Morningstar Rating

Stock Research and Analysis

by Michael Hodel, CFA

Bulls Say

America Movil's scale in the Latin American telecom market is second to none. The firm serves 25% more customers in the region than its nearest rival and holds the lead in market share in Mexico, Columbia, Argentina, Ecuador, Puerto Rico, and Nicaragua.
The firm generates steady free cash flow, which it uses to pay a stable dividend, make acquisitions, and repurchase shares. Shares outstanding have declined about 15% over the past five years while the business is now nearly 50% larger.
Movil has deep experience dealing with the vagaries of the Latin American market. Read more 

Bears Say

Telecom services are considered vital to economic growth, causing regulators around the globe to take aim at dominant carriers, like America Movil, that stifle competition and inhibit investment. There is no telling how far regulators, especially in Mexico, will ultimately go to curb Movil's market position.
Most of Movil's operations are highly correlated, sitting within Latin America. Nearly every currency in region has lost value versus the dollar over the past five years.
U.S. dollar-denominated debt exacerbates Movil's currency exposure. Read more 

Management

America Movil's equity is split between three share classes: L Shares (64% of shares outstanding), AA Shares (35%), and A Shares (1%). Holders of L Shares, which includes the vast majority of ADR owners, have limited voting rights, including the ability   Read more 

Profile

America Movil is the largest telecom provider in Latin America, serving nearly 250 million wireless customers across the region. It also provides fixed-line services to   Read more 

A Deep Discount on This Narrow-Moat Metals Stock 
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