Education
About Us
Working with TipRanks
Follow Us
Millicom International Cellular SA (TIGO)
NASDAQ:TIGO
RESEARCH TOOLSreports
Top Page
Millicom International Cellular SA
(NASDAQ:TIGO)
Rating:71Outperform
Price Target:
$38.00
▼(-0.34%Downside)
Millicom International Cellular SA (TIGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.56B
Dividend Yield1.97%
Average Volume (3M)952.82K
Price to Earnings (P/E)18.4
Beta (1Y)0.27
Revenue Growth-1.52%
EPS Growth4874.58%
CountryUS
Employees14,000
SectorCommunication Services
Sector Strength87
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.14
Shares Outstanding172,096,300
10 Day Avg. Volume1,590,364
30 Day Avg. Volume952,815
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)0.49
Price to Sales (P/S)0.00
P/FCF Ratio8.28
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit2.12
Enterprise Value/Ebitda0.89
Forecast
1Y Price Target
$42.17Price Target Upside10.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Millicom International Cellular SA Business Overview & Revenue Model
Company DescriptionMillicom International Cellular SA, operating under the brand name TIGO, is a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa. The company offers a wide range of digital services, including mobile voice, data, cable TV, broadband, and business solutions, with a strong focus on enhancing digital inclusion and expanding connectivity in the regions it serves.
How the Company Makes MoneyMillicom International Cellular SA generates revenue primarily through its telecommunications services, which include mobile voice and data services, as well as fixed-line services such as cable TV and broadband internet. The company operates under subscription-based models for both mobile and cable services, securing steady revenue streams from individual and business customers. Additionally, Millicom has strategic partnerships with local and international companies to enhance its service offerings and expand its market reach, contributing to its earnings. The company's revenue model is further supported by its focus on bundling services, which encourages customer retention and increases the average revenue per user (ARPU).
Millicom International Cellular SA Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 12.08%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong performance in customer growth, profitability, and strategic M&A progress, countered by challenges in revenue growth due to currency impacts and tough prior year comparisons. Debt management showed improvements despite a slight increase in leverage.Q1-2025 Updates
Positive Updates
Strong Customer Growth and Profitability
Postpaid net adds increased by nearly 50,000 from a year ago, and home net adds turned positive with 62,000 compared to a decline of 13,000 last year. The OCF margin rose by almost two percentage points to 36.7%, and equity-free cash flow was $135 million in Q1, typically the weakest quarter for cash flow generation.
Improved B2B and Home Business Performance
B2B business grew at a 4% CAGR over the past two years, driven by an 18% increase in digital solutions. Home broadband customer base increased by almost 7%, and one-third of home customers are now convergent, compared to one-quarter a year ago.
Profitability in Key Markets
Adjusted EBITDA margin in Colombia reached 39.1%, up more than two percentage points year-over-year. In Panama, the adjusted EBITDA margin reached a record 51.2%, and the OCF in Guatemala grew 10% to a record $190 million.
M&A Progress and Strategic Initiatives
Received antitrust approval in Nicaragua and closed that portion of the LAT International sale to SBA. Entered a new agreement to sell Lati Paraguay operations to Atis Group. Signed a binding agreement with Telefonica to acquire their stake in Coltel.
Debt Management and Efficiency Improvements
Equity-free cash flow improved by $172 million compared to last year due to better control over working capital. Efforts to reduce FX exposure and volatility, including replacing dollar-denominated debt with local currency debt.
Negative Updates
Service Revenue Decline
Service revenue was down 6.6% to $1.29 billion, impacted by weaker foreign exchange rates and the devaluation of the Boliviano. Excluding FX, organic service revenue was flat.
Challenging Comparisons and Slower Growth
B2B services declined 6.4% organically due to large projects in Panama the previous year. Service revenue in Guatemala slowed due to tough year-on-year comparisons, affecting mobile business.
Debt and Leverage Concerns
Net debt increased by $101 million during Q1, and leverage increased slightly to 2.47x, influenced by shareholder remuneration including dividends and share repurchase programs.
Company Guidance
During the call, the company provided several key metrics and guidance for fiscal year 2025. The postpaid net additions reached 262,000, which marked an increase of nearly 50,000 from the previous year, while home net additions were 62,000, up from a decline of 13,000 in Q1 of the prior year. The company also reported an improvement in operating cash flow (OCF) margin, which rose by almost two percentage points to 36.7%. Equity-free cash flow was robust at $135 million, notwithstanding the typical seasonality of the first quarter being the weakest for cash flow generation. The company maintained its leverage at 2.47x, despite increases due to dividend impacts and a share buyback program. Additionally, service revenue for the quarter was $1.29 billion, down 6.6% from the previous year due to foreign exchange fluctuations, with organic service revenue remaining flat. The CEO and CFO reiterated the targets for 2025, including an equity-free cash flow of around $750 million and maintaining leverage below 2.5x, indicating confidence in sustained revenue growth driven by postpaid mobile expansions and B2B services.Millicom International Cellular SA Financial Statement Overview
Summary
Millicom International Cellular SA displays robust revenue growth and operational efficiency, evident from high EBIT and EBITDA margins. However, the high debt-to-equity ratio indicates significant leverage risk, necessitating careful management to ensure financial stability. Strong cash flow supports strategic investments, but ongoing capital expenditures could impact liquidity.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.69B | 5.80B | 5.66B | 5.62B | 4.62B | 4.17B |
| Gross Profit | 4.03B | 4.38B | 2.20B | 4.12B | 3.31B | 3.00B |
| EBITDA | 2.38B | 2.32B | 2.11B | 2.17B | 2.16B | 1.38B |
| Net Income | 354.00M | 253.00M | -82.00M | 16.00M | 590.00M | -373.00M |
Balance Sheet | ||||||
| Total Assets | 13.66B | 13.74B | 14.52B | 14.20B | 15.14B | 12.42B |
| Cash, Cash Equivalents and Short-Term Investments | 534.00M | 699.00M | 775.00M | 1.04B | 895.00M | 1.03B |
| Total Debt | 7.12B | 6.77B | 7.74B | 7.82B | 8.91B | 6.71B |
| Total Liabilities | 10.31B | 10.16B | 11.07B | 10.56B | 12.40B | 10.15B |
| Stockholders Equity | 3.39B | 3.63B | 3.53B | 3.60B | 2.58B | 2.06B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 834.00M | 40.00M | 212.00M | 48.00M | -3.00M |
| Operating Cash Flow | 1.73B | 1.60B | 1.22B | 1.28B | 956.00M | 821.00M |
| Investing Cash Flow | -541.00M | -604.00M | -1.10B | -1.10B | -2.70B | -495.00M |
| Financing Cash Flow | -1.23B | -1.07B | -377.00M | -1.00M | 1.78B | -598.00M |
Millicom International Cellular SA Technical Analysis
Positive
38.13
Price Trends
35.78
Positive
32.22
Positive
28.90
Positive
Market Momentum
0.45
Positive
63.28
Neutral
80.79
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 38.13 is above the 20-day moving average (MA) of 36.85, above the 50-day MA of 35.78, and above the 200-day MA of 28.90, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 80.79 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 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.83B | 15.98 | 13.18% | 0.42% | -6.63% | 2.46% | |
77 Outperform | $5.39B | 12.82 | 6.74% | 3.86% | 14.09% | -11.43% | |
71 Outperform | $6.56B | 18.38 | 10.19% | 1.97% | -1.52% | 4874.58% | |
71 Outperform | $4.79B | 8.94 | 28.10% | 7.28% | -0.91% | 11.25% | |
64 Neutral | $5.41B | ― | -0.84% | ― | -3.48% | -169.60% | |
61 Neutral | $41.01B | -0.64 | -14.21% | 3.80% | 2.39% | -73.52% | |
55 Neutral | $3.81B | 19.04 | 3.99% | ― | -12.77% | 40.80% |
* Communication Services Sector Average
Performance Comparison
TIGO
Millicom International Cellular SA
38.13
14.66
62.46%
PHI
PLDT
22.56
-1.09
-4.61%
TEO
Telecom Argentina
8.95
2.21
32.79%
TIMB
TIM
20.17
6.81
50.97%
TKC
Turkcell Iletisim
6.19
-1.47
-19.19%
USM
United States Cellular
63.61
7.36
13.08%
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.