America Movil SAB de CV ADR - Series B AMX

Morningstar Rating
$16.56 +0.37 (2.29%)
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Company Report

America Movil Dominated Mexico but Needs to Accept Its Position in Brazil

America Movil’s dominant position in the Mexican wireless market provides a stable source of cash flow, while its Brazilian business offers upside potential. 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 scale and strong balance sheet will allow it to create value for shareholders.

Price vs Fair Value

AMX is trading at a 212% premium.
Price
$16.19
Fair Value
$32.00
Uncertainty
Medium
1-Star Price
$65.50
5-Star Price
$95.60
Economic Moat
Ysdbs
Capital Allocation
Prhftfmmk

Bulls Say, Bears Say

Bulls

America Movil has unmatched scale in the Latin American telecom market. It serves far more wireless customers in the region than nearest rival Telefonica 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 America Movil, that they believe have stifled competition or inhibited investment. There is no telling how far regulators will ultimately go to curb Movil's market position in several countries.

News

Trading Information

Previous Close Price
$16.19
Day Range
$16.2216.67
52-Week Range
$15.5520.31
Bid/Ask
$15.00 / $18.00
Market Cap
$50.87 Bil
Volume/Avg
2.7 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
30.39
Price/Sales
1.07
Dividend Yield (Trailing)
3.27%
Dividend Yield (Forward)
3.27%
Total Yield
4.90%

Company Profile

America Movil is the largest telecom carrier in Latin America, serving about 290 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. Movil dominates the Mexican wireless market with more than 60% 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 service revenue. Movil 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 60% stake in Telekom Austria.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Core
Total Number of Employees
176,083

Competitors

Valuation

Metric
AMX
TV
T
Price/Earnings (Normalized)
30.390.269.59
Price/Book Value
2.190.221.50
Price/Sales
1.070.381.30
Price/Cash Flow
3.742.043.89
Price/Earnings
AMX
TV
T

Financial Strength

Metric
AMX
TV
T
Quick Ratio
0.622.130.30
Current Ratio
0.712.310.70
Interest Coverage
1.82−0.083.62
Quick Ratio
AMX
TV
T

Profitability

Metric
AMX
TV
T
Return on Assets (Normalized)
2.46%−1.18%4.00%
Return on Equity (Normalized)
10.34%−2.63%15.59%
Return on Invested Capital (Normalized)
7.76%−0.26%7.87%
Return on Assets
AMX
TV
T

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