Telecom Argentina SA relative valuation is UNDERVALUED and it has a fundamental analysis score of 63.
Our analysis is based on comparing Telecom Argentina SA with the following peers – TIM Participacoes S.A. Sponsored ADR, Telefonica SA Sponsored ADR, Millicom International Cellular S.A., Telefonica Brasil S.A. Sponsored ADR Pfd, Nortel Inversora SA Sponsored ADR Pfd Class B, America Movil SAB de CV Sponsored ADR Class L and Telecom Italia S.p.A. Sponsored ADR (TSU-US, TEF-US, MIICF-US, VIV-US, NTL-US, AMX-US and TI-US).
Telecom Argentina SA has shown good performance overall, both over the last one year (at 57.54%) as well as over the last month (at 14.45%). Share price performance over the last month, though has been lower than that over the last year. But Telecom Argentina SA’s stock has done better than its overall peer group whose performance was -0.38% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It currently trades at a Price/Book ratio of (2.01).
- We classify TEO-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- TEO-US has a successful operating model with relatively high net profit margins and asset turns.
- Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
- TEO-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
- While TEO-US‘s revenues growth in recent years has been around the peer median, the stock’s below peer median P/E ratio suggests that the market likely sees the company’s long-term growth prospects to be fading.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- TEO-US might have enough interest coverage to take-on additional debt prudently.
- Our analysis rates Telecom Argentina SA as UNDERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
TEO-US‘s share price performance of 57.54% over the last 12 months is above peer median of 16.89%. The 30-day trend in its share price performance of 14.45% is also above the peer median of -0.38% suggesting that this company is a leading performer relative to its peers.
Quadrant label definitions. Hover to know more
Telecom Argentina SA’s price of USD 29.46 is lower than CapitalCube’s implied price of USD 32.87. CapitalCube believes that at these levels, Telecom Argentina SA is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 17.04 and USD 29.89.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Telecom Argentina SA engages in the provision of telecommunications services. It operates through the following segments: Fixed Services, Personal Mobile Services and Nucleo Mobile Services. The Fixed Services segment offers basic telephone services; interconnection services; data transmission and internet services; information and communication technology services; other telephone services; and sale of equipment. The Personal Mobile Services provides voice, data, internet services, and sells mobile communication devices. The Nucleo Mobile Services offers telecommunication services in Paraguay. The company was founded on January 5, 1990 is headquartered in Buenos Aires, Argentina.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.