TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
169 NOK
+4.2 (+2.55%)
We assign a fundamental rating of 5 out of 10 to TEL. TEL was compared to 33 industry peers in the Diversified Telecommunication Services industry. While TEL has a great profitability rating, there are quite some concerns on its financial health. TEL has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
TEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TEL has a Return On Assets of 4.63%. This is in the better half of the industry: TEL outperforms 78.79% of its industry peers.
TEL has a better Return On Equity (15.73%) than 72.73% of its industry peers.
TEL's Return On Invested Capital of 8.55% is amongst the best of the industry. TEL outperforms 81.82% 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%.
The 3 year average ROIC (7.81%) for TEL is below the current ROIC(8.55%), indicating increased profibility in the last year.
| 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 amongst the best in the industry. TEL outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
TEL has a better Operating Margin (22.98%) than 84.85% of its industry peers.
In the last couple of years the Operating Margin of TEL has remained more or less at the same level.
With a decent Gross Margin value of 78.17%, TEL is doing good in the industry, outperforming 78.79% of the companies in the same industry.
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.
Compared to 1 year ago, TEL has less shares outstanding
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
TEL has an Altman-Z score of 1.73. This is a bad value and indicates that TEL is not financially healthy and even has some risk of bankruptcy.
TEL's Altman-Z score of 1.73 is amongst the best of the industry. TEL outperforms 84.85% 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.
Looking at the Debt to FCF ratio, with a value of 5.85, TEL is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
A Debt/Equity ratio of 1.29 is on the high side and indicates that TEL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.29, TEL is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.21
WACC7.05%
2.3 Liquidity
A Current Ratio of 0.44 indicates that TEL may have some problems paying its short term obligations.
With a Current ratio value of 0.44, TEL is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
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 81.82% 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%.
Measured over the past 5 years, TEL shows a small growth in Earnings Per Share. The EPS has been growing by 7.44% on average per year.
TEL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.15%.
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.
The Revenue is expected to grow by 1.10% on average over the next years.
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
Based on the Price/Earnings ratio of 20.66, the valuation of TEL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 63.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (27.34), we can say TEL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.40, TEL is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as TEL.
TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than TEL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
The excellent profitability rating of TEL may justify a higher PE ratio.
A cheap valuation may be justified as TEL's earnings are expected to decrease with -5.75% in the coming years.
PEG (NY)N/A
PEG (5Y)2.78
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 5.86%, which is a nice return.
Compared to an average industry Dividend Yield of 4.42, TEL pays a better dividend. On top of this TEL pays more dividend than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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.
The Dividend Rate of TEL has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP124.7%
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
OSL:TEL (10/14/2025, 3:09:34 PM)
169
+4.2 (+2.55%)
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 Cap231.25B
Analysts69.17
Price Target170.94 (1.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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)2.54%
PT rev (3m)3.94%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)4.81%
EPS NY rev (1m)1.43%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 16.4 | ||
| P/S | 2.87 | ||
| P/FCF | 13.52 | ||
| P/OCF | 7.85 | ||
| P/B | 3.58 | ||
| P/tB | 8.15 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)8.18
EY4.84%
EPS(NY)10.31
Fwd EY6.1%
FCF(TTM)12.5
FCFY7.4%
OCF(TTM)21.54
OCFY12.75%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.78
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%
ROICexcg growth 3Y-8.62%
ROICexcg 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 | 1.73 |
F-Score7
WACC7.05%
ROIC/WACC1.21
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%