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Millicom International Cellular SA (TIGO)
NASDAQ:TIGO
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Millicom International Cellular SA
(NASDAQ:TIGO)
Rating:78Outperform
Price Target:
$48.00
▲(9.07% Upside)
Millicom International Cellular SA (TIGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.49B
Dividend Yield5.67%
Average Volume (3M)1.17M
Price to Earnings (P/E)7.7
Beta (1Y)0.32
Revenue Growth-4.09%
EPS Growth806.44%
CountryUS
Employees14,000
SectorCommunication Services
Sector Strength90
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.05
Shares Outstanding172,096,300
10 Day Avg. Volume1,221,816
30 Day Avg. Volume1,174,423
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.71
Enterprise Value/Revenue2.26
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda5.39
Forecast
1Y Price Target
$44.88Price Target Upside1.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Millicom International Cellular SA Business Overview & Revenue Model
Company DescriptionMillicom International Cellular SA, commonly known as TIGO, is a leading telecommunications and media company operating in Latin America and Africa. The company provides a wide range of services, including mobile and fixed-line telephony, broadband internet, and digital TV. TIGO is known for its focus on delivering innovative communication solutions and enhancing customer experience across its markets, primarily targeting underserved regions with significant growth potential.
How the Company Makes MoneyMillicom generates revenue primarily through its telecommunications services, which include mobile voice and data services, broadband internet, and pay-TV subscriptions. Key revenue streams include subscription fees from mobile services, data usage charges, and sales of devices. Additionally, TIGO earns income from value-added services such as mobile money transactions, which have become increasingly popular in its markets. The company also benefits from partnerships with local and international content providers to enhance its media offerings. Factors contributing to its earnings include a growing customer base, increased demand for mobile data and digital services, and strategic investments in network infrastructure.
Millicom International Cellular SA Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 10.19%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong operational performance and strategic progress, with significant growth in mobile and B2B segments and successful strategic acquisitions. Despite challenges such as currency impacts and declining service revenue in some areas, the company's overall trajectory remains positive, especially with the declaration of a special dividend and robust cash flow generation.Q2-2025 Updates
Positive Updates
Strong Operational Execution
The company is on track to deliver $750 million in equity free cash flow for the year. Adjusted EBITDA reached a new high of 46.7%, up 3.2 points year-over-year, and leverage dropped to 2.18x.
Strategic Acquisitions and Transactions
Successfully executed acquisitions of Telefónica's Uruguay operations, a definitive agreement for Telefónica Ecuador, and the partial closing of an infrastructure transaction with SBA, unlocking over $500 million in proceeds.
Mobile Business Growth
Added nearly 250,000 net postpaid customers, up from 178,000 a year ago, with a 14% growth in the postpaid customer base, reaching near 9 million customers.
Home Business Recovery
Home business added 41,000 customers in the quarter, nearly 4x the intake from Q2 last year, with broadband customer base up roughly 8%.
B2B Segment Performance
Service revenue grew nearly 4% organically, fueled by a 16% CAGR in digital services over the past 2 years and a 13% year-on-year increase in mobile B2B.
Colombia Market Performance
Service revenue accelerated to nearly 5% year-over-year on an organic basis, with mobile postpaid customer base growing by 15%.
Guatemala Operational Success
Postpaid customer base expanded 20% year-over-year, triggering healthy growth in mobile service revenue of more than 5%. The operating cash flow reached a record of $191 million this quarter.
Special Interim Dividend
Declared a special interim dividend of $2.5 per share, reflecting confidence and capital discipline.
Negative Updates
Service Revenue Decline
Service revenue for the quarter totaled $1.28 billion, representing a year-over-year decline of 5.9% due to adverse foreign exchange impacts, causing around $110 million in total FX headwinds.
Challenges in Home Business Revenue
Service revenue in the Home business remained slightly negative at minus 1.4%, though this was an improvement from minus 6.1% last year.
Bolivia's Economic Impact
Bolivia's service revenue in local currency increased by 7%, but was still insufficient to cover devaluation, with a $84 million impact from the application of accounting standard IAS 21.
Company Guidance
During the second quarter of 2025, the company achieved significant milestones and financial performance improvements. The CEO, Marcelo Benitez, highlighted that the company is on track to deliver $750 million in equity free cash flow for the year, having already achieved $395 million by the first half, which is $126 million ahead of the previous year. Key strategic moves included acquiring Telefónica's operations in Uruguay and Ecuador and partially closing an infrastructure transaction with SBA, unlocking over $500 million in proceeds. The company's adjusted EBITDA reached a new high of 46.7%, with more than half of operations achieving margins above 50%. The leverage ratio dropped to 2.18x, and the company remains committed to keeping it below 2.5x. The mobile segment saw an impressive growth of 14% in the postpaid customer base, while the Home business added 41,000 new customers, marking a 6% year-on-year growth. In terms of B2B, service revenue grew nearly 4% organically, supported by a 16% CAGR in digital services over the past two years. The company declared a special interim dividend of $2.5 per share, reflecting its confidence and commitment to shareholder value.Millicom International Cellular SA Financial Statement Overview
Summary
Millicom International Cellular SA exhibits strong revenue growth and operational efficiency. However, high leverage poses a potential risk, necessitating careful debt management. Cash flow generation is robust, supporting future strategic investments. Prospects for enhanced profitability and financial stability exist, contingent on prudent fiscal management.Income Statement
The company's revenue has shown a consistent upward trend from 2020 to 2024, with a slight dip in TTM (Trailing-Twelve-Months). The gross profit margin remains healthy at 70.83% TTM, indicating strong cost management. However, the net profit margin at 6.22% TTM, while improved from previous losses, suggests room for profitability enhancement. The EBIT and EBITDA margins at 25.32% and 41.81% TTM indicate solid operational efficiency which supports the overall positive assessment.75
Positive
Balance Sheet
The debt-to-equity ratio is relatively high, reflecting significant leverage, which could pose a risk in volatile markets. The return on equity has improved to 10.45% TTM, signifying better returns to shareholders. The equity ratio stands at 24.79% TTM, highlighting moderate financial stability but also indicating potential vulnerability due to high liabilities.60
Neutral
Cash Flow
There has been substantial growth in free cash flow, with a 22.42% increase from 2024 to TTM, indicating improved cash generation. The operating cash flow to net income ratio is robust at 4.89 TTM, demonstrating strong cash earnings coverage. However, continued negative investing cash flow reflects ongoing capital expenditure, which could impact future liquidity if not managed carefully.72
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 |
| EBITDA | 2.32B | 2.11B | 2.17B | 2.16B | 1.38B |
| Net Income | 253.00M | -82.00M | 16.00M | 590.00M | -373.00M |
Balance Sheet | |||||
| Total Assets | 13.74B | 14.52B | 14.20B | 15.14B | 12.42B |
| Cash, Cash Equivalents and Short-Term Investments | 699.00M | 775.00M | 1.04B | 895.00M | 1.03B |
| Total Debt | 6.77B | 7.74B | 7.82B | 8.91B | 6.71B |
| 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 | 834.00M | 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
Positive
44.01
Price Trends
38.58
Positive
35.31
Positive
30.13
Positive
Market Momentum
1.41
Negative
68.75
Neutral
92.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIGO, the sentiment is Positive. The current price of 44.01 is above the 20-day moving average (MA) of 41.27, above the 50-day MA of 38.58, and above the 200-day MA of 30.13, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 68.75 is Neutral, neither overbought nor oversold. The STOCH value of 92.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
Risk Management Q4, 2023
2.
Information Security Q4, 2023
3.
Cybersecurity Risk Management Q4, 2023
Millicom International Cellular SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.91B | 15.67 | 13.78% | 5.84% | -7.99% | 2.16% | |
78 Outperform | $7.49B | 7.67 | 26.45% | 5.67% | -4.09% | 806.44% | |
78 Outperform | $5.22B | 12.40 | 7.38% | 5.60% | 19.25% | 5.96% | |
73 Outperform | $5.01B | 8.88 | 27.07% | 7.58% | 0.35% | 19.08% | |
61 Neutral | $6.53B | ― | -0.54% | ― | -3.65% | -134.04% | |
60 Neutral | $44.01B | 1.91 | -11.93% | 4.00% | 2.46% | -39.70% | |
59 Neutral | $4.50B | 22.47 | -0.27% | 1.93% | 3.89% | -107.44% |
* Communication Services Sector Average
Performance Comparison
TIGO
Millicom International Cellular SA
44.09
20.58
87.54%
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-3.99
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TEO
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TIMB
TIM
20.53
5.52
36.78%
TKC
Turkcell Iletisim
5.78
-1.53
-20.93%
AD
Array Digital Infrastructure
76.09
23.82
45.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.