón (44yo)

    Executive VP & General Counsel

    • Tenure: 6.5yrs
  • H. Rogers (42yo)

    Executive VP and Chief Ethics & Compliance Officer

    • Tenure: 3.1yrs
  • Vivian Kobeh

    Corporate Communications Director

    • Tenure: 0yrs
  • Susy Bobenrieth (54yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.9yrs
  • Bart Vanhaeren

    Vice President of Corporate Finance

    • Tenure: 0yrs

Board Members

  • Mercedes Johnson (65yo)

    Director

    • Tenure: 0.3yrs
  • José Antonio Ríos García (74yo)

    Chairman of the Board

    • Tenure: 0.7yrs
  • Janet Davidson (63yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Tomas Eliasson (57yo)

    Non-Executive Director

    • Tenure: 5.3yrs
  • Pernille Erenbjerg (52yo)

    Deputy Chairman

    • Tenure: 0yrs
  • Jim Thompson

    Non-Executive Director

    • Tenure: 0.7yrs
  • Odilon Almeida (58yo)

    Non-Executive Director

    • Tenure: 4.3yrs
  • Lars-Åke Norling (51yo)

    Non-Executive Director

    • Tenure: 1yrs

Company Information

Millicom International Cellular S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Millicom International Cellular S.A.
  • Ticker: TIGO
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$5.081b
  • Shares outstanding: 101.12m
  • Website: https://www.millicom.com

Number of Employees


Location

  • Millicom International Cellular S.A.
  • 2, Rue du Fort Bourbon
  • Luxembourg City
  • 1249
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIGONasdaqGS (Nasdaq Global Select)YesRegistered Common SharesUSUSDDec 1993
M4M1HMSE (Hamburg Stock Exchange)YesRegistered Common SharesDEEURDec 1993
MICC.FOTCPK (Pink Sheets LLC)SDR EACH REP 1 USD1.50USUSDMar 2004
TIGO SDBOM (OMX Nordic Exchange Stockholm)SDR EACH REP 1 USD1.50SESEKMar 2004
0GRKLSE (London Stock Exchange)SDR EACH REP 1 USD1.50GBSEKMar 2004
M4MDB (Deutsche Boerse AG)SDR EACH REP 1 USD1.50DEEURMar 2004

Biography

Millicom International Cellular S.A. provides cable and mobile services in Latin America and Africa. The company offers mobile services, including mobile data and voice; short message service; and mobile f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:49
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.