AMX - America Movil: Slow And Steady Can Still Win Some Races
2024-07-18 10:24:44 ET
Summary
- America Movil delivered reasonably good Q2'24 results, with inline revenue and outperformance in both service revenue and EBITDA.
- Core mobile and broadband performance was fine in both Mexico and Brazil, and there was evidence of improving market conditions in Argentina, Chile, and Colombia.
- Management's Investor Day guidance for capex was reassuring, with intended spending down 10% from the prior 3-year plan despite an ongoing focus on service quality differentiation.
- Mid-single-digit growth may not make America Movil the most exciting name out there, but it can support a fair value in the low/mid-$20's.
I wasn’t expecting a lot from America Movil ( AMX ) when I last wrote about this Mexico-based telecom operator, characterizing it as a defensive name with a little upside. Since then the shares have climbed about 10%, outperforming other LatAm telcos like Telefonica Brasil ( VIV ) and TIM SA (TIMB), but delivering a more mixed performance against other emerging market telco providers like Turkcell (TKC), Bharti Airtel , Vodacom (VDMCY), and PT Telekom Indonesia ( TLK ) (better than the last two, worse than the first two)....
America Movil: Slow And Steady Can Still Win Some Races