America Movil (AMX) AI Stock Analysis

• Market Cap: $55.73B
• Dividend Yield: 2.71%
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.37
• Revenue Growth: 0.19%
• EPS Growth: -49.68%
• Country: US
• Employees: 177,620
• Sector: Communication Services
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): 0.33
• Shares Outstanding: 3,109,250,000
• 10 Day Avg. Volume: 2,354,409
• 30 Day Avg. Volume: 2,622,363
• PEG Ratio: -4.61
• Price to Book (P/B): 60.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 322.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.30
• Price Target Upside: -4.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: ―

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 Business Overview & Revenue Model

Company Description

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including local, domestic, and international long-distance services; and network interconnection services. It also provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging, and other wireless entertainment and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions for small businesses and large corporations; and cable and satellite pay television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. As of December 31, 2021, the company had approximately 286.5 million wireless voice and data subscribers. América Móvil, S.A.B. de C.V. was incorporated in 2000 and is based in Mexico City, Mexico.

How the Company Makes Money

América 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

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

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.

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
EBITDA	344.23B	324.02B	345.22B	309.94B	330.89B
Net Income	28.31B	76.11B	82.88B	192.42B	46.85B
Balance Sheet
Total Assets	1.81T	1.56T	1.62T	1.69T	1.57T
Cash, Cash Equivalents and Short-Term Investments	94.00B	100.35B	124.73B	156.38B	90.55B
Total Debt	781.59B	625.85B	134.15B	662.60B	737.71B
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 Price: 18.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 18.08 is above the 20-day moving average (MA) of 17.29, above the 50-day MA of 17.23, and above the 200-day MA of 15.52, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 69.05 is Neutral, neither overbought nor oversold. The STOCH value of 93.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMX.

America Movil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	79 Outperform	$16.98B	11.52	16.28%	5.89%	-5.14%	-7.47%
VIV	78 Outperform	$18.72B	18.36	7.95%	1.98%	-5.69%	-0.05%
CHT	76 Outperform	$36.23B	31.23	9.59%	2.77%	-0.19%	-0.79%
AMX	71 Outperform	$55.73B	33.09	8.54%	2.71%	0.19%	-49.68%
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
TEF	59 Neutral	$30.24B	―	-0.55%	4.50%	-2.29%	-182.68%
VOD	57 Neutral	$26.30B	9.21	-7.17%	4.74%	0.89%	-494.16%