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Acquisitions, Strong Balance Sheet And Record Revenues Position IQSTEL, Inc. As An Emerging Telecommunications Superstar (IQST)

Although the small-cap index has been taking a beating of late, 2021 has treated iQSTEL, Inc. (OTC: IQST) very well. Retaining and building upon their momentum generated in 2020, the company was able to consecutively post quarters that exceeded $4.8 million in revenues. Things are looking even better for the back half of the year. 

And despite an exceptionally weak Nasdaq market at press time Monday, IQST shares are trading the day higher by 14%. Moreover, headlines generated by IQST's homerun Q4 in 2020, as well as its consistent and consecutive postings of revenue growth, the company's shares have risen by more than 230% since January. Better still, not only has IQST retained its breakout momentum from 2020, but the data shows no indication of this trend slowing down, with guided current year revenues to meet or exceed $60.5 million. Should this forecast prove accurate, IQST would blow last year's $44.9 million out of the water with an increase of nearly 35%. Remember – this would come on top of the 149% year-over-year gain from last year. 

Working to solidify this estimate into a reality, IQST has diversified its revenue sources, with seven subsidiaries now generating revenue within its four company divisions.

Best of all, combining the potential from its asset base, IQST is in a prime position to become a breakout star within the international telecommunications industry as early as this year. 



Video Link: https://www.youtube.com/embed/gmpLL7cTVD4

A Debt-Free Balance Sheet and Growing Revenues

One of the most important takeaways from IQST's consistent growth is that the company is creating substantial cash flow that can immediately be used to grow the company. IQST shared with its investors a newly implemented plan to eliminate debt in 2020, and the past year proved this plan successful. The company is debt-free as of the first quarter of 2021's fiscal year, with no convertible notes, warrants, or settlements to speak of. This advantage allows IQST to further add to its balance sheet and expand the company by investing all available funds from operations and its current Reg A offering. Notably, these enhancements are expected to continue throughout the second half of 2021 as well.

It's also important to point out that despite the unprecedented challenges brought on by the global pandemic in 2020, especially among companies focused on conducting international business, IQST was still able to post a considerable growth of 149% year-over-year. More specifically, revenues saw an increase from FY-2019's $18 million to $44.9 million in FY-2020. And, with 2021's revenues projected to rise another 34% this year, this growth shows no signs of slowing down.

Notably, the recent revenue surge has resulted in a 70% decrease in loss per share, from $(0.35) in FY-2019 to $(0.10) in FY-2020. This means that the projected growth in 2021 can put positive earnings into the equation, which would work to facilitate the company's planned NASDAQ uplisting and attract institutional money in the process. Additionally, due to an improved cash position, IQST raised its assets to $5.9 million in FY-2020, up from $5.6 million the previous year.

The balance sheet also shows a decrease in Current Liabilities by 29% year-over-year and reduced Total Liabilities by 27%. Thus, from an operational and fiscal perspective, IQST is hitting on all cylinders. The company's planned announcement of Q1 revenues later this month could reiterate that point and deliver additional financial milestones.

The business, of course, is the engine driving this wave of expansion, with the company's technologies, growth strategies, and new partnerships beginning to create considerable buzz within the industry.

The Value in Partnerships

All things considered, 2021 could prove to be a milestone year in IQST's development. Investors can make comparisons by looking at industry competitors Atento S.A. (NYSE: ATTO), which has earned a market cap of $359 million through its operations in 13 countries. America Movil, S.A.B. (NYSE: AMX) shows a similar story, now with a market cap of $47.6 billion.

Despite the company's current size, long-term estimates suggest that IQST has the resources and potential to successfully expand its markets as well. If so, the market cap could see an increase to match, leading toward a valuation in the hundreds of millions of dollars compared to its current $90.3 million. 

Thanks to long-term strategic planning from IQST, the company is in its best position ever to capitalize on its momentum. Bear in mind, however, that IQST is still open to accretive acquisitions. As a result, in the upcoming quarters, there could be significantly more accretive value added. New partnerships would help expand its already impressive infrastructure, contributing to potentially record-setting revenues and support its current business presence in 15 countries. 

At this stage, a revenue-based multiple alone could send the stock substantially higher. With news soon anticipated from each of the company's four divisions, the combination of events should entice value-minded investors to consider investing at these levels.  

As always, trading ahead of the news often brings the greatest returns.

 

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