The Zacks Wireless Non-US industry has experienced a significant uptick, gaining 51.7% over the past year, compared to 16.5% for the S&P 500. Key players such as América Móvil, S.A.B. de C.V. (AMX), TIM S.A. (TIMB), and SK Telecom Co., Ltd. (SKM) are benefitting from rising demand for wireless and fiber connectivity amid accelerating 5G deployments and increased Internet of Things (IoT) solutions. The industry is currently ranked #81 in the Zacks Industry Rank, placing it in the top 33% of over 250 industries.
Despite robust performance, challenges such as high capital expenditures, geopolitical supply-chain disruptions, and fierce competition threaten ongoing profitability. The ongoing chip shortage and elevated raw material prices exacerbated by conflicts like the Israel-Hamas situation have further strained the industry. Wireless operators are focusing on enhancing subscriber growth and loyalty through innovative services and competitive offerings, aiming for increased revenues and profitability.
As of now, the industry’s trailing 12-month Enterprise Value-to-EBITDA (EV/EBITDA) ratio stands at 4.37X, significantly lower than both the S&P 500’s 18.88X and the sector’s 19.01X, indicating potential value opportunities amid growth challenges.
