América Móvil, S.A.B. de C.V. (AMX) is listed on NYSE and operates in the Telecommunications Services industry (Communication Services sector).
América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including local, domestic, and international long-distance services; and network interconnection services. It also provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging, and other wireless entertainment and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions for small businesses and large corporations; and cable and satellite pay television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to co...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 11 |
| Hold | 10 |
| Sell | 3 |
| Strong Sell | 0 |
América Móvil, S.A.B. de C.V., based in Mexico City, Mexico, is a telecommunications company operating in Latin America and internationally. It provides a range of services, including wireless and fixed voice services, network interconnection, and data services. The company caters to both residential and corporate clients with offerings such as data centers, data administration, and hosting services. Additionally, it provides value-added services like Internet access, messaging, content streaming, and interactive applications. América Móvil also offers mobile payment solutions, machine-to-machine services, mobile banking, and virtual private network services. Its residential broadband services and IT solutions support small businesses and large corporations. The company also provides cable and satellite pay television subscriptions. América Móvil sells telecommunications equipment and accessories and offers services such as call centers, advertising, media, and software development. It distributes video, audio, and other media content via the Internet. Products and services are marketed under brands like Telcel, Telmex Infinitum, and A1 through a network of retailers and service centers. As of December 31, 2021, the company had approximately 286.5 million wireless voice and data subscribers. Founded in 2000, América Móvil continues to expand its telecommunications footprint.
Over the past three fiscal years, the company has demonstrated a consistent increase in revenue, growing at a 4.1% CAGR from MXN 816 billion in 2023 to MXN 885 billion in 2025. Despite this growth, the company's profitability metrics present a mixed picture. While the operating margin showed a slight improvement of 0.4pp, reaching 21.0% in 2025, the gross margin experienced a significant compression, declining by 18.3pp to 42.9%. This suggests that while the company managed to control operating expenses relative to revenue, it faced challenges in maintaining its cost of goods sold. The net margin also showed inconsistency, ending at 8.8% in 2025, down from 9.3% in 2023, indicating some volatility in net profitability. On the cash flow front, operating cash flow consistently decreased, while free cash flow showed an inconsistent but overall positive trend, increasing from MXN 91.8 billion in 2023 to MXN 120.7 billion in 2025. This improvement in free cash flow, coupled with a rising free cash flow margin, suggests enhanced cash generation efficiency despite declining operating cash flow. However, the company's net debt position increased significantly, growing at a 21.4% CAGR, which could pose a risk given the thin interest coverage ratio of 2.5x. Additionally, liquidity remains a concern with a current ratio below 1, indicating potential short-term financial constraints. Despite these challenges, the company reduced its share count by 4.1%, which could enhance per-share value for existing shareholders.
In recent developments for América Móvil, S.A.B. de C.V. (AMX), the company reported its Q1 2026 financial results on April 22. The earnings missed expectations despite a year-over-year revenue increase, and the company posted a 25% rise in profit, according to Reuters. Following these results, brokerages have maintained a consensus "Hold" rating on the stock, with Scotiabank adjusting its price target to $19. In strategic moves, América Móvil's subsidiary, Claro, expressed interest in further acquisitions in Brazil after completing a deal with Desktop, as reported on April 23. Additionally, Amex Exploration, associated with América Móvil, announced an oversubscribed C$43.5 million LIFE offering and a concurrent private placement, highlighting strong investor interest. This financial activity underscores the company's ongoing strategic initiatives and market positioning. Despite these developments, América Móvil's shares fell by 3.1% on April 27, with GuruFocus indicating the stock remains overvalued. The company also filed its annual report on Form 20-F on April 28, providing a comprehensive overview of its financial health and operations. These updates reflect a mixed outlook for América Móvil, balancing growth opportunities with market challenges.
América Móvil operates within the telecommunications industry, which is currently experiencing several macroeconomic and regulatory shifts. The industry is being shaped by fluctuating currency values, particularly the appreciation of the Mexican peso against the U.S. dollar, which has impacted financial results. Management highlighted the ongoing consolidation within the industry, especially in Latin America, as a key trend. They see opportunities for growth in both Latin America and Eastern Europe, driven by increased demand for broadband and mobile services. Key tailwinds include the expansion of postpaid and broadband subscriber bases, while headwinds involve regulatory challenges, particularly in Mexico where América Móvil faces asymmetric regulation. The competitive landscape is changing with new entrants like Starlink, which could impact traditional service models.
América Móvil's recent performance has been influenced by a mix of operational initiatives and external factors. In Q1 2026, the company reported a 2.1% increase in revenue in Mexican peso terms, driven by strong growth in equipment and service revenues, despite currency fluctuations. The company achieved an 8% expansion in EBITDA at constant exchange rates, reflecting strong operational leverage. Management expressed satisfaction with the growth in postpaid and broadband segments, which have been resilient across key markets like Mexico and Colombia. However, they noted challenges in Argentina due to regulatory and logistical issues in Buenos Aires. The narrative between calls has shifted slightly, with a greater emphasis on leveraging digital transformation and cost control to enhance margins. Concerns were raised about the impact of macroeconomic conditions, such as the U.S. economic slowdown, on future performance.
América Móvil's strategy focuses on growth through strategic investments in fiber and mobile networks, particularly in Latin America and Eastern Europe. Management is investing in digital transformation, aiming to enhance operational efficiency and customer experience. They are also exploring M&A opportunities to strengthen their competitive position, although they remain cautious about over-leveraging. The company claims competitive advantages in network quality and customer service, which are credible given their investment in 5G and fiber infrastructure. However, execution risks include potential regulatory hurdles and competition from new entrants like Starlink. Analysts questioned the balance between deleveraging and capital returns, highlighting the need for prudent financial management. While the strategy is promising, the execution will be critical, especially in navigating regulatory landscapes and integrating acquisitions.
Between the Q4 2025 and Q1 2026 calls, América Móvil showed progress on several fronts. Management had set a target to maintain CapEx around 14-15% of revenues, which they reiterated in the Q1 2026 call, indicating consistency in their investment strategy. They also aimed to reduce net debt to EBITDA to 1.3x, and while they have made progress, they remain slightly above this target. The focus on digital transformation and cost control was emphasized in both calls, with management reporting improvements in operational efficiency. However, there was less emphasis on specific M&A activities in the later call, suggesting a shift in focus or a reevaluation of opportunities. Overall, management appears to be delivering on their commitments, but the slight shift in narrative around M&A and capital allocation suggests ongoing strategic adjustments.
- Monitor América Móvil's ability to reduce net debt to EBITDA to their target range of 1.3x to 1.5x. This will indicate financial health and capacity for future investments.
- Watch for updates on CapEx plans, particularly the commitment to maintain spending at 14-15% of revenues, as this reflects their investment in network expansion and digital transformation.
- Track subscriber growth in the postpaid and broadband segments, especially in key markets like Mexico and Colombia, as these are critical drivers of revenue growth.
- Observe any strategic partnerships or collaborations with new entrants like Starlink, which could impact service offerings and competitive positioning.
- Look for any regulatory developments in Mexico that could affect América Móvil's operations, given the asymmetric regulation they face in this market.