Millicom International Cellular SA (TIGO) AI Stock Analysis

• Market Cap: $8.41B
• Dividend Yield: 6.54%
• Average Volume (3M): 717.32K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.22
• Revenue Growth: -4.39%
• EPS Growth: 608.53%
• Country: US
• Employees: 14,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.16
• Shares Outstanding: 167,040,000
• 10 Day Avg. Volume: 825,320
• 30 Day Avg. Volume: 717,317
• PEG Ratio: -0.04
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 5.14
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 3.70
• Enterprise Value/Ebitda: 4.53
• 1Y Price Target: $52.93
• Price Target Upside: -5.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $59.00 ▲(5.17% Upside)

Millicom's strong earnings call performance and attractive valuation are significant positives. The technical indicators show bullish momentum, though caution is advised due to overbought signals. Financial performance is solid but tempered by high leverage and revenue decline.

Positive Factors

Strategic Acquisitions

These acquisitions enhance Millicom's regional presence and earnings quality, positioning the company for long-term growth in Latin America.

Cash Flow Generation

Strong cash flow generation supports financial stability and provides resources for reinvestment and debt reduction, enhancing long-term viability.

Operational Efficiency

High EBITDA margins indicate effective cost management and operational efficiency, contributing to sustained profitability and competitive advantage.

Negative Factors

High Leverage

Significant leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Revenue Decline

Declining revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic adjustments to reverse the trend.

Regulatory Challenges

Regulatory setbacks can delay strategic initiatives and limit market expansion, impacting growth prospects and operational strategy.

Millicom International Cellular SA Business Overview & Revenue Model

Company Description

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 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 Money

Millicom 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 Financial Statement Overview

Summary

Millicom International Cellular SA demonstrates strong profitability margins and cash flow generation. However, the high leverage and recent decline in revenue growth are concerns that need addressing for sustainable long-term growth.

Income Statement

Millicom International Cellular SA shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a strong gross profit margin of 60.57% and a net profit margin of 16.97%, which are significant improvements from previous years. However, the revenue growth rate is negative at -19.6%, indicating a decline in revenue. The EBIT and EBITDA margins have improved to 34.42% and 55.65% respectively, showing enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.24, indicating significant leverage, which poses a risk. However, the return on equity has improved to 26.50% in the TTM period, suggesting better profitability for shareholders. The equity ratio stands at 21.44%, showing a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement shows a positive trend with a 5.83% growth in free cash flow. The operating cash flow to net income ratio is 0.53, indicating a healthy conversion of net income into cash. The free cash flow to net income ratio is 0.56, reflecting a strong ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.59B	5.80B	5.66B	5.62B	4.26B	4.17B
Gross Profit	4.01B	4.38B	2.20B	4.12B	1.48B	1.31B
EBITDA	3.27B	2.36B	2.19B	2.16B	2.16B	1.38B
Net Income	1.10B	253.00M	-82.00M	57.00M	590.00M	-344.00M
Balance Sheet
Total Assets	15.59B	13.74B	14.52B	14.20B	15.14B	12.42B
Cash, Cash Equivalents and Short-Term Investments	1.71B	699.00M	775.00M	1.04B	895.00M	1.03B
Total Debt	8.44B	6.77B	7.74B	7.82B	8.91B	6.71B
Total Liabilities	12.28B	10.16B	11.07B	10.56B	12.40B	10.15B
Stockholders Equity	3.34B	3.63B	3.53B	3.60B	2.58B	2.06B
Cash Flow
Free Cash Flow	1.16B	1.13B	40.00M	212.00M	48.00M	-3.00M
Operating Cash Flow	1.80B	1.67B	1.22B	1.28B	956.00M	821.00M
Investing Cash Flow	-146.98M	-670.00M	-1.12B	-1.10B	-2.70B	-495.00M
Financing Cash Flow	-717.31M	-1.07B	-377.00M	-1.00M	1.78B	-598.00M

Millicom International Cellular SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 56.1 is above the 20-day moving average (MA) of 48.30, above the 50-day MA of 47.19, and above the 200-day MA of 36.68, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 72.64 is Negative, neither overbought nor oversold. The STOCH value of 85.79 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	81 Outperform	$11.24B	15.76	14.93%	6.27%	-4.90%	14.83%
TKC	74 Outperform	$5.00B	11.43	7.60%	5.80%	19.02%	9.26%
TIGO	71 Outperform	$8.41B	7.70	30.72%	6.54%	-4.39%	608.53%
KT	67 Neutral	$8.24B	13.00	5.26%	3.36%	0.63%	-21.51%
TEO	61 Neutral	$5.75B	―	-2.95%	1.55%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.83B	19.77	4.72%	4.90%	-8.16%	-52.52%

Millicom International Cellular SA Corporate Events

Millicom Resolves DOJ Investigation with Deferred Prosecution Agreement

Millicom International Cellular S.A. announced on November 10, 2025, that its subsidiary, Comunicaciones Celulares S.A. (Comcel), has reached a deferred prosecution agreement with the U.S. Department of Justice (DOJ) to resolve an investigation into historical improper payments to Guatemalan officials. The investigation, which began in 2015, was resolved with Comcel agreeing to pay a $60 million fine and forfeiting $58.2 million in benefits. Millicom’s cooperation and remediation efforts, including the implementation of a robust compliance program, were recognized by the DOJ, resulting in a reduced penalty term and no requirement for a corporate monitor. This resolution underscores Millicom’s commitment to ethical operations and transparency.

Millicom Reports Strong Q3 2025 Financial Performance

On November 6, 2025, Millicom International Cellular S.A. released its unaudited interim financial results for the three and nine-month periods ending September 30, 2025. The company reported a significant increase in net profit, reaching $1,096 million for the nine-month period, compared to $217 million in the previous year, largely driven by the sale of its Lati operations. This financial performance indicates a strong operational improvement and strategic positioning in its core markets, potentially benefiting stakeholders by enhancing shareholder value and market competitiveness.

Millicom Expands South American Presence with Telefónica Ecuador Acquisition

On October 30, 2025, Millicom International Cellular S.A. announced the completion of its $380 million acquisition of Telefónica’s operations in Ecuador. This strategic move enhances Millicom’s presence in South America, following its recent acquisition in Uruguay, and positions the company to capitalize on Ecuador’s stable, dollarized economy and growing demand for digital services. The acquisition is expected to strengthen Millicom’s leadership in digital connectivity across Latin America, supporting its mission to drive economic and social progress through expanded digital access.

Millicom’s Telecel Paraguay to Redeem $150M Senior Notes

On September 5, 2025, Millicom’s subsidiary, Telefónica Celular del Paraguay S.A.E., announced its plan to redeem $150 million of its Senior Unsecured Notes due in 2027. This strategic financial move, set for September 15, 2025, involves redeeming the notes at their principal amount plus any accrued interest, potentially impacting the company’s financial structure and market positioning.