Telecom Argentina (TEO) AI Stock Analysis

• Market Cap: $5.06B
• Dividend Yield: 1.81%
• Average Volume (3M): 409.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 3.89%
• EPS Growth: -107.44%
• Country: US
• Employees: 19,987
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.33
• Shares Outstanding: 125,611,600
• 10 Day Avg. Volume: 581,631
• 30 Day Avg. Volume: 409,446
• PEG Ratio: -0.02
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 13.39
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $9.40
• Price Target Upside: -16.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $8.00 ▼(-28.89% Downside)

Telecom Argentina's overall stock score is primarily influenced by its solid revenue growth and strong cash flow generation, despite profitability challenges. The technical analysis suggests bullish momentum, but overbought conditions could lead to a pullback. The valuation is unattractive due to negative earnings, which weighs down the overall score.

Positive Factors

Revenue Growth

The strong revenue growth rate indicates a positive trajectory in sales, suggesting that the company is successfully expanding its market reach and product adoption.

Cash Flow Generation

Robust cash flow generation highlights the company's ability to sustain operations and invest in growth opportunities, even amid profitability challenges.

Loan from Bank of China

The significant loan enhances operational capabilities and financial stability, supporting strategic initiatives and potentially improving market positioning.

Negative Factors

Profitability Challenges

Persistent profitability issues, with negative margins, indicate challenges in cost management and pricing power, potentially impacting long-term financial health.

Rising Debt Levels

Increased leverage could strain financial flexibility and cash flow, posing risks to future investment and operational stability.

Board Resignation

Leadership changes may disrupt strategic continuity and governance, potentially affecting stakeholder confidence and strategic execution.

Telecom Argentina Business Overview & Revenue Model

Company Description

Telecom Argentina (TEO) is a leading telecommunications company in Argentina, providing a wide range of communication services across fixed and mobile sectors. Established in 1990, the company offers voice, data, and internet services to residential and business customers, alongside digital solutions and value-added services. With a robust infrastructure that includes a national fiber-optic network, Telecom Argentina is positioned as a key player in the country's telecommunications market, focusing on innovation and customer experience.

How the Company Makes Money

Telecom Argentina generates revenue through multiple streams, primarily from its fixed-line and mobile telecommunications services. The company earns money from monthly subscriptions for landline and mobile services, pay-per-use data plans, and broadband internet services. Additionally, Telecom Argentina benefits from business solutions, including cloud services, data center offerings, and enterprise communication solutions, which cater to corporate clients. Significant revenue also comes from value-added services such as television and content distribution. The company has formed strategic partnerships with local and international content providers to enhance its service offerings, contributing to its earnings. Furthermore, the growing demand for data and digital services has positively impacted its revenue growth, particularly in mobile data services.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.54T	4.14T	2.06T	4.94T	2.58T	886.76B
Gross Profit	4.13T	3.03T	1.51T	3.65T	1.89T	664.58B
EBITDA	1.82T	2.89T	175.33B	216.96B	1.18T	297.50B
Net Income	-31.74B	1.01T	-257.73B	-647.21B	8.66B	-16.80B
Balance Sheet
Total Assets	14.56T	10.94T	11.93T	5.38T	2.10T	1.14T
Cash, Cash Equivalents and Short-Term Investments	369.13B	351.90B	617.89B	150.80B	59.67B	35.77B
Total Debt	4.74T	3.09T	4.83T	1.55T	556.43B	316.94B
Total Liabilities	8.26T	5.41T	7.04T	2.85T	1.03T	548.22B
Stockholders Equity	6.22T	5.43T	2.17T	2.48T	1.05T	577.28B
Cash Flow
Free Cash Flow	555.17B	417.29B	770.36B	285.09B	327.01B	134.05B
Operating Cash Flow	1.17T	811.50B	1.35T	666.49B	788.80B	293.88B
Investing Cash Flow	-1.57T	-383.42B	-1.24T	-1.12T	-698.31B	-240.42B
Financing Cash Flow	532.12B	-405.62B	-209.40B	-310.58B	-123.12B	-105.30B

Telecom Argentina Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEO, the sentiment is Positive. The current price of 11.25 is above the 20-day moving average (MA) of 8.41, above the 50-day MA of 8.01, and above the 200-day MA of 9.76, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 75.95 is Negative, neither overbought nor oversold. The STOCH value of 85.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEO.

Telecom Argentina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	―	$5.18B	11.85	7.38%	5.40%	19.25%	5.69%
VEON	―	$3.33B	3.39	89.94%	―	8.66%	―
TLK	―	$19.11B	13.66	17.71%	6.57%	-5.13%	-5.90%
PHI	―	$4.12B	7.50	27.07%	8.58%	0.35%	19.08%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEF	―	$28.73B	-11.44	-3.55%	6.50%	-4.73%	-251.31%
TEO	―	$5.06B	―	-0.27%	1.81%	3.89%	-107.44%

Telecom Argentina Corporate Events

Telecom Argentina Announces Shareholders’ Meeting for November 2025

Telecom Argentina S.A. has announced an Ordinary General Shareholders’ Meeting scheduled for November 6, 2025, in Buenos Aires. The agenda includes the appointment of two shareholders to sign the meeting minutes, the appointment of a director for the upcoming fiscal year, and the evaluation of a resigning director’s performance. This meeting reflects the company’s ongoing governance and strategic planning efforts, potentially impacting its operational and leadership structure.

Telecom Argentina Calls Shareholders’ Meeting for Director Appointment

On October 6, 2025, Telecom Argentina S.A. announced its decision to convene an Ordinary General Shareholders’ Meeting scheduled for November 6, 2025. The meeting aims to address the appointment of a new director to serve until the end of the fiscal year 2026, following the resignation of a current director. This decision is part of the company’s ongoing governance and operational adjustments, potentially impacting its strategic direction and stakeholder engagement.

Telecom Argentina Announces Board Resignation

On September 30, 2025, Telecom Argentina S.A. announced the resignation of Julian Akerman, a member of its Board of Directors, who stepped down due to personal reasons. The resignation, proposed by FGS Anses, will be reviewed by the Board in its upcoming meeting, potentially impacting the company’s governance structure.

Telecom Argentina Secures Major Loan from Bank of China

On September 23, 2025, Telecom Argentina announced the receipt of a significant loan disbursement from the Bank of China Limited, Panama Branch. The loan, amounting to 530 million Renminbi, was part of an agreement signed on September 19, 2025, and is set to mature in September 2028. This financial move is expected to bolster the company’s operational capabilities and potentially enhance its market positioning.

Telecom Argentina Secures Loan Agreement with Bank of China

On September 19, 2025, Telecom Argentina S.A. announced it has entered into a loan agreement with the Bank of China Limited (Panama Branch). This strategic financial move is expected to support the company’s operational needs, potentially enhancing its market position and offering stability in its financial operations.

Telecom Argentina Reports Strong Financial Growth as of June 2025

Telecom Argentina has released its unaudited condensed consolidated financial statements for the period ending June 30, 2025. The report indicates a significant increase in both current and non-current assets compared to December 2024, reflecting growth in trade receivables and investments. This financial update suggests a strengthening of the company’s financial position, which could enhance its market competitiveness and provide positive implications for stakeholders.

Telecom Argentina Reports Significant Loss Amid Inflation and Acquisition Costs

Telecom Argentina announced a consolidated net loss of P$75,554 million for the first half of 2025, a significant decline from a profit in the same period last year. This loss was primarily due to adverse net financial results, despite an increase in operating income and service revenues, which grew by 44.2% compared to the previous year, driven by the inclusion of Telefónica Móviles Argentina’s contributions. The company’s financial position was impacted by inflation and increased debt from the acquisition of TMA, although there was growth in customer base and service revenues.

Telecom Argentina Engages with Antitrust Commission on Regulatory Matters

On August 5, 2025, Telecom Argentina submitted comments to the Argentine Antitrust Commission regarding a Technical Opinion issued on June 19, 2025. This submission follows a resolution from the Secretary of Industry and Commerce, indicating Telecom Argentina’s ongoing engagement with regulatory bodies, which could influence its market operations and compliance strategies.