Top Insights on América Móvil (AMX) Stock

It's been a great afternoon session for América Móvil investors, who saw their shares rise 2.1% to a price of $17.32 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.

América Móvil Is Fairly Priced:

América Móvil, S.A.B. de C. The company belongs to the Telecommunications sector, which has an average price to earnings (P/E) ratio of 22.69 and an average price to book (P/B) ratio of 1.97. In contrast, América Móvil has a trailing 12 month P/E ratio of 16.8 and a P/B ratio of 3.16.

P/E rations can be placed into context by dividing them by the firm's expected 5-year EPS growth rate, which gives us its Price to Earnings Growth (PEG) ratio. América Móvil's PEG ratio is 1.02, which tells us the company is fairly valued in terms of growth. PEG ratios under 1 are considered an indicator of undervalued growth, but we need to keep in mind that many successful companies with excellent share performance have maintained much higher PEG ratios.

As always, a quantitative approach to a stock should be supplemented with a look at qualitative factors, such as the competence of its management team, quality of its corporate culture, and the wide variety of social and economic factors that can impact the success of its product.

Wider Gross Margins Than the Industry Average of 38.92%:

2018 2019 2020 2021 2022 2023
Revenue (M) $52,747 $53,454 $50,975 $41,564 $43,499 $48,303
Gross Margins 51% 53% 54% 60% 61% 61%
Net Margins 5% 7% 5% 23% 10% 10%
Net Income (M) $2,770 $3,731 $2,559 $9,538 $4,198 $4,782
Net Interest Expense (M) $1,614 $2,012 $1,938 $1,750 $2,125 $2,637
Depreciation & Amort. (M) $7,911 $8,433 $8,233 $7,901 $8,171 $8,985
Diluted Shares (M) 66,056 66,005 66,862 0 63,325 63,224
Earnings Per Share $0.04 $0.05 $0.04 $0.05 $0.07 $0.08
Free Cash Flow (M) $12,617 $12,431 $14,079 $12,543 $11,605 $14,686
Total Debt (M) $27,577 $26,278 $24,084 $20,354 $21,050 $20,119
Net Debt / EBITDA 1.76 1.52 1.35 1.15 1.12 0.98
Current Ratio 0.75 0.63 0.71 0.76 0.74 0.65
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.