Millicom International Cellular Sa (TIGO)
NASDAQ:TIGO
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Millicom International Cellular SA
(NASDAQ:TIGO)
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Rating:72Outperform
Price Target:
$104.00
â–²(27.80% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving financial performance (stronger profitability and cash flow), supported by a constructive technical trend and a positive earnings update with reaffirmed leverage and EFCF targets. The main constraints are elevated leverage and a relatively high P/E despite a strong dividend yield.
Positive Factors
Strong free cash flow generation (EFCF)
Record EFCF demonstrates durable cash-generation capacity that supports debt servicing, capital allocation and reinvestment. Sustained EFCF reduces refinancing risk and is central to management's plan to hit a ~2.5x leverage target by year-end, improving long-term financial flexibility.
Negative Factors
Elevated leverage and rising debt
Persistently high leverage increases refinancing and interest-rate sensitivity, reducing strategic flexibility. With substantial net debt (~$7.6bn) and leverage above target in the near term, the company remains exposed to adverse funding conditions and FX-driven balance-sheet volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation (EFCF)
Record EFCF demonstrates durable cash-generation capacity that supports debt servicing, capital allocation and reinvestment. Sustained EFCF reduces refinancing risk and is central to management's plan to hit a ~2.5x leverage target by year-end, improving long-term financial flexibility.
Read all positive factors
Millicom International Cellular SA (TIGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.95B
Dividend Yield6.51%
Average Volume (3M)2.09M
Price to Earnings (P/E)12.1
Beta (1Y)0.11
Revenue Growth12.97%
EPS Growth255.71%
CountryUS
Employees14,487
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)7.38
Shares Outstanding167,540,830
10 Day Avg. Volume1,695,076
30 Day Avg. Volume2,094,523
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 Cap1.70
Enterprise Value/Revenue3.95
Enterprise Value/Gross Profit5.66
Enterprise Value/Ebitda7.19
Forecast
1Y Price Target
$80.80Price Target Upside-0.71% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.09
Revenue Forecast (FY)$8.31B
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:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational momentum and financial results: healthy organic revenue growth, record first-quarter equity free cash flow, expanding adjusted EBITDA and successful early integration of several acquisitions (Coltel, Ecuador, Uruguay, Chile). Management provided concrete cost-savings plans (e.g., >USD 100 million savings in Colombia first year), clear CapEx focus and reaffirmed 2026 targets (EFCF ≥ USD 900 million and leverage ~2.5x). Key challenges include near-term restructuring charges, elevated CapEx and spectrum payments, higher net debt and some market-specific softness (Panama), as well as FX and timing-related cash flow effects. On balance, the positive operational and cash generation trends, together with successful early turnaround indications in acquired assets, outweigh the near-term integration costs and leverage effects.Positive Updates
Strong Organic Service Revenue Growth
Organic service revenue grew 4.9% year-over-year. Reported service revenue increased 45% YoY to nearly EUR 1.9 billion, driven by recent acquisitions (Coltel, Ecuador, Uruguay) while organic trends show underlying momentum.
Negative Updates
Integration and Restructuring Costs
The quarter included nearly EUR 70 million of restructuring charges related to Coltel (Bart cited ~EUR 65-70 million). Management expects additional restructuring-related costs (management noted ~EUR 100 million of restructuring costs still to come) even as savings are being implemented.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Organic Service Revenue Growth
Organic service revenue grew 4.9% year-over-year. Reported service revenue increased 45% YoY to nearly EUR 1.9 billion, driven by recent acquisitions (Coltel, Ecuador, Uruguay) while organic trends show underlying momentum.
Read all positive updates
Company Guidance
The company reiterated its 2026 financial objectives — equity free cash flow (EFCF) of at least $900 million and net leverage of around 2.5x by year‑end — while noting it will not update guidance until the Q2 call; Q1 delivered a strong start with service revenue up 45% YoY to nearly $1.9 billion (Coltel contributing ≈$243m), adjusted EBITDA of €857m (margin 43.2%, Coltel ≈$33m contribution; organic adjusted EBITDA +9.6%), organic service revenue +4.9% YoY, record EFCF of €225m, net debt of $7.6bn and leverage of 2.76x (may creep up in Q2 due to remaining Coltel acquisition and an extraordinary dividend but should fall to ≈2.5x by year‑end); other Q1 metrics included cash CapEx €221m, spectrum payments €99m (including a €70m payment in Ecuador), and management’s expectation that Coltel will be a net EFCF contributor and that Chile will be neutral to EFCF for the full year.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
81.38
Price Trends
84.66
Positive
77.63
Positive
63.42
Positive
Market Momentum
1.19
Positive
55.62
Neutral
41.67
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 81.38 is below the 20-day moving average (MA) of 87.54, below the 50-day MA of 84.66, and above the 200-day MA of 63.42, indicating a bullish trend. The MACD of 1.19 indicates Positive momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $14.95B | 12.09 | 36.08% | 6.51% | 12.97% | 255.71% | |
71 Outperform | $5.77B | 22.59 | 5.46% | 0.40% | 51.86% | 11.59% | |
70 Outperform | $10.50B | 12.70 | 17.55% | 7.82% | 8.21% | 30.97% | |
68 Neutral | $8.19B | 7.71 | 8.77% | 4.13% | 13.45% | 148.36% | |
62 Neutral | $12.45B | 60.66 | 3.00% | 5.02% | -7.08% | -73.85% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $5.20B | 12.99 | 7.27% | 5.57% | 18.57% | 5.36% |
* Communication Services Sector Average
TIGO
Millicom International Cellular SA
89.26
55.41
163.66%
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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...
Millicom Completes Full Acquisition of Coltel to Boost Scale and 5G Investment in Colombia
Apr 28, 2026
Millicom International Cellular S.A. (Tigo), a major Latin American telecom operator offering mobile, fixed broadband, pay TV, mobile financial services, and B2B cloud and security solutions, continues to build scale across the region. Headquarter...
Millicom’s Tigo Paraguay to Fully Redeem $139.7 Million 2027 Notes on April 29
Apr 17, 2026
Millicom’s Paraguayan subsidiary Telefónica Celular del Paraguay S.A.E. (Tigo Paraguay) plans to redeem in full its outstanding 5.875% Senior Unsecured Notes due 2027 later this month, in a move that streamlines its capital structure. T...
Millicom Upsizes $87.5 Million Reopening of 2032 Senior Notes to Fund Growth
Apr 15, 2026
Millicom International Cellular S.A., a major Latin American telecom operator providing fixed and mobile connectivity, digital financial services, pay TV, entertainment content, and business cloud and security solutions, serves around 52 million c...
Millicom Reopens 7.375% 2032 Bond with Additional $75 Million Tap
Apr 2, 2026
On April 2, 2026, Millicom International Cellular S.A. announced it had successfully priced a $75 million reopening of its 7.375% Senior Notes due 2032 in a Regulation S private placement to a non‑U.S. investor, at 100.985% of face value plu...
Millicom Calls May 20, 2026 AGM, Proposes Dividend and Share Buyback Plan
Mar 26, 2026
Millicom International Cellular S.A. has convened its annual general meeting of shareholders for May 20, 2026, in Luxembourg, setting May 6 as the voting record date and outlining procedures for proxy and in-person participation for Nasdaq-listed ...
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.