Telecom Argentina (TECO2.BA) fair value

ACCE thesis

Telecom Argentina runs the country's largest fixed-line and mobile network, selling broadband, pay TV through Flow, and mobile service, most of it in Buenos Aires and the populous north and center of the country. Its moat is infrastructure: a fiber and mobile footprint that is expensive and slow to replicate, which supports a 76.5% gross margin and a 14.0% operating margin. Revenue growth has been nearly flat at 0.4%, so the case rests on margin resilience and cash generation rather than top-line expansion, and the one-year catalyst to watch is whether tariff adjustments keep pace with Argentine inflation. At an 11.0 trailing P/E and a 10.8% ROE, the stock screens as inexpensive for a business with this asset base, which is why the 77/100 score merits a deeper look at currency exposure and regulatory pricing before anything else.