Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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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7 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 7 undervalued stocks in the Telecommunications Services - Integrated industry for Thursday, August 15, 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.

America Movil SAB de CV (ADR)’s Value Grade

Value Grade:

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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.

America Movil SAB de CV (ADR) has a Value Score of 65, which is considered to be undervalued.

When you look at America Movil SAB de CV (ADR)’s price-to-sales ratio at 1.23 compared to the industry median at 1.17, this company has a higher price relative to revenue compared to its peers. This could make America Movil SAB de CV (ADR)’s stock less attractive for value investors.

America Movil SAB de CV (ADR)’s price-earnings ratio is 31.18 compared to the industry median at 16.27. This means it has a higher share price relative to earnings compared to its peers. This could make America Movil SAB de CV (ADR) less attractive for value investors.

Now, let’s assess America Movil SAB de CV (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 4.3, when compared to the industry median of 6.7, 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. America Movil SAB de CV (ADR)’s shareholder yield is higher than its industry median ratio of 3.54%. 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. America Movil SAB de CV (ADR)’s price-to-book ratio is higher than its industry median ratio of 1.79. This could make America Movil SAB de CV (ADR) less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at America Movil SAB de CV (ADR)’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. America Movil SAB de CV (ADR)’s price-to-free-cash-flow ratio is lower than its industry median ratio of 12.75. This could make America Movil SAB de CV (ADR) more attractive because the lower P/FCF ratio indicates that America Movil SAB de CV (ADR) 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.

ATN International Inc’s Value Grade

Value Grade:

ATN International, Inc. is a provider of digital infrastructure and communications services. The Company operates in the United States and internationally, including the Caribbean region. Its segments include International Telecom and US Telecom. The International Telecom segment provides mobility services, fixed services, carrier services, and managed services in Bermuda, the Cayman Islands, Guyana, and the US Virgin Islands. The US Telecom segment provides fixed services, carrier services, mobility services, and managed services in Alaska and parts of the western United States. Through its subsidiaries, it provides advanced wireless and wireline connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities.

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.

ATN International Inc has a Value Score of 97, which is considered to be undervalued.

ATN International Inc’s price-to-book ratio is higher than its peers. This could make ATN International Inc less attractive for value investors when compared to the industry median at 1.79.

You can read more about ATN International 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.

Deutsche Telekom AG (ADR)’s Value Grade

Value Grade:

Deutsche Telekom AG is a Germany-based company that provides information technology (IT) and telecommunications services. The Company's operating segments include Germany, consisting of fixed-network and mobile activities in Germany; United States, which consists of mobile activities in the United States market; Europe, consisting of fixed-network and mobile operations of the national companies in various European countries, such as Greece, Romania, Hungary, Poland, the Czech Republic, Croatia, Slovakia, Austria, Albania, Macedonia and Montenegro; Systems Solutions, which operates information and communication technology (ICT) systems for multinational corporations and public sector institutions; Group Development, comprising the entities T-Mobile Netherlands and Deutsche Funkturm (DFMG) and its equity investment in Stroeer SE & Co. KGaA, and Group Headquarters & Group Services, which consists of the operations of service headquarters and various other subsidiaries of the 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.

Deutsche Telekom AG (ADR) has a Value Score of 71, which is considered to be undervalued.

Deutsche Telekom AG (ADR)’s price-earnings ratio is 25.0 compared to the industry median at 16.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Deutsche Telekom AG (ADR) less attractive for value investors.

Deutsche Telekom AG (ADR)’s price-to-book ratio is lower than its peers. This could make Deutsche Telekom AG (ADR) more attractive for value investors when compared to the industry median at 1.79.

You can read more about Deutsche Telekom AG (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.

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 8.8 compared to the industry median at 16.3. 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 1.79.

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.

Nuvera Communications Inc’s Value Grade

Value Grade:

Nuvera Communications, Inc. is a regional service provider. The Company's fiber network provides residential Internet service through both fiber-to-the neighborhood and gig-speed fiber-to-the-home services. It also provides business services including fiber Internet, voice, hosting and managed services. It is a Fiber Minnesota partner which enables connectivity for multi-location business customer locations, wireless towers and network connectively to Internet connection transport points. Its hosted voice over Internet protocol (VoIP) package utilizes its soft switching technology and enables its customers to have the flexibility of employing new telephone advances and features without investing in a new telephone system. In addition to Internet and VoIP services, the Company also offers a variety of commercial data connectivity services in select markets including private line and ethernet services to provide high bandwidth across point-to-point and multiple site networks.

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.

Nuvera Communications Inc has a Value Score of 85, which is considered to be undervalued.

Nuvera Communications Inc’s price-to-book ratio is higher than its peers. This could make Nuvera Communications Inc less attractive for value investors when compared to the industry median at 1.79.

You can read more about Nuvera Communications 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.

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 93, 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 1.79.

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.

Telefonica Brasil SA (ADR)’s Value Grade

Value Grade:

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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.

Telefonica Brasil SA (ADR) has a Value Score of 79, which is considered to be undervalued.

Telefonica Brasil SA (ADR)’s price-earnings ratio is 16.4 compared to the industry median at 16.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Telefonica Brasil SA (ADR) less attractive for value investors.

Telefonica Brasil SA (ADR)’s price-to-book ratio is higher than its peers. This could make Telefonica Brasil SA (ADR) less attractive for value investors when compared to the industry median at 1.79.

You can read more about Telefonica Brasil 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.

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 7 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.

• America Movil SAB de CV (ADR) stock has a Value Grade of B.
• ATN International Inc stock has a Value Grade of A.
• Deutsche Telekom AG (ADR) stock has a Value Grade of B.
• KT Corp (ADR) stock has a Value Grade of A.
• Nuvera Communications Inc stock has a Value Grade of A.
• Telecom Italia SpA (ADR) stock has a Value Grade of A.
• Telefonica Brasil SA (ADR) stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Telecommunications Services - Integrated Stocks for Thursday, August 15
• 7 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, August 14
• 5 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, August 13
• 7 Undervalued Telecommunications Services - Integrated Stocks for Monday, August 12

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