Morningstar Rating

Stock Research and Analysis

by Allan C. Nichols, CFA

Bulls Say

Millicom's acquisition of UNE in Colombia enables it to offer a converged package of services, and the combined firm is almost as large as Telefonica in the country.
The firm's position in Africa provides access to several fast-growing countries that still have low wireless penetration rates.
Millicom should be able to improve its EBITDA margins as it gains scale in Africa and expands its converged customer base. Read more 

Bears Say

Several of the African countries Millicom operates in have six or more competitors, which puts the industry at risk of a price war as the various operators try to gain enough scale to be profitable.
The firm is subject to significant currency movements, as evidenced by the Colombian peso declining 31% against the U.S. dollar from June 2014 to June 2015. The local shares are also affected by the Swedish krona/U.S. dollar exchange rate as it reports in dollars.
Millicom is controlled by investment firm Kinnevik, whose objectives may not be in alignment with minority shareholders'. Read more 


We view Millicom's stewardship of shareholder capital as standard. Investment firm AB Kinnevik owns about 38% of Millicom's stock and is involved with setting the firm's strategy. Kinnevik's chairman, Cristina Stenbeck, is also Millicom's chairman.   Read more 


Millicom is a telephone company that mostly operates in smaller, less congested markets or in less developed countries with lots of opportunities for subscriber and revenue   Read more 

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