America Movil (AMX) AI Stock Analysis

• Market Cap: $52.15B
• Dividend Yield: 4.37%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.39
• Revenue Growth: -0.64%
• EPS Growth: 56.92%
• Country: US
• Employees: 177,620
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 0.02
• Shares Outstanding: 3,109,250,000
• 10 Day Avg. Volume: 1,377,812
• 30 Day Avg. Volume: 1,940,975
• PEG Ratio: 2.10
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.45
• 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: $17.20
• Price Target Upside: -4.02% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• 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. (AMX) is a leading telecommunications company based in Mexico City, Mexico. It operates in the telecommunications sector, providing a wide range of services including wireless, fixed-line, broadband, and pay television. With a significant presence across Latin America and parts of Europe, América Móvil offers its services under several brand names such as Telcel, Claro, and TracFone, among others. The company is renowned for its extensive network infrastructure and comprehensive service offerings, which cater to both individual and business customers.

How the Company Makes Money

América Móvil generates revenue through a diverse range of telecommunications services. Its primary revenue streams include wireless voice and data services, which constitute a significant portion of its earnings. The company also derives income from fixed-line services, broadband internet access, and pay television subscriptions. Additionally, América Móvil benefits from strategic partnerships and roaming agreements that enhance its service offerings and customer reach. The company's earnings are further supported by its investment in network expansion and technology upgrades, which help maintain its competitive edge in the fast-evolving telecommunications market.

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: 17.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.92 is above the 20-day moving average (MA) of 17.44, above the 50-day MA of 17.14, and above the 200-day MA of 15.38, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 39.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	79 Outperform	$17.35B	11.83	16.28%	5.71%	-5.14%	-7.47%
VIV	77 Outperform	$17.70B	17.33	7.95%	0.40%	-5.69%	-0.05%
CHT	76 Outperform	$34.48B	28.90	9.59%	6.23%	3.12%	3.06%
AMX	71 Outperform	$52.15B	31.11	14.41%	4.37%	-0.64%	56.92%
VOD	62 Neutral	$27.57B	9.21	-7.17%	0.44%	0.89%	-494.16%
TEF	59 Neutral	$30.27B	―	-0.55%	1.02%	-2.29%	-182.68%
Sector *	59 Neutral	C$3.45B	8.33	-17.94%	5.34%	-2.61%	-25.43%