Millicom provided a glimpse of its potential during the first quarter, as aggressive cost-cutting delivered a sharp increase in profitability. The Guatemalan business, Millicom’s most important, delivered revenue growth for the first time in more than a year, giving an early indication that America Movil is backing off in its aggressive push for market share. We’re increasing our fair value estimate to $34 from $30.
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.
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.
|
Metric
|
TIGO
|
TV
|
AMX
|
|---|---|---|---|
Price/Earnings (Normalized) | 126.34 | — | 18.02 |
Price/Book Value | 1.14 | 0.27 | 2.59 |
Price/Sales | 0.71 | 0.47 | 1.33 |
Price/Cash Flow | 2.81 | 3.39 | 4.56 |
|
Metric
|
TIGO
|
TV
|
AMX
|
|---|---|---|---|
Quick Ratio | 0.69 | 1.42 | 0.58 |
Current Ratio | 0.82 | 1.59 | 0.68 |
Interest Coverage | 1.25 | 0.01 | 2.40 |
|
Metric
|
TIGO
|
TV
|
AMX
|
|---|---|---|---|
Return on Assets (Normalized) | −0.87% | −2.54% | 4.39% |
Return on Equity (Normalized) | −3.50% | −5.66% | 19.02% |
Return on Invested Capital (Normalized) | 2.57% | −1.94% | 10.93% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TMUS
| T-Mobile US Inc | Ppwvjwfb | Kljny | $190.3 Bil | |
VZ
| Verizon Communications Inc | Njtcjxtv | Zybrtnz | $169.4 Bil | |
CMCSA
| Comcast Corp Class A | Lbnhqdkp | Prlhm | $154.1 Bil | |
T
| AT&T Inc | Jfnj | Yzwgp | $124.0 Bil | |
DTEGY
| Deutsche Telekom AG ADR | Dqvwshstsb | Dxpzs | $118.7 Bil | |
AMX
| America Movil SAB de CV ADR - Series B | Mzbnyqzpm | Wjjjvs | $61.2 Bil | |
KDDIY
| KDDI Corp ADR | Btzlbvffk | Wdkjrp | $58.0 Bil | |
CHTR
| Charter Communications Inc Class A | Crrwbpb | Kgjdtbw | $39.3 Bil | |
BCE
| BCE Inc | Cxmqfkbygq | Zdlgfrp | $31.3 Bil | |
ORAN
| Orange SA ADR | Jchllwv | Byz | $31.2 Bil |
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