NYSE:TEO

Stock Analysis Report

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Executive Summary

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services in Argentina and internationally. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Telecom Argentina's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TEO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

TEO

-1.8%

US Telecom

-1.9%

US Market


1 Year Return

-29.6%

TEO

-12.0%

US Telecom

13.1%

US Market

Return vs Industry: TEO underperformed the US Telecom industry which returned -12% over the past year.

Return vs Market: TEO underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

TEOIndustryMarket
7 Day-9.5%-1.8%-1.9%
30 Day-7.9%-2.5%-2.9%
90 Day-28.3%3.2%8.2%
1 Year-25.1%-29.6%-7.5%-12.0%15.7%13.1%
3 Yearn/a6.0%-9.2%38.4%29.1%
5 Yearn/a31.8%2.2%89.3%68.0%

Price Volatility Vs. Market

How volatile is Telecom Argentina's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Telecom Argentina undervalued compared to its fair value and its price relative to the market?

8.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEO ($6.65) is trading below our estimate of fair value ($7.29)

Significantly Below Fair Value: TEO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TEO is unprofitable, so we can't compare its PE Ratio to the US Telecom industry average.

PE vs Market: TEO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TEO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TEO's PB Ratio (1.2x) is in line with the US Telecom industry average.


Next Steps

Future Growth

How is Telecom Argentina forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

65.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: TEO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TEO's is expected to become profitable in the next 3 years.

Revenue vs Market: TEO's revenue (19% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: TEO's revenue (19% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEO's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Telecom Argentina performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEO is currently unprofitable.

Growing Profit Margin: TEO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TEO is unprofitable, and losses have increased over the past 5 years at a rate of 14.6% per year.

Accelerating Growth: Unable to compare TEO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TEO is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-12.9%).


Return on Equity

High ROE: TEO has a negative Return on Equity (-3.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Telecom Argentina's financial position?


Financial Position Analysis

Short Term Liabilities: TEO's short term assets (ARS76.7B) do not cover its short term liabilities (ARS128.3B).

Long Term Liabilities: TEO's short term assets (ARS76.7B) do not cover its long term liabilities (ARS182.7B).


Debt to Equity History and Analysis

Debt Level: TEO's debt to equity ratio (52%) is considered high.

Reducing Debt: TEO's debt to equity ratio has reduced from 66% to 52% over the past 5 years.

Debt Coverage: TEO's debt is well covered by operating cash flow (45.1%).

Interest Coverage: TEO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Telecom Argentina current dividend yield, its reliability and sustainability?

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TEO's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: TEO's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (4.89%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether TEO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if TEO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: TEO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Roberto Daniel Nóbile (53 yo)

0.67

Tenure

Mr. Roberto Daniel Nóbile is Chief Executive Officer at Telecom Argentina S.A since January 1, 2020. Mr. Nóbile served as Deputy Director General of Telecom Argentina S.A since November 16, 2017 until Janu ...


Leadership Team

NamePositionTenureCompensationOwnership
Roberto Daniel Nóbile
Chief Executive Officer0.67yrno data0.00033%
ARS 18.6k
Gabriel Blasi
Chief Financial Officer3yrsno data0.00081%
ARS 45.7k
Gonzalo Hita
Chief Operating Officer2.83yrsno datano data
Miguel Angel Fernández
Chief Technology Officer2.83yrsno datano data
Pablo Esses
Chief Information Officer2.33yrsno data0.00027%
ARS 15.2k
Fernando Balmaceda
Director of Investor Relationsno datano datano data
Pablo César Casey
Director of Legal & Institutional2.83yrsno datano data
Alejandro Miralles
Chief Audit & Compliance Officer2.83yrsno datano data
Pedro L. Lopez Matheu
Director of Government Relations4.25yrsno datano data
Sergio D. Faraudo
Director of Human Capital2.83yrsno datano data
Noelle Etcheverrigaray
Head of Capital Marketsno datano datano data
Solange Barthe Dennin
Investor Relations Managerno datano datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: TEO's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sebastian Bardengo
Director2.67yrsno datano data
Alejandro Alberto Urricelqui
Director2.67yrsno data0.014%
ARS 812.8k
Carlos Alberto Moltini
Chairman0.33yrno datano data
Luca Luciani
Director2.67yrsno datano data
Mariano Marcelo Ibáñez
Vice Chairmanno datano data0.0010%
ARS 57.0k
Carlos Harrison
Independent Director4.5yrsno datano data
Martín Héctor D'Ambrosio
Independent Director4.5yrsno datano data
Baruki Luis Alberto González
Director4.42yrsno datano data
Germán Horacio Vidal
Director2.67yrsno datano data
Damián Fabio Cassino
Director2.67yrsno data0.00030%
ARS 16.9k
María Pía Arce Paniagua
Directorno datano datano data
Eduardo de Pedro
Independent Director0.25yrno datano data

2.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: TEO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Telecom Argentina S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telecom Argentina S.A.
  • Ticker: TEO
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: AR$427.076b
  • Listing Market Cap: AR$5.640b
  • Shares outstanding: 2.15b
  • Website: https://institucional.telecom.com.ar

Number of Employees


Location

  • Telecom Argentina S.A.
  • Alicia Moreau de Justo 50
  • Buenos Aires
  • Capital Federal
  • 1107
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TECO2BASE (Buenos Aires Stock Exchange)YesClass B SharesARARSJan 2018
TCMF.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 2018
TEONYSE (New York Stock Exchange)ADR EACH REP 5'B'(MGT)USUSDJan 2018
TEODB (Deutsche Boerse AG)ADR EACH REP 5'B'(MGT)DEEURJan 2018
TEO NBMV (Bolsa Mexicana de Valores)ADR EACH REP 5'B'(MGT)MXMXNJan 2018

Biography

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services in Argentina and internationally. The company offers telephone services, including local, domestic, and internat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 05:34
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.