Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Telecommunications Services - Integrated industry for Wednesday, May 29, 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.

Cable One Inc’s Value Grade

Value Grade:

Cable One, Inc. is a broadband communications provider. The Company provides residential customers with an array of connectivity and entertainment services, including Gigabit speeds, advanced wireless fidelity (Wi-Fi), and video. It provides services that are similar to those provided by cable companies, telephone companies and fiber providers, among others. Its three primary product lines include residential data, residential video and business services. Its broadband plant generally consists of a fiber-to-the-premises or hybrid fiber-coaxial (HFC) network with ample unused capacity. It offers Sparklight TV, an Internet protocol-based (IPTV) video service that allows customers with its Sparklight TV app to stream its video channels from the cloud. Its customers are located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. It provides services to more than 1.1 million residential and business customers out of approximately 2.8 million homes.

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.

Cable One Inc has a Value Score of 90, which is considered to be undervalued.

When you look at Cable One Inc’s price-to-sales ratio at 1.25 compared to the industry median at 1.09, this company has a higher price relative to revenue compared to its peers. This could make Cable One Inc’s stock less attractive for value investors.

Cable One Inc’s price-earnings ratio is 8.44 compared to the industry median at 14.78. This means it has a lower share price relative to earnings compared to its peers. This could make Cable One Inc more attractive for value investors.

Now, let’s assess Cable One Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.6, when compared to the industry median of 7.0, the company may be considered undervalued 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. Cable One Inc’s shareholder yield is higher than its industry median ratio of 4.42%. 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. Cable One Inc’s price-to-book ratio is lower than its industry median ratio of 1.76. This could make Cable One Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Cable One Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Cable One Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.30. This could make Cable One Inc more attractive because the lower P/FCF ratio indicates that Cable One 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.

Consolidated Communications Holdings Inc’s Value Grade

Value Grade:

Consolidated Communications Holdings, Inc. is a holding company with operating subsidiaries that provide a range of communication solutions to consumer, commercial and carrier channels across a service area in over 20 states. It offers a fiber network, which spans over 61,000 fiber route miles. It also offers residential high-speed Internet, video, phone and home security services, as well as multi-service residential and small business bundles. Its business product suite includes data and Internet solutions, voice, data center services, security services, managed and information technology services, and an expanded suite of cloud services. The Commercial and Carrier services include data and transport services, voice services and others. The Consumer business includes broadband services, video services, voice services, subsidies, network access services, and other products and services. Voice services include basic local phone and long-distance service packages for business customers.

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.

Consolidated Communications Holdings Inc has a Value Score of 61, which is considered to be undervalued.

Consolidated Communications Holdings Inc’s price-to-book ratio is higher than its peers. This could make Consolidated Communications Holdings Inc less attractive for value investors when compared to the industry median at 1.76.

You can read more about Consolidated Communications Holdings 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.

KT Corp (ADR)’s Value Grade

Value Grade:

KT Corp is a Korea-based company that mainly provides telecommunication services. The Company operates its business through four segments. The Information and Communications Technologies segment is engaged in providing telecommunication services to individual, home, corporate customers and the convergence business. The Finance segment is engaged in providing financial services, such as credit card. The Satellite Broadcasting segment provides satellite television services. The Other segment includes security services, satellite service, information technology and network services, as well as global business services, which provide global network services to multinational or domestic corporate customers and telecommunications companies. The Company's principal services include mobile voice and data telecommunications services; fixed-line services; credit card processing and other financial services; as well as other services. The Company is engaged in the software platforms business.

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.

KT Corp (ADR) has a Value Score of 99, which is considered to be undervalued.

KT Corp (ADR)’s price-earnings ratio is 8.3 compared to the industry median at 14.8. This means that it has a lower price relative to its earnings compared to its peers. This makes KT Corp (ADR) more attractive for value investors.

KT Corp (ADR)’s price-to-book ratio is higher than its peers. This could make KT Corp (ADR) less attractive for value investors when compared to the industry median at 1.76.

You can read more about KT Corp (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.

PCCW Ltd (ADR)’s Value Grade

Value Grade:

PCCW Limited (PCCW) is an investment holding company. The Company's Pacific Century Premium Developments (PCPD) is focused on development projects in Indonesia, Japan and Thailand. The Company's segments include HKT Limited, Media Business, Solutions Business, PCPD and Other Businesses. It is engaged in the provision of telecommunications and related services, which include local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses, such as customer premises equipment sales; the provision of pay-television (pay-TV) services, Internet portal digital media entertainment platform in the Hong Kong Special Administrative Region and other parts of the world; investments in, and development of, systems integration, network engineering and technology-related businesses, and development and management of property and infrastructure projects, as well as property investments.

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.

PCCW Ltd (ADR) has a Value Score of 82, which is considered to be undervalued.

PCCW Ltd (ADR)’s price-to-book ratio is lower than its peers. This could make PCCW Ltd (ADR) more attractive for value investors when compared to the industry median at 1.76.

You can read more about PCCW Ltd (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.

Tim SA (ADR)’s Value Grade

Value Grade:

Tim SA, formerly known as a Intelig Telecomunicacoes Ltda, is a Brazil-based telecommunications company. The Company offers mobile voice and data services, broadband Internet access, value-added services and other telecommunications services and products. The Company offers a complete portfolio for individuals and corporate solutions for small, medium, and large companies. In addition to traditional voice and data services, the Company offers a fixed-line broadband service, TIM Live, WTTx technology through the Ultrafibra service and IoT solutions. The Company also offers a variety of digital content and services in its package portfolio. The Company is controlled by Tim Brasil Servicos e Participacoes SA.

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.

Tim SA (ADR) has a Value Score of 84, which is considered to be undervalued.

Tim SA (ADR)’s price-earnings ratio is 13.6 compared to the industry median at 14.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Tim SA (ADR) more attractive for value investors.

Tim SA (ADR)’s price-to-book ratio is higher than its peers. This could make Tim SA (ADR) less attractive for value investors when compared to the industry median at 1.76.

You can read more about Tim SA (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.

Turkcell Iletisim Hizmetleri AS (ADR)’s Value Grade

Value Grade:

Turkcell Iletisim Hizmetleri AS is engaged in establishing and operating a Global System for Mobile Communications (GSM) network in Turkey and regional states. The Company's segments include Turkcell Turkey, which includes the operations of Turkcell Superonline, Turkcell Satis ve Dagitim Hizmetleri A.S., group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S., Turktell Bilisim Servisleri A.S., Kule Hizmet ve Isletmecilik A.S., Turkcell Odeme Hizmetleri A.S. and Turkcell Gayrimenkul Hizmetleri A.S; Turkcell International, which includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi, Eastasian Consortium BV, lifecell LLC, UkrTower LLC, LLC Global Bilgi, Turkcell Europe GmbH, Lifetech LLC, Beltower LLC and Fintur Holdings BV, and Other, which comprises the information and entertainment services in Turkey and Azerbaijan, and non-group call center operations of Turkcell Global Bilgi and Turkcell Finansman AS.

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.

Turkcell Iletisim Hizmetleri AS (ADR) has a Value Score of 84, which is considered to be undervalued.

Turkcell Iletisim Hizmetleri AS (ADR)’s price-earnings ratio is 19.6 compared to the industry median at 14.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Turkcell Iletisim Hizmetleri AS (ADR) less attractive for value investors.

Turkcell Iletisim Hizmetleri AS (ADR)’s price-to-book ratio is higher than its peers. This could make Turkcell Iletisim Hizmetleri AS (ADR) less attractive for value investors when compared to the industry median at 1.76.

You can read more about Turkcell Iletisim Hizmetleri AS (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 6 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.

• Cable One Inc stock has a Value Grade of A.
• Consolidated Communications Holdings Inc stock has a Value Grade of B.
• KT Corp (ADR) stock has a Value Grade of A.
• PCCW Ltd (ADR) stock has a Value Grade of A.
• Tim SA (ADR) stock has a Value Grade of A.
• Turkcell Iletisim Hizmetleri AS (ADR) stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, May 29
• 4 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, May 28
• What You Need to Know About Ooma Inc's Q1 Earnings
• 3 Undervalued Telecommunications Services - Integrated Stocks for Monday, May 27

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