Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Telecommunications Services - Integrated industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Telecommunications Services - Integrated Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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5 Undervalued Telecommunications Services - Integrated Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Telecommunications Services - Integrated industry for Monday, February 05, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Telecommunications Services - Integrated industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Charter Communications Inc’s Value Grade

Value Grade:

Charter Communications, Inc. is a broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. The Company offers a range of residential and business services including Spectrum Internet, television (TV), mobile and voice. Its Spectrum Business delivers a range of broadband products and services coupled with features and applications to enhance productivity of small and medium-sized companies. Spectrum Enterprise provides highly customized, fiber-based solutions for larger businesses and government entities. Its Spectrum Reach delivers tailored advertising and production for the modern media landscape. The Company also distributes news coverage and sports programming to its customers through Spectrum Networks. Its Spectrum Mobile service is offered to customers subscribing to its Internet service, and runs on Verizon Communications Inc.(Verizon) mobile network, combined with Spectrum WiFi.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Charter Communications Inc has a Value Score of 66, which is considered to be undervalued.

When you look at Charter Communications Inc’s price-to-sales ratio at 0.86 compared to the industry median at 1.10, this company has a lower price relative to revenue compared to its peers. This could make Charter Communications Inc’s stock more attractive for value investors.

Charter Communications Inc’s price-earnings ratio is 10.42 compared to the industry median at 17.90. This means it has a lower share price relative to earnings compared to its peers. This could make Charter Communications Inc more attractive for value investors.

Now, let’s assess Charter Communications Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.4, when compared to the industry median of 7.2, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Charter Communications Inc’s shareholder yield is higher than its industry median ratio of 3.15%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Charter Communications Inc’s price-to-book ratio is higher than its industry median ratio of 2.11. This could make Charter Communications Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Charter Communications Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Charter Communications Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 13.55. This could make Charter Communications Inc less attractive because the higher P/FCF ratio indicates that Charter Communications Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Lumen Technologies Inc’s Value Grade

Value Grade:

Lumen Technologies, Inc. is an international facilities-based technology and communications company. The Company is focused on providing its business and mass markets customers with a range of integrated products and services to participate in digital world. The Company’s segments include Business segment and Mass Markets segment. The Business segment provides products and services to meet the needs of its enterprise and wholesale customers under four distinct sales channels: large enterprise, mid-market enterprise, public sector, and wholesale. Its large enterprises include multinational and global enterprise customers and carriers. Its mid-market enterprise includes medium-sized enterprises directly and through its indirect channel partners. The Mass Markets segment provide products and services to residential and small business customers. The Company's product categories include fiber broadband, other broadband and voice and other.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Lumen Technologies Inc has a Value Score of 98, which is considered to be undervalued.

Lumen Technologies Inc’s price-to-book ratio is higher than its peers. This could make Lumen Technologies Inc less attractive for value investors when compared to the industry median at 2.11.

You can read more about Lumen Technologies Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Magyar Telekom Tavkozlesi Nyrt (ADR)’s Value Grade

Value Grade:

Magyar Telekom Tavkozlesi Nyrt is engaged in providing fixed line and mobile telecommunication services for public and business customers. The Company's segments include Telekom Hungary, T-Systems, Macedonia and Montenegro. Its Telekom Hungary segment operates in Hungary providing mobile and fixed line telecommunications and television distribution and energy retail services to residential and small businesses customers under the Telekom (T) brand, and also provides wholesale services to local companies and operators. Its T-Systems segment operates in Hungary providing mobile and fixed line telecommunications, info communications and system integration services, which are offered under the T-Systems brand to business partners, including corporate customers and public sector. Its Macedonia and Montenegro segments provide mobile and fixed line telecommunications operations in Macedonia and Montenegro.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Magyar Telekom Tavkozlesi Nyrt (ADR) has a Value Score of 91, which is considered to be undervalued.

Magyar Telekom Tavkozlesi Nyrt (ADR)’s price-earnings ratio is 9.6 compared to the industry median at 17.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Magyar Telekom Tavkozlesi Nyrt (ADR) more attractive for value investors.

Magyar Telekom Tavkozlesi Nyrt (ADR)’s price-to-book ratio is higher than its peers. This could make Magyar Telekom Tavkozlesi Nyrt (ADR) less attractive for value investors when compared to the industry median at 2.11.

You can read more about Magyar Telekom Tavkozlesi Nyrt (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PLDT Inc (ADR)’s Value Grade

Value Grade:

PLDT Inc. is a Philippines-based diversified telecommunication company. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines' fiber optic backbone and wireless and fixed line networks. Its wireless segment provides mobile telecommunications services provided by Smart and DMPI; SBI and PDSI are its wireless broadband service provider; and mobile virtual network operations. Its fixed line segment provides telecommunications services. It also provides fixed line services through its subsidiaries, namely, ClarkTel, BCC and PLDT Global and certain subsidiaries, data center, cloud, cyber security services, managed information technology services and reseller ship, and distribution of Filipino channels. Its others segment includes PCEV, PGIH, PLDT Digital and its subsidiaries, and PGIC, an investment company.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PLDT Inc (ADR) has a Value Score of 73, which is considered to be undervalued.

PLDT Inc (ADR)’s price-earnings ratio is 25.0 compared to the industry median at 17.9. This means that it has a higher price relative to its earnings compared to its peers. This makes PLDT Inc (ADR) less attractive for value investors.

PLDT Inc (ADR)’s price-to-book ratio is lower than its peers. This could make PLDT Inc (ADR) more attractive for value investors when compared to the industry median at 2.11.

You can read more about PLDT Inc (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Telecom Italia SpA (ADR)’s Value Grade

Value Grade:

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company's Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Telecom Italia SpA (ADR) has a Value Score of 89, which is considered to be undervalued.

Telecom Italia SpA (ADR)’s price-to-book ratio is higher than its peers. This could make Telecom Italia SpA (ADR) less attractive for value investors when compared to the industry median at 2.11.

You can read more about Telecom Italia SpA (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Telecommunications Services - Integrated Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Telecommunications Services - Integrated stocks as well as other industrys.

Choosing Which of the 5 Best Telecommunications Services - Integrated Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Charter Communications Inc stock has a Value Grade of B.
• Lumen Technologies Inc stock has a Value Grade of A.
• Magyar Telekom Tavkozlesi Nyrt (ADR) stock has a Value Grade of A.
• PLDT Inc (ADR) stock has a Value Grade of B.
• Telecom Italia SpA (ADR) stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Telecommunications Services - Integrated industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Telecommunications Services - Integrated Stocks

Want to learn more about Telecommunications Services - Integrated stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Telecommunications Services - Integrated Stocks for Monday, February 05
• 4 Undervalued Telecommunications Services - Integrated Stocks for Friday, February 02
• 4 Undervalued Telecommunications Services - Integrated Stocks for Thursday, February 01
• 4 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, January 31

AAII Disclaimer

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