OTCPK:AXTL.F

Stock Analysis Report

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Executive Summary

Axtel, S.A.B. de C.V., an information and communications technology (ICT) company, offers ICT solutions for corporate, government, small businesses, and residential customers in Mexico. More Details


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Axtel. de's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXTL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AXTL.F

-1.8%

US Telecom

-3.1%

US Market


1 Year Return

n/a

AXTL.F

-12.1%

US Telecom

12.7%

US Market

Return vs Industry: Insufficient data to determine how AXTL.F performed against the US Telecom industry.

Return vs Market: Insufficient data to determine how AXTL.F performed against the US Market.


Shareholder returns

AXTL.FIndustryMarket
7 Day0%-1.8%-3.1%
30 Day0%-1.5%-2.9%
90 Dayn/a4.0%8.2%
1 Yearn/a-7.6%-12.1%15.3%12.7%
3 Yearn/a6.1%-9.1%37.8%28.5%
5 Year-23.9%-23.9%33.1%3.1%90.9%69.4%

Price Volatility Vs. Market

How volatile is Axtel. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Axtel. de undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXTL.F ($0.29) is trading below our estimate of fair value ($0.38)

Significantly Below Fair Value: AXTL.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AXTL.F is poor value based on its PE Ratio (22.4x) compared to the US Telecom industry average (11.5x).

PE vs Market: AXTL.F is poor value based on its PE Ratio (22.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AXTL.F is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AXTL.F is overvalued based on its PB Ratio (4.8x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

How is Axtel. de forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXTL.F's forecast earnings growth (6.3% per year) is above the savings rate (2.2%).

Earnings vs Market: AXTL.F's earnings (6.3% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: AXTL.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: AXTL.F's revenue (3.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AXTL.F's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXTL.F's Return on Equity is forecast to be low in 3 years time (2.6%).


Next Steps

Past Performance

How has Axtel. de performed over the past 5 years?

33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXTL.F has a large one-off gain of MX$1.8B impacting its June 30 2020 financial results.

Growing Profit Margin: AXTL.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AXTL.F has become profitable over the past 5 years, growing earnings by 33.2% per year.

Accelerating Growth: AXTL.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AXTL.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (-12.9%).


Return on Equity

High ROE: AXTL.F's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Axtel. de's financial position?


Financial Position Analysis

Short Term Liabilities: AXTL.F's short term assets (MX$9.9B) exceed its short term liabilities (MX$8.5B).

Long Term Liabilities: AXTL.F's short term assets (MX$9.9B) do not cover its long term liabilities (MX$16.0B).


Debt to Equity History and Analysis

Debt Level: AXTL.F's debt to equity ratio (400.2%) is considered high.

Reducing Debt: AXTL.F's debt to equity ratio has increased from 223.2% to 400.2% over the past 5 years.

Debt Coverage: AXTL.F's debt is well covered by operating cash flow (24.1%).

Interest Coverage: AXTL.F's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Axtel. de current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AXTL.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AXTL.F's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AXTL.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AXTL.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXTL.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Sergio Rolando Zubirán Shetler (68 yo)

4.58yrs

Tenure

Mr. Sergio Rolando Zubirán Shetler has been the Chief Executive Officer of Axtel S. A. B. De CV since February 15, 2016. Mr. Rolando Zubirán Shetler has been the Chief Executive Officer of Axtel at Alfa S. ...


Leadership Team

NamePositionTenureCompensationOwnership
Sergio Rolando Zubirán Shetler
Chief Executive Officer4.58yrsno datano data
Adrian G. de los Santos Escobedo
Chief Financial Officer3.58yrsno datano data
Andrés Eduardo Cordovez Ferretto
Executive Officer of Infrastructure & Operationsno datano datano data
José Antonio Velasco Carmona
Executive Direction for Administration6.67yrsno datano data
Raúl Ortega Ibarra
Executive Officer of Legal & Regulatoryno datano datano data
Carlos Guillermo Buchanan Ortega
Executive Officer of Human Capitalno datano datano data
Rodolfo Paez Gonzalez
Alternate Secretaryno datano datano data
Manuel Ramirez Lopez
Corporate Controllerno datano datano data
Carlos Jiménez Barrera
Secretary of the Boardno datano datano data
Bernardo García Reynoso
Executive Officer of Planning & Developmentno datano datano data
Arturo Vázquez Silveyra
Executive Director of Strategic Government Accountsno datano datano data

4.6yrs

Average Tenure

60.5yo

Average Age

Experienced Management: AXTL.F's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tomás Milmo Santos
Co-Chairman of the Board4.58yrsno data5.16%
MX$ 45.9m
Armando Garza Sada
Director4.58yrsno datano data
Fernando Angel Gonzalez Olivieri
Director4.58yrsno datano data
Alvaro Fernandez Garza
Co-Chairman of the Board4.58yrsno datano data
Francisco Rogelio Garza Egloff
Independent Director4.58yrsno datano data
Patricio Jiménez Barrera
Director4.58yrsno datano data
Alejandro Miguel Elizondo Barragán
Director4.58yrsno datano data
Alberto Santos Boesch
Director4.42yrsno datano data
Ricardo Ernesto Saldívar Escajadillo
Independent Director4.58yrsno datano data
Juan Ignacio Garza Herrera
Independent Director4.58yrsno datano data
Enrique Meyer Guzmán
Independent Director4.58yrsno datano data
Eduardo Alberto Escalante Castillo
Directorno datano datano data

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: AXTL.F's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Axtel, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Axtel, S.A.B. de C.V.
  • Ticker: AXTL.F
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: Mex$19.158b
  • Listing Market Cap: Mex$890.710m
  • Shares outstanding: 2.80b
  • Website: https://www.axtelcorp.mx

Number of Employees


Location

  • Axtel, S.A.B. de C.V.
  • Boulevard Díaz Ordaz km 3.33 L-1
  • Colonia Unidad San Pedro
  • San Pedro Garza García
  • Nuevo Leon
  • 66215
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXTEL CPOBMV (Bolsa Mexicana de Valores)YesCPOsMXMXNDec 2005
AXTL.FOTCPK (Pink Sheets LLC)YesCPOsUSUSDDec 2005
4GKDB (Deutsche Boerse AG)YesCPOsDEEURDec 2005

Biography

Axtel, S.A.B. de C.V., an information and communications technology (ICT) company, offers ICT solutions for corporate, government, small businesses, and residential customers in Mexico. It engages in insta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 06:22
End of Day Share Price2020/08/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.