Telecom Argentina (TEO) AI Stock Analysis

• Market Cap: $5.20B
• Dividend Yield: 0.4%
• Average Volume (3M): 199.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 15.38%
• EPS Growth: -292.52%
• Country: US
• Employees: 19,987
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.19
• Shares Outstanding: 125,611,600
• 10 Day Avg. Volume: 192,829
• 30 Day Avg. Volume: 199,822
• 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: 1.07
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $10.00
• Price Target Upside: -11.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $14.00 ▲(24.33% Upside)

Telecom Argentina's overall stock score is primarily driven by strong technical momentum, despite overbought signals. Financial performance is mixed, with robust cash flow and revenue growth but weak profitability and shareholder returns. Valuation is a significant concern due to the negative P/E ratio, which impacts the overall attractiveness of the stock.

Positive Factors

Revenue Growth

The strong revenue growth rate indicates a positive trajectory in sales, suggesting effective market penetration and product adoption, which is crucial for long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for strategic investments and debt management, supporting long-term operational stability.

Asset Growth

Significant asset growth reflects increased investments and operational capacity, strengthening the company's financial health and market position.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with negative margins indicate inefficiencies that could hinder long-term financial performance and shareholder returns.

Rising Debt Levels

Increased debt levels from acquisitions may strain cash flows and limit financial flexibility, impacting future investment capabilities and stability.

Leadership Changes

Leadership changes can disrupt strategic continuity and may affect stakeholder confidence, impacting the company's long-term strategic direction.

Telecom Argentina Business Overview & Revenue Model

Company Description

Telecom Argentina (TEO) is a leading telecommunications company in Argentina, providing a wide range of services including fixed-line and mobile telephony, broadband internet, and digital television. The company operates primarily in the telecommunications and information technology sectors, offering its services to both residential and business customers. With a strong focus on innovation and customer satisfaction, Telecom Argentina aims to enhance connectivity across the country through its extensive network infrastructure.

How the Company Makes Money

Telecom Argentina generates revenue through multiple streams, primarily from its telecommunications services. Key revenue sources include mobile telephony services, which encompass voice, SMS, and data plans for individual and corporate customers. Additionally, the company earns significant income from fixed-line services, including landline telephony and broadband internet subscriptions. Digital television services also contribute to its earnings, as consumers increasingly seek bundled service packages. Telecom Argentina has established partnerships with various technology providers to enhance its service offerings and expand its customer base. The company also capitalizes on value-added services, such as cloud computing and cybersecurity solutions, further diversifying its revenue streams.

Telecom Argentina Financial Statement Overview

Summary

Telecom Argentina is experiencing solid revenue growth and maintains strong gross margins, indicating operational efficiency. However, profitability remains a concern with negative net income and low EBIT margins. The balance sheet shows moderate leverage, but the negative return on equity points to challenges in shareholder value creation. Cash flow metrics are robust, highlighting the company's ability to generate cash despite profitability issues.

Income Statement

Telecom Argentina shows a strong revenue growth rate of 23.52% in the TTM, indicating a positive trajectory in sales. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.57% and a low EBIT margin of 4.81%. The gross profit margin remains robust at 74.55%, suggesting efficient cost management at the production level.

Balance Sheet

The company's debt-to-equity ratio of 0.76 indicates moderate leverage, which is manageable but has increased from previous years. The return on equity is negative at -0.56%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 42.75%, showing a stable capital structure.

Cash Flow

Telecom Argentina's cash flow performance is strong, with a free cash flow growth rate of 30.92% in the TTM. The operating cash flow to net income ratio of 0.26 suggests that cash generation from operations is healthy, despite the negative net income. The free cash flow to net income ratio of 0.27 further supports the company's ability to generate 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	2.91T	175.33B	238.59B	1.18T	297.50B
Net Income	-31.74B	1.01T	-257.73B	-1.41T	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	4.72T	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: 11.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 11.26 is below the 20-day moving average (MA) of 12.09, above the 50-day MA of 10.77, and above the 200-day MA of 9.60, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 10.58 is Positive, 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
PHI	77 Outperform	$4.72B	9.28	25.22%	7.60%	0.59%	8.86%
VEON	75 Outperform	$3.67B	5.63	48.17%	―	6.42%	―
TLK	75 Outperform	$20.88B	15.80	15.54%	6.04%	-5.21%	-7.45%
TKC	74 Outperform	$5.20B	12.66	7.60%	5.43%	19.02%	9.26%
TEO	61 Neutral	$5.20B	-32.91	-2.95%	0.40%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEF	45 Neutral	$22.92B	-10.48	-0.70%	7.36%	-5.49%	-75.51%

Telecom Argentina Corporate Events

Telecom Argentina Wins Legal Battle Over 2015 Service Outage

On December 2, 2025, Telecom Argentina S.A. announced that the Federal Court No. 1 of Tucumán ruled in favor of the company in a legal case initiated by the Asociación de Consumidores del NOA. The court decided not to uphold the action seeking reimbursement for a service outage that occurred on March 3, 2015, deeming it a fortuitous event. This decision alleviates Telecom Argentina from potential financial liabilities and reinforces its standing in the industry, providing reassurance to stakeholders.

Telecom Argentina Announces Merger with Subsidiary TSMA

On December 1, 2025, Telecom Argentina announced that its Board of Directors, along with the Board of Directors of its subsidiary TELEDIFUSORA SAN MIGUEL ARCANGEL S.A. (TSMA), approved a corporate reorganization plan. This plan involves the merger of TSMA into Telecom Argentina, effective January 1, 2026. This strategic move is expected to streamline operations and consolidate financial statements, potentially enhancing Telecom Argentina’s market positioning and operational efficiency.

Telecom Argentina Reports Strong Asset Growth in Q3 2025

Telecom Argentina has released its unaudited condensed consolidated financial statements for the period ending September 30, 2025. The report highlights a significant increase in total assets, which rose from 13,345 million Argentine pesos at the end of 2024 to 15,630 million pesos by September 2025. This growth is attributed to increased investments and trade receivables, indicating a positive trend in the company’s financial health and operational capacity.

Telecom Argentina Announces Dividend Distribution and Reserve Withdrawal

On November 10, 2025, Telecom Argentina announced a partial withdrawal from its discretionary reserve and a dividend distribution plan. The company will distribute Global Bonds of the Argentine Republic and cash dividends to shareholders, with the cash distribution primarily aimed at recovering amounts paid for the Personal Assets Tax for the 2024 fiscal year. These actions reflect the company’s strategic financial management and are expected to impact shareholder returns and tax liabilities.

Telecom Argentina Reports Q3 2025 Financial Results Amid Inflation Challenges

Telecom Argentina announced a consolidated net loss of P$272,543 million for the nine-month period ending September 30, 2025, primarily due to exchange rate differences and inflationary pressures. Despite this, the company saw a significant increase in consolidated revenues by 50.7% compared to the previous year, driven by the inclusion of revenues from Telefónica Móviles Argentina (TMA) for seven months of the period. The company’s operating income margin improved, and service revenues showed positive growth relative to inflation, although the net financial debt increased due to the acquisition of TMA.

Telecom Argentina Secures RMB 500 Million Loan from Bank of China

On November 7, 2025, Telecom Argentina announced the receipt of a significant loan disbursement of RMB 500 million from the Bank of China Limited, Panama Branch. This financial move, part of a loan agreement signed on September 19, 2025, is set to mature in September 2028, potentially strengthening the company’s financial position and supporting its operational capabilities.

Telecom Argentina Announces Key Appointments and Approvals at Shareholders’ Meeting

On November 6, 2025, Telecom Argentina held its Ordinary General Shareholders’ Meeting where several key resolutions were adopted. The meeting resulted in the appointment of Mr. Diego Miguel Bianchi as a director until the end of fiscal year 2026, with Mr. Alberto Viglino serving as his alternate. The performance of the resigning director, Mr. Julián Akerman, was also approved. This meeting underscores the company’s commitment to maintaining strong governance and leadership, potentially impacting its strategic direction and stakeholder confidence.

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.