New Risk • May 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Mexican stocks, typically moving 5.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risk Share price has been volatile over the past 3 months (5.0% average weekly change). Major Estimate Revision • May 29
Consensus EPS estimates increase by 19% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from Mex$0.172 to Mex$0.204. Revenue forecast steady at Mex$13.1b. Net income forecast to grow 333% next year vs 138% growth forecast for Telecom industry in Mexico. Consensus price target up from Mex$3.20 to Mex$3.30. Share price rose 3.6% to Mex$2.89 over the past week. New Risk • May 26
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.2x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risk Dividend is not well covered by earnings (118% payout ratio). Buy Or Sell Opportunity • May 07
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 1.1% to Mex$2.70. The fair value is estimated to be Mex$2.22, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Buy Or Sell Opportunity • Apr 16
Now 21% overvalued Over the last 90 days, the stock has fallen 14% to Mex$2.45. The fair value is estimated to be Mex$2.03, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Aankondiging • Apr 07
Axtel, S.A.B. de C.V. to Report Q1, 2026 Results on Apr 22, 2026 Axtel, S.A.B. de C.V. announced that they will report Q1, 2026 results After-Market on Apr 22, 2026 Buy Or Sell Opportunity • Mar 31
Now 22% overvalued Over the last 90 days, the stock has fallen 12% to Mex$2.53. The fair value is estimated to be Mex$2.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Aankondiging • Feb 19
Axtel, S.A.B. de C.V., Annual General Meeting, Mar 12, 2026 Axtel, S.A.B. de C.V., Annual General Meeting, Mar 12, 2026. Location: ave gomez morin 111 south, carrzalejo neighborhood, nuevo leon 66254, san pedro garza garcia Mexico Reported Earnings • Feb 10
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: Mex$0.03 (up from Mex$0.04 loss in FY 2024). Revenue: Mex$12.4b (up 7.0% from FY 2024). Net income: Mex$635.6m (up Mex$1.33b from FY 2024). Profit margin: 5.1% (up from net loss in FY 2024). The move to profitability was primarily driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 91%. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • Feb 05
Axtel, S.A.B. de C.V. to Report Q4, 2025 Results on Feb 05, 2026 Axtel, S.A.B. de C.V. announced that they will report Q4, 2025 results After-Market on Feb 05, 2026 Buy Or Sell Opportunity • Oct 30
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to Mex$2.85. The fair value is estimated to be Mex$2.36, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 25% in the next 2 years. New Risk • Oct 25
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.1x net interest cover). Minor Risk Share price has been volatile over the past 3 months (5.4% average weekly change). Reported Earnings • Oct 23
Third quarter 2025 earnings released: Mex$0.01 loss per share (vs Mex$0.11 loss in 3Q 2024) Third quarter 2025 results: Mex$0.01 loss per share (improved from Mex$0.11 loss in 3Q 2024). Revenue: Mex$3.06b (up 6.8% from 3Q 2024). Net loss: Mex$78.8m (loss narrowed 74% from 3Q 2024). Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to Mex$2.89, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Telecom industry in South America. Total returns to shareholders of 108% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Mex$2.33 per share. Buy Or Sell Opportunity • Sep 22
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to Mex$2.89. The fair value is estimated to be Mex$2.33, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.3% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 87% in the next 2 years. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to Mex$2.32, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Telecom industry in South America. Total returns to shareholders of 58% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Mex$2.23 per share. Price Target Changed • Sep 02
Price target increased by 18% to Mex$1.95 Up from Mex$1.65, the current price target is an average from 2 analysts. New target price is 11% below last closing price of Mex$2.20. Stock is up 83% over the past year. The company is forecast to post earnings per share of Mex$0.32 next year compared to a net loss per share of Mex$0.04 last year. New Risk • Jul 26
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.8x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.8x net interest cover). Minor Risk Share price has been volatile over the past 3 months (4.8% average weekly change). Aankondiging • Jul 24
Axtel, S.A.B. de C.V. to Report Q2, 2025 Results on Jul 21, 2025 Axtel, S.A.B. de C.V. announced that they will report Q2, 2025 results After-Market on Jul 21, 2025 New Risk • Jul 23
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 286% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (286% net debt to equity). Share price has been volatile over the past 3 months (5.0% average weekly change). Reported Earnings • Jul 23
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: Mex$3.03b (up 11% from 2Q 2024). Net income: Mex$395.5m (up Mex$861.9m from 2Q 2024). Profit margin: 13% (up from net loss in 2Q 2024). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 27
First quarter 2025 earnings released: EPS: Mex$0.01 (vs Mex$0.003 loss in 1Q 2024) First quarter 2025 results: EPS: Mex$0.01 (up from Mex$0.003 loss in 1Q 2024). Revenue: Mex$3.00b (up 13% from 1Q 2024). Net income: Mex$218.7m (up Mex$227.7m from 1Q 2024). Profit margin: 7.3% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Aankondiging • Mar 04
Axtel, S.A.B. de C.V., Annual General Meeting, Mar 18, 2025 Axtel, S.A.B. de C.V., Annual General Meeting, Mar 18, 2025. Location: ave gomez morin 111 south, carrzalejo neighborhood, nuevo leon 66254, san pedro garza garcia Mexico Reported Earnings • Feb 09
Full year 2024 earnings released: Mex$0.04 loss per share (vs Mex$0.14 profit in FY 2023) Full year 2024 results: Mex$0.04 loss per share (down from Mex$0.14 profit in FY 2023). Revenue: Mex$11.6b (up 5.5% from FY 2023). Net loss: Mex$691.2m (down 320% from profit in FY 2023). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 18
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: Mex$0.02 loss per share. Revenue: Mex$2.87b (up 3.1% from 3Q 2023). Net loss: Mex$304.1m (loss widened 18% from 3Q 2023). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 86%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Telecom industry in South America. Price Target Changed • Sep 23
Price target decreased by 18% to Mex$1.65 Down from Mex$2.00, the current price target is an average from 2 analysts. New target price is 57% above last closing price of Mex$1.05. Stock is up 49% over the past year. The company posted earnings per share of Mex$0.14 last year. New Risk • Jul 26
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.7x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Large one-off items impacting financial results. New Risk • Jul 21
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.08% Last year net profit margin: 2.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (0.08% net profit margin). Reported Earnings • Jul 21
Second quarter 2024 earnings released: Mex$0.10 loss per share (vs Mex$0.022 profit in 2Q 2023) Second quarter 2024 results: Mex$0.10 loss per share (down from Mex$0.022 profit in 2Q 2023). Revenue: Mex$5.39b (up 105% from 2Q 2023). Net loss: Mex$271.2m (down Mex$334.7m from profit in 2Q 2023). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 37% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 25
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to Mex$1.45, the stock trades at a forward P/E ratio of 59x. Average forward P/E is 13x in the Telecom industry in South America. Total loss to shareholders of 73% over the past three years. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to Mex$1.20, the stock trades at a trailing P/E ratio of 10.7x. Average forward P/E is 13x in the Telecom industry in South America. Total loss to shareholders of 78% over the past three years. New Risk • Mar 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 33% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.5x net interest cover). Minor Risk Large one-off items impacting financial results. New Risk • Mar 14
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.5x net interest cover). Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Large one-off items impacting financial results. Reported Earnings • Mar 14
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: Mex$0.042 (up from Mex$0.002 loss in FY 2022). Revenue: Mex$11.0b (up 4.5% from FY 2022). Net income: Mex$203.6m (up Mex$213.6m from FY 2022). Profit margin: 1.9% (up from net loss in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 48% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 12
Full year 2023 earnings released: EPS: Mex$0.02 (vs Mex$0.014 loss in FY 2022) Full year 2023 results: EPS: Mex$0.02 (up from Mex$0.014 loss in FY 2022). Revenue: Mex$11.0b (up 4.5% from FY 2022). Net income: Mex$314.3m (up Mex$353.1m from FY 2022). Profit margin: 2.9% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 49% per year, which means it is significantly lagging earnings. New Risk • Feb 11
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.2x net interest cover). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Share price has been volatile over the past 3 months (6.0% average weekly change). New Risk • Jan 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: Mex$1.71b (US$99.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Earnings are forecast to decline by an average of 85% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (Mex$1.71b market cap, or US$99.2m). Price Target Changed • Sep 03
Price target decreased by 7.7% to Mex$2.00 Down from Mex$2.17, the current price target is an average from 3 analysts. New target price is 218% above last closing price of Mex$0.63. Stock is down 57% over the past year. The company is forecast to post a net loss per share of Mex$0.09 next year compared to a net loss per share of Mex$0.014 last year. New Risk • Aug 01
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.2x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings are forecast to decline by an average of 45% per year for the foreseeable future. New Risk • Jul 29
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 48% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings are forecast to decline by an average of 48% per year for the foreseeable future. Reported Earnings • Jul 29
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: Mex$2.63b (up 3.4% from 2Q 2022). Net income: Mex$63.5m (up Mex$234.7m from 2Q 2022). Profit margin: 2.4% (up from net loss in 2Q 2022). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 5.1% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Telecom industry in South America. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 18 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • May 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to Mex$1.12, the stock trades at a forward P/E ratio of 112x. Average forward P/E is 9x in the Telecom industry in South America. Total loss to shareholders of 66% over the past three years. Reported Earnings • Apr 28
First quarter 2023 earnings: Revenues exceed analyst expectations First quarter 2023 results: Revenue: Mex$2.75b (up 7.8% from 1Q 2022). Net income: Mex$221.2m (up 99% from 1Q 2022). Profit margin: 8.1% (up from 4.4% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.1%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Telecom industry in South America. Major Estimate Revision • Feb 22
Consensus EPS estimates fall by 630%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from Mex$10.8b to Mex$11.0b. Forecast EPS reduced from -Mex$0.025 to -Mex$0.182 per share. Telecom industry in Mexico expected to see average net income growth of 9.6% next year. Consensus price target down from Mex$2.65 to Mex$1.93. Share price fell 7.7% to Mex$1.32 over the past week. Reported Earnings • Feb 18
Full year 2022 earnings released: Mex$0.002 loss per share (vs Mex$0.28 loss in FY 2021) Full year 2022 results: Mex$0.002 loss per share (improved from Mex$0.28 loss in FY 2021). Revenue: Mex$10.5b (down 8.0% from FY 2021). Net loss: Mex$38.8m (loss narrowed 95% from FY 2021). Revenue is forecast to grow 3.2% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Telecom industry in South America. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 37 percentage points per year, which is a significant difference in performance. Price Target Changed • Nov 16
Price target decreased to Mex$2.65 Down from Mex$5.79, the current price target is an average from 2 analysts. New target price is 67% above last closing price of Mex$1.59. Stock is down 59% over the past year. The company is forecast to post a net loss per share of Mex$0.03 next year compared to a net loss per share of Mex$0.28 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 11 experienced directors. 1 highly experienced director. Independent Director Alberto Santos Boesch was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Oct 22
Third quarter 2022 earnings released: Mex$0.041 loss per share (vs Mex$0.14 loss in 3Q 2021) Third quarter 2022 results: Mex$0.041 loss per share (improved from Mex$0.14 loss in 3Q 2021). Revenue: Mex$2.74b (flat on 3Q 2021). Net loss: Mex$116.0m (loss narrowed 62% from 3Q 2021). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Telecom industry in South America. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Reported Earnings • Jul 22
Second quarter 2022 earnings released: Mex$0.06 loss per share (vs Mex$0.14 profit in 2Q 2021) Second quarter 2022 results: Mex$0.06 loss per share (down from Mex$0.14 profit in 2Q 2021). Revenue: Mex$2.54b (down 15% from 2Q 2021). Net loss: Mex$171.0m (down 150% from profit in 2Q 2021). Over the next year, revenue is forecast to grow 4.7%, compared to a 15% growth forecast for the industry in Mexico. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Jun 29
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 expected loss increased from -Mex$0.02 to -Mex$0.03 per share. Revenue forecast of Mex$11.2b unchanged since last update. Telecom industry in Mexico expected to see average net income decline 4.0% next year. Consensus price target of Mex$5.79 unchanged from last update. Share price was steady at Mex$1.60 over the past week. Major Estimate Revision • May 19
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from Mex$11.6b to Mex$10.8b. 2022 losses expected to reduce from -Mex$0.03 to -Mex$0.02 per share. Telecom industry in Mexico expected to see average net income growth of 24% next year. Consensus price target down from Mex$6.74 to Mex$5.84. Share price fell 10% to Mex$1.75 over the past week. Reported Earnings • Apr 27
First quarter 2022 earnings: Revenues miss analyst expectations First quarter 2022 results: Revenue: Mex$2.55b (down 10% from 1Q 2021). Net income: Mex$111.1m (up Mex$397.0m from 1Q 2021). Profit margin: 4.4% (up from net loss in 1Q 2021). Revenue missed analyst estimates by 8.6%. Over the next year, revenue is forecast to grow 5.3%, compared to a 7.1% growth forecast for the industry in Mexico. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 11 experienced directors. 1 highly experienced director. CEO & Director Eduardo Alberto Escalante Castillo was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 17
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: Mex$0.28 loss per share (down from Mex$0.13 profit in FY 2020). Revenue: Mex$11.4b (down 7.8% from FY 2020). Net loss: Mex$797.0m (down 321% from profit in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to stay flat compared to a 17% growth forecast for the industry in Mexico. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Price Target Changed • Dec 06
Price target decreased to Mex$7.77 Down from Mex$9.38, the current price target is an average from 3 analysts. New target price is 94% above last closing price of Mex$4.01. Stock is down 50% over the past year. The company is forecast to post a net loss per share of Mex$0.065 compared to earnings per share of Mex$0.13 last year. Reported Earnings • Oct 22
Third quarter 2021 earnings released: Mex$0.11 loss per share (vs Mex$0.07 loss in 3Q 2020) The company reported a poor third quarter result with increased losses, weaker revenues and weaker control over costs. Third quarter 2021 results: Revenue: Mex$2.76b (down 11% from 3Q 2020). Net loss: Mex$302.0m (loss widened 74% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth.