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Millicom International Cellular SA (TIGO)
NASDAQ:TIGO
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Millicom International Cellular SA
(NASDAQ:TIGO)
Rating:70Outperform
Price Target:
$49.00
▲(2.28% Upside)
Millicom International Cellular SA (TIGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.30B
Dividend Yield5.22%
Average Volume (3M)1.15M
Price to Earnings (P/E)8.8
Beta (1Y)0.30
Revenue Growth-4.09%
EPS Growth806.44%
CountryUS
Employees14,000
SectorCommunication Services
Sector Strength96
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.05
Shares Outstanding167,040,000
10 Day Avg. Volume1,133,923
30 Day Avg. Volume1,149,502
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda4.36
Forecast
1Y Price Target
$50.03Price Target Upside4.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant operational achievements and strategic milestones, including customer growth, EBITDA improvement, and strategic acquisitions. However, the company faced challenges due to foreign exchange impacts and specific market issues in Bolivia. Overall, the positives in growth and strategic direction appear to outweigh the negatives.Q2-2025 Updates
Positive Updates
Strong Operational Execution and Strategic Acceleration
The company is on track to deliver $750 million in equity free cash flow for the year, with strategic acquisitions in Uruguay and Ecuador, and partial closing of an infrastructure transaction with SBA, unlocking over $500 million in proceeds.
Customer Growth and EBITDA Improvement
Added nearly 250,000 net postpaid customers and 41,000 Home customers with adjusted EBITDA reaching a new high of 46.7%, up 3.2 percentage points year-over-year.
Mobile Business Performance
Mobile business grew by mid-single digits, with postpaid customer growth of 14% reaching near 9 million customers.
B2B Segment Growth
Service revenue grew nearly 4% organically, with a 16% CAGR in digital services over the past two years.
Country-Specific Achievements
Colombia service revenue grew nearly 5%, with a postpaid customer base growing by 15%. Guatemala saw a 20% expansion in its postpaid customer base.
Negative Updates
Service Revenue Decline Due to FX Impact
Service revenue for the quarter totaled $1.28 billion, representing a year-over-year decline of 5.9% due to adverse foreign exchange impacts, notably $110 million in FX headwinds.
Challenges in Bolivia
Despite a local currency service revenue increase of 7%, Bolivia faced challenges due to devaluation, affecting overall revenue.
Home Service Revenue Slightly Negative
Service revenue remained slightly negative at minus 1.4%, although an improvement from minus 6.1% last year.
Company Guidance
In the second quarter of 2025, the company demonstrated robust operational and strategic progress, highlighted by delivering $218 million in equity free cash flow for the quarter, contributing to a total of $395 million for the first half of the year, which is $126 million ahead of the previous year. The company achieved a leverage ratio of 2.18x, staying committed to maintaining it below 2.5x by year-end. Adjusted EBITDA reached a new high of 46.7%, up 3.2 percentage points year-over-year, with more than half of its operations achieving margins above 50%. The mobile business saw a mid-single-digit growth, driven by a significant 14% increase in the postpaid base, reaching nearly 9 million customers. The Home segment added 41,000 customers, marking a 6% year-over-year growth, with broadband customer base up by approximately 8%. Service revenue was negatively impacted by foreign exchange fluctuations, resulting in a 5.9% decline to $1.28 billion, though organic growth accelerated to 2.4%. The company declared a special interim dividend of $2.5 per share, fueled by unlocking over $500 million in proceeds from strategic transactions, including the acquisition of Telefónica's operations in Uruguay and Ecuador.Millicom International Cellular SA Financial Statement Overview
Summary
Millicom demonstrates strong operational efficiency with high gross and EBIT margins. However, challenges with revenue growth and high leverage pose risks to financial stability. Adequate cash flow generation is offset by declining free cash flow growth.Income Statement
Millicom's income statement shows a mixed performance. The company has a strong gross profit margin of 70.85% TTM, indicating efficient cost management. However, the net profit margin is relatively low at 6.22% TTM, and revenue has decreased by 1.51% TTM, suggesting challenges in revenue growth. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.10 TTM, indicating significant leverage, which could pose financial risks. The return on equity is moderate at 9.77% TTM, showing decent profitability for shareholders. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure.55
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 8.29% TTM, which is concerning. However, the operating cash flow to net income ratio is 0.59 TTM, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is also strong at 0.59 TTM, reflecting good cash conversion.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.61B | 5.80B | 5.66B | 5.62B | 4.62B | 4.17B |
| Gross Profit | 4.29B | 4.38B | 2.20B | 4.12B | 3.31B | 3.00B |
| EBITDA | 2.94B | 2.32B | 2.11B | 2.17B | 2.16B | 1.38B |
| Net Income | 951.00M | 253.00M | -82.00M | 16.00M | 590.00M | -373.00M |
Balance Sheet | ||||||
| Total Assets | 15.00B | 13.74B | 14.52B | 14.20B | 15.14B | 12.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.28B | 699.00M | 775.00M | 1.04B | 895.00M | 1.03B |
| Total Debt | 7.93B | 6.77B | 7.74B | 7.82B | 8.91B | 6.71B |
| Total Liabilities | 11.50B | 10.16B | 11.07B | 10.56B | 12.40B | 10.15B |
| Stockholders Equity | 3.54B | 3.63B | 3.53B | 3.60B | 2.58B | 2.06B |
Cash Flow | ||||||
| Free Cash Flow | 937.00M | 834.00M | 40.00M | 212.00M | 48.00M | -3.00M |
| Operating Cash Flow | 1.68B | 1.60B | 1.22B | 1.28B | 956.00M | 821.00M |
| Investing Cash Flow | -36.21M | -604.00M | -1.10B | -1.10B | -2.70B | -495.00M |
| Financing Cash Flow | -1.14B | -1.07B | -377.00M | -1.00M | 1.78B | -598.00M |
Millicom International Cellular SA Technical Analysis
Positive
47.91
Price Trends
41.69
Positive
37.99
Positive
31.69
Positive
Market Momentum
2.21
Negative
64.04
Neutral
73.69
Neutral
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 47.91 is above the 20-day moving average (MA) of 45.98, above the 50-day MA of 41.69, and above the 200-day MA of 31.69, indicating a bullish trend. The MACD of 2.21 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 73.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.84B | 11.12 | 7.38% | 5.80% | 19.25% | 5.69% | |
79 Outperform | $10.07B | 15.86 | 13.78% | 5.73% | -7.99% | 2.16% | |
70 Outperform | $8.30B | 8.76 | 26.45% | 5.22% | -4.09% | 806.44% | |
70 Neutral | $4.30B | 7.56 | 27.07% | 8.46% | 0.35% | 19.08% | |
61 Neutral | $4.55B | ― | -0.54% | 43.59% | -3.65% | -134.04% | |
60 Neutral | $46.28B | 4.13 | -13.12% | 4.13% | 1.85% | -42.71% | |
56 Neutral | $3.69B | 22.47 | -0.27% | 2.43% | 3.89% | -107.44% |
* Communication Services Sector Average
Performance Comparison
TIGO
Millicom International Cellular SA
47.91
23.76
98.39%
PHI
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19.65
-5.29
-21.21%
TEO
Telecom Argentina
8.37
0.93
12.50%
TIMB
TIM
20.83
5.74
38.04%
TKC
Turkcell Iletisim
5.58
-1.16
-17.21%
AD
Array Digital Infrastructure
52.76
14.55
38.08%
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.