iQSTEL Inc.'s Market Cap Is Overlooking Two Important Things - Its Record Revenues And Seven Subsidiary Companies
Soulstring Media provides coverage for iQSTEL Inc.; Record revenues and global reach could set up company for a strong 2021
Miami Beach, Florida--(Newsfile Corp. - January 21, 2021) - iQSTEL (OTC: IQST) is proof that markets can miss the mark when valuing emerging companies. In fact, with a current valuation of roughly $22 million, iQSTEL's most recent stock price of $0.24 may expose a massive disconnect that undervalues the extraordinary growth taking place at the company. Its IP assets, client agreements, subsidiary interests, and surging revenue fully support that thesis.
For those not already following this cloud-based services company, iQSTEL published preliminary revenues that increased by 148% on a year-over-year basis. Moreover, that triple-digit percentage surge comes as the company posted its third consecutive month of reaching $5 million or more in revenues, with record-setting performances supporting guidance for 2021 revenues to reach $60 million. Notably, the growth rate is quickening, with December 2020 revenues reaching $5.1 million, a more than 168% jump compared to the same period in 2019.
And with an extremely experienced management team leading its charge, the company set its 2021 agenda to penetrate multiple market opportunities and substantially build shareholder value in the new year. Its financial performance, combined with the proven ability to reach milestones, fuels that optimism.
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A Decades Worth Of Experience
iQSTEL is not new to its industry. The company began in 2008, specializing in Voice over Internet Protocol (VoIP) but has since expanded into more modern communications services. Now capitalizing on their experience and expertise, iQSTEL has established numerous partnerships and client agreements that set the stage for additional record-setting performances in 2021. In fact, not only would their estimated $60.4 million in revenues represent a more than 34% increase in YoY revenues, it would follow the extraordinary gains made last year. iQSTEL's growth is no accident.
Unlike smaller providers, iQSTEL telecommunications services target opportunities that service both carriers and enterprise customers. Those efforts are currently focused on capitalizing upon opportunities in valuable Latin America, Africa, and Asia markets. However, since iQSTEL has never shied away from strategic opportunities, don't underestimate their interest in taking advantage of merger and acquisition opportunities that could put other properties and geographic regions under the iQSTEL brand. It's a likely play that could add to their thirteen country business presence.
Also, iQSTEL is taking advantage of the communications sector inefficiencies exposed by COVID-19. The good news is that unlike the industry behemoths, iQSTEL is agile enough to quickly target valuable niche opportunities left exposed by the fallout from the virus. Everything from SMS messaging, VoIP services, and electronic payments have been affected by the strain on transmission resources. Deliverables that were often taken for granted are no longer just a click away for many consumers.
And, as emerging markets grow more dependent on internet transactions, iQSTEL's ability to provide innovative and timely solutions to its IoT (Internet of Things) and Fintech base could translate into significantly higher near-term revenue creation. Multiple initiatives are underway.
The first targets the IoT markets with solutions-based platforms that solve logistics problems to help facilitate cross-selling opportunities. But that's just one example. The IoT sector offers an almost limitless range of opportunities, and iQSTEL is staying most focused on driving revenues from products and services that can be immediately accretive to its overall growth. Updates are expected.
A second value driver is its Fintech division, where iQSTEL utilizes blockchain technology to provide users access to its Mobile Number Portability Application, a platform that virtually eliminates the potential of fraud during transactions. This business-to-customer program also facilitates offering prepaid Visa debit cards, remittance applications, bill payment, SMS messaging/payments, and more to immigrants who might not otherwise have easy access to these services. It's a potentially lucrative market that is supported by massive consumer demand.
Keep in mind, too, that while the SMS sector remains very lucrative on its own, it has evolved tremendously over the past five years. iQSTEL believes the value from marketing successful IoT and Fintech SMS solutions can bring exponential long term value. Numbers confirm that the company is on the right track.
As noted, revenue in 2020 surged. And, on a comparison basis, iQSTEL's speed of growth is higher than most of its peer competitors. The wild-card is iQSTEL making good on its acquisition ambitions, which would add to its ability to support substantially higher current and forward-looking valuations. All signs point to new deals being made. And value from those deals would likely be immediately accretive.
Subsidiaries Target Billion Dollar Market Opportunities
What also shouldn't go unnoticed is that iQSTEL is focused on growing its brand by developing other global opportunities. The company thinks it can find space in the International Long-Distance traffic market, an estimated $13 billion a year market with Wholesale Carriers holding a 68% market share. While the growth of popular apps like WhatsApp and Facebook Messenger have created competition for the carriers, sector growth is still accelerating as demand surges from emerging global markets. iQSTEL expects to chisel away part of that wholesale carrier stronghold with products and services of its own.
Etelix.com USA LLC, a wholly owned by iQSTEL, is finding success by providing international and domestic VoIP communications, 4G and 5G International Submarine Fiberoptic connectivity, and IP-PBX (Internet Protocol private branch exchange) services across Latin America, Africa, Asia, and the US. Another iQSTEL interest, SwissLink Carrier AG, provides VoIP communication services in Europe. iQSTEL has said that its next goal is to expand similar services into Africa and Asia, sustaining its rapid growth in that sector.
Another iQSTEL subsidiary company, QGlobal SMS LLC., operates internationally and domestically to provide Wholesale Carrier services to customers ranging from government levels to Enterprise markets. Notably, SMS services are becoming more present in commercial transactions. QGlobal SMS connects customers in the US, Latin America, and Europe to address an application-to-person SMS market opportunity expected to surpass $100 billion by 2030. Obviously, that can be big.
iQSTEL's acquisition of QGlobal SMS also brings cross-selling opportunities with established clients and does so with respectable gross margins of approximately 25%. More value from iQSTEL's exposure comes through its acquisitions and international deals that boost its SMS communications footprint. Deals with China Mobile and Telefonica (Movistar) are examples of how iQSTEL is taking advantage of a global market shift, with these two companies projected to produce over 65% of upcoming revenues.
IoT Labs Delivers "Smart Appliance Product of the Year"
The undeniable popularity of smart devices is also creating substantial opportunities for iQSTEL. A subsidiary company, IoT Labs, is targeting specific markets as a developer of original equipment manufacturer (OEM) devices for industries that use IoT and AI services. The company offers global utility solutions using 4G and Low-Power-WAN providers, offering developments directly for end-users through OEM or monthly service agreements.
IoT Labs flagship product is SmartGas®, a smart device used to measure LP gas tanks in households. The product solves outdated methods of monitoring your gas tank by offering a mountable IoT sensor that connects to a web portal and phone apps. IoTLabs innovative approach allows users to quickly check their gas usage over time, can be left unattended for over two years, and works anywhere with a radio or cellular connection. Notably, the SmartGas® solution has been selected as the winner of the "Smart Appliance Product of the Year" award in the 5th annual IoT Breakthrough Awards program conducted by IoT Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies, and products in the global Internet-of-Things (IoT) market today.
The company has also developed IoT Labs MX, a logistics service utilizing IoT, SMS, geolocation, blockchain, and financial technologies to support various business operations. Products that use seemingly futuristic technologies such as these are easing their way into everyday life, making for safe and simple transactions.
Blockchain and Fintech Solutions
Even more value is expected to accrue from iQSTEL 75% ownership stake of itsBchain LLC, a company specializing in fraud-prevention in business deals. Again, the company uses its Mobile Number Portability Application (MNPA), allowing users and carriers to transfer phone numbers quickly during telecom transactions. itsBchain is also finalizing its Settlement & Payment Marketplace for payments over VoIP and SMS carriers, allowing for instant payment settlement as well as fraud prevention. The value of these services is no longer in the shadows. Neither is digital currency.
The cryptocurrency sector is multiplying faster than ever with popular platforms such as PayPal, CashApp, and others, demonstrating the Cloud's importance in modern telco operations. The Fintech industry, too, is growing exponentially with over $500 billion in annual remittances and over $1.5 trillion in annual mobile payments made. iQSTEL sees other built-in market opportunities.
As noted, its fintech division's focus is geared towards immigrants, whose needs are not always met through traditional channels. A new agreement between iQSTEL and Payment Virtual Mobile Solutions LLC (PayVMS) is expected to serve this substantial population by providing clients the ability to access a Visa Prepaid Debit Card service, make purchases, send money internationally or domestically, and make money management more effortless.
PayVMS is working with Visa, MasterCard, and multiple other big-name financial services providers to make these mobile and in-person payment solutions possible. It's yet another massive and somewhat untapped market opportunity for iQSTEL to exploit.
A Sum Of The Parts Equals Greater Value
The bottom line is simple, iQSTEL's sum of the parts deserves a higher forward-looking valuation. Even using simple revenue models, the share price appears tremendously undervalued. But, after factoring in proven revenue growth, its market position in several highly lucrative sectors, and its ability to find and capitalize on accretive opportunities, the distance of the disconnect between price and performance is magnified.
As if performance wasn't enough, in January, iQSTEL announced that it has reduced its overall outstanding debt by 48%, lowering obligations by over $1.5 million from $3.3 million. At the same time, they eliminated all derivative liabilities, including convertible debt and warrants. Those deals removed a significant overhang and positions iSQTEL to more quickly benefit financially from its initiatives.
Perhaps the best news for iQSTEL and its investors is that because the company and its subsidiary interests are focused on creating value from high demand sectors, risk is inherently reduced. Finally, for investors that focus on revenues, the company expects to generate $60.4 million in 2021, a 34% increase from 2020. And if the pattern of consecutive record-setting quarterly sales continues, the company may eclipse that guidance, similar to how it surpassed its 2020 projections.
While no one can foretell the future, it's good practice to follow the clues. Higher revenues, new deals, and a focus on global market opportunities combine to create a single message... iQSTEL is doing the right things, in the right markets, at the right time. That's a great place to be.
Hawk Point Media
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