Millicom International Cellular SA (TIGO) AI Stock Analysis

• Market Cap: $9.81B
• Dividend Yield: 6.51%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.13
• Revenue Growth: -4.39%
• EPS Growth: 608.53%
• Country: US
• Employees: 14,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.16
• Shares Outstanding: 167,040,000
• 10 Day Avg. Volume: 1,325,092
• 30 Day Avg. Volume: 1,020,603
• PEG Ratio: -0.04
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 3.79
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 5.05
• 1Y Price Target: $59.93
• Price Target Upside: 2.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.92
• Revenue Forecast (FY): $6.78B

• Rating: 69 Neutral
• Price Target: $64.00 ▲(9.01% Upside)

Score is driven primarily by solid financial quality (strong margins and cash generation) and attractive valuation (low P/E and high dividend yield). The main offsets are high leverage and weaker near-term technical signals (price below short-term averages, RSI ~40), while the earnings call was supportive overall but included notable regulatory and legal risks.

Positive Factors

High profitability and margins

Sustained high gross and EBITDA margins show structural operational efficiency and pricing power across markets. Durable margin strength supports reinvestment in networks, dividend capacity and resilience to cyclical revenue dips, underpinning cash generation over the medium term.

Strong cash generation trajectory

Improving free cash flow and an explicit equity FCF target indicate robust cash conversion and discipline. Persistent FCF allows funding for capex, acquisitions and deleveraging without dilutive financing, enhancing financial flexibility and supporting strategic investments over the next several quarters.

Strategic acquisitions expanding footprint

Targeted M&A in Uruguay and Ecuador materially increases scale and revenue mix, adding dollarized Ecuador exposure and stable revenue streams. These deals strengthen market position, enable cross-sell of digital services and improve long-term growth potential and earnings quality across LatAm.

Negative Factors

Elevated leverage

High leverage constrains strategic flexibility and raises refinancing and interest-rate sensitivity. Despite targets to reduce leverage, a debt-heavy balance sheet increases vulnerability to economic shocks and limits ability to absorb further legal or regulatory costs without curbing investment or cash returns.

Legacy compliance and legal risks

A multi-year bribery scheme and the resultant DOJ resolution highlight historical governance failures. Remediation costs, ongoing reporting requirements and reputational damage can persistently raise compliance costs, restrict market access and increase scrutiny in core markets over the coming months and beyond.

Regulatory setbacks in key markets

A regulator blocking a planned combination demonstrates political and regulatory unpredictability in core markets. Such setbacks can limit inorganic growth, reduce potential scale and capex synergies, and force Millicom to pursue costlier or slower organic alternatives to achieve strategic objectives.

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 voice, data, and SMS offerings for mobile and fixed-line customers. The company has established a robust mobile financial services segment, which allows users to conduct transactions, pay bills, and transfer money, significantly contributing to its revenue. Additionally, TIGO earns income from its cable television and broadband internet services, catering to both residential and business clients. Key partnerships with content providers and technology firms enhance its service offerings and drive customer acquisition. Moreover, strategic investments in expanding network infrastructure and improving service quality play a crucial role in attracting and retaining customers, ultimately bolstering its financial performance.

Millicom International Cellular SA Financial Statement Overview

Summary

Strong profitability and efficiency (TTM gross margin 60.57%, net margin 16.97%, improved EBIT/EBITDA margins) and improving cash generation (free cash flow growth 5.83%). Offset by declining revenue growth (-19.6%) and elevated leverage (debt-to-equity 2.24).

Income Statement

Millicom International Cellular SA shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a strong gross profit margin of 60.57% and a net profit margin of 16.97%, which are significant improvements from previous years. However, the revenue growth rate is negative at -19.6%, indicating a decline in revenue. The EBIT and EBITDA margins have improved to 34.42% and 55.65% respectively, showing enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.24, indicating significant leverage, which poses a risk. However, the return on equity has improved to 26.50% in the TTM period, suggesting better profitability for shareholders. The equity ratio stands at 21.44%, showing a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement shows a positive trend with a 5.83% growth in free cash flow. The operating cash flow to net income ratio is 0.53, indicating a healthy conversion of net income into cash. The free cash flow to net income ratio is 0.56, reflecting a strong ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.59B	5.80B	5.66B	5.62B	4.26B	4.17B
Gross Profit	4.01B	4.38B	2.20B	4.12B	1.48B	1.31B
EBITDA	3.27B	2.36B	2.19B	2.16B	2.16B	1.38B
Net Income	1.10B	253.00M	-82.00M	57.00M	590.00M	-344.00M
Balance Sheet
Total Assets	15.59B	13.74B	14.52B	14.20B	15.14B	12.42B
Cash, Cash Equivalents and Short-Term Investments	1.71B	699.00M	775.00M	1.04B	895.00M	1.03B
Total Debt	8.44B	6.77B	7.74B	7.82B	8.91B	6.71B
Total Liabilities	12.28B	10.16B	11.07B	10.56B	12.40B	10.15B
Stockholders Equity	3.34B	3.63B	3.53B	3.60B	2.58B	2.06B
Cash Flow
Free Cash Flow	1.16B	1.13B	40.00M	212.00M	48.00M	-3.00M
Operating Cash Flow	1.80B	1.67B	1.22B	1.28B	956.00M	821.00M
Investing Cash Flow	-146.98M	-670.00M	-1.12B	-1.10B	-2.70B	-495.00M
Financing Cash Flow	-717.31M	-1.07B	-377.00M	-1.00M	1.78B	-598.00M

Millicom International Cellular SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 58.71 is above the 20-day moving average (MA) of 53.59, above the 50-day MA of 51.96, and above the 200-day MA of 41.71, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 66.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 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	81 Outperform	$10.19B	14.52	14.93%	7.82%	-4.90%	14.83%
TKC	74 Outperform	$5.34B	12.94	7.60%	5.57%	19.02%	9.26%
TIGO	69 Neutral	$9.81B	8.98	30.72%	6.51%	-4.39%	608.53%
KT	68 Neutral	$8.81B	13.99	5.26%	4.13%	0.63%	-21.51%
TEO	61 Neutral	$4.96B	-31.95	-2.95%	0.40%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.91B	20.35	4.72%	5.02%	-8.16%	-52.52%

Millicom International Cellular SA Corporate Events

Millicom Resolves DOJ Investigation with Deferred Prosecution Agreement

Millicom International Cellular S.A. announced on November 10, 2025, that its subsidiary, Comunicaciones Celulares S.A. (Comcel), has reached a deferred prosecution agreement with the U.S. Department of Justice (DOJ) to resolve an investigation into historical improper payments to Guatemalan officials. The investigation, which began in 2015, was resolved with Comcel agreeing to pay a $60 million fine and forfeiting $58.2 million in benefits. Millicom’s cooperation and remediation efforts, including the implementation of a robust compliance program, were recognized by the DOJ, resulting in a reduced penalty term and no requirement for a corporate monitor. This resolution underscores Millicom’s commitment to ethical operations and transparency.

The most recent analyst rating on (TIGO) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Millicom International Cellular SA stock, see the TIGO Stock Forecast page.

Millicom Reports Strong Q3 2025 Financial Performance

On November 6, 2025, Millicom International Cellular S.A. released its unaudited interim financial results for the three and nine-month periods ending September 30, 2025. The company reported a significant increase in net profit, reaching $1,096 million for the nine-month period, compared to $217 million in the previous year, largely driven by the sale of its Lati operations. This financial performance indicates a strong operational improvement and strategic positioning in its core markets, potentially benefiting stakeholders by enhancing shareholder value and market competitiveness.

The most recent analyst rating on (TIGO) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Millicom International Cellular SA stock, see the TIGO Stock Forecast page.

Millicom Expands South American Presence with Telefónica Ecuador Acquisition

On October 30, 2025, Millicom International Cellular S.A. announced the completion of its $380 million acquisition of Telefónica’s operations in Ecuador. This strategic move enhances Millicom’s presence in South America, following its recent acquisition in Uruguay, and positions the company to capitalize on Ecuador’s stable, dollarized economy and growing demand for digital services. The acquisition is expected to strengthen Millicom’s leadership in digital connectivity across Latin America, supporting its mission to drive economic and social progress through expanded digital access.

The most recent analyst rating on (TIGO) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Millicom International Cellular SA stock, see the TIGO Stock Forecast page.