One-glance verdict
Undervalued
$61.87 our estimate vs market $26.05
Wall Street consensus: $29.36 (-52.5% lower than our fair-value estimate)
58% below our estimate, below the bear case
Fundamentals snapshot
América Móvil, S.A.B. de C.V.
AMX · NYQ · Communication Services · Telecom Services
Current price
$26.05
52-week range
$19.71 - $28.46
Market cap
$77.77B
Balance sheet
Stretched
2.43x Stretched
Net debt $33.27B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 8.6% last year.
- Reward Returns 21.0% on equity, ahead of 80% of its peers.
- Risk Stock trades 1486.6% above its 5-year average P/E.
- Risk Net debt grew 26.6% over 3 years.
What this company does
América Móvil, S.A.B. de C.V.
América Móvil is a big phone and internet company in Latin America, selling everything from mobile plans and home internet to TV subscriptions and IT services. Most of its money comes from people and businesses paying monthly for these communication services, which means the company can count on steady income each month (this steady income is called recurring revenue). This is important because stable income makes it easier for the company to plan for the future and invest in new technology.
How the company got here
América Móvil was born in the year 2000 when Telmex, a major Mexican telecommunications company, decided to separate its mobile phone operations into a new, independent entity. This strategic move allowed the burgeoning mobile sector to flourish on its own. Early on, the company focused on expanding its reach across Latin America, often acquiring smaller operators and consolidating them under its umbrella brands like Claro and Telcel. A significant part of its growth involved strategic partnerships and acquisitions, including gaining control of Telekom Austria, which helped it expand into Europe. Over the years, América Móvil has faced regulatory scrutiny in some markets due to its dominant position, leading to antitrust reforms in places like Mexico. Despite these challenges, it has consistently invested in infrastructure and technology to maintain its leadership.
What it actually does
At its core, América Móvil is a telecommunications giant. It provides a wide array of services that keep people and businesses connected. This includes the mobile phone services most people are familiar with, like voice calls and data plans for smartphones. It also offers fixed-line services, which are traditional phone lines for homes and businesses. Beyond that, the company is a major provider of broadband internet access, delivering high-speed connections to homes and companies. In some regions, it also offers pay television services, bringing entertainment into households. Essentially, América Móvil is in the business of building and maintaining the networks that power modern communication and entertainment.
Wireless Services
This is the largest part of América Móvil's business, providing mobile phone services to millions of customers. It offers both prepaid plans, where you pay for service in advance, and postpaid plans, where you pay after you use the service. These services include voice calls, text messaging, and crucially, mobile data for internet access on smartphones and other devices. The company also provides services like international roaming, allowing customers to use their phones abroad, and sells mobile devices and accessories. This segment is vital for staying connected on the go and is a primary way the company makes money.
Fixed-Line Services
This segment focuses on traditional telephone and internet services delivered through physical lines, often fiber optic cables. It includes providing landline phone services for homes and businesses, ensuring reliable voice communication. A significant part of this segment is broadband internet access, offering high-speed connections for homes and companies to access the internet for work, entertainment, and communication. América Móvil also provides network interconnection services, which allow different telecommunication networks to connect and exchange traffic, a crucial but behind-the-scenes part of the industry.
Pay Television and Digital Media
In certain markets, América Móvil also offers entertainment services through pay television subscriptions. This means customers pay a regular fee to access a package of television channels, similar to cable or satellite TV. The company also provides video, audio, and other media content directly to users over the internet, a service known as over-the-top (OTT) content. This segment aims to capture a share of the growing demand for digital entertainment, offering a bundle of content options to its subscribers.
Enterprise and IT Solutions
Beyond serving individual consumers, América Móvil has a significant business catering to other companies, from small businesses to large corporations. This segment offers a range of Information Technology (IT) solutions and connectivity services tailored for businesses. These can include dedicated internet access, private networks for secure communication, cloud computing services (where businesses store and access data and software over the internet), and cybersecurity services to protect against online threats. This part of the business helps companies operate more efficiently and securely in the digital world.
What management is betting on now
América Móvil's current strategy heavily emphasizes upgrading its network infrastructure, particularly by expanding its 5G mobile network and modernizing its fixed-line networks with more fiber optics. This focus on advanced technology aims to provide faster speeds and better service quality to attract and retain customers, especially in the competitive mobile data market. The company is also investing in digital customer platforms, making it easier for customers to interact with the company through apps and online self-service options. Furthermore, América Móvil is expanding its offerings in enterprise services, such as cloud and cybersecurity, to deepen relationships with business clients and tap into new revenue streams beyond traditional connectivity.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $61.87 vs current price $26.05
Wall Street consensus is the average analyst price target: $29.36 (-52.5% lower than our fair-value estimate).
Our most-likely fair value is $61.87 a share — about 137.5% above today's price of $26.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $33.3B. Interest coverage 2.4x.
Net debt
$33.27B
Interest coverage
2.43x
América Móvil, S.A.B. de C.V.'s profit covers its interest bill about 2.4 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
AMX
BASELINE
América Móvil, S.A.B. de C.V.
Total debt $37.88B Interest coverage 2.43x This is the baseline the peer rows are being compared against.
Total debt $180.61B Interest coverage 3.67x +51% vs AMX Carries about 1.5x more debt cushion than AMX.
Total debt $195.29B Interest coverage 4.37x +80% vs AMX Carries about 1.8x more debt cushion than AMX.
Total debt $3.58B Interest coverage 12.48x +413% vs AMX Carries about 5.1x more debt cushion than AMX.
Total debt $12.04B Interest coverage 2.55x +5% vs AMX Has roughly the same debt cushion as AMX.
What you should know
The case for and against AMX
3 Rewards
2 Risks
Rewards
-
Revenue grew 8.6% last year.
-
Returns 21.0% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 1486.6% above its 5-year average P/E.
-
Net debt grew 26.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.15x
Forward P/E
12.58x
P/B
3.62x
P/S
0.08x
EV/EBITDA
2.34x
PEG ratio
0.64x
Profitability
How much profit each dollar creates
Gross margin
62.7%
Operating margin
22.8%
Net margin
9.4%
ROE
21.0%
ROA
6.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.50x
Current ratio
0.75x
Quick ratio
0.65x
Total debt
$37.88B
Total cash
$4.61B
Growth
How the business has been compounding
Revenue TTM
$52.45B
Revenue 5Y CAGR
3.8%
EPS TTM
1.72
EPS 5Y CAGR
4.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$14.68B
Free CF TTM
$7.63B
FCF margin
14.5%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
36.4%
Last ex-div date
2026-11-10