TSC Ratings' Updates: America Movil

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

The following ratings changes were generated on Thursday, May 21.

We've upgraded America Movil(AMX Quote) from hold to buy, driven by its expanding profit margins, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

America Movil's gross profit margin is 59.4%, having increased from the same quarter last year, but its net profit margin of 17.4% trails the industry average. Revenue fell by 13.7% from the year-ago quarter, and EPS declined by 5.4%. The company has suffered a declining pattern of earnings per share over the past year, but we anticipate this trend reversing over the coming year. The company's current return on equity has slightly decreased from the same quarter one year prior, implying a minor weakness in the organization. ...