By: Sam Parker
In recent weeks, iQSTEL (OTC-QX: IQST) has been releasing some impressive news regarding its 2023 performance and future projections. However, the stock price seems to have missed the memo. Many shareholders express frustration over the current stock price, which is trading at what some consider “oversold” levels. But are investors overlooking the real story here?
While it’s undeniable that iQSTEL’s stock has faced downward pressure, likely due to the broader market trends and lingering corrections, the fundamentals tell a completely different story. This company is predicting significant revenue and gross margin growth, and some shareholders might be missing the opportunity to capitalize on these trends. Let’s unpack why iQSTEL’s stock looks poised for a potential turnaround.
Revenue Per Share Growth: A Key Indicator
In their latest announcements, iQSTEL disclosed a 55% revenue growth in 2023, reaching $144.5 million. Even more exciting, the company projects revenue per share (RPS) will rise from $0.83 at the end of 2023 to an estimated $1.50 by 2024. This represents an impressive 81% increase. Coupled with their ongoing acquisition of QXTEL, which is expected to push annual revenues to a quarter-billion, investors need to consider the disconnect between stock price and these robust fundamentals.
At a time when the company is becoming more profitable, delivering a positive operating income and expanding its global customer base, the stock remains “under the radar.” This discrepancy provides an opportunity for investors willing to zoom out from day-to-day price movements and focus on the company’s longer-term growth trajectory.
A Buying Opportunity Amid Low Valuation
To put this in perspective, iQSTEL’s 2023 revenue per share (RPS) was $0.83, and with an expected boost to $1.50 in 2024, many analysts would argue the current share price doesn’t reflect this potential. As of December 2023, iQSTEL’s stock was trading at around $0.16, implying a P/S (price-to-sales) ratio that is remarkably low compared to industry standards.
Historically, iQSTEL has shown resilience, managing to grow its revenue even when the market sentiment was pessimistic. In a letter to shareholders, CEO Leandro Iglesias stressed that iQSTEL has never missed a revenue forecast, which is no small feat considering the broader economic challenges that have plagued many growth stocks.
With a forward P/S ratio so attractive, it’s worth asking: why isn’t the stock higher? One reason may be the 2021 stock run-up, which left a significant correction in its wake. This has led to an undervalued situation, where the market has overshot to the downside.
Key Catalysts for Growth in 2024
1. M&A Activity and QXTEL Acquisition: The acquisition of 51% of QXTEL marks a transformative moment for iQSTEL. QXTEL brings with it new global customers across multiple regions, including Europe, Latin America, and Asia. This acquisition is expected to almost double iQSTEL’s business size, setting the company on course to become one of the top 10 wholesale telecommunications providers.
2. Nasdaq Uplisting: Management has made it clear that their goal for 2024 includes uplisting to the Nasdaq. This milestone, once achieved, is expected to significantly elevate the company’s visibility, potentially driving new investors into the stock.
3. Expanding Business Divisions: Beyond telecommunications, iQSTEL is making strides in emerging technologies like IoT, electric vehicles (EV), and even the Metaverse. These new revenue streams provide additional growth avenues that aren’t yet fully appreciated by the market.
4. Higher Profit Margins: The company’s gross margin continues to improve, and with a goal of achieving $3 million in operating income from the telecommunications division alone, the financial performance is set to strengthen.
Final Thoughts: A Stock Under the Radar
For those willing to look past the current price action and focus on fundamentals, iQSTEL represents a unique buying opportunity. The stock may be under the radar, but the company’s performance is anything but. With projected revenue and margin growth, coupled with a promising Nasdaq uplisting on the horizon, it’s only a matter of time before the market starts to take notice.
In the meantime, patient investors could see significant upside as iQSTEL continues its growth trajectory. At today’s prices, the stock appears deeply undervalued, especially when factoring in the company’s revenue-per-share growth and upcoming catalysts.
For more insights, you can follow the company’s announcements on their official website https://www.iqstel.com
