America Movil (AMX) AI Stock Analysis

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America Movil

(NYSE:AMX)

67Neutral

America Movil's overall stock score reflects a mixed financial performance with strong cash flow but declining profitability and high leverage. The technical indicators suggest bearish trends, while valuation appears high, though partially offset by a decent dividend yield. The earnings call provided some positive insights on revenue growth and expansion, but highlighted significant challenges, including declining net income and currency depreciation impacts.

America Movil (AMX) vs. S&P 500 (SPY)

Market Cap

$43.02B

Dividend Yield3.59%

Average Volume (3M)1.79M

Price to Earnings (P/E)28.1

Beta (1Y)0.41

Revenue Growth3.15%

EPS Growth-63.12%

CountryUS

Employees178,466

SectorCommunication Services

Sector Strength73

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.49

Shares Outstanding3,109,250,000

10 Day Avg. Volume2,070,049

30 Day Avg. Volume1,787,482

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.44

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.15

Price Target Upside27.79% Upside

Rating ConsensusHold

Number of Analyst Covering4

America Movil Business Overview & Revenue Model

Company DescriptionAmérica Móvil (AMX) is a leading telecommunications company headquartered in Mexico City, Mexico. It operates primarily in the telecommunications sector, offering a wide array of services including wireless, fixed-line, broadband, and digital television services across Latin America and other regions. América Móvil is recognized for its extensive network coverage and customer base, making it one of the largest telecom operators worldwide.

How the Company Makes MoneyAmérica Móvil generates revenue through various streams primarily centered around its telecommunications services. The company earns money by providing wireless voice and data services to individual and business customers, which includes prepaid and postpaid mobile plans. Fixed-line services, including local and long-distance telephony, as well as broadband internet services, contribute significantly to its revenue. Additionally, América Móvil offers pay television services through cable and satellite. The company also benefits from strategic partnerships and agreements, such as network sharing and roaming agreements, which enhance its service offerings. Other revenue sources include the sale of telecommunications equipment and value-added services such as cloud computing and content streaming. América Móvil's expansive geographic presence and diversified service portfolio are key factors driving its earnings.

America Movil Financial Statement Overview

Summary

America Movil exhibits strong operational margins and cash flow generation. However, challenges such as the decrease in net profit margin and return on equity, coupled with high leverage, need addressing. The company demonstrates moderate revenue growth and efficient cash flow management but must enhance profitability and manage debt levels to maintain financial stability.

Income Statement

Positive

America Movil shows a mixed performance in its income statement. The gross profit margin for 2024 is approximately 43%, indicating strong efficiency in managing production costs. However, the net profit margin saw a significant decrease to around 3.3% from the previous year's 9.3%, largely due to a drop in net income. The revenue growth rate over the past year is about 6.5%, indicating moderate growth but not enough to sustain profit margins. EBIT and EBITDA margins are healthy at around 20.7% and 39.6%, respectively, reflecting solid operational performance.

Balance Sheet

Positive

The balance sheet presents a stable yet leverage-heavy structure. The debt-to-equity ratio is approximately 2.1, indicating significant leverage which could pose risks if not managed properly. The return on equity (ROE) decreased to around 7.6% from 20.8% last year, reflecting reduced profitability for equity holders. The equity ratio stands at 20.7%, suggesting a moderate level of equity financing. While the company maintains substantial total assets, the decrease in stockholders' equity is a concern.

Cash Flow

Positive

America Movil's cash flow statement highlights strong free cash flow growth, with a 37.6% increase from the previous year. The operating cash flow to net income ratio is robust at 8.5, indicating effective cash generation from operations. Furthermore, the free cash flow to net income ratio is 4.5, which suggests healthy cash management. Despite the strong cash flow, the company should be cautious with its capital expenditure to sustain this positive trend.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
869.22B	816.01B	844.50B	855.53B	1.02T
	Gross Profit
373.91B	499.54B	355.34B	514.48B	546.46B
	EBIT
180.10B	167.78B	170.87B	166.13B	165.35B
	EBITDA
344.23B	324.02B	345.22B	309.94B	330.89B
	Net Income Common Stockholders
28.31B	76.11B	82.88B	192.42B	46.85B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.00B	100.35B	124.73B	156.38B	90.55B
	Total Assets
1.81T	1.56T	1.62T	1.69T	1.57T
	Total Debt
781.59B	625.85B	134.15B	662.60B	737.71B
	Net Debt
744.93B	599.25B	100.45B	623.92B	701.79B
	Total Liabilities
1.37T	1.14T	1.18T	1.23T	1.27T
	Stockholders Equity
373.60B	366.71B	373.80B	457.64B	237.89B
Cash Flow		Free Cash Flow
126.26B	91.75B	70.16B	100.11B	151.27B
	Operating Cash Flow
239.34B	248.09B	228.01B	258.18B	280.83B
	Investing Cash Flow
-129.24B	-164.99B	-108.34B	-76.52B	-135.56B
	Financing Cash Flow
-103.12B	-84.95B	-120.09B	-177.37B	-126.91B

America Movil Technical Analysis

Technical Analysis Sentiment

Negative

Last Price13.42

Price Trends

50DMA

14.42

Negative

100DMA

14.48

Negative

200DMA

15.46

Negative

Market Momentum

MACD

-0.02

Negative

RSI

54.25

Neutral

STOCH

67.91

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMX, the sentiment is Negative. The current price of 13.42 is below the 20-day moving average (MA) of 14.27, below the 50-day MA of 14.42, and below the 200-day MA of 15.46, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 67.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMX.

America Movil Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHT	79 Outperform	$30.37B	25.97	9.58%	2.92%	0.03%	-2.27%
VIV	77 Outperform	$13.97B	14.00	7.95%	2.78%	-0.47%	1.69%
TLK	73 Outperform	$14.17B	9.52	16.61%	6.10%	-2.99%	-7.36%
VOD	71 Outperform	$21.30B	8.29	4.31%	8.33%	-24.84%	-74.77%
AMX	67 Neutral	$43.02B	28.07	7.78%	3.59%	3.15%	-63.12%
TEF	64 Neutral	$26.62B	―	<0.01%	5.13%	1.18%	―
Sector *	58 Neutral	$25.04B	3.23	-10.53%	4.39%	2.30%	-43.13%

* Communication Services Sector Average

Performance Comparison

AMX

America Movil

13.42

-4.96

-26.99%

CHT

Chunghwa Telecom Co

37.94

-0.14

-0.37%

TLK

PT Telekomunikasi Indonesia Tbk

13.24

-7.31

-35.57%

VIV

Telefonica Brasil

8.28

-1.31

-13.66%

TEF

Telefonica

4.37

0.29

7.11%

VOD

Vodafone

8.19

0.19

2.37%

America Movil Earnings Call Summary

Earnings Call Date: Feb 11, 2025 | % Change Since: -8.83% | Next Earnings Date: Apr 29, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with strong revenue growth and strategic expansions, especially in Chile and Brazil. However, significant challenges were noted, including a considerable decline in net income, currency depreciation impacts, and economic slowdown affecting prepaid recharges. The positive aspects of growth in postpaid and corporate networks are tempered by these challenges.

Highlights

Fourth Quarter Revenue Growth

América Móvil's revenue increased by 18% in Mexican peso terms to MXN237 billion, with service revenue up by 19.1% and EBITDA rising 16.4% to MXN91 billion.

Postpaid and Broadband Growth

Postpaid subscriber base grew by 5.3% year-on-year, while fixed broadband accesses increased by 4.7%. Broadband revenue growth accelerated to 9.8% from 7.4% in the prior quarter.

Expansion in Chile

The consolidation of the Chilean operation contributed MXN3.3 billion to the consolidated revenue over the last two months of the year.

Corporate Networks Revenue Increase

Corporate networks revenue grew 12.3% from 10.1%, showing a significant acceleration.

Positive Outlook for Brazil

América Móvil holds a 38% to 40% market share in 5G in Brazil and expects continued growth and strong performance in the market.

Lowlights

Net Income Decline

Net income decreased by 47.5% year-on-year to MXN9.5 billion due to higher comprehensive financing costs, including foreign exchange losses.

Prepaid Subscriber Net Loss

The company registered 1.3 million net disconnections in the prepaid platform, with Brazil experiencing a significant cleanup, resulting in minus 1.8 million subscribers.

Negative Impact of Currency Depreciation

Currencies in the region depreciated against the dollar, notably the Brazilian real by 13.7% and the Chilean peso by 11%.

Reduced Equipment Sales Revenue

Revenue from equipment sales decreased, attributed partly to the economic slowdown and fluctuations in the exchange rate.

Challenges in Mexico's Economy

The slowdown in Mexico's economy has impacted prepaid subscriber recharges, reflecting broader economic challenges.

Company Guidance

In the América Móvil Fourth Quarter 2024 Conference Call, the company reported a significant increase in 10-year treasury yields by approximately 80 basis points, ending the year at just under 4.6%. Despite challenges such as currency depreciation in their operational regions—with the Brazilian real decreasing by 13.7%—the company added 2.1 million postpaid subscribers across key markets. Revenue for the quarter rose by 18% in Mexican peso terms to MXN237 billion, with service revenue climbing 19.1% and EBITDA increasing by 16.4% to MXN91 billion. Excluding Argentina, revenue growth was 10% with service revenue and EBITDA growing by 10.7% and 8.6%, respectively. América Móvil's operating profit increased by 11% year-on-year to MXN46.4 billion, while net income saw a decline of 47.5% due to higher comprehensive financing costs. The company ended the year with a net debt of MXN488 billion, maintaining a leverage ratio of 1.44 times the last 12 months' EBITDA.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.