Stock fact sheet · data as of
Telecom Argentina S.A. (TEO): fair value, margin of safety and Wheel Score
Ticker symbol TEO · Communication Services · Telecommunications Services · Argentina · ADR · Blend
TEO is an American depositary share (ADR): the US listing of Telecom Argentina S.A., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is TEO undervalued?
TEO has a margin of safety of 78%: the stock closed at 10.44 on 5 Nov 2026 against a GLS average fair value of 47.23. 7 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 0.5966 while DCF gives 223.10. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for TEO, so the nightly engine files it under Blend (value score 82, growth score 82, out of 100).
Nine valuation models for TEO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 223.10 | +2037% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.68 | +41% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 16.31 | +56% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.04 | -61% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 48.51 | +365% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 54.64 | +423% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 51.92 | +397% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 0.5966 | -94% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 11.24 | +8% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.78 | -203% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 16.18 | +55% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TEO scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.6 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC -1.5%, ROE -2.5%, ROA -1.0% - with debt at 0.63 times equity and a free-cash-flow yield of 13.7%.
The dividend yield is 0.39% with a payout ratio of 10% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Fixed Telephony and Data services 100% (fiscal year FY2022).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 9 Oct 2026.
| Piotroski F-score | 7 / 9 | ROIC | -1.5% |
|---|---|---|---|
| GLS Moat | 5.6 / 10 | ROE | -2.5% |
| Debt / equity | 0.63 | ROA | -1.0% |
| Free-cash-flow yield | 13.7% | Payout ratio | 10% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 42: Weak
TEO scores 42 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (413 open interest, 192 a day); and filter 7, a premium worth selling - implied volatility 99% (over 80%), and the parts are thin too - value strong, premium weak, moat fair, health good, red flags strong, option trading weak, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 99%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 413 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 332k shares a day on a market cap of $4.9B, with a beta of 0.37 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (413 open interest, 192 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 99% (over 80%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 78% below fair value | |
| Premium | Weak | implied volatility 99% | |
| Moat | Fair | moat 5.6/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Weak | 192 contracts a day, 413 open interest | |
| Stability | Good | beta 0.37, $4.9B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Telecom Argentina S.A. reports earnings on 9 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to Telecom Argentina S.A. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| IRDM Iridium Communications Inc. | 43.81 | 47.63 | +8% | 35Weak | $4.6B |
| LUMN Lumen Technologies, Inc. | 4.47 | 0.6769 | -560% | 22Weak | $4.6B |
| VEON VEON Ltd. | 79.01 | 82.59 | +4% | 70Good | $5.4B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 4.73 | 18.98 | +75% | 47Weak | $4.1B |
| PHI PLDT Inc. | 18.12 | 42.74 | +58% | 37No options | $3.9B |
| TDS Telephone and Data Systems, Inc. | 36.01 | 56.51 | +36% | 79Good | $3.9B |
| LBTYB Liberty Global plc | 11.76 | - | - | 15No options | $3.6B |
| LBTYA Liberty Global plc | 9.58 | - | - | 33Weak | $3.2B |
| LBTYK Liberty Global plc | 9.34 | - | - | 27Weak | $3.2B |
| KYIV Kyivstar Group Ltd. Common Shares | 13.62 | 28.80 | +53% | 83Good | $3.1B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 19.90 | 37.96 | +48% | 25No options | $3.1B |
| AD Array Digital Infrastructure Inc | 33.23 | 112.42 | +70% | 34Weak | $2.9B |
⚖ Compare TEO with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about TEO
Is TEO undervalued right now?
By the GLS models, yes: at 10.44 the stock is 78% below the average fair value of 47.23 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TEO and what does it mean?
TEO scores 42 out of 100 (Weak) - it fails Wheel Trade Filters 1, 7. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TEO?
47.23 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Telecom Argentina S.A. report earnings next?
The next earnings report is due on 9 Nov 2026 (before the open), 4 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does TEO have listed options, and how liquid are they?
Yes. The nightly snapshot found 18 listed contracts with 413 open interest across all expiries and implied volatility of 99% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is TEO an ADR?
Yes. TEO is an American depositary share (ADR): the US listing of Telecom Argentina S.A., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.