iQSTEL (IQST) AI Stock Analysis

• Market Cap: $29.25M
• Dividend Yield: N/A
• Average Volume (3M): 166.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 68.99%
• EPS Growth: -177.32%
• Country: US
• Employees: 100
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 2,898,896
• 10 Day Avg. Volume: 192,274
• 30 Day Avg. Volume: 166,266
• PEG Ratio: -31.23
• Price to Book (P/B): 197.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.21
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: -5.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $12.00 ▲(22.45%Upside)

iQSTEL's overall stock score reflects robust growth initiatives and strategic expansion efforts, particularly in fintech, as major strengths. However, significant risks stem from ongoing profitability and cash flow challenges, alongside valuation concerns due to a negative P/E ratio. Technical indicators provide some support, suggesting potential short-term strength.

iQSTEL Business Overview & Revenue Model

Company Description

iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, provides telecom and technology solutions. It provides international long-distance voice services (ILD wholesale) for telecommunications operator; and submarine fiber optic network capacity for internet, such as 4G and 5G. The company offers voice over IP connectivity, short messages service (SMS), and international and domestic SMS termination services. It also provides infrastructure connectivity, Cloud-PBX, OmniChannel marketing, Internet of Things services, and blockchain and payment solutions. iQSTEL Inc. serves wholesale carrier, government, corporate, enterprise, and small and medium companies in North America, Latin America, and Europe. The company was formerly known as PureSnax International, Inc. and changed its name to iQSTEL Inc. in August 2018. iQSTEL Inc. was incorporated in 2011 and is based in Coral Gables, Florida.

How the Company Makes Money

iQSTEL Inc. generates revenue through multiple channels across its diversified business segments. In the telecommunications sector, the company earns money by providing voice and SMS services to telecom operators and enterprises. This involves selling minutes and messaging services, primarily through wholesale agreements. The fintech segment contributes to revenue with mobile payment solutions and banking services, catering to both consumers and businesses. Additionally, the company's expansion into electric vehicles and IoT offers potential revenue streams from selling related products and services. Partnerships with other technology firms and strategic acquisitions further bolster iQSTEL's earnings by expanding its market reach and technological capabilities.

iQSTEL Financial Statement Overview

Summary

iQSTEL has demonstrated strong revenue growth, crucial for a telecommunications company, but faces significant profitability and cash flow challenges. With negative profit margins and cash flows, the company must enhance operational efficiency to achieve sustainable profitability. The balance sheet is relatively balanced, yet financial health hinges on improving profitability and cash flow metrics.

Income Statement

iQSTEL's revenue has shown a significant upward trajectory, growing from $44.9M in 2020 to $289.4M TTM, reflecting robust top-line growth. However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins over multiple periods. Gross profit margins have been modest but stable, around 3% TTM. The persistent net losses suggest challenges in controlling operating costs and achieving profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio with debts marginally higher than equity, indicating a balanced capital structure. The equity ratio is stable, with stockholders' equity constituting a significant portion of total assets. Return on equity remains negative due to net losses, signaling inefficiencies in generating returns for shareholders.

Cash Flow

Cash flows are under pressure, with consistent negative operating and free cash flows, indicating reliance on external financing. The operating cash flow to net income ratio suggests operational challenges. The company has managed to secure financing, but the sustainability of such reliance is uncertain without improvements in cash flow generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
289.39M	283.22M	144.50M	93.20M	64.70M	44.91M
	Gross Profit
8.78M	8.27M	4.67M	1.79M	1.53M	962.35K
	EBIT
-1.30M	-834.06K	-315.50K	-2.91M	-2.87M	-3.07M
	EBITDA
-2.55M	-2.13M	―	-5.68M	-3.10M	-3.12M
	Net Income Common Stockholders
-5.17M	-5.99M	-763.26K	-8.62M	-4.52M	-6.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
270.50K	2.51M	1.36M	1.33M	3.33M	753.32K
	Total Assets
5.60M	79.01M	22.16M	12.55M	9.06M	5.95M
	Total Debt
3.42M	8.05M	980.18K	438.44K	674.05K	3.91M
	Net Debt
3.15M	5.54M	-382.49K	-890.95K	-2.66M	3.16M
	Total Liabilities
11.37M	67.11M	14.11M	6.71M	2.64M	8.35M
	Stockholders Equity
-4.87M	7.22M	8.42M	6.76M	7.42M	-1.39M
Cash Flow		Free Cash Flow
-4.43M	-3.08M	-1.70M	-1.88M	-3.38M	-2.21M
	Operating Cash Flow
-4.30M	-2.93M	-1.48M	-1.77M	-3.15M	-2.12M
	Investing Cash Flow
-1.60M	-3.16M	-332.55K	-2.00M	-511.35K	-91.21K
	Financing Cash Flow
4.26M	7.24M	1.83M	1.77M	6.25M	2.66M

iQSTEL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQST, the sentiment is Negative. The current price of 9.8 is below the 20-day moving average (MA) of 10.93, below the 50-day MA of 10.58, and below the 200-day MA of 14.05, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 3.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQST.

iQSTEL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCL	74 Outperform	$68.79M	19.47	18.28%	―	7.65%	196.83%
CXDO	72 Outperform	$153.57M	65.39	4.73%	―	13.85%	38.33%
Sector *	61 Neutral	$14.57B	5.94	-3.83%	7.78%	2.79%	-33.24%
IQST	59 Neutral	$29.25M	―	-82.43%	―	68.99%	-177.32%
FNGR	54 Neutral	$120.34M	―	-39.70%	―	-16.91%	4.83%
KORE	45 Neutral	$41.87M	―	174.77%	―	-1.52%	22.36%
ANTE	25 Underperform	$21.05M	2.23	-93.09%	―	-45.64%	―

iQSTEL Corporate Events

iQSTEL Converts Notes to Stock, Reduces Debt

iQSTEL Inc. has converted a portion of its secured convertible promissory notes into common stock, following a reverse stock split on May 2, 2025. On June 4 and June 6, 2025, the company issued 286,640 shares of common stock at a conversion rate of $4.20 per share, reducing the principal and interest on the notes by $1,201,388.90. The remaining principal and interest of $2,879,151.00 are subject to further conversion, limited by a beneficial ownership cap of 9.99%. This move reflects iQSTEL’s strategic financial management and impacts its capital structure, potentially affecting shareholder value and market perception.

iQSTEL Converts Promissory Notes into Common Stock

On June 2, 2025, iQSTEL Inc. converted two secured convertible promissory notes into 179,993 shares of common stock at a rate of $4.20 per share following a 1-for-80 reverse stock split on May 2, 2025. This conversion was executed under an exemption from registration, potentially impacting the company’s stock structure and shareholder value.

iQSTEL Acquires 51% of Fintech Innovator Globetopper

On May 29, 2025, IQSTEL Inc. announced its agreement to acquire 51% of Globetopper, a fintech innovator with operations in America, Europe, and Africa, effective July 1, 2025. This acquisition is a strategic move to expand IQSTEL’s fintech footprint globally, aiming to accelerate their growth towards a $1 billion revenue target by 2027. The transaction, valued at up to $700,000, includes staged cash payments and performance-based earn-outs, with additional investments of up to $1.2 million over two years contingent on financial targets. This acquisition strengthens IQSTEL’s position in the fintech and telecommunications convergence, enhancing its market reach and shareholder value.

iQSTEL Releases Strategic Corporate Presentation Update

iQSTEL, Inc. has released a Corporate Presentation to update current and potential investors on its operations, major projects, strategic plans, and growth initiatives. The presentation outlines the company’s vision to become a $1 billion revenue multinational technology company by 2027, emphasizing its expansion into high-growth sectors and its robust financial performance, including a 96% year-over-year growth in FY24 with $283.2 million in revenue. This strategic positioning aims to enhance iQSTEL’s market presence and create new business opportunities, potentially impacting stakeholders positively.

iQSTEL Announces Reverse Stock Split for Nasdaq Uplisting

On May 1, 2025, iQSTEL Inc. announced a 1-for-80 reverse stock split of its common stock, effective May 2, 2025, as part of its strategy to uplist to the Nasdaq Capital Market. This move aims to increase the stock price to meet Nasdaq’s listing requirements, although approval is not guaranteed. The reverse split will not alter stockholders’ equity interests but will adjust the number of shares proportionally, impacting all stockholders uniformly.