America Movil (NYSE:AMX)

Advanced Investing Research » Company Analysis » Telecom Industry Analysis » America Movil (NYSE:AMX)

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Long Term Potential

► Investor Survey (help)

Business Simple to Understand?
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Dominant Industry Leader?
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Company Possess Barriers to Entry?
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SWOT Strengths > SWOT Weaknesses?
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SWOT Opportunities > SWOT Threats?

Buy / Sell Indicators (help)

America Movil Insider Buying / Selling?
America Movil Upgrades / Downgrades?

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America Movil Competitors

Telmex Internacional (NYSE:TII) (0)
NII (NSDQ:NIHD) (0)
Turkcell Iletisim Hizmetleri (NYSE:TKC) (0)
Vivo Participacoes (NYSE:VIV) (0)
Millicom Intl Cellular (NSDQ:MICC) (0)

America Movil Highlights

Mexico Country Analysis (MXN)
Telecom Industry Analysis
Carlos Slim Stock Portfolio
Maverick Capital Stock Portfolio

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Research Report ►(comments)

America Movil, S.A.B. provide fixed, wireless, and broadband communications services in Latin America.

Investment Impacts (help)

Mexico Country Analysis ► (edit / improve) Mexico (MXN) has a capitalist economy with a fast growing service and industrial base. Currency Analysis: the Mexican currency has moderate potential to increase in value per the purchase price parity and interest rate parity analysis. Investor Survey: the economic environment is moderate for long term economic growth. SWOT weaknesses are significantly greater than SWOT strengths, whereas, opportunities are greater than threats. Trade Analysis: The US and Canada are the top trading partners, while the leading exports are in the industrial and agricultural sectors. Commodity Analysis: Mexico produces crude oil, corn, propane, silver, pork, oats, and chicken for export. SWOT Analysis: Transportation infrastructure and crime are the leading SWOT weaknesses, while tourism and education are the leading SWOT opportunities. Profit Conclusion: An undervalued currency, low investment flow potential and unfavorable business environment lead to neutral or negative outlook for Mexican investments.

Telecom Industry Leader

Telecom Industry Analysis ► (edit / improve) Description: The telecom industry includes companies who help transmit information for the purposes of communication. Valuation Analysis: Based on WikiWealth's Wall Street analysis, this industry is a Buy. The Main Street analysis is also a Buy, with SWOT strengths great than weaknesses and SWOT opportunities much greater than threats. Trade Analysis: Some of the main telecom hubs include india and the US, the main commodity in the telecom industry is copper. Profit Conclusion: The telecom industry tends to be sensitive to economic cycles. Look for undervalued telecom investments during economic recessions and sell telecom investments during the late stages of a bull markets. The global economy is currently in a recession, therefore, it is the perfect time to purchase telecom investments.

- Industry leaders shape the political and economic conditions for their industry.

Telecom Industry Analysis ► (edit / improve)

Importance of the Industry Analysis? WikiWealth's industry analysis evaluates the major industry characteristics that affect investments within that industry. Company specific factors drive the performance of individual companies, but macro-economic industry factors can affect the performance of entire groups of stocks.

▼ Industry Analysis Options, Tools & Help

WikiWealth.com Industry Description: The telecom industry includes companies who help transmit information for the purposes of communication. Read More.

WikiWealth.com Profit Analysis: The best way to profit from telecom stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, telecom stocks tend to outperform the general stock market, because consumers and businesses quickly resume spending on items they wanted, but resisted buying during tougher economic times. Eventually those investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell telecom stocks, because they are likely to decrease in price quickly. Telecom makes the lives of consumers and businesses easier, but during tough economic times, people tend to choose alternative means to communicate, which offsets the benefits of telecom investments temporarily. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. Click for more information: stock research ratings.

WikiWealth.com Industry Analysis: During economic recessions, consumers and businesses tend to cut back on telecom expenses to save money during tough economic times. Less spending decreases business revenue and eventually decreases stock prices. During economic recoveries, consumers have more income and business investment needs, so spending quickly increases. Higher spending increases business revenue and eventually increases stock prices. During a longer economic expansion, discretionary income and business demand increases, but at a slower pace than during the recovery stage.

Telecom Financial Statistics	Stat	Notes
Stock Rating	Hold	…
Potential (safety margin)	-15%	High ~ Good for investors
WACC Analysis	10%	Low ~ Good for investors
Comparative Industry Multiples	Stat	Notes
Revenue EV Multiple	3.3x	High ~ Bad for investors
EBITDA EV Multiple	12.1x	…
EBIT EV Multiple	13.9x	…
Cash Flow EV Multiple	14.4x	…
Book Value EV Multiple	0.9x	Low ~ Good for investors
Discounted Cash Flow	Stat	Notes
Revenue Growth	20%	High ~ Good for investors
EBITDA Margin	28%	…
EBIT Margin	23%	High ~ Good for investors
Cash Flow Margin	15%	High ~ Good for investors
Taxes Rate	27%	…
Debt-Equity Ratio	6%	Low ~ Good for investors
ROIC	8%	…
Reinvestment Rate	5%	…
WACC Discount Rate	Stat	Notes
Risk Free Rate	4%	Low ~ Good for Investors
Cost of Debt	7%	Low ~ Good for Investors
Equity Risk Premium	5%	…
Debt Required Return of Debt	5%	Low ~ Good for Investors
Required Return of Equity	9%	Low ~ Good for Investors

¹ WikiWealth.com only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.

² Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.

SWOT Analysis - America Movil ► Add Your Input Below

What is a SWOT Analysis? The SWOT Analysis evaluates the strengths, weaknesses, opportunities, and threats involved in a business or project. The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Add your content to the SWOT Analysis, below. Also see our SWOT Analysis tutorial for help.

▼ Free SWOT Analysis Options, Tools & Help

Strength (helpful to business - internal origin)

Country Market Leader (Votes:0) A specific country or niche market leading…

Weakness (harmful to business / internal origin)

Opportunity (helpful to business - external origin)

Domestic Market Potential (Votes:0) A large and quickly growing domestic market…
Emerging Market Phone Demand (Votes:0) Mobile phones are contributing to economic…
Mobile Money (Votes:0) Mobile money is an established currency in…

Threat (harmful to business - external origin)

Political Risk (Votes:0) Political risk increases the cost of doing…

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Telecom Industry Leader

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Telecom Industry Analysis ► (edit / improve)

SWOT Analysis - America Movil ► Add Your Input Below

WACC Discount Rate Analysis - America Movil ► Experiment with AMX's Analysis ►

Discounted Cash Flow Analysis - America Movil ► Experiment with AMX's Analysis ►

Comparative Value Multiple Analysis - America Movil ► Experiment with AMX's Analysis ►

Warren Buffett Intrinsic Value Analysis - America Movil ► Experiment with AMX's Analysis ►

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