iQSTEL Inc (NASDAQ: IQST)

Sector: Communication Services Industry: Telecom Services CIK: 0001527702
Market Cap 4.68 Mn
P/B 0.36
P/E -0.53
P/S 0.01
ROIC (Qtr) -12.95
Div Yield % 0.00
Rev 1y % (Qtr) 89.62
Total Debt (Qtr) 4.09 Mn
Debt/Equity (Qtr) 0.31
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About

Investment thesis

Bull case

  • Strong tangible asset base of 31.85M provides 7.79x coverage of total debt 4.09M, indicating robust asset backing and low credit risk.
  • Tangible assets of 31.85M provide exceptional 35.89x coverage of deferred revenue 887408, showing strong service capability backing.
  • Strong free cash flow of (3.13M) provides 10.35x coverage of acquisition spending (302931), indicating disciplined M&A strategy.
  • Operating cash flow of (3.01M) fully covers other non-current liabilities (631278) by 4.76x, showing strong long-term stability.
  • Robust tangible asset base of 31.85M provides 29.09x coverage of working capital 1.10M, indicating strong operational backing.

Bear case

  • Cash reserves of 2.26M provide limited coverage of acquisition spending of (302931), which is -7.46x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (3.01M) provides insufficient coverage of deferred revenue obligations of 887408, which is -3.39x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (3.01M) shows concerning coverage of stock compensation expenses of 408077, with a -7.37 ratio indicating potential earnings quality issues.
  • High receivables of 24.65M relative to inventory of 30658 (803.95 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (3.13M) provides weak coverage of capital expenditures of 129004, with a -24.30 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.20 0.87
EV to Cash from Ops. EV/CFO -3.17 7.73
EV to Debt EV to Debt 2.33 40.31
EV to EBIT EV/EBIT -1.62 2.24
EV to EBITDA EV/EBITDA -7.49 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF -3.04 33.34
EV to Market Cap EV to Market Cap 2.04 1.71
EV to Revenue EV/Rev 0.03 5.12
Price to Book Value [P/B] P/B 0.36 2.16
Price to Earnings [P/E] P/E -0.53 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -14.19 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) -3.00 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 31.87 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 6.32 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -177.99 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -373.64 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) -172.62 814.56
EBT Growth (1y) % EBT 1y % (Qtr) -110.09 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) -111.98 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 16.74 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.83 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 7.07 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.08 0.68
Current Ratio Curr Ratio (Qtr) 1.04 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 -0.46
Interest Cover Ratio Int Coverage (Qtr) -3.00 -2.53
Times Interest Earned Times Interest Earned (Qtr) -3.00 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.50 46.49
EBIT Margin % EBIT Margin % (Qtr) -1.77 -51.60
EBT Margin % EBT Margin % (Qtr) -2.36 27.73
Gross Margin % Gross Margin % (Qtr) 2.80 55.49
Net Profit Margin % Net Margin % (Qtr) -2.70 26.33