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Telecom Argentina
(NYSE:TEO)
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Rating:71Outperform
Price Target:
$17.00
▲(42.38% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by very strong valuation (low P/E and very high dividend yield), supported by positive technical momentum (price above key moving averages and positive MACD). This is moderated by financial performance that is improving but still somewhat volatile, with modest ROE, moderate leverage, and uneven cash conversion.
Positive Factors
Strong cash generation and positive FCF
Sustained operating cash flow and positive free cash flow provide durable internal funding for network investment, debt reduction and shareholder returns. Reliable cash generation improves financial flexibility across cycles and supports long-term execution of multi-year capex and service rollouts.
Negative Factors
Antitrust divestiture and behavioral remedies
Regulatory-mandated divestitures materially reduce the scale benefits of the Telefónica Móviles transaction and constrain spectrum and customer economics. Forced transfers and behavioral remedies can permanently limit market share gains, synergies and long-run revenue potential in key metro areas.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and positive FCF
Sustained operating cash flow and positive free cash flow provide durable internal funding for network investment, debt reduction and shareholder returns. Reliable cash generation improves financial flexibility across cycles and supports long-term execution of multi-year capex and service rollouts.
Read all positive factors
Telecom Argentina (TEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.87B
Dividend Yield0.4%
Average Volume (3M)203.59K
Price to Earnings (P/E)22.8
Beta (1Y)0.71
Revenue Growth51.86%
EPS Growth11.59%
CountryUS
Employees19,987
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)874.90
Shares Outstanding125,611,600
10 Day Avg. Volume210,401
30 Day Avg. Volume203,594
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.06
Price to Sales (P/S)0.87
P/FCF Ratio12.06
Enterprise Value/Market Cap2.49K
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda4.44
Forecast
1Y Price Target
$15.07Price Target Upside26.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.61
Revenue Forecast (FY)$6.93B
Telecom Argentina Business Overview & Revenue Model
Company Description
Telecom Argentina S.A., operating through its subsidiaries, delivers a comprehensive array of telecommunications services both within Argentina and across international borders. Its offerings span traditional fixed-line telephony, encompassing loc...
How the Company Makes Money
Telecom Argentina primarily makes money by selling recurring connectivity and communications services on subscription/contract bases across multiple lines of business. (1) Mobile services: A major revenue stream comes from monthly and usage-based ...
Telecom Argentina Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.04T | 8.33T | 4.14T | 2.06T | 4.94T | 2.58T |
| Gross Profit | 6.85T | 6.28T | 3.03T | 1.51T | 3.65T | 1.89T |
| EBITDA | 3.30T | 2.34T | 2.91T | 175.33B | 238.59B | 1.18T |
| Net Income | 377.26B | -170.01B | 1.01T | -257.73B | -1.41T | 8.66B |
Balance Sheet | ||||||
| Total Assets | 18.28T | 16.62T | 10.94T | 11.93T | 5.38T | 2.10T |
| Cash, Cash Equivalents and Short-Term Investments | 1.07T | 791.81B | 351.90B | 617.89B | 150.80B | 59.67B |
| Total Debt | 5.89T | 4.31T | 3.09T | 4.83T | 1.55T | 556.43B |
| Total Liabilities | 10.06T | 9.64T | 5.41T | 7.04T | 2.85T | 1.03T |
| Stockholders Equity | 8.09T | 6.86T | 5.43T | 4.72T | 2.48T | 1.05T |
Cash Flow | ||||||
| Free Cash Flow | 535.92B | 601.69B | 417.29B | 770.36B | 285.09B | 327.01B |
| Operating Cash Flow | 1.75T | 2.18T | 811.50B | 1.35T | 666.49B | 788.80B |
| Investing Cash Flow | -1.57T | -3.51T | -383.42B | -1.24T | -1.12T | -698.31B |
| Financing Cash Flow | 93.28B | 1.31T | -405.62B | -209.40B | -310.58B | -123.12B |
Telecom Argentina Technical Analysis
Positive
11.94
Price Trends
12.80
Positive
12.17
Positive
11.31
Positive
Market Momentum
-0.02
Positive
46.11
Neutral
11.96
Positive
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 11.94 is below the 20-day moving average (MA) of 13.76, below the 50-day MA of 12.80, and above the 200-day MA of 11.31, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEO.
Telecom Argentina Risk Analysis
Telecom Argentina disclosed 48 risk factors in its most recent earnings report. Telecom Argentina reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Telecom Argentina Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.87B | 22.78 | 5.46% | 0.40% | 51.86% | 11.59% | |
64 Neutral | $12.96B | 14.53 | 11.99% | 6.14% | -4.78% | -32.55% | |
63 Neutral | $3.96B | 7.76 | 24.22% | 7.78% | 0.82% | -9.44% | |
63 Neutral | $3.62B | 7.01 | 38.73% | ― | 12.63% | 19.58% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $5.02B | 12.58 | 7.27% | 5.57% | 18.57% | 5.36% |
* Communication Services Sector Average
TEO
Telecom Argentina
12.67
3.96
45.38%
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VEON
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Telecom Argentina Corporate Events
Telecom Argentina Gets Conditional Antitrust Approval for Telefónica Móviles Deal
Jun 18, 2026
On June 18, 2026, Telecom Argentina reported that Argentina’s Antitrust Tribunal has conditionally approved its planned acquisition of exclusive control over Telefónica Móviles Argentina and its subsidiaries. The decision follows a...
Telecom Argentina Updates Q1 2026 Financials and Corporate Structure in New SEC Filing
May 12, 2026
Telecom Argentina has filed its Form 6-K for May 2026, presenting unaudited condensed consolidated financial statements and an operating and financial review as of March 31, 2026. The filing details the group’s financial position, including ...
Telecom Argentina to Appeal Court Order on Consumer Reimbursements and AR$5 Million Fine
May 11, 2026
On May 8, 2026, Telecom Argentina reported that a National Court of First Instance on Commercial Matters in Buenos Aires ruled against the company in a long-running consumer suit brought by Asociación Protección Consumidores del Mercado ...
Telecom Argentina Posts Strong 1Q26 Profit on FX Gains and Higher Capex
May 11, 2026
Telecom Argentina reported first-quarter 2026 results on May 11, 2026, with consolidated revenues of P$2.36 trillion and service revenues of P$2.28 trillion, reflecting 33.6% year-on-year growth in constant currency driven largely by the full-quar...
Telecom Argentina Faces Extended Antitrust Review Period in Argentina
Apr 30, 2026
On April 30, 2026, Telecom Argentina disclosed that the Argentine Antitrust Tribunal extended by 30 days the original 45‑day review period established under section 14 of Law 27,442 for an antitrust notification proceeding that began countin...
Telecom Argentina Shareholders Approve Loss Absorption, Dividend Capacity and New Oversight Lineup
Apr 29, 2026
On April 29, 2026, Telecom Argentina held its ordinary, extraordinary and special shareholders’ meetings in Buenos Aires, approving the 2025 financial statements and other regulatory documentation despite reporting an inflation-adjusted reta...
Telecom Argentina Moves to Absorb Wholly Owned Subsidiary TSMA in Internal Merger
Apr 15, 2026
Telecom Argentina disclosed that on March 10, 2026 it signed a preliminary merger agreement to absorb its wholly owned subsidiary Teledifusora San Miguel Arcangel S.A. (TSMA), with Telecom designated as the surviving entity. The reorganization is ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.