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Millicom International Cellular SA (TIGO)
NASDAQ:TIGO
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Millicom International Cellular SA
(NASDAQ:TIGO)
77Outperform
Millicom International Cellular SA (TIGO) vs. S&P 500 (SPY)
Market Cap
$5.17B
Dividend Yield3.33%
Average Volume (3M)1.11M
Price to Earnings (P/E)20.3
Beta (1Y)0.30
Revenue Growth2.53%
EPS GrowthN/A
CountryUS
Employees14,000
SectorCommunication Services
Sector Strength70
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.47
Shares Outstanding172,096,300
10 Day Avg. Volume1,436,811
30 Day Avg. Volume1,110,817
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.15Price Target Upside22.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Millicom International Cellular SA Business Overview & Revenue Model
Company DescriptionMillicom 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 financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance. It also provides cable and other fixed services, including broadband, content, fixed voice, and pay-TV to residential consumers; and fixed, managed services, cloud and security solutions, and value-added services to small, medium, and large businesses, as well as governmental entities. As of December 31, 2021, the company served 44.9 million mobile customers; and 12.7 million cable homes. It markets its products and services under Tigo and Tigo Business brands. The company was founded in 1990 and is headquartered in Luxembourg.
How the Company Makes MoneyMillicom International Cellular SA generates revenue through a diversified business model centered around its telecommunications and digital services. The company earns money primarily from mobile voice and data services, where customers pay for monthly subscriptions, prepaid plans, and data packages. Additionally, Millicom derives income from its fixed broadband internet services, offering high-speed internet plans to residential and business customers. The digital television segment contributes to revenue through subscription fees for cable and satellite TV packages. Millicom also engages in business-to-business solutions, providing cloud services, managed services, and other enterprise solutions to corporate clients. Strategic partnerships, particularly in network infrastructure and digital content, enhance its service offerings and market reach, further bolstering revenue streams.
Millicom International Cellular SA Financial Statement Overview
Summary
Millicom International Cellular SA exhibits strong financial performance, with notable improvements in revenue growth, profitability, and cash flow generation. The company's gross profit and EBIT margins are strong, and there is a significant rebound in net profit margin. However, a high debt-to-equity ratio presents a risk, although improvements in return on equity indicate better equity utilization.Income Statement
Millicom International Cellular SA has shown a strong performance in its income statement. The company achieved a noticeable revenue growth rate of 2.53% from 2023 to 2024, and its gross profit margin improved significantly to 75.54%. The net profit margin saw a substantial recovery from -1.45% in 2023 to 4.36% in 2024, demonstrating a significant rebound in profitability. Moreover, EBIT margin increased to 23.12%, and EBITDA margin stood at 39.92%, indicating robust operational performance.85
Very Positive
Balance Sheet
The balance sheet of Millicom International Cellular SA shows a mixed picture. The debt-to-equity ratio is high at 1.89, reflecting significant leverage, which could pose a risk. However, the return on equity improved to 6.97% in 2024, indicating better utilization of equity. The equity ratio is relatively stable at 26.42%, suggesting a balanced approach towards financing.70
Positive
Cash Flow
The cash flow statement presents a positive outlook with a remarkable free cash flow growth rate of 2557.5% from 2023 to 2024, driven by improved operating cash flow. The operating cash flow to net income ratio is strong, demonstrating efficient cash generation relative to reported earnings. However, the free cash flow to net income ratio is lower at 4.20, indicating some discrepancy between cash flows and accounting profits.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.80B | 5.66B | 5.62B | 4.62B | 4.17B | Gross Profit |
| 4.38B | 2.20B | 4.12B | 3.31B | 3.00B | EBIT |
| 1.34B | 826.00M | 915.00M | 659.00M | 446.00M | EBITDA |
| 2.32B | 2.11B | 2.17B | 2.16B | 1.38B | Net Income Common Stockholders |
| 253.00M | -82.00M | 16.00M | 590.00M | -373.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 699.00M | 775.00M | 1.04B | 895.00M | 1.03B | Total Assets |
| 13.74B | 14.52B | 14.20B | 15.14B | 12.42B | Total Debt |
| 6.86B | 7.74B | 7.82B | 8.91B | 6.71B | Net Debt |
| 6.16B | 6.96B | 6.78B | 8.02B | 5.84B | Total Liabilities |
| 10.16B | 11.07B | 10.56B | 12.40B | 10.15B | Stockholders Equity |
| 3.63B | 3.53B | 3.60B | 2.58B | 2.06B |
| Cash Flow | Free Cash Flow | |||
| 1.06B | 40.00M | 212.00M | 48.00M | -3.00M | Operating Cash Flow |
| 1.60B | 1.22B | 1.28B | 956.00M | 821.00M | Investing Cash Flow |
| -604.00M | -1.10B | -1.10B | -2.70B | -495.00M | Financing Cash Flow |
| -1.07B | -377.00M | -1.00M | 1.78B | -598.00M |
Millicom International Cellular SA Technical Analysis
Neutral
29.53
Price Trends
28.15
Positive
26.44
Positive
25.67
Positive
Market Momentum
0.71
Positive
58.15
Neutral
42.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIGO, the sentiment is Neutral. The current price of 29.53 is below the 20-day moving average (MA) of 29.89, above the 50-day MA of 28.15, and above the 200-day MA of 25.67, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 42.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TIGO.
Millicom International Cellular SA Risk Analysis
Millicom International Cellular SA disclosed 35 risk factors in its most recent earnings report. Millicom International Cellular SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Millicom International Cellular SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $7.66B | 13.15 | 12.04% | 5.91% | -0.91% | 1.51% | |
77 Outperform | $5.17B | 20.35 | 7.13% | 3.33% | 2.53% | ― | |
77 Outperform | $14.94B | 14.58 | 7.95% | 2.77% | -0.47% | 1.69% | |
69 Neutral | $7.98B | 9.03 | 11.19% | 5.38% | -2.34% | 12.31% | |
67 Neutral | $45.00B | 28.97 | 7.78% | 3.48% | 3.15% | -63.12% | |
63 Neutral | $5.36B | 4.96 | 23.27% | ― | -26.74% | ― | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% |
* Communication Services Sector Average
Performance Comparison
TIGO
Millicom International Cellular SA
29.53
10.04
51.51%
AMX
America Movil
14.46
-3.61
-19.98%
SKM
Sk Telecom
21.30
0.06
0.28%
TEO
Telecom Argentina
10.59
2.76
35.25%
VIV
Telefonica Brasil
8.99
-0.62
-6.45%
TIMB
TIM
15.96
-1.48
-8.49%
Millicom International Cellular SA Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 5.99% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance for Millicom with record cash flow and significant margin improvements. However, challenges such as service revenue decline, competitive pressures, and currency impacts in certain markets were noted.Highlights
Record Equity-Free Cash Flow
Millicom achieved a record equity-free cash flow of $728 million for 2024, excluding tower sales, marking a significant financial turnaround.
OCF Margin Improvement
Operational Cash Flow (OCF) margin increased by 8 percentage points to almost 31%, setting a new record.
Leverage Reduction
The company's leverage was reduced to 2.42 times, achieving the target of being below 2.5 times.
Strong Performance in Guatemala
Guatemala reported a 10% increase in OCF to $692 million with an EBITDA margin of 54%.
Panama's Exceptional Year
Panama achieved close to 5% service revenue growth and an EBITDA margin reaching a record 50%.
Dividend and Share Buyback Program
The company resumed shareholder remuneration with a dividend of $1 per share paid in January and a $150 million share buyback program.
Lowlights
Service Revenue Decline
Service revenue decreased by 2.9% to $1.34 billion, impacted by a $30 million FX effect in Colombia and a $25 million impact from Panama B2B projects.
Bolivia Currency Impact
Expected negative impacts on service revenue and EBITDA due to Bolivia's currency devaluation and the new IAS 21 accounting standards.
Competitive Pressure in Costa Rica and Bolivia
Intense competition in Costa Rica affecting ARPU and customer base, and Bolivia facing challenges from currency devaluation.
Company Guidance
During the call, Millicom provided detailed financial guidance for 2025, emphasizing its strategic priorities and financial targets following a transformational 2024. Key metrics included a record equity-free cash flow of $728 million for 2024, excluding $49 million from tower monetizations, with a target of approximately $750 million for 2025. The company's leverage was successfully reduced to 2.4x by the end of 2024, with a commitment to maintain it below 2.5x throughout 2025. Revenue growth remained a focal point, with 2024 seeing a 4.6% increase in mobile service revenue and expectations for continued growth in 2025. The company also highlighted strategic initiatives, including the sale of Lati International and the acquisition of Telefonica's stake in Coltel. Additionally, Millicom reinstated shareholder remuneration, paying an interim dividend and executing a $150 million share buyback, reflecting confidence in sustaining and growing cash flow in the coming years.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.