America Movil Should Generate Solid Cash Flows as Network Investment Falls

America Movil’s dominant position in the Mexican wireless market provides a stable source of cash flow, while its Brazilian business offers upside potential amid a more rational competitive environment. In addition, the firm should benefit from rising demand for internet access and other data services across Latin America. That exposure comes with significant political, regulatory, and economic uncertainty, but we expect Movil’s strong competitive position in most of the markets it serves and its strong balance sheet will create value for shareholders.