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America Movil SAB de CV ADR AMOV

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Morningstar’s Analysis

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1-Star Price

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5-Star Price

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Economic Moat

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Capital Allocation

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America Movil’s Growth Sputtered During the First Quarter but Margins Moved Nicely Higher

Analyst Note

| Michael Hodel, CFA |

We found America Movil’s first-quarter results modestly disappointing in a couple of areas, notably revenue growth in Mexico. But profitability was impressive across most markets. The firm still expects the Tracfone sale to Verizon to close in the third quarter and the Oi carve up to win regulatory approval this year. The wireless tower spin-off is still in the early planning stages. We are maintaining our $18 fair value estimate.

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Company Profile

Business Description

America Movil is the largest telecom carrier in Latin America, serving about 270 million wireless customers across the region. It also provides fixed-line phone, Internet access, and television services in most of the countries it serves. Mexico is the firm’s largest market, providing about 30% of revenue. Movil dominates the Mexican wireless market with about 63% customer share and also serves about half of fixed-line Internet access customers in the country. Brazil, its second most important market, provides about 20% of revenue. Movil has agreed to sell its low-margin wireless resale business in the U.S., which operates under the Tracfone and Straight Talk brands, to Verizon. The firm holds a 51% stake in Telekom Austria and a 20% stake in Dutch carrier KPN.

Contact
Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliacion Granada
Mexico, DF, 11529, Mexico
T +52 5525813700
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 186,851