Investors are in business for one reason- value appreciation. And whether those gains come from large or small-cap stocks, at the end of the day, it's the numbers that count. One under-the-radar company appears to be doing everything right and is on track to add to its 149% gains made last year. In fact, this company is not your ordinary OTC Pink sheet stock. No, iQSTEL, Inc (OTC Pink: IQST) is much different. And, with its record-breaking $44.9 million in revenues last year, is now on pace to deliver upwards of $60.5 million in sales this year.
Better still, IQST targets massive billion-dollar industries. And through innovation, the leveraging of valuable patents, and creating new products that meet unmet demand, the opportunities in play during the remainder of 2021 can be substantial.
iQSTEL Delivered $44.9 Million In 2020
The excellent news is that iQSTEL, Inc. is starting 2021 with momentum after an enormous growth spurt in 2020. Audited financials last week confirmed revenues of $44.9 million. Better still, this international telecommunications company is showing no signs of slowing down.
Guidance for 2021 is to reach $60.5 million in sales, with revenues coming from four of its business divisions- Telecommunications, Technology, Fintech, and Blockchain. The inherent diversification allows IQST to target massive underserved international telecommunications markets, utilize its patents and technological expertise to develop innovative products, provide Visa Debit Card services to emerging markets, and help companies implement blockchain technology into their business strategies. The great news is that each division contributes revenue to the mix, which could accelerate IQST growth.
Moreover, IQST is consolidating its seven operating subsidiaries under one name, which is expected to increase already solid margins and complement a strong balance sheet. That initiative could be another substantial value driver in 2021.
Video Link: https://www.youtube.com/embed/0Ft-8IMZEVw
Debt-Free And Generating Substantial Revenues
Unlike most of its peers, IQST is generating revenues that immediately impact growth. Last year, IQST implemented a plan to eliminate debt- and they were successful. As of Q1 FY-2021, the company is debt-free and has no convertible notes, warrants, or settlements. That allows IQST to invest all available funds from operations and Reg A, further strengthening its balance sheet and growing the company. In its 10-K summary, filed last week, IQST said it expects to see improvement in its consolidated Statement of Operations and Balance Sheet throughout the remainder of 2021. That statement is credible.
Keep in mind that despite 2020 being an unprecedented pandemic-related challenge to most international companies, IQST was able to deliver remarkable growth of more than 149% year-over-year. To put that increase in a better perspective, revenues surged from just $18 million in FY-2019 to $44.9 million in FY-202. And 2021 sales are expected to jump another 34%.
Notably, the revenue growth caused a 70% reduction in its loss per share to $(0.10) in FY-2020 versus $(0.35) in FY-2019. The increase this year could put positive earnings into play. And that could help facilitate its planned uplist to NASDAQ and attract institutional money. Also notable is that IQST increased its assets to $5.9 Million in FY-2020 compared to $5.6 Million last year due to an increase in its cash position.
The company also reduced Current Liabilities by 29% year-over-year and Total Liabilities by 27%. The expected announcement of its Q1 revenues in May could show the benefit from reaching these financial milestones.
Of course, it's the business that's driving growth. There, its innovations, strategies, and recent partnerships are creating a wave of momentum.
Record-Setting Expectations In 2021
The recent weakness in share price is exposing a massive opportunity. On a revenue multiple basis alone, the stock should be valued substantially higher. Many attribute the volatility to being on the OTC Pink market, and that could indeed be the case. Certainly, more orderly markets take into account modeled valuations, using metrics that would likely value IQST shares closer to its February high of $2.00.
Its strengthened balance sheet, increased assets, and reduced liabilities are reflective of the company's direction. And, with revenues on track to reach its $60.5 million 2021 forecast, prices at these levels should not last. Factoring in its deals with at least one Fortune 500 company, its partnerships to expand into the electric vehicle sector, and its money-saving subsidiary consolidation, IQST is in hyper-growth mode through a number of business activities.
In fact, in April, IQST is expected to commence its commercial launch of the MNPA Blockchain platform, initiate the first stage field test of the IoTSmartTank, and accelerate its initiatives to establish a footing in the booming electric vehicle sector in a deal with Alternet Systems, Inc. (OTC Pink: ALYI).
That will be followed up in May and June with expected production of its IoTSmartTank technology for a Fortune 500 chemical client, the launch of its Fintech, Visa Debit Card product, VisaMoneyOne, and the highly anticipated quarterly financial results that are expected to benefit from the implementation of new operational efficiencies.
Also in play, IQST is taking steps to earn its NASDAQ listing during the first half of this year and is expected to continue with plans to complete accretive acquisitions that could drive revenues higher quickly.
Perhaps the best news is that IQST has the management team, experience, and business infrastructure in place to reach its immediate and long-term goals. Thus, its market cap of $54 million last week appears to be comically low, especially with the company on pace to exceed $60 million in revenues and supported by a clean balance sheet.
While not there yet, investors should look at competitors Atento S.A (NYSE: ATTO), who's presence in 13 countries has earned them a market cap of roughly $354 million. Or at America Movil, S.A.B. (NYSE: AMX) with a market cap of $48 billion. Long-term speculation suggests that, despite its current size, IQST can also build out its markets in successful fashion. If so, expect the market cap to earn a substantial boost...likely in the hundreds of millions of dollars.
A Breakout Year In Progress
Undoubtedly, investors could be witnessing the start of a breakout year. Record revenues, substantial partnerships, accretive acquisitions, and a business presence in 15 countries make IQST extremely attractive on multiple levels. And with at least three important announcements expected in the coming weeks, the current share price should earn a raise.
Even now, though, providing a revenues-based premium to its share price is not only appropriate but is well-earned by the company. Also, keep in mind the stock is priced for appreciation from announcements from any of its four operating divisions. But, with news expected from all, the combination of events could send the stock exponentially higher this quarter.
Thus, trading ahead of expected news could be a wise consideration. iQSTEL, Inc. may not stay under-the-radar for much longer.
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