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Millicom International Cellular SA SEDR TIGO SDB

Morningstar Rating
SEK 256.80 −2.40 (0.93%)
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Company Report

Efficiency Gains Are Starting to Show Up in Millicom's Bottom Line

Millicom is a collection of telecom businesses serving nine countries in Latin America. Economic and political challenges in certain markets, combined with a weak Colombian peso, have hindered recent financial results. However, we expect that continued smartphone and broadband adoption, attractive competitive dynamics in several countries, and cost-cutting efforts will allow the firm to generate solid cash flow in the coming years.

Price vs Fair Value

TIGO SDB is trading at a 464% premium.
Price
SEK 256.80
Fair Value
SEK 582.00
Uncertainty
High
1-Star Price
SEK 139.10
5-Star Price
SEK 258.00
Economic Moat
Tmtcs
Capital Allocation
Xkslbcps

Bulls Say, Bears Say

Bulls

Millicom holds strong wireless market share across nine Latin American countries with a combined population of 120 million people and owns high-quality cable networks that can provide broadband to 13 million homes and businesses in the region.

Bears

Millicom’s recent acquisitions have pushed its debt load much higher than historical levels. This debt amplifies the economic, political, and competitive risks the firm faces.

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Trading Information

Previous Close Price
SEK 259.20
Day Range
SEK 256.20259.00
52-Week Range
SEK 159.90287.80
Bid/Ask
SEK 257.00 / SEK 257.20
Market Cap
SEK 43.98 Bil
Volume/Avg
183,493 / 281,822

Key Statistics

Price/Earnings (Normalized)
128.93
Price/Sales
0.73
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.12%

Company Profile

Millicom offers wireless and fixed-line telecom services primarily in smaller, less developed countries in Latin America. Countries served include Bolivia (100% owned), Nicaragua (100%), Panama (100%), El Salvador (100%), Guatemala (100%), Paraguay (100%), Colombia (50%), Costa Rica (100%), and Honduras (67% but not controlled or consolidated in the firm's financial statements). The firm’s fixed-line networks reach 13 million homes while its wireless networks cover about 120 million people. Increasingly, Millicom offers a converged package that may include fixed-line phone, broadband, and pay television in conjunction with wireless services. The firm plans to carve out its infrastructure assets and mobile financial services business in 2024.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Small Value
Total Number of Employees
16,527

Competitors

Valuation

Metric
TIGO SDB
TEF
TV
Price/Earnings (Normalized)
128.9311.18
Price/Book Value
1.150.980.22
Price/Sales
0.730.550.38
Price/Cash Flow
2.871.952.71
Price/Earnings
TIGO SDB
TEF
TV

Financial Strength

Metric
TIGO SDB
TEF
TV
Quick Ratio
0.470.831.42
Current Ratio
0.860.911.59
Interest Coverage
1.410.380.01
Quick Ratio
TIGO SDB
TEF
TV

Profitability

Metric
TIGO SDB
TEF
TV
Return on Assets (Normalized)
−0.87%−0.27%−2.54%
Return on Equity (Normalized)
−3.50%−1.23%−5.66%
Return on Invested Capital (Normalized)
2.57%2.74%−1.94%
Return on Assets
TIGO SDB
TEF
TV
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