By: Alex Mercer, Financial Analyst
PubCo Insight
In the fast-paced world of the stock market, where investor sentiment often overshadows fundamentals, certain stocks languish in undervaluation despite exhibiting robust growth and solid financials. iQSTEL Inc. (OTC-QX: IQST) is one such company in the telecommunications sector that has consistently outperformed its financial targets, yet remains under the radar for many investors. With today’s announcement of iQSTEL’s strategic acquisition of 51% of QXTEL, a UK-based telecommunications services provider, it’s time to assess whether the market will finally acknowledge the company’s true value.
Solid Fundamentals and Strategic Growth
iQSTEL’s fundamentals paint a picture of a company on a solid upward trajectory. The firm reported a 50% increase in revenue to $140 million in 2023, surpassing its own forecasts. Importantly, it achieved a consolidated positive operating income in Q3 of 2023, ahead of its planned schedule. These figures are not just mere statistics but reflect a company with robust operational efficiency and promising growth potential.
The Transformative QXTEL Acquisition
The acquisition of QXTEL is a game-changer for iQSTEL. This deal is poised to add over $80 million to its annual revenue, boosting its combined sales to a remarkable $250 million. This significant leap is strategic, propelling iQSTEL into the league of top international wholesale telecommunications operators.
Trading Perspective
Given these solid fundamentals and the impactful news of the QXTEL acquisition, it will be telling to see how the market reacts. Currently, iQSTEL’s stock is trading around $0.15, a figure that seems misaligned with the company’s financial trajectory and growth prospects. The stock’s journey includes a peak in early 2021 and a subsequent correction phase, potentially leading to its current undervaluation.
Comparative Market Analysis
When compared to its peers, iQSTEL’s lower price-to-sales (P/S) ratio is apparent. With an RPS of around $0.81 and a trading price lingering near $0.15, iQSTEL’s P/S ratio is considerably modest compared to industry standards. This disparity is stark, especially in light of the company’s consistent revenue growth and its recent strategic expansion.
Conclusion: An Overlooked Opportunity with Substantial Upside
In summary, iQSTEL Inc. represents an overlooked opportunity in the stock market. The company’s strong financials, coupled with its strategic moves like the QXTEL acquisition, stand in contrast to its current stock valuation. As we wait to see if the market corrects this anomaly, iQSTEL offers an intriguing prospect for investors who seek value beyond the immediate market reactions, highlighting the company as an unrecognized titan in its field.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to do their own research and consult with a financial advisor before making investment decisions.
