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iQSTEL

IQST
14
Telecommunications Services · Communication Services
Price
$1.06
-0.03 (-2.75%)
Market Cap
$10.2M
Exchange
NASDAQ Capital Market
Winston Score
14
Winston is worried
Weak fundamentals across most pillars.

Share count falling — buybacks

97.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 135.4M (2021) → 3.5M (2025)

iQSTEL Inc. is a telecommunications company that provides mobile phone services, messaging, and data connectivity to customers in multiple countries. Its main products include wholesale voice and SMS services sold to other telecom carriers, as well as mobile virtual network operator (MVNO) services for end users. The company also has smaller divisions working on fintech and IoT (Internet of Things) connectivity solutions.

iQSTEL earns money primarily by reselling telecom capacity — buying bulk minutes and messaging routes from large carriers and selling them to other businesses at a markup. It operates across Latin America, Europe, and parts of the Middle East, and remains a small-cap company with very thin profit margins, as its 2.6% gross margin shows. The main risk is that wholesale telecom is a highly competitive, low-margin business, and the company has yet to consistently generate operating profits, making its path to sustainable profitability the key challenge investors watch closely.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+69.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Cash Runway

~4 years

$3M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$3M cash & investments at current burn rate

Revenue accelerating

iQSTEL grew revenue 70% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
2.1%
Thin — 2.1% gross margin
Operating Margin
-1.0%
Losing money on operations — -1.0%
ROCE
-6.4%
Weak — -6.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+23.4%
Fast-growing sales (23.4% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-0.6%
Burning cash (-0.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.49
Conservative — low debt load (0.49)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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