TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
Taking everything into account, TEL scores 5 out of 10 in our fundamental rating. TEL was compared to 29 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, but there are concerns on its financial health. TEL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TEL had positive earnings in the past year.
TEL had a positive operating cash flow in the past year.
In the past 5 years TEL has always been profitable.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.32%, TEL belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
TEL has a Return On Equity of 24.94%. This is amongst the best in the industry. TEL outperforms 93.33% of its industry peers.
TEL has a better Return On Invested Capital (7.61%) than 73.33% 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 7.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 24.94% | ||
| ROIC | 7.61% |
ROA(3y)11.13%
ROA(5y)8.16%
ROE(3y)40.31%
ROE(5y)34.4%
ROIC(3y)7.8%
ROIC(5y)8.56%
1.3 Margins
TEL has a Profit Margin of 23.90%. This is amongst the best in the industry. TEL outperforms 93.33% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.66%, TEL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TEL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 77.82%, TEL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of TEL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.66% | ||
| PM (TTM) | 23.9% | ||
| GM | 77.82% |
OM growth 3Y4.24%
OM growth 5Y-0.38%
PM growth 3Y147.71%
PM growth 5Y28.44%
GM growth 3Y1.85%
GM growth 5Y0.62%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEL is still creating some value.
TEL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TEL has less shares outstanding
Compared to 1 year ago, TEL has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TEL is 5.62, which is a neutral value as it means it would take TEL, 5.62 years of fcf income to pay off all of its debts.
TEL's Debt to FCF ratio of 5.62 is fine compared to the rest of the industry. TEL outperforms 80.00% of its industry peers.
TEL has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
TEL has a Debt to Equity ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | N/A |
ROIC/WACC1.1
WACC6.93%
2.3 Liquidity
TEL has a Current Ratio of 0.59. This is a bad value and indicates that TEL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.59, TEL is doing worse than 73.33% of the companies in the same industry.
TEL has a Quick Ratio of 0.59. This is a bad value and indicates that TEL is not financially healthy enough and could expect problems in meeting its short term obligations.
TEL's Quick ratio of 0.57 is on the low side compared to the rest of the industry. TEL is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 229.23%, which is quite impressive.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.86% yearly.
Looking at the last year, TEL shows a decrease in Revenue. The Revenue has decreased by -0.65% in the last year.
TEL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.80% yearly.
EPS 1Y (TTM)229.23%
EPS 3Y24.13%
EPS 5Y7.86%
EPS Q2Q%92.25%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%-0.14%
3.2 Future
Based on estimates for the next years, TEL will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.61% on average per year.
The Revenue is expected to grow by 1.11% on average over the next years.
EPS Next Y-36.54%
EPS Next 2Y-14.14%
EPS Next 3Y-4.61%
EPS Next 5Y-10.61%
Revenue Next Year1.53%
Revenue Next 2Y1.83%
Revenue Next 3Y2.12%
Revenue Next 5Y1.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 10.67, the valuation of TEL can be described as reasonable.
Based on the Price/Earnings ratio, TEL is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (29.35), we can say TEL is valued rather cheaply.
A Price/Forward Earnings ratio of 16.82 indicates a correct valuation of TEL.
Based on the Price/Forward Earnings ratio, TEL is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
TEL's Enterprise Value to EBITDA is on the same level as the industry average.
TEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
TEL has a very decent profitability rating, which may justify a higher PE ratio.
TEL's earnings are expected to decrease with -4.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.36
EPS Next 2Y-14.14%
EPS Next 3Y-4.61%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 6.68%, which is a nice return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 5.01. TEL pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
The dividend of TEL has a limited annual growth rate of 2.69%.
Dividend Growth(5Y)2.69%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
68.47% of the earnings are spent on dividend by TEL. 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.
DP68.47%
EPS Next 2Y-14.14%
EPS Next 3Y-4.61%
OSL:TEL (3/7/2025, 7:00:00 PM)
146
+2.3 (+1.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners32%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap199.78B
Analysts75.2
Price Target158.89 (8.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend9.5
Dividend Growth(5Y)2.69%
DP68.47%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.85%
Min EPS beat(2)9.71%
Max EPS beat(2)20%
EPS beat(4)4
Avg EPS beat(4)116.23%
Min EPS beat(4)9.71%
Max EPS beat(4)422.42%
EPS beat(8)5
Avg EPS beat(8)38.8%
EPS beat(12)8
Avg EPS beat(12)42.66%
EPS beat(16)8
Avg EPS beat(16)26.91%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)-0.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)-3.68%
Revenue beat(16)5
Avg Revenue beat(16)-6.3%
PT rev (1m)3.47%
PT rev (3m)5.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 16.82 | ||
| P/S | 2.5 | ||
| P/FCF | 11.04 | ||
| P/OCF | 6.35 | ||
| P/B | 2.61 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)13.68
EY9.37%
EPS(NY)8.68
Fwd EY5.95%
FCF(TTM)13.23
FCFY9.06%
OCF(TTM)23.01
OCFY15.76%
SpS58.41
BVpS56
TBVpS29.79
PEG (NY)N/A
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 24.94% | ||
| ROCE | 9.89% | ||
| ROIC | 7.61% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 10.3% | ||
| OM | 22.66% | ||
| PM (TTM) | 23.9% | ||
| GM | 77.82% | ||
| FCFM | 22.64% |
ROA(3y)11.13%
ROA(5y)8.16%
ROE(3y)40.31%
ROE(5y)34.4%
ROIC(3y)7.8%
ROIC(5y)8.56%
ROICexc(3y)8.5%
ROICexc(5y)9.42%
ROICexgc(3y)10.86%
ROICexgc(5y)12.21%
ROCE(3y)10.14%
ROCE(5y)11.12%
ROICexcg growth 3Y-8.76%
ROICexcg growth 5Y-8.97%
ROICexc growth 3Y-6.96%
ROICexc growth 5Y-8.24%
OM growth 3Y4.24%
OM growth 5Y-0.38%
PM growth 3Y147.71%
PM growth 5Y28.44%
GM growth 3Y1.85%
GM growth 5Y0.62%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 78.98% | ||
| Cap/Sales | 16.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.8% | ||
| Profit Quality | 94.71% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | N/A |
F-Score7
WACC6.93%
ROIC/WACC1.1
Cap/Depr(3y)82.64%
Cap/Depr(5y)73.98%
Cap/Sales(3y)22.07%
Cap/Sales(5y)20.53%
Profit Quality(3y)77.83%
Profit Quality(5y)374.09%
High Growth Momentum
Growth
EPS 1Y (TTM)229.23%
EPS 3Y24.13%
EPS 5Y7.86%
EPS Q2Q%92.25%
EPS Next Y-36.54%
EPS Next 2Y-14.14%
EPS Next 3Y-4.61%
EPS Next 5Y-10.61%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%-0.14%
Revenue Next Year1.53%
Revenue Next 2Y1.83%
Revenue Next 3Y2.12%
Revenue Next 5Y1.11%
EBIT growth 1Y0.45%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year90.71%
EBIT Next 3Y25.5%
EBIT Next 5Y21.05%
FCF growth 1Y25.73%
FCF growth 3Y-7.45%
FCF growth 5Y10.14%
OCF growth 1Y8.1%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%