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TELECOM ARGENTINA SA-SP ADR (TEO) Stock Fundamental Analysis

NYSE:TEO - New York Stock Exchange, Inc. - US8792732096 - ADR - Currency: USD

12.19  -0.14 (-1.14%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TEO. TEO was compared to 31 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of TEO while its profitability can be described as average. TEO shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

TEO had negative earnings in 4 of the past 5 years.
TEO had a positive operating cash flow in each of the past 5 years.
TEO Yearly Net Income VS EBIT VS OCF VS FCFTEO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200B -200B 400B 600B

1.2 Ratios

TEO's Return On Assets of 5.82% is amongst the best of the industry. TEO outperforms 86.67% of its industry peers.
TEO's Return On Equity of 11.71% is fine compared to the rest of the industry. TEO outperforms 76.67% of its industry peers.
Industry RankSector Rank
ROA 5.82%
ROE 11.71%
ROIC N/A
ROA(3y)-5.31%
ROA(5y)-3.57%
ROE(3y)-12.13%
ROE(5y)-8.01%
ROIC(3y)N/A
ROIC(5y)N/A
TEO Yearly ROA, ROE, ROICTEO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

1.3 Margins

Looking at the Profit Margin, with a value of 17.93%, TEO belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
TEO has a Gross Margin of 72.61%. This is amongst the best in the industry. TEO outperforms 90.00% of its industry peers.
TEO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 17.93%
GM 72.61%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y-2.76%
TEO Yearly Profit, Operating, Gross MarginsTEO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60 80

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2

2. Health

2.1 Basic Checks

The number of shares outstanding for TEO has been reduced compared to 1 year ago.
Compared to 5 years ago, TEO has about the same amount of shares outstanding.
The debt/assets ratio for TEO is higher compared to a year ago.
TEO Yearly Shares OutstandingTEO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
TEO Yearly Total Debt VS Total AssetsTEO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1T 2T 3T 4T 5T

2.2 Solvency

The Debt to FCF ratio of TEO is 11.99, which is on the high side as it means it would take TEO, 11.99 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.99, TEO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
TEO has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TEO (0.39) is better than 73.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 11.99
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
TEO Yearly LT Debt VS Equity VS FCFTEO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500B 1T 1.5T 2T

2.3 Liquidity

TEO has a Current Ratio of 0.49. This is a bad value and indicates that TEO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.49, TEO is not doing good in the industry: 96.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.46 indicates that TEO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, TEO is doing worse than 96.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.46
TEO Yearly Current Assets VS Current LiabilitesTEO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B 800B 1T

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.81% over the past year.
Measured over the past 5 years, TEO shows a small growth in Earnings Per Share. The EPS has been growing by 7.52% on average per year.
Looking at the last year, TEO shows a very strong growth in Revenue. The Revenue has grown by 31.53%.
The Revenue has been growing by 24.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.81%
EPS 3Y7.52%
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)31.53%
Revenue growth 3Y24.93%
Revenue growth 5YN/A
Sales Q2Q%255.53%

3.2 Future

Based on estimates for the next years, TEO will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.01% on average per year.
The Revenue is expected to grow by 48.31% on average over the next years. This is a very strong growth
EPS Next Y85.03%
EPS Next 2Y-83.73%
EPS Next 3Y35.11%
EPS Next 5Y-18.01%
Revenue Next Year21.75%
Revenue Next 2Y62.33%
Revenue Next 3Y50.55%
Revenue Next 5Y48.31%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
TEO Yearly Revenue VS EstimatesTEO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1T 2T 3T 4T 5T
TEO Yearly EPS VS EstimatesTEO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500 1K 1.5K 2K

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1

4. Valuation

4.1 Price/Earnings Ratio

Industry RankSector Rank
PE N/A
Fwd PE N/A
TEO Price Earnings VS Forward Price EarningsTEO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TEO Per share dataTEO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share

4.3 Compensation for Growth

A more expensive valuation may be justified as TEO's earnings are expected to grow with 35.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-83.73%
EPS Next 3Y35.11%

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0

5. Dividend

5.1 Amount

No dividends for TEO!.
Industry RankSector Rank
Dividend Yield N/A

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TELECOM ARGENTINA SA-SP ADR

NYSE:TEO (1/27/2025, 11:59:04 AM)

12.19

-0.14 (-1.14%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)N/A N/A
Inst Owners39.91%
Inst Owner Change0.85%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.25B
Analysts40
Price TargetN/A
Short Float %0%
Short Ratio4.07
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP2.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.94%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)2598.39%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-1.66%
Revenue NY rev (3m)83.22%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S N/A
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)N/A
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpSN/A
BVpSN/A
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.82%
ROE 11.71%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 17.93%
GM 72.61%
FCFM 7.06%
ROA(3y)-5.31%
ROA(5y)-3.57%
ROE(3y)-12.13%
ROE(5y)-8.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y-2.76%
F-Score6
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 11.99
Debt/EBITDA 1.91
Cap/Depr 54.87%
Cap/Sales 19.76%
Interest Coverage N/A
Cash Conversion 85.04%
Profit Quality 39.36%
Current Ratio 0.49
Quick Ratio 0.46
Altman-Z N/A
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)57.22%
Cap/Depr(5y)64.86%
Cap/Sales(3y)19.07%
Cap/Sales(5y)19.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.81%
EPS 3Y7.52%
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y85.03%
EPS Next 2Y-83.73%
EPS Next 3Y35.11%
EPS Next 5Y-18.01%
Revenue 1Y (TTM)31.53%
Revenue growth 3Y24.93%
Revenue growth 5YN/A
Sales Q2Q%255.53%
Revenue Next Year21.75%
Revenue Next 2Y62.33%
Revenue Next 3Y50.55%
Revenue Next 5Y48.31%
EBIT growth 1Y-128.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year15208600%
EBIT Next 3Y864.9%
EBIT Next 5YN/A
FCF growth 1Y119.64%
FCF growth 3Y30.85%
FCF growth 5YN/A
OCF growth 1Y243.18%
OCF growth 3Y59.98%
OCF growth 5Y54.41%