iQSTEL (IQST) AI Stock Analysis

• Market Cap: $19.49M
• Dividend Yield: N/A
• Average Volume (3M): 6.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 95.97%
• EPS Growth: -271.01%
• Country: US
• Employees: 100
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): -2.80
• Shares Outstanding: 2,633,877
• 10 Day Avg. Volume: 6,128
• 30 Day Avg. Volume: 6,240
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.65
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 15.22
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

iQSTEL's stock demonstrates significant revenue growth and an improving profit margin, which are positive indicators for future potential in the telecommunications sector. However, persistent operational inefficiencies, negative cash flows, bearish technical indicators, and unattractive valuation metrics significantly weigh on the overall score. Addressing these challenges could improve the stock's outlook.

iQSTEL Business Overview & Revenue Model

Company Description

iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, provides telecom and technology solutions. It provides international long-distance voice services (ILD wholesale) for telecommunications operator; and submarine fiber optic network capacity for internet, such as 4G and 5G. The company offers voice over IP connectivity, short messages service (SMS), and international and domestic SMS termination services. It also provides infrastructure connectivity, Cloud-PBX, OmniChannel marketing, Internet of Things services, and blockchain and payment solutions. iQSTEL Inc. serves wholesale carrier, government, corporate, enterprise, and small and medium companies in North America, Latin America, and Europe. The company was formerly known as PureSnax International, Inc. and changed its name to iQSTEL Inc. in August 2018. iQSTEL Inc. was incorporated in 2011 and is based in Coral Gables, Florida.

How the Company Makes Money

iQSTEL Inc. generates revenue through multiple channels across its diversified business segments. In the telecommunications sector, the company earns money by providing voice and SMS services to telecom operators and enterprises. This involves selling minutes and messaging services, primarily through wholesale agreements. The fintech segment contributes to revenue with mobile payment solutions and banking services, catering to both consumers and businesses. Additionally, the company's expansion into electric vehicles and IoT offers potential revenue streams from selling related products and services. Partnerships with other technology firms and strategic acquisitions further bolster iQSTEL's earnings by expanding its market reach and technological capabilities.

iQSTEL Financial Statement Overview

Summary

iQSTEL shows solid revenue growth and an improving net profit margin, indicating progress towards profitability. However, challenges persist with negative EBIT and EBITDA margins, and negative cash flow from operations. The balance sheet indicates improved equity but also highlights a relatively high reliance on debt.

Income Statement

iQSTEL has demonstrated a strong revenue growth trajectory, with Total Revenue increasing from $18 million in 2019 to $283 million in 2024. The Gross Profit Margin improved to 2.92% in 2024 compared to 4.99% in 2023, indicating some efficiency in managing costs. The Net Profit Margin turned positive at 0.29% in 2024, suggesting a move towards profitability. However, EBIT and EBITDA margins remain negative, indicating ongoing challenges in operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio improved to 0.41 in 2024 from 0.12 in 2023, indicating a manageable level of leverage. Stockholders' Equity increased to $11.9 million in 2024, reflecting improved financial stability. However, the Equity Ratio decreased to 15.06% in 2024, suggesting a relatively low proportion of assets funded by equity, which could pose risks in times of financial distress.

Cash Flow

Operating Cash Flow remains negative at -$2.93 million in 2024, indicating challenges in generating cash from operations. Free Cash Flow also remains negative, but the company's ability to secure financing has improved, with Financing Cash Flow reaching $7.24 million in 2024. The lack of positive cash flow from operations could impact its ability to self-fund growth initiatives.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
144.50M	93.20M	64.70M	44.91M	18.03M
	Gross Profit
4.67M	1.79M	1.53M	962.35K	780.92K
	EBIT
-315.50K	-2.91M	-2.87M	-3.07M	-647.01K
	EBITDA
―	-5.68M	-3.10M	-3.12M	-2.73M
	Net Income Common Stockholders
-763.26K	-8.62M	-4.52M	-6.70M	-8.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.36M	1.33M	3.33M	753.32K	270.50K
	Total Assets
22.16M	12.55M	9.06M	5.95M	5.60M
	Total Debt
980.18K	438.44K	674.05K	3.91M	3.42M
	Net Debt
-382.49K	-890.95K	-2.66M	3.16M	3.15M
	Total Liabilities
14.11M	6.71M	2.64M	8.35M	11.37M
	Stockholders Equity
8.42M	6.76M	7.42M	-1.39M	-4.87M
Cash Flow		Free Cash Flow
-1.70M	-1.88M	-3.38M	-2.21M	-1.28M
	Operating Cash Flow
-1.48M	-1.77M	-3.15M	-2.12M	-1.24M
	Investing Cash Flow
-332.55K	-2.00M	-511.35K	-91.21K	152.07K
	Financing Cash Flow
1.83M	1.77M	6.25M	2.66M	1.36M

iQSTEL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQST, the sentiment is Negative. The current price of 7.4 is below the 20-day moving average (MA) of 10.67, below the 50-day MA of 11.55, and below the 200-day MA of 14.97, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 21.51 is Positive, neither overbought nor oversold. The STOCH value of 11.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQST.

iQSTEL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXDO	73 Outperform	$143.97M	89.58	3.49%	―	14.36%	―
UCL	69 Neutral	$42.42M	9.25	24.20%	―	7.08%	59.40%
Sector *	59 Neutral	$13.76B	7.70	-1.87%	3.86%	2.21%	-37.55%
FNGR	54 Neutral	$155.42M	―	-48.67%	―	-16.91%	4.83%
IQST	50 Neutral	$19.49M	―	-76.61%	―	95.97%	-271.01%
KORE	48 Neutral	$42.87M	―	174.77%	―	3.43%	22.96%
ANTE	25 Underperform	$11.55M	0.23	98.14%	―	-45.64%	―

iQSTEL Corporate Events

iQSTEL Announces Reverse Stock Split for Nasdaq Uplisting

On May 1, 2025, iQSTEL Inc. announced a 1-for-80 reverse stock split of its common stock, effective May 2, 2025, as part of its strategy to uplist to the Nasdaq Capital Market. This move aims to increase the stock price to meet Nasdaq’s listing requirements, although approval is not guaranteed. The reverse split will not alter stockholders’ equity interests but will adjust the number of shares proportionally, impacting all stockholders uniformly.

Spark’s Take on IQST Stock

According to Spark, TipRanks’ AI Analyst, IQST is a Neutral.

iQSTEL’s stock score is driven by strong revenue growth but hampered by operational inefficiencies and negative cash flow from operations. The technical analysis reflects a bearish trend with no immediate upward momentum. Valuation concerns arise from the negative P/E ratio and lack of income from dividends. These factors collectively contribute to a moderate overall score, highlighting the need for improved operational execution to enhance investor confidence.

To see Spark’s full report on IQST stock, click here.