Stock Price & Analysis

Based on current market conditions and analysis, AMX stock is trading near key support levels with mixed analyst sentiment. It is recommended to hold the stock and monitor macroeconomic developments in its operating regions.

Price Prediction for AMX Stock in 2025

The price target for América Móvil (AMX) stock in 2025 is predicted to be around $14.00, with a potential range of $13.75 to $15.06.

• Reason 1: Scotiabank recently lowered its price target for AMX from $17.30 to $13.70, citing concerns over the stock's equity yield being lower than the AMXLMM 2023 bond yield.
• Reason 2: The stock is trading near its Fibonacci support level of $13.75, with resistance at $15.06, suggesting limited upside potential.
• Reason 3: AMX's revenue has remained stable, but net income has been volatile, with Q2 2024 showing a net loss of $634 million.

The S1 support level for AMX Stock is $14.01 ,The R1 resistant level for AMX Stock is $14.54.

As of the end of day on 2025-04-01, the price of AMX Stock was $14.54.

The target price for AMX Stock according to analyst rating is 16.53, with the highest price target at 17.30 and the lowest at 15.00. Analysts have a Hold rating on AMX Stock overall.

The market cap of AMX is $883.2B.

Analysis and Insights

To determine whether America Movil (AMX) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

• P/E Ratio: AMX's price-to-earnings ratio is approximately 24.4, which is higher than the industry average, suggesting potential overvaluation relative to its earnings.
• EV/EBITDA: The enterprise value-to-EBITDA ratio is 2.82, indicating moderate valuation levels.
• P/S Ratio: The price-to-sales ratio of 1.12 reflects a premium valuation relative to its revenue.
• P/B Ratio: The price-to-book ratio of 0.68 suggests undervaluation relative to book value.
• Dividend Yield: The dividend yield of 3.65% provides some income support.

Financial Performance:

• Revenue: Total revenue has remained relatively stable, with Q4 2024 revenue at $11.8 billion.
• Net Income: Net income has been volatile, with a significant decline in Q2 2024, reflecting operational challenges.
• Gross Margin: The gross margin of 43.29% in Q4 2024 indicates stable profitability.
• ROE: The return on equity of 7.82% is lower than the industry average, signaling weaker profitability relative to equity.
• Debt/Equity: The debt-to-equity ratio of 178.98% highlights significant leverage, increasing financial risk.

Market Sentiment:

• Analyst Ratings: Recent analyst ratings are mixed, with Goldman Sachs maintaining a Strong Buy rating and a $18 price target, while Scotiabank and JP Morgan have more cautious stances with lower price targets.
• Price Target Adjustments: Scotiabank reduced its price target from $17.30 to $13.70, citing macroeconomic instability in key regions and lower equity yield compared to bonds.

Stock Price Trends:

The stock price is currently around $14.20, with a pre-market decline of 2.98% and a regular market rise of 0.82%, indicating volatility.

Conclusion:

Based on the high P/E and P/S ratios, fluctuating net income, and significant debt levels, AMX appears overvalued relative to its earnings and revenue. However, the low P/B ratio and decent dividend yield provide some support. Investors should exercise caution, considering the company's debt management and profitability improvements.

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

Price Prediction for AMX Stock in 2030

The price prediction for América Móvil (AMX) stock in 2030 is $18 per share, driven by expected improvements in operational efficiency and regional economic recovery.

Reasons for the Prediction:

1. Current Valuation and Trends:
   AMX is currently trading at $14.20, with a 52-week range of $13.75 to $15.06. The stock has shown resilience despite macroeconomic challenges in key markets like Colombia, Mexico, and Panama.

2. Fundamental Strength:

   • Revenue Growth: AMX reported $47.5 billion in revenue for 2024, with a net income of $1.5 billion.
   • Net Margin: The company maintains a net margin of 3.8%, indicating stable profitability despite regional vulnerabilities.

3. Debt Management:
   AMX has a debt-to-equity ratio of 178.98%, which is high but manageable given its cash flow. The company is expected to focus on debt reduction, which could improve its financial health.

4. Technical Analysis:

   • RSI: The Relative Strength Index (RSI) for AMX is 42.19, indicating the stock is oversold and may see a rebound.
   • MACD: The MACD line is slightly negative (-0.08), suggesting a bearish trend, but the stock is nearing a potential bullish crossover.
   • Fibonacci Levels: Resistance is at $15.06, and support is at $13.75, with the stock trading near the pivot point of $14.41.

5. Long-Term Growth Drivers:

   • Urbanization Trends: As urbanization increases in Latin America, demand for telecommunications services is expected to rise, benefiting AMX.
   • Regional Recovery: Economic stabilization in key markets could drive revenue growth and improve investor sentiment.

6. Analyst Sentiment:
   Scotiabank recently lowered its price target for AMX to $13.70 but maintained a "Sector Perform" rating, citing equity yield concerns. However, long-term fundamentals remain strong.

AMX has a total of 176083 employees.