America Movil (AMX) AI Stock Analysis

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America Movil

(NYSE:AMX)

71Outperform

America Movil's overall stock score reflects a balanced assessment of strong financial performance, bullish technical signals, and healthy earnings growth, tempered by high leverage and overvaluation concerns. While the stock shows positive momentum and income potential, economic and regulatory challenges in key markets necessitate a cautious approach.

America Movil (AMX) vs. S&P 500 (SPY)

Market Cap

$52.64B

Dividend Yield2.94%

Average Volume (3M)3.11M

Price to Earnings (P/E)31.4

Beta (1Y)0.37

Revenue Growth0.19%

EPS Growth-50.17%

CountryUS

Employees177,620

SectorCommunication Services

Sector Strength85

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.31

Shares Outstanding3,109,250,000

10 Day Avg. Volume3,208,640

30 Day Avg. Volume3,110,165

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$16.53

Price Target Upside-1.96% Downside

Rating ConsensusStrong Buy

Number of Analyst Covering4

America Movil Business Overview & Revenue Model

Company DescriptionAmérica Móvil (AMX) is a leading telecommunications company headquartered in Mexico City, Mexico. It operates primarily in the telecommunications sector, offering a wide array of services including wireless, fixed-line, broadband, and digital television services across Latin America and other regions. América Móvil is recognized for its extensive network coverage and customer base, making it one of the largest telecom operators worldwide.

How the Company Makes MoneyAmérica Móvil generates revenue through various streams primarily centered around its telecommunications services. The company earns money by providing wireless voice and data services to individual and business customers, which includes prepaid and postpaid mobile plans. Fixed-line services, including local and long-distance telephony, as well as broadband internet services, contribute significantly to its revenue. Additionally, América Móvil offers pay television services through cable and satellite. The company also benefits from strategic partnerships and agreements, such as network sharing and roaming agreements, which enhance its service offerings. Other revenue sources include the sale of telecommunications equipment and value-added services such as cloud computing and content streaming. América Móvil's expansive geographic presence and diversified service portfolio are key factors driving its earnings.

America Movil Financial Statement Overview

Summary

America Movil shows a solid financial position with strong operational margins and cash flow generation. However, the decrease in net profit margin and return on equity, coupled with high leverage, presents challenges that need addressing. The company demonstrates moderate revenue growth and efficient cash flow management, but it must ensure that profitability and equity returns are enhanced while managing debt levels to maintain financial stability.

Income Statement

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America Movil shows a mixed performance in its income statement. The gross profit margin for 2024 is approximately 43%, indicating strong efficiency in managing production costs. However, the net profit margin saw a significant decrease to around 3.3% from the previous year's 9.3%, largely due to a drop in net income. The revenue growth rate over the past year is about 6.5%, indicating moderate growth but not enough to sustain profit margins. EBIT and EBITDA margins are healthy at around 20.7% and 39.6%, respectively, reflecting solid operational performance.

Balance Sheet

The balance sheet presents a stable yet leverage-heavy structure. The debt-to-equity ratio is approximately 2.1, indicating significant leverage which could pose risks if not managed properly. The return on equity (ROE) decreased to around 7.6% from 20.8% last year, reflecting reduced profitability for equity holders. The equity ratio stands at 20.7%, suggesting a moderate level of equity financing. While the company maintains substantial total assets, the decrease in stockholders' equity is a concern.

Cash Flow

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America Movil's cash flow statement highlights strong free cash flow growth, with a 37.6% increase from the previous year. The operating cash flow to net income ratio is robust at 8.5, indicating effective cash generation from operations. Furthermore, the free cash flow to net income ratio is 4.5, which suggests healthy cash management. Despite the strong cash flow, the company should be cautious with its capital expenditure to sustain this positive trend.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
869.22B	816.01B	844.50B	855.53B	1.02T
	Gross Profit
373.91B	499.54B	355.34B	514.48B	546.46B
	EBIT
180.10B	167.78B	170.87B	166.13B	165.35B
	EBITDA
344.23B	324.02B	345.22B	309.94B	330.89B
	Net Income Common Stockholders
28.31B	76.11B	82.88B	192.42B	46.85B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.00B	100.35B	124.73B	156.38B	90.55B
	Total Assets
1.81T	1.56T	1.62T	1.69T	1.57T
	Total Debt
781.59B	625.85B	134.15B	662.60B	737.71B
	Net Debt
744.93B	599.25B	100.45B	623.92B	701.79B
	Total Liabilities
1.37T	1.14T	1.18T	1.23T	1.27T
	Stockholders Equity
373.60B	366.71B	373.80B	457.64B	237.89B
Cash Flow		Free Cash Flow
126.26B	91.75B	70.16B	100.11B	151.27B
	Operating Cash Flow
239.34B	248.09B	228.01B	258.18B	280.83B
	Investing Cash Flow
-129.24B	-164.99B	-108.34B	-76.52B	-135.56B
	Financing Cash Flow
-103.12B	-84.95B	-120.09B	-177.37B	-126.91B

America Movil Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.86

Price Trends

50DMA

15.13

Positive

100DMA

14.74

Positive

200DMA

15.37

Positive

Market Momentum

MACD

0.65

Positive

RSI

62.91

Neutral

STOCH

66.45

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMX, the sentiment is Positive. The current price of 16.86 is above the 20-day moving average (MA) of 16.37, above the 50-day MA of 15.13, and above the 200-day MA of 15.37, indicating a bullish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMX.

America Movil Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHT	79 Outperform	$33.40B	29.56	9.58%	2.64%	-0.19%	-0.86%
VIV	77 Outperform	$16.04B	15.34	7.95%	3.93%	-0.47%	1.69%
TLK	76 Outperform	$16.04B	10.95	16.28%	5.33%	-5.14%	-7.47%
VOD	71 Outperform	$24.24B	9.36	4.31%	7.40%	-24.84%	-74.77%
AMX	71 Outperform	$52.64B	31.40	8.54%	2.94%	0.19%	-50.17%
TEF	64 Neutral	$29.10B	―	<0.01%	4.63%	1.18%	―
Sector *	60 Neutral	$13.41B	7.23	-2.74%	3.81%	2.12%	-37.24%

* Communication Services Sector Average

Performance Comparison

AMX

America Movil

16.86

-2.71

-13.85%

CHT

Chunghwa Telecom Co

42.02

4.34

11.52%

TLK

PT Telekomunikasi Indonesia Tbk

15.56

-2.89

-15.66%

VIV

Telefonica Brasil

9.80

1.46

17.51%

TEF

Telefonica

4.97

0.78

18.62%

VOD

Vodafone

9.25

1.28

16.06%

America Movil Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: -1.86%|

Next Earnings Date:Jul 15, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of strong revenue growth, especially in postpaid and fixed line segments, alongside challenges such as economic slowdown in Mexico and prepaid subscriber losses. Despite the positive financial performance, the significant challenges in the Mexican market and regulatory uncertainties indicate a need for cautious optimism.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

First quarter revenue was up 14.1% year-on-year in Mexican peso terms to MXN232 billion, with service revenue expanding 15.8% and adjusted EBITDA, 13.3%.

Increase in Postpaid Subscribers

Added 2.4 million postpaid subscribers, with Brazil leading with 987,000 new clients, followed by Colombia with 163,000 and Mexico with 133,000.

Growth in Fixed Line Segment

Connected 446,000 new broadband accesses, with Mexico contributing 165,000 clients. Mobile postpaid and fixed broadband increased by 6.1% and 4.3%, respectively.

Net Income Growth

Net income was up 38% to MXN18.7 billion, equivalent to MXN0.31 per share, $30 per ADA.

Successful Currency Performance

Most currencies appreciated versus the Mexican peso, enhancing international revenue value.

Negative Updates

Decline in Mexican Economy

The Mexican economy slowed down with the index of economic activity reaching 0% in February, and private consumption declined by 1% year-on-year.

Prepaid Subscriber Losses

Posted 1 million net prepaid losses, with significant disconnections in Mexico (831,000) and Brazil (545,000).

Challenges in Mexican Prepaid Market

Prepaid ARPU declined due to economic slowdown and aggressive competition from MVNOs with low-cost promotions.

Impact of Economic Slowdown

The slowdown in economic activity affected overall consumer demand in Mexico, impacting revenue growth.

Regulatory Uncertainty

Ongoing discussions on new telecommunications law and spectrum distribution in Mexico present potential challenges.

Company Guidance

During the América Móvil First Quarter 2025 Conference Call, the company provided several key financial and operational metrics. The first quarter revenue rose by 14.1% year-on-year in Mexican peso terms to MXN232 billion, with service revenue expanding by 15.8% and adjusted EBITDA increasing by 13.3%. The company added 2.4 million postpaid subscribers, with Brazil contributing 987,000 clients. However, there was a net loss of 1 million prepaid subscribers, mainly due to disconnections in Mexico and Brazil. Fixed broadband saw growth with 446,000 new connections, primarily in Mexico. The operating profit for the quarter totaled MXN44.8 billion, a 10% increase after depreciation and amortization, while net income rose by 38% to MXN18.7 billion. América Móvil's net debt stood at MXN500 billion, equivalent to 1.5x the last 12 months' EBITDA, and the company announced a reduced CapEx budget of MXN6.7 billion for the year due to economic slowdown and previous investments.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.