It hasn't been a great afternoon session for América Móvil investors, who have watched their shares sink by -1.2% to a price of $17.0. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
América Móvil's Valuation Is in Line With Its Sector Averages:
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 20.19 and an average price to book (P/B) ratio of 2.29. In contrast, América Móvil has a trailing 12 month P/E ratio of 30.4 and a P/B ratio of 2.9.
América Móvil's PEG ratio is 1.28, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Wider Gross Margins Than the Industry Average of 38.49%:
| 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 |
