América Móvil shares fell by -2.4% during the day's morning session, and are now trading at a price of $16.77. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
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 30.5 and a P/B ratio of 2.86.
América Móvil's PEG ratio is 1.27, 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 |
