(TEO) Telecom Argentina - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NYSE (USA) | Market Cap: 4.988m USD | Total Return: 18.4% in 12m
Avg Turnover: 3.52M
Qual. Beats: 0
Rev. Trend: 97.5%
Qual. Beats: 6
Warnings
Altman Z'' 0.73 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
Garp
Telecom Argentina S.A. (TEO) is a diversified telecommunications provider headquartered in Buenos Aires, operating across Argentina, Paraguay, Uruguay, Chile, and the United States. Following its 2018 merger with Cablevisión, the company transitioned into an integrated services model, offering mobile voice and data, fixed-line telephony, broadband internet, and cable television. Its portfolio includes the Personal Pay digital wallet, cybersecurity solutions, and data center services for enterprise clients.
The integrated telecommunications sector is characterized by high capital expenditures required to maintain fiber-optic and 5G infrastructure, often resulting in high barriers to entry. In the Argentine market, revenue stability is frequently influenced by local inflation rates and currency fluctuations, which impact the cost of imported networking hardware. Evaluating the companys valuation metrics on ValueRay can provide further clarity on its financial position.
The company functions as a quad-play operator, bundling multiple services to increase customer retention and average revenue per user. This business model relies on the convergence of mobile and fixed networks to deliver content through proprietary platforms and third-party streaming integrations.
- High domestic inflation and currency devaluation volatility impact real average revenue per user
- Government price controls and regulatory shifts constrain mobile and broadband service margins
- Expansion of Personal Pay digital wallet drives fintech diversification and revenue growth
- Capital expenditure requirements for 5G deployment pressure free cash flow and debt levels
- Argentine macroeconomic stability dictates investor appetite for local telecommunications equity ADRs
| Net Income: 377b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.65 > 1.0 |
| NWC/Revenue: -17.34% < 20% (prev -33.30%; Δ 15.95% < -1%) |
| CFO/TA 0.10 > 3% & CFO 1746b > Net Income 377b |
| Net Debt (4041b) to EBITDA (2828b): 1.43 < 3 |
| Current Ratio: 0.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.15b) vs 12m ago 400.0% < -2% |
| Gross Margin: 75.78% > 18% (prev 0.74%; Δ 7.50k% > 0.5%) |
| Asset Turnover: 55.96% > 50% (prev 34.38%; Δ 21.58% > 0%) |
| Interest Coverage Ratio: 1.14 > 6 (EBITDA TTM 2828b / Interest Expense TTM 585b) |
| A: -0.09 (Total Current Assets 2175b - Total Current Liabilities 3743b) / Total Assets 18275b |
| B: 0.17 (Retained Earnings 3103b / Total Assets 18275b) |
| C: 0.04 (EBIT TTM 666b / Avg Total Assets 16155b) |
| D: 0.44 (Book Value of Equity 4401b / Total Liabilities 10057b) |
| Altman-Z'' = 0.73 = B |
| DSRI: 0.50 (Receivables 798b/860b, Revenue 9041b/4825b) |
| GMI: 0.97 (GM 75.78% / 73.79%) |
| AQI: 0.94 (AQ_t 0.43 / AQ_t-1 0.46) |
| SGI: 1.87 (Revenue 9041b / 4825b) |
| TATA: -0.07 (NI 377b - CFO 1746b) / TA 18275b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 11.86 with a total of 84,891 shares traded.
Over the past week, the price has changed by +0.34%,
over one month by +4.68%,
over three months by +6.08% and
over the past year by +18.44%.
Telecom Argentina has received a consensus analysts rating of 2.00. Therefore, it is recommended to sell TEO.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 13.8 | 16.7% |
Market Cap ARS = 6988b (4.99b USD * 1401.0 USD.ARS)
P/E Trailing = 19.9655
P/E Forward = 5.5494
P/S = 0.0006
P/B = 0.8596
P/EG = 1.4112
Revenue TTM = 9041b ARS
EBIT TTM = 666b ARS
EBITDA TTM = 2828b ARS
Long Term Debt = 4185b ARS (from longTermDebt, last quarter)
Short Term Debt = 1302b ARS (from shortLongTermDebt, last quarter)
Debt = 4717b ARS (from shortLongTermDebtTotal, last fiscal year) + Leases 403b
Net Debt = 4041b ARS (calculated: Debt 4717b - CCE 675b)
Enterprise Value = 11029b ARS (6988b + Debt 4717b - CCE 675b)
Interest Coverage Ratio = 1.14 (Ebit TTM 666b / Interest Expense TTM 585b)
EV/FCF = 20.58x (Enterprise Value 11029b / FCF TTM 536b)
FCF Yield = 4.86% (FCF TTM 536b / Enterprise Value 11029b)
FCF Margin = 5.93% (FCF TTM 536b / Revenue TTM 9041b)
Net Margin = 4.17% (Net Income TTM 377b / Revenue TTM 9041b)
Gross Margin = 75.78% ((Revenue TTM 9041b - Cost of Revenue TTM 2190b) / Revenue TTM)
Gross Margin QoQ = 76.35% (prev 76.33%)
Tobins Q-Ratio = 0.60 (Enterprise Value 11029b / Total Assets 18275b)
Interest Expense / Debt = 12.41% (Interest Expense 585b / Debt 4717b)
Taxrate = 33.28% (321b / 964b)
NOPAT = 444b (EBIT 666b * (1 - 33.28%))
Current Ratio = 0.58 (Total Current Assets 2175b / Total Current Liabilities 3743b)
Debt / Equity = 0.58 (Debt 4717b / totalStockholderEquity, last quarter 8094b)
Debt / EBITDA = 1.43 (Net Debt 4041b / EBITDA 2828b)
Debt / FCF = 7.54 (Net Debt 4041b / FCF TTM 536b)
Total Stockholder Equity = 6904b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.34% (Net Income 377b / Total Assets 18275b)
RoE = 5.46% (Net Income TTM 377b / Total Stockholder Equity 6904b)
RoCE = 6.01% (EBIT 666b / Capital Employed (Equity 6904b + L.T.Debt 4185b))
RoIC = 2.80% (NOPAT 444b / Invested Capital 15859b)
WACC = 8.82% (E(6988b)/V(11705b) * Re(9.19%) + D(4717b)/V(11705b) * Rd(12.41%) * (1-Tc(0.33)))
Discount Rate = 9.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 39.77 | Cagr: 0.03%
[DCF] Terminal Value 76.45% ; FCFF base≈450b ; Y1≈515b ; Y5≈759b
[DCF] Fair Price = 51.7k (EV 10536b - Net Debt 4041b = Equity 6495b / Shares 125.6m; r=8.82% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.03 | # QB: 0
Revenue Correlation: 97.47 | Revenue CAGR: 68.93% | SUE: 0.94 | # QB: 6
EPS current Quarter (2026-06-30): EPS=0.57 | Chg30d=+0.00% | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.46 | Chg30d=+0.00% | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=1.55 | Chg30d=+20.47% | Revisions=-20% | GrowthEPS=+650.4% | GrowthRev=+10.0%
EPS next Year (2027-12-31): EPS=1.52 | Chg30d=+7.59% | Revisions=N/A | GrowthEPS=-1.7% | GrowthRev=+16.7%
[Analyst] Revisions Ratio: -20%