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America Movil S.A.B. De C.V. (AMX)
NYSE:AMX
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America Movil (AMX) AI Stock Analysis

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AMX

America Movil

(NYSE:AMX)

Rating:71Outperform
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 (AMX) vs. SPDR S&P 500 ETF (SPY)

America Movil Business Overview & Revenue Model

Company DescriptionAmérica 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 MoneyAmérica 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 Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 4.43%|
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook, with strong postpaid and revenue growth and effective cost management. However, challenges remain with prepaid subscriber disconnections and litigation provisions in Colombia. The overall sentiment is balanced with significant achievements and some challenges.
Q2-2025 Updates
Positive Updates
Strong Postpaid Growth
Added 2.9 million postpaid clients, with Brazil contributing 1.4 million, Colombia 199,000, and Mexico 102,000.
Revenue Increase
Second quarter revenue totaled MXN 234 billion, a 13.8% year-on-year increase, with service revenue growth at 7.3% and equipment revenue at 12.5%.
EBITDA Growth
EBITDA came in at MXN 92.4 billion, up 11.2% in Mexican peso terms and 5.1% at constant exchange rates.
Net Profit Increase
Net profit of MXN 22.3 billion, with significant foreign exchange gains of MXN 11 billion.
CapEx Management
Net debt fell by MXN 7.3 billion over the quarter, with CapEx amounting to MXN 54.9 billion.
Broadband Growth in Mexico
Gained 462,000 broadband accesses, including 231,000 in Mexico.
Negative Updates
Prepaid Subscriber Disconnections
Recorded net disconnections of 1.1 million prepaid subscribers, with Brazil, Chile, and Central America disconnecting approximately 500,000 clients each.
Decline in Voice Lines and PayTV
Voice lines and PayTV units declined by 164,000 and 61,000, respectively, during the quarter.
Broadband Revenue Deceleration
Broadband revenue decelerated slightly to 8.2% from 9.8% sequentially.
Litigation Provision in Colombia
Provision booked for a litigation case in Colombia, affecting margins.
Company Guidance
During the second quarter of 2025, América Móvil demonstrated strong financial performance with a 13.8% year-over-year increase in revenue, totaling MXN 234 billion, and a robust EBITDA of MXN 92.4 billion, reflecting an 11.2% rise in Mexican peso terms. The company expanded its wireless subscriber base by 1.7 million, with significant contributions from Brazil, Colombia, and Mexico. Fixed broadband accesses rose by 4.5% year-over-year, adding 462,000 new connections. América Móvil also reported a net profit of MXN 22.3 billion, supported by MXN 11 billion in foreign exchange gains, and a reduction in net debt by MXN 7.3 billion over the six months ending in June. The company's postpaid service revenue surged by 9.5%, while prepaid revenue growth rebounded to 3.1%. América Móvil maintained a disciplined approach to capital expenditures, with CapEx amounting to MXN 54.9 billion, while also returning MXN 9.4 billion to shareholders, including MXN 8.7 billion in share buybacks. The net debt to EBITDA ratio stood at 1.56x, slightly up from the previous quarter due to currency fluctuations. Overall, the company experienced broad-based revenue expansion across its business lines and regions.

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
72
Positive
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
66
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue869.22B816.01B844.50B855.53B1.02T
Gross Profit373.91B499.54B355.34B514.48B546.46B
EBITDA344.23B324.02B345.22B309.94B330.89B
Net Income28.31B76.11B82.88B192.42B46.85B
Balance Sheet
Total Assets1.81T1.56T1.62T1.69T1.57T
Cash, Cash Equivalents and Short-Term Investments94.00B100.35B124.73B156.38B90.55B
Total Debt781.59B625.85B134.15B662.60B737.71B
Total Liabilities1.37T1.14T1.18T1.23T1.27T
Stockholders Equity373.60B366.71B373.80B457.64B237.89B
Cash Flow
Free Cash Flow126.26B91.75B70.16B100.11B151.27B
Operating Cash Flow239.34B248.09B228.01B258.18B280.83B
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 Price17.92
Price Trends
50DMA
17.14
Positive
100DMA
16.05
Positive
200DMA
15.38
Positive
Market Momentum
MACD
0.09
Positive
RSI
62.43
Neutral
STOCH
39.37
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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$17.35B11.8316.28%5.71%-5.14%-7.47%
77
Outperform
$17.70B17.337.95%0.40%-5.69%-0.05%
76
Outperform
$34.48B28.909.59%6.23%3.12%3.06%
71
Outperform
$52.15B31.1114.41%4.37%-0.64%56.92%
62
Neutral
$27.57B9.21-7.17%0.44%0.89%-494.16%
59
Neutral
$30.27B-0.55%1.02%-2.29%-182.68%
59
Neutral
C$3.45B8.33-17.94%5.34%-2.61%-25.43%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMX
America Movil
17.92
1.34
8.08%
CHT
Chunghwa Telecom Co
44.53
8.81
24.66%
TLK
PT Telekomunikasi Indonesia Tbk
17.57
-0.46
-2.55%
VIV
Telefonica Brasil
11.10
2.96
36.36%
TEF
Telefonica
5.35
1.06
24.71%
VOD
Vodafone
11.30
2.47
27.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 01, 2025