Today we're going to take a closer look at Large-Cap Telecommunications company America Movil, whose shares are currently trading at $17.31. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
America Movil'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 18.22 and an average price to book (P/B) ratio of 1.86. In contrast, America Movil has a trailing 12 month P/E ratio of 36.1 and a P/B ratio of 2.78.
America Movil has moved 2.2% over the last year compared to 11.3% for the S&P 500 — a difference of -9.1%. America Movil has a 52 week high of $18.73 and a 52 week low of $13.1.
Wider Gross Margins Than the Industry Average of 39.55%:
| 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 |
| EPS Growth | n/a | 25.000000000000007% | -20.000000000000004% | 25.000000000000007% | 40.00000000000001% | 14.285714285714276% |
| 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 |
America Movil has wider gross margins than its peer group and a strong EPS growth trend. Additionally, the company's financial statements display generally positive cash flows and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.65.
