Telecom Argentina SA (TEO)
Fast GrowerFairStock Score: 50/100 — MIXED
Key Financials
| Current Price | $11.82 |
| Market Cap | $5.1B |
| P/E Ratio | 21.11 |
| ROE | 5.23% |
| Dividend Yield | 0.33% |
| Sector | Communication Services |
Strengths
- Generates $977.2 billion in annual free cash flow (19096.9% yield on market cap)
- Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Revenue growth of 110.6% demonstrates strong top-line momentum
- Established organization with 27,818 employees providing operational scale
Concerns
- Altman Z-Score of -0.2 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Telecom Argentina SA is a small-cap communication services company valued at $5.1 billion. The business generates $8.9 trillion in annual revenue with a 0.0% net margin and $977.2 billion in free cash flow. From a quality standpoint, Telecom shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of -0.2 warrants caution. On valuation, the stock is reasonably priced at 20.4x earnings, with offers a 94% margin of safety vs Graham Number of $204. Growth dynamics show revenue growing at 110.6% and profit growth of 61.5%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Telecom's 111% revenue growth trajectory could accelerate as it captures additional market share in the communication services sector. With $977.2 billion in annual free cash flow (19096.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer