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Telecom Argentina Stet - France Telecom S.A. (TEO)
NYSE:TEO

Telecom Argentina (TEO) AI Stock Analysis

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TE

Telecom Argentina

(NYSE:TEO)

64Neutral
Telecom Argentina's strength lies in its revenue growth and robust asset base, indicating potential for long-term recovery. However, negative profitability metrics and bearish technical indicators are significant headwinds. The stock is undervalued based on its P/E ratio, but the lack of a dividend yield and challenging market momentum reduce its immediate appeal.
Positive Factors
Acquisition Benefits
The acquisition of Telefonica’s assets in Argentina could result in sizeable synergies and relevant market repair, as the country would move to a two-player structure.
Market Position
TEO is an integrated telecom operator with premium positioning in Argentina's relatively consolidated mobile market and a leading position in fixed broadband.
Negative Factors
Regulatory Challenges
The office of the Presidency of Argentina issued a note indicating resistance to this deal, suggesting that the government would take all relevant measures to prevent it.

Telecom Argentina (TEO) vs. S&P 500 (SPY)

Telecom Argentina Business Overview & Revenue Model

Company DescriptionTelecom Argentina SA engages in the provision of telecommunications services. The company offers fixed-line telecommunications, mobile telecommunications, other telephone-related services such as international long-distance and wholesale services, data transmission, information technology solutions outsourcing, and internet services. It operates through the Argentina and Other Abroad geographical segments. The company was founded on January 5, 1990 is headquartered in Buenos Aires, Argentina.
How the Company Makes MoneyTelecom Argentina makes money primarily through subscription-based services offered to consumers and businesses. The company generates revenue from its mobile telephony services, which include voice, data, and value-added services. Fixed-line telephony also contributes to its income, offering traditional voice services and advanced features. Broadband internet services are another significant revenue stream, with Telecom Argentina providing high-speed internet access to residential and commercial customers. The company also earns from its subscription television services, offering various content packages to subscribers. Additionally, Telecom Argentina may have partnerships with content providers and other technology firms to enhance its offerings and expand its market reach. Factors such as market demand, regulatory environment, and technological advancements significantly influence the company's earnings.

Telecom Argentina Financial Statement Overview

Summary
Telecom Argentina demonstrates resilience in revenue growth and a strong asset base, though profitability is challenged by negative EBIT. Cash flows are positive, signaling operational stability. The company should focus on improving profitability and optimizing cash conversion to further strengthen its financial position.
Income Statement
65
Positive
Telecom Argentina shows a mixed income statement performance. The gross profit margin is solid due to a high gross profit relative to revenue. However, the company struggles with negative EBIT and fluctuating net income, impacting net profit margins negatively. Despite these challenges, the company has shown significant revenue growth, indicating potential for recovery and expansion.
Balance Sheet
72
Positive
The balance sheet is relatively strong with a healthy equity ratio, indicating a solid asset base supported by equity. The debt-to-equity ratio is moderate, suggesting manageable leverage. However, there is room for improvement in enhancing overall asset utilization and reducing debt levels.
Cash Flow
68
Positive
Cash flow performance is steady with positive operating and free cash flows. The company has managed to improve free cash flow over time. However, the operating cash flow to net income ratio suggests room for greater efficiency in converting profits into cash.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.14T2.06T2.27T2.58T886.76B
Gross Profit
3.03T1.51T1.68T1.89T664.58B
EBIT
-146.47B-125.06B-918.47B-16.91B59.67B
EBITDA
2.89T175.33B31.53B1.18T297.50B
Net Income Common Stockholders
1.01T-257.73B-647.21B52.56B-16.80B
Balance SheetCash, Cash Equivalents and Short-Term Investments
351.90B283.74B150.80B59.67B35.77B
Total Assets
10.94T5.48T5.38T2.10T1.14T
Total Debt
3.09T2.22T1.55T556.43B316.94B
Net Debt
2.77T2.06T1.43T517.76B288.97B
Total Liabilities
5.41T3.23T2.85T1.03T548.22B
Stockholders Equity
5.43T2.17T2.48T1.05T577.28B
Cash FlowFree Cash Flow
417.29B335.77B285.09B327.01B134.05B
Operating Cash Flow
811.50B617.70B666.49B788.80B293.88B
Investing Cash Flow
-383.42B-593.71B-516.52B-698.31B-240.42B
Financing Cash Flow
-405.62B-72.04B-142.62B-123.12B-105.30B

Telecom Argentina Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.25
Price Trends
50DMA
12.16
Negative
100DMA
11.82
Negative
200DMA
9.50
Positive
Market Momentum
MACD
-0.25
Negative
RSI
47.01
Neutral
STOCH
44.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEO, the sentiment is Neutral. The current price of 11.25 is below the 20-day moving average (MA) of 11.35, below the 50-day MA of 12.16, and above the 200-day MA of 9.50, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 44.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEO.

Telecom Argentina Risk Analysis

Telecom Argentina disclosed 47 risk factors in its most recent earnings report. Telecom Argentina reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Telecom Argentina Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TT
76
Outperform
$186.70B17.4410.54%4.27%-0.08%-24.48%
76
Outperform
$293.05B26.5617.93%1.19%3.62%38.24%
VZVZ
73
Outperform
$182.83B11.2118.27%6.18%0.61%50.39%
USUSM
65
Neutral
$5.49B-0.85%-3.48%-169.60%
TETEO
64
Neutral
$5.39B5.1123.27%-26.74%
59
Neutral
$29.20B0.14-12.92%4.06%2.18%-51.74%
49
Neutral
$4.94B-12.49%-9.95%99.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TEO
Telecom Argentina
11.25
4.43
64.96%
T
AT&T
25.72
9.47
58.28%
LUMN
Lumen Technologies
4.98
3.34
203.66%
USM
United States Cellular
64.71
29.01
81.26%
VZ
Verizon
42.59
4.88
12.94%
TMUS
T Mobile US
255.61
93.80
57.97%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.