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Millicom International Cellular SA
(NASDAQ:TIGO)
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Rating:75Outperform
Price Target:
$103.00
â–²(8.95% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strengthening financial performance and a positive earnings update (higher eFCF guidance and improved leverage target). Valuation is also supportive due to a moderate P/E and strong dividend yield. Offsetting factors include still-elevated leverage and only mixed technical momentum.
Positive Factors
Free cash flow improvement
Upgraded 2026 equity free cash flow guidance to ~$1.1B, with Q2 eFCF at $327M (>$50% YoY). This durable step-up strengthens ability to fund capex, pay dividends and reduce leverage over time, improving balance-sheet optionality beyond transitory timing effects.
Negative Factors
Elevated leverage
High debt and ~2.6–2.7x leverage constrain financial flexibility and raise refinancing and FX sensitivity. Even with improving eFCF, operating cash covers only a portion of total debt, leaving the balance sheet exposed to interest-rate, currency and cyclical shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow improvement
Upgraded 2026 equity free cash flow guidance to ~$1.1B, with Q2 eFCF at $327M (>$50% YoY). This durable step-up strengthens ability to fund capex, pay dividends and reduce leverage over time, improving balance-sheet optionality beyond transitory timing effects.
Read all positive factors
Millicom International Cellular SA (TIGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.00B
Dividend Yield5.76%
Average Volume (3M)1.48M
Price to Earnings (P/E)12.9
Beta (1Y)0.13
Revenue Growth12.97%
EPS Growth255.71%
CountryUS
Employees14,250
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)7.38
Shares Outstanding167,540,830
10 Day Avg. Volume1,272,706
30 Day Avg. Volume1,475,426
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.56
Price to Sales (P/S)1.60
P/FCF Ratio7.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$86.70Price Target Upside-8.29% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)3.84
Revenue Forecast (FY)$8.49B
Millicom International Cellular SA Business Overview & Revenue Model
Company Description
Millicom International Cellular S.A. engages in the provision cable and mobile services in Latin America. The company offers mobile services, including mobile data and voice, and short message services; and mobile financial services, such as payme...
How the Company Makes Money
Millicom makes money mainly by selling telecommunications and related digital services to individuals, households, and businesses. Its core revenue streams include: (1) Mobile services revenue from subscriptions and usage (including prepaid and po...
Millicom International Cellular SA Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial milestones — record quarterly adjusted EBITDA, record equity free cash flow, raised full-year eFCF guidance to ~$1.1B, improved leverage target below 2.5x, strong postpaid migration and country-level performance — demonstrating effective integration and commercial execution. Headwinds include material but manageable restructuring costs, reporting normalization effects after M&A, FX-related debt impacts, competitive pressure in Chile, and some phasing uncertainty in cash flow and planned marketing spend (Ecuador). On balance the positive operational momentum and upgraded financial guidance outweigh the near-term integration, FX and phasing challenges.Positive Updates
Record Service Revenue and Strong Organic Growth
Group service revenue reached $2.0 billion (reported +60.1% YoY; organic +5.4% YoY), the strongest organic growth since 2021 and more than double the year-ago organic growth rate.
Negative Updates
Restructuring and Integration Costs
The quarter included restructuring charges (~$35M in Q2 cited; group guidance for FY restructuring charges now ~ $160–170M). Colombia incurred >$30M severance in Q2 (~$100M YTD). Integration costs are front-loaded and expected to continue through H2.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Service Revenue and Strong Organic Growth
Group service revenue reached $2.0 billion (reported +60.1% YoY; organic +5.4% YoY), the strongest organic growth since 2021 and more than double the year-ago organic growth rate.
Read all positive updates
Company Guidance
Management raised 2026 equity free cash flow guidance from at least $900 million to around $1.1 billion and improved the year-end leverage target to below 2.5x, while the Board approved an additional interim dividend of $1.50 per share (two $0.75 installments payable Jan/Apr 2027). Q2 delivered a record $327 million of equity free cash flow (up >50% YoY) and a first‑time quarterly adjusted EBITDA of $1.0 billion on $2.0 billion service revenue (organic +~5% YoY), which underpins the upgrades; net debt rose to $8.1 billion but leverage modestly fell from 2.76x to 2.73x. Management cautioned that Q2 benefited from favorable expense timing and working‑capital movements (so expect phasing with a softer Q3 and stronger Q4), reiterated a full‑year cash CapEx pace of roughly 12% of revenues (Q2 cash CapEx $274 million), and flagged full‑year restructuring charges of about $160–170 million (≈60% already booked in H1); other Q2 cash items included spectrum payments ~$41 million, finance charges $131 million, lease payments $161 million, dividend payouts $335 million and M&A payments $221 million.Millicom International Cellular SA Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.43B | 5.82B | 5.80B | 5.66B | 5.62B | 4.26B |
| Gross Profit | 4.49B | 4.51B | 4.38B | 2.20B | 4.12B | 1.48B |
| EBITDA | 3.53B | 2.82B | 2.36B | 2.19B | 2.16B | 2.16B |
| Net Income | 1.23B | 1.32B | 253.00M | -82.00M | 57.00M | 590.00M |
Balance Sheet | ||||||
| Total Assets | 20.75B | 17.25B | 13.74B | 14.52B | 14.20B | 15.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.22B | 1.60B | 699.00M | 775.00M | 1.04B | 895.00M |
| Total Debt | 11.72B | 9.47B | 6.77B | 7.74B | 7.82B | 8.91B |
| Total Liabilities | 17.58B | 13.63B | 10.16B | 11.07B | 10.56B | 12.40B |
| Stockholders Equity | 3.14B | 3.64B | 3.63B | 3.53B | 3.60B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | 1.39B | 1.18B | 1.13B | 40.00M | 212.00M | 48.00M |
| Operating Cash Flow | 2.10B | 1.83B | 1.67B | 1.22B | 1.28B | 956.00M |
| Investing Cash Flow | -1.36B | -473.00M | -670.00M | -1.12B | -1.10B | -2.70B |
| Financing Cash Flow | -45.01M | -485.00M | -1.07B | -377.00M | -1.00M | 1.78B |
Millicom International Cellular SA Technical Analysis
Positive
94.54
Price Trends
91.32
Positive
85.13
Positive
70.02
Positive
Market Momentum
1.41
Positive
67.47
Neutral
48.75
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 94.54 is below the 20-day moving average (MA) of 96.16, above the 50-day MA of 91.32, and above the 200-day MA of 70.02, indicating a bullish trend. The MACD of 1.41 indicates Positive momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.75 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $16.00B | 12.94 | 36.08% | 6.58% | 12.97% | 255.71% | |
73 Outperform | $6.39B | 25.16 | 5.46% | 0.33% | 51.86% | 11.59% | |
70 Outperform | $9.16B | 10.79 | 17.54% | 6.52% | 13.99% | 29.93% | |
68 Neutral | $8.76B | 7.67 | 8.77% | 4.42% | 13.45% | 148.36% | |
62 Neutral | $12.03B | 54.50 | 3.00% | 1.78% | -7.08% | -73.85% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $4.59B | 11.70 | 7.27% | 4.01% | 18.57% | 5.36% |
* Communication Services Sector Average
TIGO
Millicom International Cellular SA
104.31
65.03
165.57%
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Millicom International Cellular SA Corporate Events
Millicom Shareholders Approve 2025 Accounts, USD 3 Dividend and Board Slate at May 20 AGM
May 22, 2026
Millicom International Cellular S.A., a Luxembourg-headquartered telecom operator focused on Latin America, provides fixed and mobile connectivity, digital financial services, pay TV, and enterprise cloud and security solutions under the Tigo and ...
Millicom Q1 2026 Results Show Growth from Latin American Acquisitions but Lower Net Profit
May 14, 2026
Millicom International Cellular S.A. reported unaudited results for the three-month period ended March 31, 2026, showing a sharp increase in scale due to the full consolidation of Colombia’s Coltel from February 6, 2026, and prior acquisitio...
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.