Millicom International Cellular SA (TIGO)
NASDAQ:TIGO
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Millicom International Cellular SA
(NASDAQ:TIGO)
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Rating:74Outperform
Price Target:
$82.00
▲(11.79% Upside)
Action:UpgradedDate:02/28/26
The score is driven by a strong 2025 profitability/cash-generation inflection and attractive valuation (low P/E and solid dividend). Momentum is positive technically but appears overbought. The main risk tempering the score is leverage and the earnings-call flagged near-term leverage pressure and restructuring/integration costs in 2026.
Positive Factors
Strong free cash flow generation
Millicom produced sustained equity free cash flow near $900M, up materially year‑over‑year. Durable eFCF supports reinvestment, dividend distributions and debt reduction, giving management the flexibility to fund network upgrades and integration costs without relying on capital markets.
Negative Factors
Elevated and rising leverage
Debt increased sharply following recent transactions, leaving leverage elevated and refinancing and interest‑rate sensitivity heightened. High gross debt constrains strategic flexibility, increases funding costs risk during shocks, and makes timely deleveraging execution a critical long‑term requirement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Millicom produced sustained equity free cash flow near $900M, up materially year‑over‑year. Durable eFCF supports reinvestment, dividend distributions and debt reduction, giving management the flexibility to fund network upgrades and integration costs without relying on capital markets.
Read all positive factors
Millicom International Cellular SA (TIGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.29B
Dividend Yield6.51%
Average Volume (3M)1.36M
Price to Earnings (P/E)7.1
Beta (1Y)0.16
Revenue Growth-4.39%
EPS Growth608.53%
CountryUS
Employees14,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.50
Shares Outstanding167,040,000
10 Day Avg. Volume1,318,303
30 Day Avg. Volume1,359,362
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 Cap1.66
Enterprise Value/Revenue3.52
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda6.01
Forecast
1Y Price Target
$72.00Price Target Upside-1.84% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)5.39
Revenue Forecast (FY)$8.13B
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...
How the Company Makes Money
Millicom generates revenue primarily through its telecommunications services, which include voice, data, and SMS offerings for mobile and fixed-line customers. The company has established a robust mobile financial services segment, which allows us...
Millicom International Cellular SA Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive operational and financial story: strong organic revenue growth, material adjusted EBITDA and eFCF expansion, meaningful customer additions and successful rapid integration of recent acquisitions. Country‑level execution (notably Guatemala and Colombia), margin expansion and balance sheet discipline underpin confidence. However, several near‑term headwinds were acknowledged — one‑time legal settlements, integration and restructuring costs (notably Coltel), initial losses in Chile, some non‑recurring revenue boosts and temporary leverage increases from acquisition payments — which introduce execution and macro risks in 2026. Overall, management presented a credible plan to stabilize acquired assets and return leverage to target ranges.Positive Updates
Revenue Growth — Strong Q4 and Organic Acceleration
Service revenues for the quarter reached $1.55 billion, up 15.9% year‑over‑year; excluding $131 million from recently acquired Ecuador and Uruguay operations, organic service revenues increased 5.2% YoY, demonstrating clear top‑line acceleration.
Negative Updates
One‑time Legal and Settlement Costs
The year included material one‑time impacts such as DOJ and other legal settlements (referenced amounts include $118M and a $180M DOJ impact referenced in working capital), which affected cash flows and working capital timing.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth — Strong Q4 and Organic Acceleration
Service revenues for the quarter reached $1.55 billion, up 15.9% year‑over‑year; excluding $131 million from recently acquired Ecuador and Uruguay operations, organic service revenues increased 5.2% YoY, demonstrating clear top‑line acceleration.
Read all positive updates
Company Guidance
The company guided to equity free cash flow of at least $900 million for 2026 (versus $916 million reported for 2025, or $864 million excluding tower sale proceeds), noting Q4 eFCF of $278 million and an organic eFCF baseline of ~$864 million; management expects Uruguay and Ecuador to contribute low‑to‑mid‑double‑digit eFCF in 2026 but warned Coltel is on a negative run‑rate and will incur triple‑digit restructuring costs this year. Net leverage finished 2025 at 2.31x (2.17x pro forma including Uruguay/Ecuador) and is expected to rise above 2.5x in H1 2026 after M&A cash-outs (~$570m for EPM’s 50% Tigo Colombia stake plus roughly $220m for Telefonica/Coltel with ~$60m deferred and a ~ $220m La Nacion payment), with management targeting ~2.5x by year‑end 2026 and a 2.0–2.5x range in 2027; dividends are being managed prudently (management aims to distribute about two‑thirds of eFCF over time) and cutting the payout is not on the table absent material deterioration.Millicom International Cellular SA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
54
Neutral
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.82B | 5.80B | 5.66B | 5.62B | 4.26B |
| Gross Profit | 4.51B | 4.38B | 2.20B | 4.12B | 1.48B |
| EBITDA | 2.82B | 2.36B | 2.19B | 2.16B | 2.16B |
| Net Income | 1.32B | 253.00M | -82.00M | 57.00M | 590.00M |
Balance Sheet | |||||
| Total Assets | 17.25B | 13.74B | 14.52B | 14.20B | 15.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 699.00M | 775.00M | 1.04B | 895.00M |
| Total Debt | 9.47B | 6.77B | 7.74B | 7.82B | 8.91B |
| Total Liabilities | 13.63B | 10.16B | 11.07B | 10.56B | 12.40B |
| Stockholders Equity | 3.64B | 3.63B | 3.53B | 3.60B | 2.58B |
Cash Flow | |||||
| Free Cash Flow | 1.18B | 1.13B | 40.00M | 212.00M | 48.00M |
| Operating Cash Flow | 1.83B | 1.67B | 1.22B | 1.28B | 956.00M |
| Investing Cash Flow | -473.00M | -670.00M | -1.12B | -1.10B | -2.70B |
| Financing Cash Flow | -485.00M | -1.07B | -377.00M | -1.00M | 1.78B |
Millicom International Cellular SA Technical Analysis
Positive
73.35
Price Trends
67.01
Positive
59.18
Positive
50.33
Positive
Market Momentum
2.23
Positive
55.61
Neutral
74.84
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 73.35 is above the 20-day moving average (MA) of 72.76, above the 50-day MA of 67.01, and above the 200-day MA of 50.33, indicating a bullish trend. The MACD of 2.23 indicates Positive momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 74.84 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.29B | 7.08 | 37.85% | 6.51% | -4.39% | 608.53% | |
73 Outperform | $12.19B | 11.93 | 17.46% | 7.82% | -4.90% | 14.83% | |
72 Outperform | $5.21B | 10.60 | 7.24% | 5.57% | 19.02% | 9.26% | |
63 Neutral | $9.56B | 12.98 | 10.06% | 4.13% | 0.63% | -21.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $5.27B | -36.64 | -2.67% | 0.40% | 15.38% | -292.52% | |
57 Neutral | $11.21B | 27.39 | 3.37% | 5.02% | -8.16% | -52.52% |
* Communication Services Sector Average
TIGO
Millicom International Cellular SA
75.33
48.11
176.71%
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Millicom International Cellular SA Corporate Events
Millicom Posts Surge in 2025 Profit on Lati Sale and Stronger Q4
Feb 26, 2026
On February 26, 2026, Millicom International Cellular reported unaudited interim condensed consolidated results for the three-month period and full year ended December 31, 2025, showing essentially flat annual revenue at $5.82 billion versus 2024 ...
Millicom and NJJ Move Into Chile With Low-Risk Acquisition of Telefónica’s Local Unit
Feb 10, 2026
On February 10, 2026, Millicom announced that it has partnered with Xavier Niel’s investment vehicle NJJ to acquire Telefónica’s Chilean telecom operations, with NJJ holding 51% and Millicom 49% of the jointly controlled vehicle. ...
Millicom Completes Tender Offer for Telefónica’s Controlling Stake in Colombia’s Coltel
Feb 6, 2026
On February 5, 2026, Millicom announced it had successfully concluded a tender offer to acquire Telefónica’s controlling 67.5% equity stake in Colombia Telecomunicaciones S.A. E.S.P. (Coltel) for USD 214.4 million, with closing expected...
Millicom Secures Full Control of Tigo Colombia with COP 2.1 Trillion UNE Share Acquisition
Jan 30, 2026
On January 27, 2026, Millicom International Cellular S.A. announced it had won a public auction conducted by Empresas Públicas de Medellín (EPM) for 100% of EPM’s remaining shares in UNE EPM Telecommunicaciones S.A. (UNE or Tigo Co...
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.