America Movil Has Financial Flexibility To Drive Investment or Shareholder Returns

América Móvil holds a commanding position in several countries throughout Latin America. Political, regulatory, and economic uncertainty, coupled with occasional competitive flare-ups, limit its ability to exercise pricing power, but we expect Móvil’s scale and strong balance sheet will allow it to deliver steady results. The firm is now looking for new acquisition targets. We don't believe a transformative deal is likely, but we are wary that the firm will use its strong balance sheet to undertake a series of sizable transactions that could dilute its competitive position.