One-glance verdict
Within fair range
$88.39 our estimate vs market $88.75
Wall Street consensus: $97.01 (9.8% higher than our fair-value estimate)
0% above our estimate
Fundamentals snapshot
Millicom International Cellular S.A.
TIGO · NMS · Communication Services · Telecom Services
Current price
$88.75
52-week range
$48.58 - $107.13
Market cap
$14.88B
Balance sheet
Distressed
2.55x Stretched
Net debt $11.19B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 19.5% on equity, ahead of 66% of its peers.
- Risk Stock trades 47.1% above its 5-year average P/E.
- Risk Net debt grew 16.8% over 3 years.
What this company does
Millicom International Cellular S.A.
Millicom International Cellular S.A., which operates as TIGO, provides mobile phone and internet services across Latin America, with the majority of its revenue coming from these core offerings. This is important because it means the company's success is closely tied to how many people are using their phones and internet, and how much they are spending on those services. Their business also includes mobile financial services like payments and money transfers, creating a broader "ecosystem" (a set of connected services) for their customers.
How the company got here
Millicom International Cellular S.A., known by its brand Tigo, was founded in 1990 and has grown to become a significant player in the Latin American telecommunications market. The company's journey has been marked by strategic expansion and acquisitions across various countries in the region. It has evolved from primarily offering mobile services to a more comprehensive suite of digital and financial solutions, adapting to the changing needs of its customers and the markets it serves.
What it actually does
Tigo provides a wide range of telecommunications and digital services to both individuals and businesses in Latin America. Think of them as the company that provides your home internet, your mobile phone service, and even TV. Beyond these core services, Tigo also offers mobile financial services, allowing customers to make payments, transfer money, and access loans and insurance through their phones. They also provide services to businesses, helping them with their communication and technology needs.
Tigo Mobile
This is Tigo's core mobile phone business, offering voice calls, text messages, and mobile data. It's how people stay connected on the go, accessing the internet from their smartphones for browsing, social media, and apps. This segment also includes mobile financial services, which leverage the mobile network to offer banking-like features such as sending money, paying bills, and even getting small loans directly from a mobile device, making financial services more accessible in areas where traditional banking might be limited.
Tigo Business
This segment focuses on providing telecommunications and technology solutions to companies of all sizes, from small shops to large corporations, as well as government entities. Tigo Business offers services like high-speed internet, reliable phone lines, and managed IT services, which are essential for businesses to operate efficiently. They also provide cloud and security solutions to help businesses protect their data and operate smoothly in the digital world.
Tigo Fixed Services
This part of Tigo's business delivers essential home connectivity services. It includes broadband internet, which is crucial for streaming, working from home, and online education. It also encompasses fixed-voice services (traditional landline phones) and pay-TV, offering entertainment options to households. This segment is about providing the digital infrastructure that underpins modern home life and entertainment.
Tower Infrastructure and Services
Tigo also operates and provides services related to the physical infrastructure that supports mobile networks – the cell towers. This involves managing and leasing out space on these towers to Tigo itself and potentially other mobile operators. By offering these services, Tigo can generate revenue from its existing infrastructure assets and ensure reliable network coverage across its operating regions.
What management is betting on now
Tigo's current strategy is focused on expanding its digital and financial services offerings, aiming to capture more value beyond basic connectivity. Management is prioritizing growth in its Tigo Business segment, providing more advanced solutions to companies. They are also investing in expanding their mobile financial services, recognizing the significant potential to serve underbanked populations in Latin America. This focus on digital transformation and financial inclusion is key to Tigo's future growth and profitability.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $88.39 vs current price $88.75
Wall Street consensus is the average analyst price target: $97.01 (9.8% higher than our fair-value estimate).
Our most-likely fair value is $88.39 a share — about 0.4% away from today's price of $88.75, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $11.2B. Interest coverage 2.6x.
Net debt
$11.19B
Interest coverage
2.55x
Millicom International Cellular S.A.'s profit covers its interest bill about 2.6 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
TIGO
BASELINE
Millicom International Cellular S.A.
Total debt $12.04B Interest coverage 2.55x This is the baseline the peer rows are being compared against.
Total debt $37.78B Interest coverage 2.43x -5% vs TIGO Has roughly the same debt cushion as TIGO.
Total debt $3.56B Interest coverage 12.48x +389% vs TIGO Carries about 4.9x more debt cushion than TIGO.
Total debt $9.04B Interest coverage 1.10x -57% vs TIGO Carries about 2.3x less debt cushion than TIGO.
Total debt $180.61B Interest coverage 3.67x +44% vs TIGO Carries about 1.4x more debt cushion than TIGO.
Total debt $195.29B Interest coverage 4.37x +71% vs TIGO Carries about 1.7x more debt cushion than TIGO.
What you should know
The case for and against TIGO
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.3% last year.
-
Returns 19.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 47.1% above its 5-year average P/E.
-
Net debt grew 16.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.34x
Forward P/E
12.52x
P/B
6.65x
P/S
1.84x
EV/EBITDA
7.34x
PEG ratio
0.30x
Profitability
How much profit each dollar creates
Gross margin
76.2%
Operating margin
26.6%
Net margin
7.0%
ROE
19.5%
ROA
6.7%
Health
Liquidity and balance-sheet strength
Debt / equity
5.29x
Current ratio
0.56x
Quick ratio
0.45x
Total debt
$12.04B
Total cash
$848.00M
Growth
How the business has been compounding
Revenue TTM
$8.11B
Revenue 5Y CAGR
1.1%
EPS TTM
3.37
EPS 5Y CAGR
83.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.73B
Free CF TTM
$920.00M
FCF margin
11.3%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
88.9%
Last ex-div date
2027-01-08