Millicom International Cellular S.A. Common Stock (TIGO)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-minded investor, I start with the business: Millicom sells mobile, broadband, pay-TV and mobile financial services in Latin America, with 14,250 employees. Telecom can have local advantages from infrastructure and customer relationships, but it is capital-intensive. The latest reported quarter, fiscal Q2 2026, showed revenue of $2.2 billion and net income of $109 million, a 5.00% net margin. That is profitable, but not a high-margin business. The supplied FairStock figures show a high return on equity of 21.73%, yet ROCE is only 5.87%, which tells me leverage is flattering the equity return. Debt-to-equity of 4.85 is a real balance-sheet caution, and the Altman Z-score of 0.65 reinforces that. On the positive side, trailing free cash flow is $1.2 billion, an 8.7% FCF yield, and EV/EBITDA is 7.36, reasonable for a telecom. The dividend yield is 3.18%, and beta is 0.90. Valuation is the rub: at the 2026-10-26 close of $78.33, FairStock’s P/E is 19.53 and P/B is 4.17, while the Graham Number is $36.34, implying a negative 115.58% margin of safety. The Piotroski F-score is a middling 5/9. The computed Lynch category is none because only 0 years of filed results are available and 3 are needed. Growth is hard to judge from the supplied filing period, but the Q2 2026 margin shows operating leverage matters. I would call this a leveraged, cash-generative telecom that is not cheap on conservative accounting.

In plain English: Millicom provides mobile, broadband, pay-TV and money services in Latin America. In the latest reported quarter, fiscal Q2 2026, it earned $109 million on $2.2 billion of revenue, a 5% profit margin, so the business is profitable but not highly profitable. At $78.33 on 2026-10-26, the price looks expensive compared with conservative accounting measures and book value, even though cash flow looks solid.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer