One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Telecom Argentina S.A.
TEO · NYQ · Communication Services · Telecom Services
Current price
$13.02
52-week range
$6.93 - $16.34
Market cap
—
Balance sheet
Stretched
1.80x Concerning
Net debt $3.32B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 53.0% last year.
- Reward Returns 10.8% on equity, ahead of 20% of its peers.
- Risk Stock trades 242900.8% above its 5-year average P/E.
- Risk Forward P/E (13.7x) is higher than trailing (10.7x) - earnings are expected to drop.
What this company does
Telecom Argentina S.A.
Telecom Argentina is a major phone, internet, and cable TV provider, primarily serving customers in Argentina and neighboring countries. The company makes most of its money from selling mobile plans, home internet, and TV packages, which creates reliable recurring revenue (income that comes in regularly from subscriptions). This large customer base depends on its services for daily communication and entertainment, providing the business with a steady stream of income.
How the company got here
Telecom Argentina was formed in 1990 when the Argentine government privatized its state-owned phone company, ENTel. The company was initially granted a monopoly for the northern half of the country, including Buenos Aires. A major turning point came in 2017 with the merger of Telecom Argentina and Cablevisión, the country's largest cable TV provider, creating a massive media and telecommunications enterprise. This merger allowed the company to offer a combination of services, including mobile and fixed-line phones, internet, and cable TV, often bundled together in what is known as a 'quadruple play' offering. More recently, the company has been focused on expanding its fiber optic and 5G networks to keep up with the growing demand for high-speed data.
What it actually does
Telecom Argentina provides a wide range of communication and entertainment services to individuals, households, and businesses primarily in Argentina, but also in Paraguay, Uruguay, and the United States. For everyday consumers, this means they are the company that provides your mobile phone service (under the brand name Personal), your home internet, and your cable television. They also offer traditional landline telephone services. For businesses, they provide more complex solutions like cloud computing services (storing data and running programs on the internet instead of on local computers), data centers, and cybersecurity. The company has also entered the financial technology space with a digital wallet service called Personal Pay.
Mobile Services
This is the company's largest business area, making up more than half of its service revenue. Through its brand 'Personal', the company provides mobile phone service to millions of customers in Argentina and Paraguay. This includes voice calls, text messaging, and, most importantly, high-speed mobile internet that allows you to stream videos, use apps, and browse the web on your smartphone. They also sell mobile devices like smartphones and smartwatches. Customers pay for these services through either a monthly plan (postpaid) or by adding credit as they go (prepaid).
Internet Services
This segment focuses on connecting homes and businesses to the internet. For residential customers, this is the broadband internet service that powers Wi-Fi in their homes. For businesses, they offer a range of more advanced services like dedicated high-speed connections and virtual private networks (VPNs), which allow employees to securely connect to their company's network from anywhere. This part of the business has been a major focus for investment, with the company spending significantly to expand its fiber optic network, which provides much faster and more reliable internet speeds.
Cable Television Services
Through its Flow brand, Telecom Argentina provides cable TV services to households. This includes a wide variety of television channels, as well as on-demand content, allowing customers to watch movies and TV shows whenever they want. This business was significantly expanded through the merger with Cablevisión. Customers typically pay a monthly subscription fee for a package of channels and services.
Fixed Telephony and Data Services
This is the company's traditional landline telephone business, providing local and long-distance phone service to homes and businesses. While the use of landlines has been declining, it still provides a steady source of revenue. This segment also includes data services for corporate clients, such as data transmission and IT solutions. Customers are typically billed a monthly fee for their phone line and for any calls made that are not included in their plan.
What management is betting on now
Management's current strategy is heavily focused on expanding and upgrading its networks, particularly its fiber optic and 5G mobile networks. The goal is to meet the increasing demand for faster and more reliable internet connectivity from both residential and business customers. They are also focused on improving profitability through efficiency measures, such as reducing advertising and administrative costs. Another key area of focus is the growth of their digital ecosystem, including their fintech (financial technology) service, Personal Pay, aiming to offer more integrated digital services to their large customer base.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $13.02
We couldn't calculate a fair value right now.
Is it drowning in debt?
Stretched
Net debt $3.3B. Interest coverage 1.8x.
Net debt
$3.32B
Interest coverage
1.80x
Telecom Argentina S.A.'s profit covers its interest bill about 1.8 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
TEO
BASELINE
Telecom Argentina S.A.
Total debt $3.95B Interest coverage 1.80x This is the baseline the peer rows are being compared against.
Total debt $12.09B Interest coverage 2.55x +42% vs TEO Carries about 1.4x more debt cushion than TEO.
Total debt $8.99B Interest coverage 1.10x -39% vs TEO Carries about 1.6x less debt cushion than TEO.
Total debt $3.18B Interest coverage 2.90x +62% vs TEO Carries about 1.6x more debt cushion than TEO.
Total debt $1.25B Interest coverage -0.55x -100% vs TEO This peer has almost no interest-payment cushion compared with TEO.
What you should know
The case for and against TEO
3 Rewards
3 Risks
Rewards
-
Revenue grew 53.0% last year.
-
Returns 10.8% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 242900.8% above its 5-year average P/E.
-
Forward P/E (13.7x) is higher than trailing (10.7x) - earnings are expected to drop.
-
Net debt grew 260.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.67x
Forward P/E
13.74x
P/B
0.96x
P/S
—
EV/EBITDA
1.98x
PEG ratio
1.41x
Profitability
How much profit each dollar creates
Gross margin
76.5%
Operating margin
14.0%
Net margin
8.9%
ROE
10.8%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.67x
Current ratio
0.58x
Quick ratio
0.55x
Total debt
$3.95B
Total cash
$627.54M
Growth
How the business has been compounding
Revenue TTM
$5.86B
Revenue 5Y CAGR
19.0%
EPS TTM
1.22
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$1.57B
Free CF TTM
$587.22M
FCF margin
10.0%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
3.4%
Last ex-div date
2025-11-24