Skip to Content

Millicom International Cellular SA TIGO

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Millicom Rebounds Nicely in Third Quarter; Shares Undervalued

Analyst Note

| Michael Hodel, CFA |

Millicom has made great strides stabilizing it business following an extremely challenging hit from the pandemic. The firm reported a record 1.7 million net wireless customer additions across Latin America during the third quarter, nearly offsetting the 2.1 million net losses reported over the first half of the year. The residential fixed-line business also returned to strong customer growth (157,000 net additions versus 59,000 a year ago and 95,000 losses last quarter) despite a sharp slowdown in network construction. Management remains confident that it will hit its $1.4 billion Latin American operating cash flow (EBITDA less capital spending) target for the full year thanks to the rebound in demand and tight cost control. It seems that, all else equal, Millicom would comfortably exceed this target, but management plans to invest any cash flow above the target back into the business, reviving capital projects that were put on hold earlier in the year. We don’t plan to materially change our $64 fair value estimate, and we believe the shares are deeply undervalued.

Read Full Analysis

Company Profile

Business Description

Millicom offers wireless and fixed-line telecom services primarily in smaller, less congested markets or in less developed countries primarily in Latin America. It also operates in Africa but has been selling out of African markets over the past couple years. Increasingly, it offers a converged package that may include fixed-line phone, broadband, and pay television in conjunction with wireless services.

2, Rue du Fort Bourbon
Luxembourg, L-1249, Luxembourg
T +352 27759101
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 22,000