TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
150.1 NOK
-0.5 (-0.33%)
TEL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, but there are some minor concerns on its financial health. TEL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TEL had positive earnings in the past year.
In the past year TEL had a positive cash flow from operations.
TEL had positive earnings in each of the past 5 years.
Each year in the past 5 years TEL had a positive operating cash flow.
1.2 Ratios
TEL has a better Return On Assets (4.63%) than 75.86% of its industry peers.
TEL's Return On Equity of 15.73% is fine compared to the rest of the industry. TEL outperforms 68.97% of its industry peers.
TEL has a better Return On Invested Capital (8.55%) than 86.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEL is in line with the industry average of 7.46%.
The last Return On Invested Capital (8.55%) for TEL is above the 3 year average (7.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.73% | ||
| ROIC | 8.55% |
ROA(3y)11.03%
ROA(5y)8.1%
ROE(3y)40.05%
ROE(5y)34.24%
ROIC(3y)7.81%
ROIC(5y)8.57%
1.3 Margins
TEL has a Profit Margin of 12.61%. This is in the better half of the industry: TEL outperforms 75.86% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
The Operating Margin of TEL (22.98%) is better than 82.76% of its industry peers.
In the last couple of years the Operating Margin of TEL has remained more or less at the same level.
TEL has a Gross Margin of 78.17%. This is in the better half of the industry: TEL outperforms 79.31% of its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.98% | ||
| PM (TTM) | 12.61% | ||
| GM | 78.17% |
OM growth 3Y4.24%
OM growth 5Y-0.38%
PM growth 3Y144.33%
PM growth 5Y27.39%
GM growth 3Y1.85%
GM growth 5Y0.62%
2. Health
2.1 Basic Checks
TEL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TEL has been reduced compared to 1 year ago.
The number of shares outstanding for TEL has been reduced compared to 5 years ago.
TEL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that TEL is in the distress zone and has some risk of bankruptcy.
TEL's Altman-Z score of 1.66 is amongst the best of the industry. TEL outperforms 86.21% of its industry peers.
TEL has a debt to FCF ratio of 5.85. This is a neutral value as TEL would need 5.85 years to pay back of all of its debts.
TEL has a better Debt to FCF ratio (5.85) than 75.86% of its industry peers.
TEL has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
TEL has a Debt to Equity ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.22
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.44 indicates that TEL may have some problems paying its short term obligations.
TEL's Current ratio of 0.44 is on the low side compared to the rest of the industry. TEL is outperformed by 82.76% of its industry peers.
A Quick Ratio of 0.42 indicates that TEL may have some problems paying its short term obligations.
TEL's Quick ratio of 0.42 is on the low side compared to the rest of the industry. TEL is outperformed by 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
TEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.53%.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
Looking at the last year, TEL shows a small growth in Revenue. The Revenue has grown by 0.15% in the last year.
Measured over the past years, TEL shows a decrease in Revenue. The Revenue has been decreasing by -6.80% on average per year.
EPS 1Y (TTM)-33.53%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%11.56%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
3.2 Future
Based on estimates for the next years, TEL will show a decrease in Earnings Per Share. The EPS will decrease by -3.41% on average per year.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.10% yearly.
EPS Next Y-33.24%
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
EPS Next 5Y-3.41%
Revenue Next Year0.74%
Revenue Next 2Y0.84%
Revenue Next 3Y1.11%
Revenue Next 5Y1.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of TEL.
65.52% of the companies in the same industry are more expensive than TEL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TEL is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.56, which indicates a correct valuation of TEL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, TEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEL is on the same level as its industry peers.
TEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
TEL has an outstanding profitability rating, which may justify a higher PE ratio.
TEL's earnings are expected to decrease with -5.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 6.33%, which is a nice return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.91. TEL pays more dividend than 86.21% of the companies in the same industry.
TEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of TEL has a limited annual growth rate of 2.70%.
Dividend Growth(5Y)2.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TEL pays out 124.70% of its income as dividend. This is not a sustainable payout ratio.
TEL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP124.7%
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
OSL:TEL (11/3/2025, 7:00:00 PM)
150.1
-0.5 (-0.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners32.26%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap205.39B
Revenue(TTM)80.56B
Net Income(TTM)10.15B
Analysts69.17
Price Target175.38 (16.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP124.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.29%
Min EPS beat(2)9.48%
Max EPS beat(2)15.1%
EPS beat(4)3
Avg EPS beat(4)9.52%
Min EPS beat(4)-6.48%
Max EPS beat(4)20%
EPS beat(8)6
Avg EPS beat(8)55.13%
EPS beat(12)7
Avg EPS beat(12)35.6%
EPS beat(16)9
Avg EPS beat(16)29.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)5
Avg Revenue beat(12)-3.94%
Revenue beat(16)6
Avg Revenue beat(16)-5.95%
PT rev (1m)4.05%
PT rev (3m)8.06%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)6.7%
EPS NY rev (1m)0%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 14.56 | ||
| P/S | 2.55 | ||
| P/FCF | 12.01 | ||
| P/OCF | 6.97 | ||
| P/B | 3.18 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)8.18
EY5.45%
EPS(NY)10.31
Fwd EY6.87%
FCF(TTM)12.5
FCFY8.33%
OCF(TTM)21.54
OCFY14.35%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.47
Graham Number93.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.73% | ||
| ROCE | 11.1% | ||
| ROIC | 8.55% | ||
| ROICexc | 8.95% | ||
| ROICexgc | 11.58% | ||
| OM | 22.98% | ||
| PM (TTM) | 12.61% | ||
| GM | 78.17% | ||
| FCFM | 21.24% |
ROA(3y)11.03%
ROA(5y)8.1%
ROE(3y)40.05%
ROE(5y)34.24%
ROIC(3y)7.81%
ROIC(5y)8.57%
ROICexc(3y)8.51%
ROICexc(5y)9.43%
ROICexgc(3y)10.87%
ROICexgc(5y)12.22%
ROCE(3y)10.15%
ROCE(5y)11.13%
ROICexgc growth 3Y-8.62%
ROICexgc growth 5Y-8.89%
ROICexc growth 3Y-6.85%
ROICexc growth 5Y-8.18%
OM growth 3Y4.24%
OM growth 5Y-0.38%
PM growth 3Y144.33%
PM growth 5Y27.39%
GM growth 3Y1.85%
GM growth 5Y0.62%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 71.89% | ||
| Cap/Sales | 15.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.52% | ||
| Profit Quality | 168.46% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.66 |
F-Score7
WACC6.99%
ROIC/WACC1.22
Cap/Depr(3y)82.64%
Cap/Depr(5y)73.98%
Cap/Sales(3y)22.07%
Cap/Sales(5y)20.53%
Profit Quality(3y)79.16%
Profit Quality(5y)374.89%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.53%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%11.56%
EPS Next Y-33.24%
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
EPS Next 5Y-3.41%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
Revenue Next Year0.74%
Revenue Next 2Y0.84%
Revenue Next 3Y1.11%
Revenue Next 5Y1.1%
EBIT growth 1Y0.93%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year91.7%
EBIT Next 3Y26.47%
EBIT Next 5Y16.6%
FCF growth 1Y70.34%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y-7.93%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%
TELENOR ASA / TEL.OL FAQ
Can you provide the ChartMill fundamental rating for TELENOR ASA?
ChartMill assigns a fundamental rating of 5 / 10 to TEL.OL.
What is the valuation status of TELENOR ASA (TEL.OL) stock?
ChartMill assigns a valuation rating of 4 / 10 to TELENOR ASA (TEL.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for TELENOR ASA?
TELENOR ASA (TEL.OL) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TEL stock?
The Price/Earnings (PE) ratio for TELENOR ASA (TEL.OL) is 18.35 and the Price/Book (PB) ratio is 3.18.
Can you provide the expected EPS growth for TEL stock?
The Earnings per Share (EPS) of TELENOR ASA (TEL.OL) is expected to decline by -33.24% in the next year.