America Movil may be undervalued with poor growth indicators, but the 12 analysts following the company give it an rating of hold. Their target prices range from $15.0 to $25.84 per share, for an average of $21.97. At today's price of $22.11, America Movil is trading 0.66% away from its average target price, suggesting there is an analyst consensus of little upside potential for the stock.
América Móvil, S.A.B. de C. Based in Mexico City, Mexico, the large-cap Telecommunications company has 174,959 full time employees. America Movil has offered a 2.1% dividend yield over the last 12 months.
America Movil has a trailing twelve month P/E ratio of 14.7, compared to an average of 18.85 for the Telecommunications sector. Considering its EPS guidance of $1.85, the company has a forward P/E ratio of 12.0.
The average compound growth rate of the company's historical and projected earnings per share is -38.2%. On this basis, the company's PEG ratio is -0.38, which indicates that its shares are overpriced.
On the other hand, the market is potentially undervaluing America Movil in terms of its book value because its P/B ratio is 0.2. In comparison, the sector average P/B ratio is 3.12. The company's shares are currently -90.8% below their Graham number, indicating that its shares have a margin of safety.
So why does America Movil get a bad rating from most analysts despite its seemingly attractive valuation? One reason could be its worrying EPS growth rate of -48.0%.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,007,348 | $1,016,887 | $855,535 | $844,501 |
| Gross Margins | 53.2% | 53.7% | 60.1% | 42.1% |
| Operating Margins | 16.0% | 16.7% | 20.0% | 20.2% |
| Net Margins | 6.72% | 4.61% | 22.91% | 9.02% |
| Net Income (MM) | $67,731 | $46,853 | $196,025 | $76,159 |
| Net Interest Expense (MM) | -38,702 | -32,309 | -46,440 | -34,790 |
| Net Interest Expense (MM) | -$38,702 | -$32,309 | -$46,440 | -$34,790 |
| Depreciation & Amort. (MM) | -$158,915 | -$164,244 | -$162,627 | -$158,634 |
| Earnings Per Share | $20.52 | $14.0 | $58.2 | $1.5 |
| EPS Growth | n/a | -31.77% | 315.71% | -97.42% |
| Diluted Shares (MM) | 3,300 | 3,313 | 3,298 | 3,159 |
| Free Cash Flow (MM) | $82,431 | $151,273 | $100,111 | $70,158 |
| Capital Expenditures (MM) | -$151,847 | -$129,555 | -$158,071 | -$157,854 |
| Net Current Assets (MM) | -$974,183 | -$919,784 | -$826,225 | -$819,266 |
| Current Ratio | 0.63 | 0.7 | 0.76 | 0.74 |
| Long Term Debt (MM) | $495,082 | $480,300 | $418,807 | $408,565 |
| Net Debt / EBITDA | 1.99 | 2.38 | 1.28 | 1.29 |
