Telecom Argentina S.A. (TEO)
Communication Services · NYQ · US
Fundamentals
Valuation and ratings
Telecom Argentina S.A. trades at USD13.31, which is 56% below the USD20.79 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 56 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 24.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Telecom Argentina S.A.
Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services in Argentina, Paraguay, Uruguay, Chile and the United States. The company offers mobile telecommunications services, including voice communications, high-speed mobile internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, modems, MiFi and wingles, and smartwatches. It also offers internet connectivity products, including virtual private network services, traditional internet protocol links, and other products; and programming and other cable television services. In addition, the company provides telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it offers infrastructure, interconnection, datacenter, internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service. The company also offers broadcasting, cable television, financial, cybersecurity, ICT services and audiovisual communication, content platform and related services; security solutions and services; closed-circuit and community closed-circuit television, as well as investment and consulting services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.
TEO passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Howard Marks, OAKTREE CAPITAL MANAGEMENT LP$18.96M · 0.3% of book
- Marshall Wace, MARSHALL WACE, LLP$5.13M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$3.76M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$3.27M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$2.11M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Telecom Argentina S.A. (TEO) undervalued?
Against our discounted cash flow estimate of USD20.79, TEO at USD13.31 is 56% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own TEO?
5 of the institutions we track reported a position in TEO in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is TEO's P/E ratio?
TEO trades at 24.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for TEO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.