OTCPK:TCMF.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Risks

  • Telecom Argentina has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.0%

OTCPK:TCMF.F

3.1%

US Telecom

1.2%

US Market


1 Year Return

-44.1%

OTCPK:TCMF.F

8.4%

US Telecom

1.7%

US Market

TCMF.F underperformed the Telecom industry which returned 8.4% over the past year.

TCMF.F underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TCMF.FIndustryMarket
7 Day-5.0%3.1%1.2%
30 Day-5.0%7.5%4.9%
90 Dayn/a9.8%3.7%
1 Year-44.1%-44.1%14.1%8.4%3.9%1.7%
3 Yearn/a18.1%0.9%47.2%37.7%
5 Yearn/a35.1%4.2%60.0%42.4%

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

No news available

Valuation

Is Telecom Argentina undervalued based on future cash flows and its price relative to the stock market?

35.17x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Telecom Argentina's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Telecom Argentina's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Telecom Argentina is overvalued based on earnings compared to the US Telecom industry average.

Telecom Argentina is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Telecom Argentina is good value based on expected growth next year.


Price Based on Value of Assets

Telecom Argentina is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Telecom Argentina expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

47.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Telecom Argentina's revenue is expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).

Telecom Argentina's earnings are expected to grow significantly at over 20% yearly.

Telecom Argentina's revenue growth is expected to exceed the United States of America market average.

Telecom Argentina's earnings growth is expected to exceed the United States of America market average.

Telecom Argentina's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Telecom Argentina is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Telecom Argentina performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Telecom Argentina's year on year earnings growth rate has been positive over the past 5 years.

Telecom Argentina's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Telecom Argentina's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Telecom Argentina has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Telecom Argentina used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Telecom Argentina's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Telecom Argentina's financial position?


Financial Position Analysis

Telecom Argentina's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Telecom Argentina's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Telecom Argentina's level of debt (35.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (77.7% vs 35.4% today).

Debt is well covered by operating cash flow (51.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

1.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Telecom Argentina's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Telecom Argentina's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

It is too early to tell whether Telecom Argentina has stable dividend payments.

Telecom Argentina only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Telecom Argentina's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Carlos Alberto Moltini (59yo)

1.8yrs

Tenure

0

Mr. Carlos Alberto Moltini has been Chief Executive Officer at Telecom Argentina S.A. since November 2017. Mr. Moltini serves as General Manager of Cablevisión Holding S.A. (Cablevision SA) and served as i ...


Management Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

The average tenure for the Telecom Argentina management team is less than 2 years, this suggests a new team.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Carlos Alberto Moltini (59yo)

    Chief Executive Officer

    • Tenure: 1.8yrs
  • Gabriel Blasi (59yo)

    Chief Financial Officer

    • Tenure: 2yrs
  • Pablo César Casey (52yo)

    Director of Legal & Institutional

    • Tenure: 1.8yrs
  • Noelle Etcheverrigaray

    Head of Capital Markets

    • Tenure: 0yrs
  • Sergio D. Faraudo (55yo)

    Director of Human Capital

    • Tenure: 1.8yrs
  • Gonzalo Hita

    Chief Operating Officer

    • Tenure: 3.3yrs
  • Gonzalo Hita (49yo)

    Chief Operating Officer

    • Tenure: 1.8yrs
  • Miguel Angel Fernández (56yo)

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Solange Barthe Dennin

    Investor Relations Manager

    • Tenure: 0yrs
  • Pablo Esses (52yo)

    Chief Information Officer

    • Tenure: 1.3yrs

Board Members

  • Ignacio Rolando Driollet (57yo)

    Director

    • Tenure: 0yrs
  • Horacio Eduardo Quirós (70yo)

    Director

    • Tenure: 0yrs
  • Jorge Carlos Rendo (66yo)

    Director

    • Tenure: 0yrs
  • Alejandro Alberto Urricelqui (60yo)

    Chairman of the Board of Directors

    • Tenure: 1.7yrs
  • Carlos Alberto Moltini (59yo)

    Chief Executive Officer

    • Tenure: 1.8yrs
  • Francisco Iván Acevedo (53yo)

    Director

    • Tenure: 0yrs
  • Alejandro Manuel Estrada

    Director

    • Tenure: 0yrs
  • Sebastián Sánchez Sarmiento

    Vice Chairman

    • Tenure: 0yrs
  • Marcelo Trivarelli

    Director

    • Tenure: 0yrs
  • Alejandro Carlos Estrada

    Director

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Telecom Argentina S.A.
  • Ticker: TCMF.F
  • Exchange: OTCPK
  • Founded: 1979
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: AR$302.055b
  • Listing Market Cap: AR$5.376b
  • Shares outstanding: 2.15b
  • Website: https://hogares.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 Analysis2019/09/15 01:11
End of Day Share Price2019/09/09 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.