America Movil SAB de CV ADR - Series B AMX

Morningstar Rating
$26.45 −0.33 (1.23%)
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Company Report

América Móvil Is Performing Well, but It Has Limited Shareholder Returns to Pursue Acquisitions

América Móvil holds a commanding position in several countries throughout Latin America. Significant 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.

Price vs Fair Value

AMX is trading at a 638% premium.
Price
$26.45
Fair Value
$14.69
Uncertainty
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1-Star Price
$35.13
5-Star Price
$27.95
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

América Móvil has unmatched scale in the Latin American telecom market. It serves far more wireless customers in the region than any other firm and holds the leading share in Mexico, Colombia, and Argentina, and the second-largest share in Brazil.

Bears

Regulators often take aim at dominant carriers, like América Móvil, that they believe have stifled competition or inhibited investment. There is no telling how far regulators will ultimately go to curb Móvil's market position, especially in Mexico.

News

Trading Information

Previous Close Price
$26.78
Day Range
$26.3027.02
52-Week Range
$16.8828.46
Bid/Ask
$21.00 / $28.12
Shares Outstanding
3.00B
Market Cap
$79.44B
Volume/Avg
7 / 1M

Key Statistics

Price/Earnings (Normalized)
21.10
Price/Sales
1.64
Dividend Yield (Trailing)
2.02%
Dividend Yield (Forward)
2.04%
Total Yield
2.76%

Company Profile

América Móvil is the largest telecom carrier in Latin America, serving about 335 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 35% of service revenue. Móvil dominates the Mexican wireless market with about 60% customer share and also serves about half of the country's fixed-line internet access customers. Brazil, its second-most important market, accounts for about 20% of service revenue. Móvil sold its low-margin wireless resale business in the US to Verizon in 2021 and now owns a 1.4% stake in the US telecom giant. The firm also holds a 61% stake in Telekom Austria.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Core
Total Number of Employees
177,711

Competitors

Valuation

Metric
AMX
TELFY
T
Price/Earnings (Normalized)
21.1011.9811.18
Price/Book Value
3.471.511.50
Price/Sales
1.640.641.35
Price/Cash Flow
5.682.284.23
Price/Earnings
AMX
TELFY
T

Financial Strength

Metric
AMX
TELFY
T
Quick Ratio
0.620.620.50
Current Ratio
0.720.890.91
Interest Coverage
2.940.064.97
Quick Ratio
AMX
TELFY
T

Profitability

Metric
AMX
TELFY
T
Return on Assets (Normalized)
5.10%−1.16%
Return on Equity (Normalized)
22.40%−6.29%
Return on Invested Capital (Normalized)
11.27%0.11%
Return on Assets
AMX
TELFY
T

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