Millicom International Cellular SA (TIGO) AI Stock Analysis

• Market Cap: $7.89B
• Dividend Yield: 5.23%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.30
• Revenue Growth: -4.09%
• EPS Growth: 806.44%
• Country: US
• Employees: 14,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 4.05
• Shares Outstanding: 167,040,000
• 10 Day Avg. Volume: 1,212,104
• 30 Day Avg. Volume: 1,204,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 4.36
• 1Y Price Target: $49.78
• Price Target Upside: 4.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: $49.00 ▲(2.51% Upside)

Millicom's strong valuation and positive earnings call sentiment are significant strengths, supported by technical momentum. However, financial performance concerns, particularly revenue growth challenges and high leverage, temper the overall score.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 47.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 47.8 is below the 20-day moving average (MA) of 48.20, above the 50-day MA of 44.89, and above the 200-day MA of 33.51, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.94 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	79 Outperform	10.38B	16.54	14.43%	5.60%	-7.99%	2.16%
TKC	79 Outperform	5.23B	12.05	11.17%	5.38%	19.25%	5.69%
KT	72 Outperform	8.68B	14.51	2.91%	3.11%	-1.56%	-18.33%
TIGO	70 Outperform	$7.89B	8.87	26.45%	5.23%	-4.09%	806.44%
SKM	67 Neutral	8.32B	11.64	11.13%	4.60%	-4.74%	-16.57%
TEO	54 Neutral	3.40B	-226.14	18.66%	2.74%	3.89%	-107.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Millicom International Cellular SA Corporate Events

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.

Millicom Reports Revenue Decline Amid Currency Challenges

Millicom International Cellular S.A. reported a 6.8% decrease in group revenue for the first half of 2025, amounting to $2,746 million, primarily due to weaker currencies in Bolivia, Colombia, and Paraguay. Operating expenses also fell by 11.3%, reflecting reduced costs related to government projects in Panama. These financial results highlight the challenges posed by currency fluctuations and underscore the company’s ongoing efforts to optimize costs and expand its network infrastructure.