1 Cheap Telecom Stock to Consider Buying Now

: TIGO | Millicom International Cellular S.A. News, Ratings, and Charts

TIGO – Millicom International (TIGO) reported impressive service revenue and EBITDA growth in its last quarter and expects its OCF and cumulative EFCF to rise significantly for 2022. This defensive stock’s lower valuation and strong profitability make it an ideal candidate for investors looking for steady returns. Continue reading….

Headquartered in Luxembourg, Millicom International Cellular S.A. (TIGO - Get Rating) 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. The stock has gained 17.1% over the past month to close its last trading session at $15.55.

The company achieved service revenue growth in every country and business unit in the second quarter of fiscal 2022. It expects to achieve full-year 2022 organic OCF growth of around 10% and cumulative EFCF of between $800 million and $1 billion over the next three years.

Moreover, Colombia performed pretty well, as service revenue growth accelerated to more than 8%, driven by mobile, which grew nearly 20%, fueled by high-single-digit ARPU growth resulting from the shift in mix toward postpaid.

Here is what could influence TIGO’s performance:

Latest Developments

Last month, TIGO announced that its operation in Colombia has entered into a wholesale network access agreement with Empresa de Telecomunicaciones de Bogota (ETB). According to the terms of the agreement, Tigo Colombia will be able to offer Tigo-branded broadband internet, PayTV, telephony, and over-the-top services to residential and small business customers using ETB’s fiber-to-the-home (FTTH) network, which covers 1.5 million homes in Bogota.

Also, last month, TIGO announced that its operation in Colombia (Tigo Colombia) has entered into a wholesale network access agreement with Ufinet. The terms of the agreement enable Tigo Colombia to offer Tigo-branded broadband internet, PayTV, telephony, and over-the-top services to residential and business customers using Ufinet’s extensive fiber-to-the-home (FTTH) network in Bogota.

Robust Financials

TIGO’s revenue increased 44.6% year-over-year to $1.45 billion for the second quarter of fiscal 2022. Its operating profit grew 99.6% from its year-ago value to $247.00 million, while its net profit came in at $129.00 million compared to a net loss of $100.00 million in the prior period. The company’s EPS amounted to $1.14 compared to a loss per share of $0.77 in the year-ago period.

Strong Profitability

TIGO’s trailing-12-month gross profit margin of 72.52% is 43.5% higher than the industry average of 50.52%. In addition, its trailing-12-month net income margin of 14.62% is 173.9% higher than the 5.34% industry average. Also, its trailing-12-month ROE, ROC, and ROA are 281.2%, 38.5%, and 134.6% higher than the respective industry averages.

Discounted Valuation

The stock’s 15.37X forward non-GAAP P/E is 14.3% lower than its industry average of 17.94x. Also, its trailing-12-month EV/Sales of 1.73X is 20.1% lower than its industry average of 2.16x. Its 0.47x forward Price/Sales is 65.9% lower than its industry average of 1.38x

Impressive Growth Prospects

Street expects TIGO revenues to rise 49.9% in the current quarter, 31.1% in the current year, and 3.6% next year. The company’s EPS is expected to rise 420% in the current quarter and 24.2% next year.

Furthermore, the company has an impressive earnings surprise history; it topped the consensus EPS estimates in three of the trailing four quarters.

POWR Ratings Reflect Solid Prospects

TIGO has an overall A grade, which equates to a Strong Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. TIGO has a B grade for Quality, Value, and Stability. TIGO’s higher-than-industry profitability is consistent with its Quality grade. The company’s lower-than-industry valuation justifies its Value grade. Its 0.91 beta is in sync with its Stability grade.

Among the 47 stocks in the A-rated Telecom – Foreign industry, TIGO is ranked #5.

Beyond what I stated above, we have graded TIGO for Growth, Sentiment, and Momentum. Get all TIGO ratings here.

Bottom Line

TIGO’s strong financials reflect the stock’s bright prospects. Being part of a defensive industry, the stock’s lower-than-industry valuation and strong profitability make it a solid buy for investors looking for steady returns.

How does Millicom International Cellular S.A. (TIGO) Stack Up Against its Peers?

TIGO has an overall POWR Rating of A, which equates to a Strong Buy. Check out these other stocks within the Telecom – Foreign industry with A ratings: Telekom Austria AG (TKAGY - Get Rating), MTN Group Limited (MTNOY - Get Rating), and Internet Initiative Japan Inc. (IIJIY - Get Rating).

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


TIGO shares were trading at $15.76 per share on Thursday morning, up $0.21 (+1.35%). Year-to-date, TIGO has declined -44.60%, versus a -9.41% rise in the benchmark S&P 500 index during the same period.


About the Author: Spandan Khandelwal


Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TIGOGet RatingGet RatingGet Rating
TKAGYGet RatingGet RatingGet Rating
MTNOYGet RatingGet RatingGet Rating
IIJIYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Why Are Stocks Floating Higher?

Why are stocks breaking above 6,000 once again? When will they make news highs? And what is an investor to do now? Seasoned investor Steve Reitmeister shares his thoughts in this updated commentary.

How is the Stock Market Like a Helium Balloon?

Stocks have finally broke above 6,000 for the S&P 500 (SPY). The more important question is what comes next? Steve Reitmeister provides his answer in his latest market commentary.

Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Read More Stories

More Millicom International Cellular S.A. (TIGO) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TIGO News