TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
170.4 NOK
+0.1 (+0.06%)
Overall TEL gets a fundamental rating of 5 out of 10. We evaluated TEL against 30 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, but there are concerns on its financial health. TEL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TEL was profitable.
TEL had a positive operating cash flow in the past year.
Each year in the past 5 years TEL has been profitable.
Each year in the past 5 years TEL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.63%, TEL is doing good in the industry, outperforming 76.67% of the companies in the same industry.
The Return On Equity of TEL (15.73%) is better than 76.67% of its industry peers.
TEL's Return On Invested Capital of 8.55% is fine compared to the rest of the industry. TEL outperforms 76.67% of its industry peers.
TEL had an Average Return On Invested Capital over the past 3 years of 7.81%. This is in line with the industry average of 7.31%.
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
The Profit Margin of TEL (12.61%) is better than 83.33% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.98%, TEL belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
TEL's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 78.17%, TEL is doing good in 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 | 22.98% | ||
| 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.
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
Based on the Altman-Z score of 1.76, we must say that TEL is in the distress zone and has some risk of bankruptcy.
TEL's Altman-Z score of 1.76 is fine compared to the rest of the industry. TEL outperforms 80.00% 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.
The Debt to FCF ratio of TEL (5.85) is better than 73.33% 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.
The Debt to Equity ratio of TEL (1.29) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.21
WACC7.09%
2.3 Liquidity
TEL has a Current Ratio of 0.44. This is a bad value and indicates that TEL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.44, TEL is not doing good in the industry: 86.67% 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 has a Quick ratio of 0.42. This is amonst the worse of the industry: TEL underperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for TEL have decreased strongly by -33.53% in the last year.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
TEL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.15%.
The Revenue has been decreasing by -6.80% on average over the past years.
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
The Earnings Per Share is expected to decrease by -4.29% on average over the next years.
The Revenue is expected to grow by 1.03% on average over the next years.
EPS Next Y-34.18%
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
EPS Next 5Y-4.29%
Revenue Next Year0.9%
Revenue Next 2Y0.98%
Revenue Next 3Y1.2%
Revenue Next 5Y1.03%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TEL is valuated rather expensively with a Price/Earnings ratio of 20.83.
Based on the Price/Earnings ratio, TEL is valued a bit cheaper than 63.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (27.30), we can say TEL is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.58, 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 22.73, TEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEL is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
TEL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
TEL has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TEL's earnings are expected to decrease with -6.04% in the coming years.
PEG (NY)N/A
PEG (5Y)2.8
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 5.64%, which is a nice return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.20. TEL pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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-12.48%
EPS Next 3Y-6.04%
OSL:TEL (9/12/2025, 7:00:00 PM)
170.4
+0.1 (+0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.47%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap233.17B
Analysts70.43
Price Target168.56 (-1.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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)1.86%
PT rev (3m)2.49%
EPS NQ rev (1m)4.84%
EPS NQ rev (3m)7.97%
EPS NY rev (1m)3.76%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 16.58 | ||
| P/S | 2.89 | ||
| P/FCF | 13.63 | ||
| P/OCF | 7.91 | ||
| P/B | 3.61 | ||
| P/tB | 8.22 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)8.18
EY4.8%
EPS(NY)10.28
Fwd EY6.03%
FCF(TTM)12.5
FCFY7.34%
OCF(TTM)21.54
OCFY12.64%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.8
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 | 1.76 |
F-Score7
WACC7.09%
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-34.18%
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
EPS Next 5Y-4.29%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
Revenue Next Year0.9%
Revenue Next 2Y0.98%
Revenue Next 3Y1.2%
Revenue Next 5Y1.03%
EBIT growth 1Y0.93%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year89.91%
EBIT Next 3Y26.8%
EBIT Next 5Y16.55%
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%