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TEOTelecom Argentina S.A.
$12.67$5.5B
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  4. Financial Ratios

Telecom Argentina S.A. (TEO) Financial Ratios

Latest Ratios: P/E Ratio -47.9x · EV/EBITDA 4.1x · ROE -2.7%. (1998–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

TEO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$5.5B$5.0B$5.4B$3.1B$2.3B$2.2B$2.8B$4.9B$6.7B$13.3B$3.5B
Enterprise Value$8.0B$3.85T$2.78T$4.49T$1.43T$520.0B$291.8B$6.9B$118.0B$22.8B$11.5B
P/E Ratio →-47.92—0.01——0.25——1.271.740.89
P/S Ratio0.980.000.000.000.000.000.000.010.020.130.06
P/B Ratio1.170.000.000.000.000.000.000.940.020.240.18
P/FCF——0.010.030.010.020.050.08—2.980.54
P/OCF3.740.000.010.000.000.000.010.030.100.380.14

P/E links to full P/E history page with 30-year chart

TEO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.460.672.180.290.200.330.010.340.220.19
EV / EBITDA4.121.322.387.75—0.650.970.051.040.610.57
EV / EBIT13.9213.371.73——1.425.230.168.010.900.63
EV / FCF——6.6642.824.385.755.460.11—5.121.75

TEO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin75.4%75.4%73.3%73.4%73.8%73.1%74.9%73.5%73.9%72.7%70.3%
Operating Margin10.3%10.3%-3.5%-6.1%-40.4%-0.7%6.7%6.7%12.6%21.5%20.4%
Net Profit Margin-2.0%-2.0%24.5%-12.5%-28.5%0.3%-1.9%-1.9%3.2%14.6%17.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-2.7%-2.7%19.4%-6.9%-78.3%1.0%-5.7%-5.1%5.4%40.0%55.8%
ROA-1.2%-1.2%8.9%-3.0%-37.7%0.5%-2.9%-3.1%3.3%21.1%24.2%
ROIC6.8%6.8%-1.2%-1.4%-54.1%-1.0%10.1%10.3%12.6%35.7%37.3%
ROCE7.9%7.9%-1.6%-1.8%-63.8%-1.2%12.1%13.0%15.8%41.2%46.5%

TEO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.620.620.560.990.610.520.540.480.350.290.60
Debt / EBITDA1.481.482.658.34—0.701.050.021.070.430.59
Net Debt / Equity—0.550.500.920.560.480.490.400.320.170.40
Net Debt / EBITDA1.321.322.387.74—0.650.960.010.980.260.39
Debt / FCF——6.6542.794.375.725.400.03—2.131.21
Interest Coverage0.600.606246.21-2720.37-14519.273.541.20196.281.6215.5210.42

TEO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.480.480.390.440.390.390.500.590.630.570.94
Quick Ratio0.450.450.350.410.370.370.470.550.580.560.87
Cash Ratio0.210.210.180.260.170.190.220.300.150.360.34
Asset Turnover—0.500.380.170.921.230.7850.440.621.091.26
Inventory Turnover23.2923.2918.287.9664.57114.5739.552409.6621.84205.5714.03
Days Sales Outstanding———————————

TEO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield0.3%100.0%——52.4%33.9%38.2%100.0%100.0%30.3%85.3%
Payout Ratio—————8.6%——642.6%26.8%28.7%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——18668.8%——394.1%——79.0%57.5%112.8%
FCF Yield——7694.8%3401.6%13911.5%4119.2%1892.1%1308.6%—33.5%186.1%
Buyback Yield0.2%100.0%0.0%73.3%0.0%2.7%0.0%2.6%0.0%0.0%0.0%
Total Shareholder Yield0.5%100.0%0.0%73.3%52.4%36.6%38.2%100.0%100.0%30.3%85.3%
Shares Outstanding—$431M$431M$431M$431M$431M$431M$431M$431M$362M$194M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowMixed
Top Statement Risk

Hyperinflationary currency devaluation risk

Distorted Multiples Mask Underlying Value

Based on current market data, TEO trades at an EV/EBITDA of 4.13, which appears to reflect a significant discount compared to regional peers, though this valuation is heavily influenced by the persistent macroeconomic uncertainty and currency volatility inherent in the Argentine telecommunications sector's current operating environment.

The negative TTM P/E ratio of -48.04 renders traditional earnings-based valuation metrics largely irrelevant for assessing the company's fundamental worth. Investors should monitor the EV/EBITDA multiple as a more reliable proxy for operational performance, though even this metric may be skewed by the non-cash adjustments required under hyperinflationary accounting standards.

Capital Efficiency Impaired by Macro

As reported in recent financial statements, TEO's ROIC has fluctuated between -5.8% and 5.1% over the last ten quarters, indicating that the company is struggling to generate returns on invested capital that consistently exceed its cost of capital in a highly volatile inflationary environment.

The inconsistency in ROIC suggests that the company's capital allocation strategy is frequently disrupted by the need to manage currency-linked debt and inflationary cost pressures. This volatility implies that the firm's ability to compound value is currently constrained by external macroeconomic factors rather than internal operational inefficiencies.

Working Capital Dynamics Remain Erratic

According to quarterly data, TEO's cash conversion cycle has remained deeply negative, reaching -127 days in 2026Q1, which suggests that the company effectively utilizes supplier credit to manage its liquidity, though this strategy is likely a forced response to the challenging Argentine credit environment.

The extremely high DPO relative to DSO indicates that the company relies heavily on stretching payables to maintain cash flow. While this provides a temporary liquidity buffer, it may also signal strained relationships with vendors who are likely demanding higher premiums to compensate for the inflationary risk of delayed payments.

Structural Liquidity Constraints Persist

Based on the provided financial data, TEO's current ratio has consistently remained below 0.60, with a 2026Q1 reading of 0.58, highlighting a structural inability to cover short-term obligations with current assets that leaves the company highly vulnerable to sudden shifts in credit availability or market liquidity.

The persistent reliance on short-term financing to bridge the gap between operational cash flow and capital expenditure requirements warrants close monitoring. This liquidity profile suggests that any disruption in the company's ability to refinance its debt could lead to immediate operational stress, given the lack of a sufficient cash buffer.

Misapplication of Standard Net Margin

The net margin is the most commonly misapplied ratio for TEO, as it is heavily distorted by non-cash monetary position gains and losses under IAS 29, which obscures the company's true operational earning power and leads to misleading conclusions about its actual profitability in local currency terms.

Analysts should instead focus on EBITDA margins and free cash flow generation, as these metrics are less susceptible to the accounting distortions caused by hyperinflationary adjustments. Relying on net income in this context may lead to an incorrect assessment of the company's ability to sustain its operations and service its debt.

Download Financial Ratios Data

Includes 30+ ratios · 28 years · Updated daily

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TEO — Frequently Asked Questions

Quick answers to the most common questions about buying TEO stock.

What is Telecom Argentina S.A.'s P/E ratio?

Telecom Argentina S.A.'s current P/E ratio is -47.9x. The historical average is 5.0x.

What is Telecom Argentina S.A.'s EV/EBITDA?

Telecom Argentina S.A.'s current EV/EBITDA is 4.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.6x.

What is Telecom Argentina S.A.'s ROE?

Telecom Argentina S.A.'s return on equity (ROE) is -2.7%. The historical average is 4.7%.

Is TEO stock overvalued?

Based on historical data, Telecom Argentina S.A. is trading at a P/E of -47.9x. Compare with industry peers and growth rates for a complete picture.

What is Telecom Argentina S.A.'s dividend yield?

Telecom Argentina S.A.'s current dividend yield is 0.29%.

What are Telecom Argentina S.A.'s profit margins?

Telecom Argentina S.A. has 75.4% gross margin and 10.3% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Telecom Argentina S.A. have?

Telecom Argentina S.A.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.