Telmex Seems To Fit The Bill For Growth, Income Stocks

Telmex Internacional (NYSE: TII) is a telecommunications company that offers several services, such as local telephone service, domestic and international long distance and data transmission to corporate and residential customers in Chile, Brazil and Mexico. TII is trading at 24x consensus estimates for 2010 and at 18x consensus EPS estimates for 2011. This valuation is quite reasonable for a company that has a long-term EPS growth rate of 21.8%. Moreover, the stock offers a 1.3% dividend yield. When compared with its peers, Telmex Internacional’s return on equity (ROE) is 11.9%, way ahead the industry average of 8.7%. Moreover, TII’s net profit margins are 11.7%, again much higher than the industry's margins of 3.3%. With a lower percentage of debt (0.2%), TII is more profitable than its peers, with the industry average at 28.7%. TII had delivered 105.3% earnings growth in the September quarter of 2009. The company is expected to generate a 5-year EPS growth rate of 21.7%. To see more trading ideas, click here.