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Relative to Communication Services Sector Median (N=134)
Metric
TIGO
Benchmark
P/E Ratio
12.6x
-52%
EV/EBITDA
3.3x
-33%
Price / Book
18.0x
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
-12.7%
$72.52Spot: $83.03
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Communication Services sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 41.3GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
143.3%
Sector: 1.0%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, MILLICOM INTERNATIONAL CELLULAR SA (TIGO) receives a "Buy" rating with a composite score of 61.6/100, ranked #5 out of 4446 stocks. Key factor scores: Quality 41/100, Value 67/100, Momentum 81/100. This is quantitative analysis only — not investment advice.
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MILLICOM INTERNATIONAL CELLULAR SA Do?
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. MILLICOM INTERNATIONAL CELLULAR SA (TIGO) is classified as a large-cap stock in the Communication Services sector, specifically within the Communication industry. The company is led by CEO Mauricio Ramos and employs approximately 19,400 people. With a market capitalization of $12.9B, TIGO is one of the prominent companies in the Communication Services sector.
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) Stock Rating — Buy (April 2026)
As of April 2026, MILLICOM INTERNATIONAL CELLULAR SA receives a Buy rating with a composite score of 61.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.TIGO ranks #5 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, MILLICOM INTERNATIONAL CELLULAR SA ranks #1 of 134 stocks, placing it in the top 10% of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TIGO Stock Price and 52-Week Range
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) currently trades at $83.03. The stock gained $0.25 (0.3%) in the most recent trading session. The 52-week high for TIGO is $74.74, which means the stock is currently trading 11.1% from its annual peak. The 52-week low is $26.35, putting the stock 215.1% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is TIGO Overvalued or Undervalued? — Valuation Analysis
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) carries a value factor score of 67/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-book ratio stands at 18.03x, versus the sector average of 1.87x. The price-to-sales ratio is 0.58x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, TIGO trades at 3.32x EV/EBITDA, versus 4.98x for the sector.
Overall, TIGO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
MILLICOM INTERNATIONAL CELLULAR SA Profitability — ROE, Margins, and Quality Score
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) earns a quality factor score of 41/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 143.3%, compared to the Communication Services sector average of 1.0%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 7.8% versus the sector average of -0.0%.
On a margin basis, MILLICOM INTERNATIONAL CELLULAR SA reports gross margins of 42.5%, compared to 56.4% for the sector. The operating margin is 5.0% (sector: 0.4%). Net profit margin stands at 4.6%, versus -0.9% for the average Communication Services stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
TIGO Debt, Balance Sheet, and Financial Health
MILLICOM INTERNATIONAL CELLULAR SA has a debt-to-equity ratio of 884.0%, compared to the Communication Services sector average of 82.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.76x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $6.61B. Cash and equivalents stand at $699M.
TIGO has a beta of 0.21, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for MILLICOM INTERNATIONAL CELLULAR SA is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
MILLICOM INTERNATIONAL CELLULAR SA Revenue and Earnings History — Quarterly Trend
In TTM 2026, MILLICOM INTERNATIONAL CELLULAR SA reported revenue of $5.80B. Net income for the quarter was $268M. Gross margin was 42.5%. Operating income came in at $291M.
In FY 2024, MILLICOM INTERNATIONAL CELLULAR SA reported revenue of $5.80B. Net income for the quarter was $268M. Gross margin was 42.5%. Revenue grew 4.0% year-over-year compared to FY 2023. Operating income came in at $291M.
In FY 2023, MILLICOM INTERNATIONAL CELLULAR SA reported revenue of $5.58B. Net income for the quarter was $-245M. Gross margin was 36.4%. Revenue grew 3.3% year-over-year compared to FY 2022. Operating income came in at $-435M.
In FY 2022, MILLICOM INTERNATIONAL CELLULAR SA reported revenue of $5.40B. Net income for the quarter was $129M. Gross margin was 37.1%. Revenue grew 26.8% year-over-year compared to FY 2021. Operating income came in at $43M.
Over the past 8 quarters, MILLICOM INTERNATIONAL CELLULAR SA has demonstrated a growth trajectory, with revenue expanding from $3.95B to $5.80B. Investors analyzing TIGO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TIGO Dividend Yield and Income Analysis
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) does not currently pay a dividend. This is common among growth-oriented companies in the Communication industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Communication Services dividend stocks may want to explore other Communication Services stocks or use the stock screener to filter by dividend yield.
TIGO Momentum and Technical Analysis Profile
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) has a momentum factor score of 81/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 71/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
TIGO vs Competitors — Communication Services Sector Ranking and Peer Comparison
Within the Communication Services sector, MILLICOM INTERNATIONAL CELLULAR SA (TIGO) ranks #1 out of 134 stocks based on the Blank Capital composite score. This places TIGO in the top decile of all Communication Services stocks in our coverage universe. Key competitors and sector peers include TEGNA INC (TGNA) with a score of 49.6/100, VERIZON COMMUNICATIONS INC (VZ) with a score of 54.2/100, DELUXE CORP (DLX) with a score of 53.8/100, NEW YORK TIMES CO (NYT) with a score of 53.2/100, and Adeia Inc. (ADEA) with a score of 49.8/100.
Comparing TIGO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TIGO vs S&P 500 (SPY) comparison to assess how MILLICOM INTERNATIONAL CELLULAR SA stacks up against the broader market across all factor dimensions.
TIGO Next Earnings Date
No upcoming earnings date has been announced for MILLICOM INTERNATIONAL CELLULAR SA (TIGO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TIGO? — Investment Thesis Summary
The bull case for MILLICOM INTERNATIONAL CELLULAR SA rests on several quantitative strengths. The value score of 67/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 81/100, suggesting the trend favors buyers. Low volatility (stability score 79/100) reduces downside risk.
In summary, MILLICOM INTERNATIONAL CELLULAR SA (TIGO) earns a Buy rating with a composite score of 61.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TIGO stock.
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Institutional Research Dossier
MILLICOM INTERNATIONAL CELLULAR SA (TIGO) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
Millicom International Cellular S.A. (TIGO) is a leading provider of cable and mobile services in Latin America and Africa, with a strong market position and a BCR 4-star Buy rating. The company's robust financial performance, driven by its diversified service offerings and strategic expansion, make it a compelling investment opportunity. Despite the challenges posed by the pandemic, Millicom has demonstrated its resilience and ability to adapt, positioning it well for future growth.
The key takeaway is that Millicom's combination of a wide economic moat, sound financial fundamentals, and attractive valuation make it a standout investment in the communication services sector, with the potential for significant upside for institutional investors and sophisticated retail investors alike.
Business Strategy & Overview
Millicom International Cellular S.A. is a leading provider of cable and mobile services in Latin America and Africa. The company's business model is centered around offering a comprehensive suite of telecommunication services, including mobile data and voice, fixed broadband, content, fixed voice, and pay-TV, to both residential consumers and businesses. Millicom's strategic focus is on expanding its cable and mobile footprint, leveraging its existing infrastructure to cross-sell services and drive synergies.
The company's cable business provides high-speed broadband, content, and fixed voice services to residential consumers, while its mobile segment offers a range of voice, data, and financial services. Millicom's Tigo and Tigo Business brands are well-established in the markets it serves, allowing the company to capitalize on growing demand for digital connectivity and communications solutions.
In recent years, Millicom has made strategic investments to strengthen its position in the Latin American and African markets, including the acquisition of Cable Onda in Panama and the expansion of its mobile and cable networks. The company's focus on improving operational efficiency, enhancing its product portfolio, and expanding its customer base has positioned it as a leading player in the regional telecommunications industry.
Millicom operates in a highly competitive environment, facing challenges from both traditional telecom providers and emerging technology-driven competitors. However, the company's diversified service offerings, strong brand recognition, and investments in infrastructure and innovation have enabled it to maintain a solid market share and capitalize on the growing demand for integrated communication services in its target markets.
Looking ahead, Millicom's strategic priorities include accelerating the rollout of fiber-optic and 5G networks, expanding its cable footprint, and leveraging its mobile financial services platform to drive growth and enhance the company's competitive positioning. These initiatives, coupled with its focus on operational excellence and prudent capital allocation, are expected to support Millicom's long-term growth and profitability.
Overall, Millicom's business strategy is well-aligned with the evolving trends in the telecommunication industry, positioning the company as a key player in the digital transformation of Latin America and Africa.
Execution Benchmarks audit
Gross Margin
Core pricing power
42.5%
Sector: 56.4%
-25% VS SCTR
Economic Moat Analysis
Millicom International Cellular S.A. possesses a wide economic moat, underpinned by several key competitive advantages. The company's extensive cable and mobile network infrastructure, built over decades of investment, represents a significant barrier to entry for potential competitors. This deep-rooted physical network, combined with Millicom's well-established brand recognition and customer relationships, creates a powerful network effect that reinforces the company's market position.
Additionally, Millicom benefits from significant switching costs for its customers, particularly in the cable and mobile services segments. The high cost and inconvenience associated with changing providers discourages customers from easily shifting to alternative providers, further strengthening Millicom's competitive edge. The company's ability to offer bundled services, including broadband, content, and mobile, further enhances customer loyalty and stickiness.
Millicom's scale and operational efficiency also contribute to its wide economic moat. As one of the largest telecommunication providers in its markets, the company benefits from economies of scale, allowing it to leverage its fixed costs and invest in cutting-edge technology and infrastructure. This, in turn, enables Millicom to offer competitively priced services and maintain healthy profit margins, undercutting smaller, less efficient competitors.
Furthermore, Millicom's extensive market knowledge, gained through decades of experience operating in Latin America and Africa, provides it with a deep understanding of customer preferences and local market dynamics. This specialized expertise is difficult for new entrants to replicate, reinforcing Millicom's position as a trusted and preferred provider in its target regions.
While the telecommunication industry is inherently competitive, Millicom's combination of network effects, switching costs, scale advantages, and market expertise creates a wide and sustainable economic moat that will be challenging for competitors to overcome in the near to medium term. This robust competitive positioning is a key factor underpinning the BCR 4-star Buy rating on the company.
Financial Health & Profitability
Millicom International Cellular S.A. has demonstrated a strong financial profile, with a track record of robust revenue growth, improving profitability, and healthy cash flow generation. Over the past five years, the company has consistently grown its revenue, with a compound annual growth rate (CAGR) of 10.6% from 2017 to 2021. This growth has been driven by the company's strategic expansion, market share gains, and the increasing demand for its cable and mobile services.
Millicom's profitability metrics, however, have been more volatile. While the company's gross margin has remained relatively stable, ranging between 35.6% and 78.8% over the past five years, its operating margin has fluctuated, from a low of -7.8% in 2023 to a high of 29.3% in 2018. This volatility is partly attributable to the company's ongoing investments in network infrastructure, technology, and acquisitions, which have temporarily weighed on its bottom line.
Nonetheless, Millicom's return on equity (ROE) has been impressive, averaging 143.3% over the past five years, significantly outperforming the sector average of 0.9%. This strong ROE reflects the company's efficient capital allocation and its ability to generate high returns on its invested capital.
Millicom's balance sheet also demonstrates financial strength, with a debt-to-equity ratio of 884.0, which is higher than the sector average of 80.0. However, the company's free cash flow generation has been robust, with $1.46 billion in TTM free cash flow, providing it with the financial flexibility to manage its debt obligations and fund future growth initiatives.
Overall, Millicom's financial health is sound, with a track record of consistent revenue growth, improving profitability, and strong cash flow generation. While the company's balance sheet leverage is higher than the sector average, its robust free cash flow and disciplined capital allocation have helped to mitigate the risks associated with its debt levels. These financial strengths support the BCR 4-star Buy rating on the stock.
Valuation Assessment
Millicom International Cellular S.A. appears to be attractively valued, particularly when compared to its industry peers. The company's P/E ratio is not available, as its trailing-twelve-month earnings are negative. However, its EV/EBITDA ratio of 3.1x is significantly lower than the sector average of 5.0x, suggesting that the stock is trading at a discount relative to its EBITDA-generating capabilities.
Furthermore, Millicom's free cash flow yield of 12.1% is quite compelling, especially given the company's strong free cash flow generation and growth prospects. This high free cash flow yield indicates that the stock is trading at a discount to its intrinsic value, providing a margin of safety for investors.
When considering Millicom's strong competitive position, diversified service offerings, and the growing demand for digital connectivity in its target markets, the current valuation appears to be an attractive entry point for long-term investors. The company's robust financial profile, marked by stable revenue growth, improving profitability, and healthy cash flow generation, further supports the case for a favorable valuation.
However, it is important to note that Millicom's valuation metrics can be volatile, as the company continues to make strategic investments to expand its network, enhance its product portfolio, and drive operational efficiency. As such, investors should closely monitor the company's financial performance and any changes in its competitive landscape that could impact its valuation.
Overall, the combination of Millicom's wide economic moat, sound financial fundamentals, and attractive valuation compared to its peers make a compelling case for the BCR 4-star Buy rating on the stock. The company's growth potential, underpinned by its strategic initiatives and the favorable industry dynamics, suggest that the current valuation may not fully reflect the company's long-term intrinsic value.
Risk & Uncertainty
While Millicom International Cellular S.A. presents a compelling investment opportunity, the company is not without risks and uncertainties that investors should carefully consider. One of the primary risks is the high level of debt on Millicom's balance sheet, with a debt-to-equity ratio of 884.0, significantly higher than the sector average of 80.0. This elevated leverage could expose the company to heightened financial risk, particularly in the event of an economic downturn or a rise in interest rates, which could strain its ability to service its debt obligations.
Additionally, Millicom operates in highly competitive markets, facing intense rivalry from both traditional telecom providers and emerging technology-driven competitors. The company's ability to maintain its market share and pricing power could be challenged by the introduction of new products, services, or disruptive business models, which could erode Millicom's profitability and growth prospects.
Another risk factor is the regulatory environment in the regions where Millicom operates. Changes in government policies, licensing requirements, or tax regulations could have a significant impact on the company's operations and financial performance. The company's expansion into new markets or the acquisition of new businesses may also expose it to additional regulatory risks and compliance challenges.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMillicom's extensive cable and mobile network infrastructure, coupled with its strong brand recognition and customer relationships, create a powerful network effect that reinforces the company's dominant market position and wide economic moat.
BULL VIEWThe company's ability to offer bundled services, including broadband, content, and mobile, enhances customer loyalty and stickiness, providing a sustainable competitive advantage.
BULL VIEWMillicom's robust free cash flow generation, averaging $1.46 billion in the trailing twelve months, gives the company financial flexibility to manage its debt obligations and fund future growth initiatives.
The Bear Case
BEAR VIEWMillicom's high level of debt, with a debt-to-equity ratio of 884.0, exposes the company to significant financial risk and could constrain its ability to navigate economic downturns or changes in the interest rate environment.
BEAR VIEWThe telecommunication industry is highly competitive, and Millicom faces the constant threat of new products, services, or disruptive business models from both traditional providers and emerging technology-driven competitors, which could erode the company's market share and profitability.
BEAR VIEWMillicom's expansion into new markets and the acquisition of new businesses may expose the company to additional regulatory risks and compliance challenges, which could impact its operations and financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TIGO and 4,400+ other equities.
MILLICOM INTERNATIONAL CELLULAR SA exhibits a 196% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.8%
Sector: -0.0%
Gross Margin
Pricing power and cost efficiency
42.5%
Sector: 56.4%
Operating Margin
Core business profitability
5.0%
Sector: 0.4%
Net Margin
Bottom-line profitability
4.6%
Sector: -0.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
A 7,000-km undersea cable deal aims to bolster Central America internet
Millicom (TIGO) has announced a long-term commercial agreement with Trans Americas Fiber System (TAFS) to expand and strengthen its international network infrastructure across Central America. This partnership grants Millicom access to the TAM-1 subsea system, a 7,000-km fiber optic network designed to enhance route diversity, redundancy, and scalability with a minimum capacity of 18 Tbps per fiber pair. The collaboration aims to provide low-latency, high-capacity services, supporting digital inclusion and economic development across the region by linking the United States, Central America, the Caribbean, and Colombia.
