América Móvil, S.A.B. de C.V. (AMOV)

América Móvil, S.A.B. de C.V. (AMOV) Media & Communications Profile

América Móvil, a dominant force in Latin American telecommunications, delivers wireless and fixed-line services, including voice, data, and pay TV. With a substantial subscriber base and recognizable brands like Telcel and Telmex Infinitum, the company navigates a competitive landscape while expanding its service offerings and technological infrastructure across the region.

What Is the Investment Thesis for AMOV?

América Móvil presents a compelling investment case driven by its dominant market position in Latin America's telecommunications sector. With a P/E ratio of 15.2 and a profit margin of 7.8%, the company demonstrates financial stability. Growth catalysts include the expansion of 5G networks and increasing demand for data services. The company's dividend yield of 2.48% offers an additional incentive for investors. Key risks include regulatory changes and competition from other telecommunications providers. The company's beta of 0.28 indicates lower volatility compared to the broader market. Continued investment in infrastructure and strategic acquisitions could further solidify its market leadership.

Based on FMP financials and quantitative analysis

AMOV Key Highlights

• Market capitalization of $65.61B, reflecting its significant presence in the Latin American telecommunications market.
• Profit margin of 7.8%, indicating efficient operations and profitability in a competitive industry.
• Gross margin of 57.3%, demonstrating strong pricing power and cost management.
• Dividend yield of 2.48%, providing a steady income stream for investors.
• Approximately 286.5 million wireless voice and data subscribers as of December 31, 2021, highlighting its extensive customer base.

Who Are AMOV's Competitors?

AMOV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are AMOV's Key Strengths?

• Leading market share in Latin America.
• Extensive infrastructure and network coverage.
• Strong brand recognition.
• Diversified service offerings.

What Are AMOV's Weaknesses?

• Exposure to currency fluctuations.
• Dependence on regulatory environment.
• Competition from other telecommunications providers.
• High capital expenditure requirements.

What Could Drive AMOV Stock Higher?

• Expansion of 5G networks across Latin America, expected to drive increased data consumption and revenue growth.
• Increasing demand for broadband services in underserved areas, providing opportunities for market expansion.
• Development and deployment of IoT solutions for businesses and consumers, creating new revenue streams.
• Strategic acquisitions to expand market presence and service offerings.

What Are the Key Risks for AMOV?

• Financial-distress signal — its Altman Z-Score of 1.13 sits in the distress zone (elevated bankruptcy risk).
• Regulatory changes impacting telecommunications industry in Latin America.
• Economic downturns in key markets affecting consumer spending and business investment.
• Competition from other telecommunications providers.
• Currency fluctuations impacting the value of the ADR.
• Technological disruptions rendering existing infrastructure obsolete.

What Are the Growth Opportunities for AMOV?

• Growth opportunity 1: Expansion of 5G Networks: América Móvil can capitalize on the growing demand for faster mobile data speeds by expanding its 5G network coverage across Latin America. The global 5G market is projected to reach $667.90 billion by 2030. By investing in 5G infrastructure, América Móvil can attract new customers and increase revenue from existing subscribers. This initiative is expected to unfold over the next 3-5 years as infrastructure is built out.
• Growth opportunity 2: Increasing Data Consumption: The increasing consumption of data due to the proliferation of smartphones and digital services presents a significant growth opportunity. América Móvil can offer attractive data plans and value-added services to cater to this demand. The average mobile data consumption per user is expected to continue to rise, driving revenue growth for the company. This is an ongoing trend that will continue to fuel growth.
• Growth opportunity 3: Expansion of Broadband Services: With the increasing demand for high-speed internet, América Móvil can expand its broadband services to underserved areas in Latin America. The broadband market is expected to grow as more households and businesses require reliable internet access. By investing in broadband infrastructure, América Móvil can tap into this growing market segment. This expansion is expected to occur over the next 2-4 years.
• Growth opportunity 4: Development of IoT Solutions: The Internet of Things (IoT) market is rapidly growing, presenting opportunities for América Móvil to develop and offer IoT solutions to businesses and consumers. These solutions can include smart home devices, industrial automation, and connected vehicles. The IoT market is projected to reach trillions of dollars in the coming years. This is a medium-term opportunity with a timeline of 3-5 years.
• Growth opportunity 5: Strategic Acquisitions: América Móvil can pursue strategic acquisitions to expand its market presence and service offerings. By acquiring smaller telecommunications providers or companies with complementary technologies, América Móvil can strengthen its competitive position and accelerate growth. This strategy can provide access to new markets and technologies. This is an ongoing strategy that the company can leverage.

What Opportunities Does AMOV Have?

• Expansion of 5G networks.
• Increasing demand for data services.
• Growth in IoT market.
• Strategic acquisitions.

What Threats Does AMOV Face?

• Regulatory changes.
• Economic downturns in Latin America.
• Technological disruptions.
• Increased competition.

What Are AMOV's Competitive Advantages?

• Extensive infrastructure network across Latin America.
• Strong brand recognition with brands like Telcel and Telmex Infinitum.
• Large subscriber base providing recurring revenue.
• Economies of scale due to its market leadership position.

What Does AMOV Do?

América Móvil, S.A.B. de C.V., incorporated in 2000 and headquartered in Mexico City, has grown to become the largest telecommunications provider in Latin America. The company's origins lie in the privatization of Telmex, the former Mexican state-owned telephone company. Since then, América Móvil has expanded its reach across the region, offering a wide array of services including wireless and fixed voice services, data transmission, internet access, and pay television. Its primary brands, Telcel, Telmex Infinitum, and A1, are well-recognized throughout Latin America. América Móvil provides services to both residential and corporate clients. For residential customers, it offers voice and data plans, broadband internet, and cable and satellite pay television subscriptions. For corporate clients, the company provides IT solutions, data center services, and network interconnection. The company also sells equipment, accessories, and computers, and offers related services such as telephone directories, wireless security, and call center support. As of December 31, 2021, América Móvil reported approximately 286.5 million wireless voice and data subscribers, highlighting its significant market penetration.

What Products and Services Does AMOV Offer?

• Provides wireless voice and data services.
• Offers fixed voice services, including local and long-distance.
• Delivers data services, such as data centers and hosting.
• Provides internet access and messaging services.
• Offers pay television subscriptions via cable and satellite.
• Sells telecommunications equipment and accessories.
• Provides IT solutions for businesses.
• Offers mobile payment solutions and mobile banking services.

How Does AMOV Make Money?

• Generates revenue from subscription fees for wireless and fixed-line services.
• Earns revenue from data services, including internet access and data transmission.
• Derives income from the sale of telecommunications equipment and accessories.
• Receives revenue from advertising and media services.

What Industry Does AMOV Operate In?

The telecommunications industry in Latin America is characterized by increasing demand for mobile data and broadband services. The market is competitive, with several major players vying for market share. América Móvil holds a leading position, leveraging its extensive infrastructure and brand recognition. The industry is also subject to regulatory scrutiny, with governments seeking to promote competition and expand access to telecommunications services. Growth is driven by increasing smartphone penetration and the adoption of digital technologies across various sectors.

Who Are AMOV's Key Customers?

• Residential customers seeking voice, data, and entertainment services.
• Corporate clients requiring IT solutions and network services.
• Small businesses needing telecommunications and internet access.
• Government entities utilizing communication infrastructure.

América Móvil, S.A.B. de C.V. (AMOV) Valuation Context

Valued at $65.61B, AMOV is classified as a large-cap stock. Relative to its peer group, AMOV's quantitative score of 46/100 is roughly in line with the peer average of 50/100.

AMOV Revenue & Earnings Trend

In Q3 2024, AMOV generated $223.46B in top-line revenue, marking a sequential increase of 8.7%. The company recorded net income of $6.43B, with diluted EPS of $2.00. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Communication Services company.

Company Profile

América Móvil, S.A.B. de C.V. operates in the Telecommunications Services industry within the Communication Services sector. It is headquartered in Mexico City, MX. The company is led by CEO Daniel Hajj Aboumrad. AMOV has traded publicly since 2001.

ROE 21%Key Financial Metrics

Return on equity for América Móvil, S.A.B. de C.V. stands at 20.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.7%, showing how much profit it generates from its asset base. AMOV trades at a trailing price-to-earnings ratio of 15.17, below the Communication Services sector average of ~18x. Its free cash flow yield is 12.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.72 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.6%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

América Móvil, S.A.B. de C.V.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.13 places it in the distress zone, a signal of elevated financial risk.

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