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Millicom International Cellular (TIGO) Sales Grew While Profit Fell, Is It Still Trading At A Discount?

Simply Wall St · 1d ago

Millicom International Cellular (TIGO) has drawn attention following its third quarter update, in which sales and nine month revenue increased, while net income and earnings per share declined.

That update landed after a sharp move in Millicom International Cellular’s share price, which fell 9.62% on the day to US$80.83, even though the year to date share price return is up 42.94% and the 1 year total shareholder return is 69.63%.

Scan how Millicom International Cellular compares on quality and valuation next to a hand picked 31 high quality undervalued stocks that are also balancing revenue momentum with profitability pressure.

After a one day drop and a powerful 1 year run, Millicom International Cellular now sits at a price where investors have to choose: lean into the volatility today or wait and hope for a cleaner entry as valuation signals line up.

Most Popular Narrative: 16% Undervalued

Millicom International Cellular is tracked in the analyst consensus Narrative on Simply Wall St with a fair value of $96.39 against the last close at $80.83. This frames the recent pullback within a valuation story that remains bullish, built on cash flow and debt repair at a 7.06% discount rate.

Continued consolidation of newly acquired operations in Ecuador, Uruguay and Colombia, with margins in Ecuador and Uruguay already in the mid to high 40% range and Colombia reporting a 39.4% margin on adjusted EBITDA, could support group profitability and future earnings if these units keep contributing at or above current levels.

See why 20 investors see Millicom International Cellular as 16% undervalued.

Result: Fair Value of $96.39 (UNDERVALUED)

Still, the narrative around Millicom International Cellular can crack if high net debt of about US$8.1b lingers or if legal claims trigger heavier cash outflows.

Find out about the key risks to this Millicom International Cellular narrative.

Next Steps

Mixed signals around Millicom International Cellular can make sentiment feel split, so it may be useful to move quickly to inspect both sides of the story in detail and weigh the 2 key rewards and 3 important warning signs.

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