| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.83 | 1298 |
| Intrinsic value (DCF) | 35.87 | 1159 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
iQSTEL Inc. (IQST) is a diversified telecommunications and technology solutions provider offering a range of services, including international long-distance voice (ILD wholesale), submarine fiber optic network capacity, VoIP connectivity, SMS termination, Cloud-PBX, OmniChannel marketing, IoT services, and blockchain-based payment solutions. Headquartered in Coral Gables, Florida, the company serves wholesale carriers, enterprises, and government clients across North America, Latin America, and Europe. Operating in the competitive Communication Services sector, iQSTEL leverages its subsidiary, Etelix.com USA, LLC, to deliver scalable telecom infrastructure and innovative fintech solutions. Despite its relatively small market cap (~$28M), the company has demonstrated revenue growth ($283M in latest filings) but remains unprofitable (net loss of ~$6M). Its high beta (1.716) reflects volatility, typical of emerging OTC-listed telecom-tech hybrids. The company’s strategic focus on blockchain-integrated services and IoT positions it in high-growth niches within telecom.
iQSTEL presents a high-risk, high-reward opportunity with its dual telecom and fintech/blockchain exposure. Revenue growth is notable (~$283M in latest filings), but persistent net losses (~$6M) and negative operating cash flow (~$2.9M) raise sustainability concerns. The stock’s high beta (1.716) signals volatility, and its OTC listing adds liquidity risks. Competitive pressures in wholesale telecom (low-margin ILD/SMS services) may limit profitability, while its blockchain/IoT initiatives remain unproven at scale. Investors should weigh its growth potential against execution risks and sector competition. No dividends are offered, aligning with its reinvestment strategy.
iQSTEL operates in a fragmented telecom wholesale market, competing on price and niche service bundling (e.g., blockchain payments). Its competitive advantage lies in vertical integration—combining legacy telecom (Etelix’s ILD/SMS) with emerging tech (IoT, blockchain), though monetization is unproven. The company’s submarine fiber assets provide infrastructure differentiation, but scale limitations vs. giants like AT&T or Verizon constrain market power. Gross margins are likely pressured by commoditized wholesale voice/SMS, where rivals like BICS or Syniverse dominate with global scale. Its OmniChannel and Cloud-PBX offerings face stiff competition from UCaaS leaders (e.g., RingCentral). The blockchain payment segment, while innovative, lacks the ecosystem of established fintechs. Geographic diversification (LatAm/Europe) is a strength, but reliance on wholesale carrier clients exposes it to volume-based pricing risks. Capital constraints (negative FCF, $2.5M cash) may hinder R&D or M&A needed to compete with deeper-pocketed peers.