The P/E of 15.35x sits above AT&T's 8.28x and Verizon's 12.12x, suggesting the market assigns a quality premium for AMX's regional scale and lower regulatory risk compared to US incumbents. However, the dividend yield of 2.6% is well below the 4.5-5.5% offered by US peers, indicating investors are not primarily seeking income but rather capital appreciation from data growth. The forward P/E of 0.72x appears distorted, likely due to FX translation effects or non-recurring items, and should be treated with caution. The EV/EBITDA of 5.83x is the lowest among the peer set, implying the market may be undervaluing the consolidated EBITDA generation relative to peers, possibly due to the conglomerate discount from non-core assets like Telekom Austria.

The sharp quarterly ROE swings—from -0.3% in 2024Q2 to 5.6% in 2026Q2—reflect non-recurring items and FX volatility rather than a stable regulatory return. The TTM ROE of 18.1% is robust and exceeds the cost of equity, indicating that AMX is earning above its allowed return in its core markets, particularly Mexico. However, the quarterly volatility suggests that regulatory lag in cost recovery, especially for 5G and fiber investments, may be compressing near-term returns. Investors should monitor whether the recovery to 5.6% quarterly ROE is sustainable or if it is driven by one-off gains, as the prior income statement analysis noted EPS growth of 98.1% in 2025Q4, which may not recur.

The stability of operating margins around 21% suggests that AMX is effectively managing its cost structure, even as revenue growth decelerates to 1.8% YoY. The gross margin of 42.94% is constrained by handset subsidies and interconnection fees, but the operating margin resilience implies that service revenue growth is outpacing variable costs. However, the thin net margin of 8.8% leaves little buffer for energy cost spikes or currency depreciation, which could compress profitability if not passed through. The transition from copper to fiber may provide a step-function improvement in margins as legacy network maintenance costs decline, but this is not yet visible in the data.

The debt-to-equity ratio of 2.14 in 2025Q4 was a red flag, but the subsequent reduction to 1.58 in 2026Q2, driven by a $227B debt reduction, indicates management is prioritizing deleveraging. Interest coverage of 3.03x in 2026Q2 is adequate but remains below the 4.24x seen in 2026Q1, reflecting the impact of higher interest rates on floating-rate debt. The FFO/debt ratio of 5.45% is thin, suggesting limited headroom for additional leverage if cash flow weakens. The tower spin-off to Sitios Latinoamérica may have reduced reported debt but introduced lease obligations that are not captured in the debt-to-capital ratio, warranting a closer look at off-balance-sheet liabilities.

The dividend payout ratio spiked to 78.3% in 2025Q4 and 146.9% in 2024Q4, but these are likely distorted by non-recurring items and FX translation losses, as the underlying OCF coverage remains strong. The current dividend yield of 2.6% is modest, but the company's ability to fund dividends from operating cash flow without resorting to external financing is a positive signal. However, with CAPEX consuming 56% of OCF, the dividend is competing with investment needs for 5G and fiber, which may limit future payout growth. Investors should monitor whether the payout ratio normalizes to a sustainable level, as the 2024Q4 spike suggests potential earnings volatility.

AMX's ROE of 18.1% is comparable to T-Mobile's 18.2% and well above AT&T's 16.8% and Verizon's 15.3%, indicating strong capital efficiency. However, the net margin of 8.8% is lower than AT&T's 17.4% and Verizon's 12.4%, reflecting the higher cost structure and FX pressures in Latin America. The P/E discount to T-Mobile may be justified by the higher regulatory risk in Mexico and the conglomerate discount from non-core assets, but the EV/EBITDA of 5.83x suggests the market is not fully crediting AMX's EBITDA generation. The dividend yield of 2.6% is the lowest among peers, which may deter income-focused investors but could appeal to growth-oriented investors seeking exposure to Latin American data adoption.