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America Movil S.A.B. De C.V. (AMX)
NYSE:AMX
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America Movil
(NYSE:AMX)
67Neutral
America Movil (AMX) vs. S&P 500 (SPY)
Market Cap
$45.00B
Dividend Yield3.37%
Average Volume (3M)1.69M
Price to Earnings (P/E)29.0
Beta (1Y)0.47
Revenue Growth3.15%
EPS Growth-63.12%
CountryUS
Employees178,466
SectorCommunication Services
Sector Strength74
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.49
Shares Outstanding3,109,250,000
10 Day Avg. Volume2,009,168
30 Day Avg. Volume1,694,628
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.44
Price to Cash Flow (P/CF)N/A
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
$16.53Price Target Upside10.13% Upside
Rating ConsensusHold
Number of Analyst Covering3
America Movil Business Overview & Revenue Model
Company DescriptionAmerica Movil (AMX) is a leading telecommunications company based in Mexico City, Mexico. It operates in the telecommunications sector, providing a wide range of services including mobile and fixed voice, wireless data, broadband internet, pay television, and IT services. The company serves millions of customers across Latin America, the United States, and Central and Eastern Europe, making it one of the largest wireless service providers globally.
How the Company Makes MoneyAmerica Movil generates revenue through several key streams. The primary source of income is its mobile services, which include voice and data plans offered to both prepaid and postpaid customers. Fixed-line services, including broadband internet and pay TV, contribute significantly to the company's earnings. Additionally, America Movil benefits from its business solutions segment, which provides IT and enterprise solutions. The company also has strategic partnerships and roaming agreements that enhance its service offerings and revenue potential. These diverse revenue streams, combined with its extensive regional presence and large customer base, underpin America Movil's financial performance.
America Movil Financial Statement Overview
Summary
America Movil exhibits strong operational margins and cash flow generation. However, challenges such as the decrease in net profit margin and return on equity, coupled with high leverage, need addressing. The company demonstrates moderate revenue growth and efficient cash flow management but must enhance profitability and manage debt levels to maintain financial stability.Income Statement
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.72
Positive
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.66
Positive
Cash Flow
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.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Positive
15.01
Price Trends
14.44
Positive
14.52
Positive
15.49
Negative
Market Momentum
-0.02
Negative
54.25
Neutral
67.91
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 15.01 is above the 20-day moving average (MA) of 14.40, above the 50-day MA of 14.44, and below the 200-day MA of 15.49, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 67.91 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $305.86B | 27.72 | 17.93% | 1.14% | 3.62% | 38.24% | |
77 Outperform | $135.06B | 8.62 | 19.24% | 3.47% | 1.78% | 11.62% | |
76 Outperform | $205.30B | 19.17 | 10.54% | 3.88% | -0.08% | -24.48% | |
74 Outperform | $58.77B | 10.78 | 38.11% | ― | 0.88% | 16.44% | |
73 Outperform | $192.05B | 11.00 | 18.27% | 5.88% | 0.61% | 50.39% | |
67 Neutral | $45.00B | 28.97 | 7.78% | 3.37% | 3.15% | -63.12% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% |
* Communication Services Sector Average
Performance Comparison
AMX
America Movil
15.01
-3.07
-16.98%
T
AT&T
28.60
12.14
73.75%
CHTR
Charter Communications
368.40
100.91
37.72%
CMCSA
Comcast
35.72
-3.85
-9.73%
VZ
Verizon
45.62
6.16
15.61%
TMUS
T Mobile US
267.89
109.02
68.62%
America Movil Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 1.97% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong revenue growth and strategic expansions, especially in Chile and Brazil. However, significant challenges were noted, including a considerable decline in net income, currency depreciation impacts, and economic slowdown affecting prepaid recharges. The positive aspects of growth in postpaid and corporate networks are tempered by these challenges.Highlights
Fourth Quarter Revenue Growth
América Móvil's revenue increased by 18% in Mexican peso terms to MXN237 billion, with service revenue up by 19.1% and EBITDA rising 16.4% to MXN91 billion.
Postpaid and Broadband Growth
Postpaid subscriber base grew by 5.3% year-on-year, while fixed broadband accesses increased by 4.7%. Broadband revenue growth accelerated to 9.8% from 7.4% in the prior quarter.
Expansion in Chile
The consolidation of the Chilean operation contributed MXN3.3 billion to the consolidated revenue over the last two months of the year.
Corporate Networks Revenue Increase
Corporate networks revenue grew 12.3% from 10.1%, showing a significant acceleration.
Positive Outlook for Brazil
América Móvil holds a 38% to 40% market share in 5G in Brazil and expects continued growth and strong performance in the market.
Lowlights
Net Income Decline
Net income decreased by 47.5% year-on-year to MXN9.5 billion due to higher comprehensive financing costs, including foreign exchange losses.
Prepaid Subscriber Net Loss
The company registered 1.3 million net disconnections in the prepaid platform, with Brazil experiencing a significant cleanup, resulting in minus 1.8 million subscribers.
Negative Impact of Currency Depreciation
Currencies in the region depreciated against the dollar, notably the Brazilian real by 13.7% and the Chilean peso by 11%.
Reduced Equipment Sales Revenue
Revenue from equipment sales decreased, attributed partly to the economic slowdown and fluctuations in the exchange rate.
Challenges in Mexico's Economy
The slowdown in Mexico's economy has impacted prepaid subscriber recharges, reflecting broader economic challenges.
Company Guidance
In the América Móvil Fourth Quarter 2024 Conference Call, the company reported a significant increase in 10-year treasury yields by approximately 80 basis points, ending the year at just under 4.6%. Despite challenges such as currency depreciation in their operational regions—with the Brazilian real decreasing by 13.7%—the company added 2.1 million postpaid subscribers across key markets. Revenue for the quarter rose by 18% in Mexican peso terms to MXN237 billion, with service revenue climbing 19.1% and EBITDA increasing by 16.4% to MXN91 billion. Excluding Argentina, revenue growth was 10% with service revenue and EBITDA growing by 10.7% and 8.6%, respectively. América Móvil's operating profit increased by 11% year-on-year to MXN46.4 billion, while net income saw a decline of 47.5% due to higher comprehensive financing costs. The company ended the year with a net debt of MXN488 billion, maintaining a leverage ratio of 1.44 times the last 12 months' EBITDA.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.