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Telecom Argentina Stet - France Telecom S.A. (TEO)
NYSE:TEO
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Telecom Argentina
(NYSE:TEO)
64Neutral
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)
Market Cap
$5.39B
Dividend YieldN/A
Average Volume (3M)199.20K
Price to Earnings (P/E)5.1
Beta (1Y)0.60
Revenue Growth-26.74%
EPS GrowthN/A
CountryUS
Employees21,262
SectorCommunication Services
Sector Strength82
IndustryTelecommunications
Share Statistics
EPS (TTM)2.15
Shares Outstanding125,611,600
10 Day Avg. Volume161,231
30 Day Avg. Volume199,202
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.21
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.55Price Target Upside-15.11% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
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
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.65
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.14T | 2.06T | 2.27T | 2.58T | 886.76B | Gross Profit |
| 3.03T | 1.51T | 1.68T | 1.89T | 664.58B | EBIT |
| -146.47B | -125.06B | -918.47B | -16.91B | 59.67B | EBITDA |
| 2.89T | 175.33B | 31.53B | 1.18T | 297.50B | Net Income Common Stockholders |
| 1.01T | -257.73B | -647.21B | 52.56B | -16.80B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 351.90B | 283.74B | 150.80B | 59.67B | 35.77B | Total Assets |
| 10.94T | 5.48T | 5.38T | 2.10T | 1.14T | Total Debt |
| 3.09T | 2.22T | 1.55T | 556.43B | 316.94B | Net Debt |
| 2.77T | 2.06T | 1.43T | 517.76B | 288.97B | Total Liabilities |
| 5.41T | 3.23T | 2.85T | 1.03T | 548.22B | Stockholders Equity |
| 5.43T | 2.17T | 2.48T | 1.05T | 577.28B |
| Cash Flow | Free Cash Flow | |||
| 417.29B | 335.77B | 285.09B | 327.01B | 134.05B | Operating Cash Flow |
| 811.50B | 617.70B | 666.49B | 788.80B | 293.88B | 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
Neutral
11.25
Price Trends
12.16
Negative
11.82
Negative
9.50
Positive
Market Momentum
-0.25
Negative
47.01
Neutral
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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $186.70B | 17.44 | 10.54% | 4.27% | -0.08% | -24.48% | |
76 Outperform | $293.05B | 26.56 | 17.93% | 1.19% | 3.62% | 38.24% | |
73 Outperform | $182.83B | 11.21 | 18.27% | 6.18% | 0.61% | 50.39% | |
65 Neutral | $5.49B | ― | -0.85% | ― | -3.48% | -169.60% | |
64 Neutral | $5.39B | 5.11 | 23.27% | ― | -26.74% | ― | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
49 Neutral | $4.94B | ― | -12.49% | ― | -9.95% | 99.47% |
* Communication Services Sector Average
Performance Comparison
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.