Millicom International Cellular (STU:M4M1) Interest Coverage: 2.10 (As of Mar. 2026) — 60% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

STU:M4M1 Millicom International Cellular SA STU:M4M1
63 GF Score
Price €82.00
GF Value €29.76
Valuation Significantly Overvalued
! 10 Warning Signs
View Full Analysis

What is Millicom International Cellular Interest Coverage?

Millicom International Cellular STU:M4M1 -1.80% 63 Interest Coverage is 2.10 as of Mar. 2026, which is 60% above its 10-year median of 1.31. GuruFocus rates STU:M4M1 with a GF Score™ of 63/100 and a GF Value™ of €29.76 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 284 Telecommunication Services companies, Millicom International Cellular ranks worse than 72.18% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Millicom International Cellular's Operating Income for the three months ended in Mar. 2026 was €369 Mil. Millicom International Cellular's Interest Expense for the three months ended in Mar. 2026 was €-176 Mil. Millicom International Cellular's interest coverage for the quarter that ended in Mar. 2026 was 2.10. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Millicom International Cellular's Interest Coverage or its related term are showing as below:

STU:M4M1' s Interest Coverage Range Over the Past 10 Years
Min: 0.52   Med: 1.31   Max: 2.55
Current: 2.36


STU:M4M1's Interest Coverage is ranked worse than
72.18% of 284 companies
in the Telecommunication Services industry
Industry Median: 4.74 vs STU:M4M1: 2.36

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Millicom International Cellular  (STU:M4M1) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Millicom International Cellular Interest Coverage Related Terms


Millicom International Cellular Interest Coverage Historical Data

* Premium members only.

The historical data trend for Millicom International Cellular's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Millicom International Cellular Interest Coverage Chart

Millicom International Cellular Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.94 1.59 1.31 2.23 2.55

Millicom International Cellular Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 2.54 2.54 2.37 2.10

STU:M4M1 vs CHTR, GSAT, LUMN: Interest Coverage Comparison

For the Telecom Services subindustry, Millicom International Cellular's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Millicom International Cellular Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Millicom International Cellular's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Millicom International Cellular's Interest Coverage falls into.


STU:M4M1
63GF Score
Millicom International Cellular SA STU:M4M1
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Millicom International Cellular Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Millicom International Cellular's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Millicom International Cellular's Interest Expense was €-503 Mil. Its Operating Income was €1,284 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,557 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1283.562/-503.006
=2.55

Millicom International Cellular's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Millicom International Cellular's Interest Expense was €-176 Mil. Its Operating Income was €369 Mil. And its Long-Term Debt & Capital Lease Obligation was €8,790 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*369.355/-175.595
=2.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.10 mean?
Millicom International Cellular (STU:M4M1) has a Interest Coverage of 2.10 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Millicom International Cellular and its competitors. This is 60% above median its historical median of 1.31. Over the past decade, Millicom International Cellular's Interest Coverage has ranged from 0.52 to 2.55. According to the industry distribution chart, Millicom International Cellular ranks #205 out of 284 companies in the Telecommunication Services industry, placing it in the top 72.2%.
Is Millicom International Cellular's Interest Coverage too high?
Millicom International Cellular's current Interest Coverage of 2.10 is 60% above median its 10-year median of 1.31. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 2.55. The Telecommunication Services industry median Interest Coverage is 4.74. Millicom International Cellular's value of 2.10 is 55.7% below this industry median. Based on the distribution chart, Millicom International Cellular ranks #205 out of 284 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Millicom International Cellular has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millicom International Cellular's Interest Coverage compare to CHTR and GSAT?
According to the Telecommunication Services industry distribution chart, Millicom International Cellular ranks #205 out of 284 companies for Interest Coverage. This places Millicom International Cellular in the lower half of its industry. The industry median Interest Coverage is 4.74. Millicom International Cellular's value of 2.10 is 55.7% below this benchmark. Historically, Millicom International Cellular's own Interest Coverage has ranged from 0.52 to 2.55 over the past decade. While the company's 10-year median is 1.31 vs. the industry median of 4.74, Millicom International Cellular has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.74, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Millicom International Cellular's current Interest Coverage of 2.10 is 55.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Millicom International Cellular and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Millicom International Cellular's current Interest Coverage is 2.10, which is 60% above median its own 10-year median of 1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millicom International Cellular stock overvalued right now?
Based on GuruFocus' analysis, Millicom International Cellular (STU:M4M1) is currently considered Significantly Overvalued. The stock's GF Value™ is €29.76, compared to a current price of €82.00 — trading 175.5% above its estimated fair value. The current Interest Coverage is 2.10, which is 60% above median its 10-year median of 1.31 and 55.7% below the Telecommunication Services industry median of 4.74. Millicom International Cellular's overall GF Score™ is 63/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Millicom International Cellular (STU:M4M1), the current Interest Coverage is 2.10 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Millicom International Cellular (STU:M4M1) Overvalued in 2026?

Based on GuruFocus' analysis, Millicom International Cellular stock appears to be overvalued. The current stock price of €82.00 is trading 175.5% above its estimated GF Value™ of €29.76. GuruFocus considers Millicom International Cellular to be Significantly Overvalued.

Key valuation signals for STU:M4M1:

  • Interest Coverage: 2.10 (60% above median its 10-year median of 1.31)
  • GF Value™: €29.76 vs. price of €82.00 (175.5% above fair value)
  • GF Score™: 63/100 with 10 warning signs
  • Industry Position: 55.7% below the Telecommunication Services median (#205 of 284)

No single metric tells the full story. See the STU:M4M1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Millicom International Cellular Business Description

Other Exchanges TIGO:USAM4M1:Germany
Address 8400 NW 36th Street, Suite 530, Doral, FL, USA, 33166
Millicom offers wireless and fixed-line telecom services primarily in smaller, less developed countries in Latin America. Countries served include Bolivia, Nicaragua, Panama, El Salvador, Guatemala, Paraguay, Colombia, Ecuador, Uruguay, and Honduras (67% but not controlled or consolidated in the firm's financial statements). The firm's wireless networks cover about 145 million people, serving nearly 60 million customers. Its fixed-line networks reach 22 million homes, serving about 5.6 million broadband customers. Increasingly, Millicom offers converged packages that include broadband with wireless services. The firm also formed a joint venture to acquire Telefónica's operations in Chile.
63GF Score

Get the complete analysis for STU:M4M1

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€82.00
Price
€29.76
GF Value