| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 19.8x | 17.3x | Around median | |
Growth | 80 | 29.1% | 7.1% | Top tier | |
Quality | 92 | 9.7% | 4.5% | Top tier | |
Safety | 32 | 7.2x | 2.6x | Bottom tier | |
Capital Return | 46 | 9.22% | 0.06% | Around median | |
Momentum | 65 | 95.2% | -1.6% | Around median | |
Sentiment | 75 | 6 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
80% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Millicom International Cellular S.A. operates under the Tigo brand, providing telecommunications services across Latin American markets. The company generates revenue from prepaid and postpaid mobile services, home internet and content, and enterprise solutions that include connectivity, cloud computing, cybersecurity, and managed services. In fiscal Q2 2026 ended 2026-06-30, mobile service revenue was $1.2 billion, home service revenue was $513 million, and enterprise service revenue was $401 million, demonstrating that mobile is the largest business, with a growing contribution from digital services and mobile-fixed convergence.
In fiscal Q2 2026 ended 2026-06-30, Millicom reported revenue of $2.2 billion, up 58.8% year over year from $1.4 billion, net income of $109.0 million, and diluted earnings per share of $0.65. Gross margin was 51.4% and operating margin was 22.5%, compared with 77.0% and 26.0%, respectively, in fiscal Q2 2025. Operating cash flow was $723.6 million, while cash and investments reached $861.0 million, versus total debt of $11.9 billion.
Operationally, Millicom relies on migrating prepaid customers to higher-value postpaid plans, increasing average revenue per user, and expanding convergence between mobile and home services. The postpaid customer base grew by more than 31% during the year, and approximately two-thirds of new postpaid sales came from prepaid customer migrations, while fixed-mobile convergence penetration approached 40%. Digital service revenue also increased 14% year over year to $120 million, driven by demand for cloud computing, cybersecurity, and managed services.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-05
Operating margin at the 22.5% threshold
Gross margin at the 51.4% threshold
When: fiscal 2026
Equity free cash flow at $1.1 billion
Analyst targets have a median value of $97, within a range of $60 to $105 based on six analysts, a method that prices expected growth and is inherently inclined toward optimism. The industry-multiple value is $49, within a range of $29 to $127, based on next year's earnings and a median multiple of 10.4 for 30 companies, and therefore values Millicom in the same manner as its peers. The no-growth value is $14 at a discount rate of 9.2%, measuring what remains if current after-tax operating earnings stay constant forever; the cash flow model generally tends to be conservative. The methods agree that the growth assumption is the primary source of divergence, but the wide gap between $97, $49, and $14 reveals differences in the expected growth, industry comparison, and sustainability of current earnings priced by each method. The average analyst consensus is $89.78 with a Neutral recommendation, following three target increases and no reductions during 90 days, while the valuation pillar of the EL7 score places the company at 23 out of 100 within the industry and a rank of 108 out of 134.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
During the last 12 months through 2026-06-30, Millicom generated operating cash flow of $2.2 billion compared with net income of $711.0 million. This represents cash conversion of earnings of 312%, while free cash flow reached $1.5 billion. In fiscal Q2 2026 ended 2026-06-30, operating cash flow was $723.6 million, but management explained that equity free cash flow benefited from the timing of expenses and working capital.
The company focuses on increasing the value of its customer base by migrating prepaid users to postpaid rather than focusing on volume alone. In fiscal Q2 2026, sequential net postpaid additions increased by 167 thousand customers excluding acquisitions, and the base grew by more than 31% during the year. Approximately two-thirds of new postpaid sales came from migrations, and mobile service revenue grew organically by 6.9% to $1.2 billion.
Automated analysis for informational purposes only — not investment advice.
Leverage at 2.5 times
Total debt was $11.9 billion compared with cash and investments of $861.0 million in fiscal Q2 2026. Debt increased 50.1% from $7.9 billion in fiscal Q2 2025, while net debt was $8.1 billion according to the results presentation. Nevertheless, leverage declined from 2.76 times to 2.73 times, and the company targets a level below 2.5 times by the end of fiscal 2026.
Home service revenue grew organically by 3% to $513 million in fiscal Q2 2026. Management said that FIFA World Cup broadcasting rights supported sales of viewing packages, data, top-ups, home services, and advertising, and that the tournament's impact accounted for 80% of the segment's growth. The expected impact was distributed 60% in fiscal Q2 2026 and 40% in fiscal Q3 2026, so the full growth rate does not represent a sustainable underlying pace.
The board of directors approved an additional interim distribution of $1.50 per share, payable in two equal installments of $0.75 each in January and April 2027. The decision followed the increase in fiscal 2026 equity free cash flow guidance to approximately $1.1 billion. The chief financial officer explained that his historical recommendation is to distribute approximately two-thirds of this cash flow, while the fiscal 2027 policy remains subject to the board of directors' recommendation and the general meeting's approval.