TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TEL - NO0010063308 - Common Stock
143.7 NOK
+0.5 (+0.35%)
Taking everything into account, TEL scores 5 out of 10 in our fundamental rating. TEL was compared to 31 industry peers in the Diversified Telecommunication Services industry. While TEL has a great profitability rating, 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.
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
The Return On Assets of TEL (4.47%) is better than 74.19% of its industry peers.
With a decent Return On Equity value of 14.79%, TEL is doing good in the industry, outperforming 70.97% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.58%, TEL is doing good in the industry, outperforming 77.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TEL is in line with the industry average of 8.25%.
The 3 year average ROIC (7.81%) for TEL is below the current ROIC(8.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 14.79% | ||
| ROIC | 8.58% |
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's Profit Margin of 12.26% is fine compared to the rest of the industry. TEL outperforms 77.42% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
The Operating Margin of TEL (23.18%) is better than 83.87% of its industry peers.
TEL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 78.29%, TEL is in the better half of the industry, outperforming 74.19% 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 | 23.18% | ||
| PM (TTM) | 12.26% | ||
| GM | 78.29% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEL is creating some value.
Compared to 1 year ago, TEL has less shares outstanding
Compared to 5 years ago, TEL has less shares outstanding
The debt/assets ratio for TEL has been reduced compared to a year ago.
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.
The Altman-Z score of TEL (1.66) is better than 83.87% of its industry peers.
TEL has a debt to FCF ratio of 5.37. This is a neutral value as TEL would need 5.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.37, TEL belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
TEL has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TEL (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.24
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.52 indicates that TEL may have some problems paying its short term obligations.
TEL has a worse Current ratio (0.52) than 83.87% of its industry peers.
TEL has a Quick Ratio of 0.52. 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 has a worse Quick ratio (0.51) than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for TEL have decreased strongly by -40.98% in the last year.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
The Revenue has been growing slightly by 0.57% in the past year.
The Revenue has been decreasing by -6.80% on average over the past years.
EPS 1Y (TTM)-40.98%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%-25.1%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.33%
3.2 Future
The Earnings Per Share is expected to decrease by -3.77% on average over the next years.
The Revenue is expected to grow by 0.58% on average over the next years.
EPS Next Y-36.35%
EPS Next 2Y-13.07%
EPS Next 3Y-5.7%
EPS Next 5Y-3.77%
Revenue Next Year0.35%
Revenue Next 2Y0.42%
Revenue Next 3Y0.83%
Revenue Next 5Y0.58%
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
With a Price/Earnings ratio of 19.01, TEL is valued on the expensive side.
TEL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (27.25), we can say TEL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.18, the valuation of TEL can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEL is on the same level as its industry peers.
TEL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEL indicates a slightly more expensive valuation: TEL is more expensive than 61.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TEL is valued a bit cheaper than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
TEL has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TEL's earnings are expected to decrease with -5.70% in the coming years.
PEG (NY)N/A
PEG (5Y)2.56
EPS Next 2Y-13.07%
EPS Next 3Y-5.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.58%, TEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.15, TEL pays a better dividend. On top of this TEL pays more dividend than 87.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
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 131.16% 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.
DP131.16%
EPS Next 2Y-13.07%
EPS Next 3Y-5.7%
OSL:TEL (1/13/2026, 10:42:03 AM)
143.7
+0.5 (+0.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners35.72%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap196.63B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts71.82
Price Target172.74 (20.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP131.16%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.26%
Min EPS beat(2)-28%
Max EPS beat(2)9.48%
EPS beat(4)2
Avg EPS beat(4)-2.48%
Min EPS beat(4)-28%
Max EPS beat(4)15.1%
EPS beat(8)5
Avg EPS beat(8)50.24%
EPS beat(12)7
Avg EPS beat(12)36.4%
EPS beat(16)9
Avg EPS beat(16)29.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.34%
Revenue beat(12)4
Avg Revenue beat(12)-4.16%
Revenue beat(16)6
Avg Revenue beat(16)-5.9%
PT rev (1m)0%
PT rev (3m)1.05%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)-2.65%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 14.18 | ||
| P/S | 2.43 | ||
| P/FCF | 10.62 | ||
| P/OCF | 6.42 | ||
| P/B | 2.93 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)7.56
EY5.26%
EPS(NY)10.14
Fwd EY7.05%
FCF(TTM)13.53
FCFY9.42%
OCF(TTM)22.39
OCFY15.58%
SpS59.07
BVpS48.96
TBVpS22.89
PEG (NY)N/A
PEG (5Y)2.56
Graham Number91.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 14.79% | ||
| ROCE | 11.15% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.22% | ||
| ROICexgc | 11.95% | ||
| OM | 23.18% | ||
| PM (TTM) | 12.26% | ||
| GM | 78.29% | ||
| FCFM | 22.91% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.37 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 69.96% | ||
| Cap/Sales | 14.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.98% | ||
| Profit Quality | 186.87% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.66 |
F-Score7
WACC6.94%
ROIC/WACC1.24
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)-40.98%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%-25.1%
EPS Next Y-36.35%
EPS Next 2Y-13.07%
EPS Next 3Y-5.7%
EPS Next 5Y-3.77%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.33%
Revenue Next Year0.35%
Revenue Next 2Y0.42%
Revenue Next 3Y0.83%
Revenue Next 5Y0.58%
EBIT growth 1Y2.9%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year91.79%
EBIT Next 3Y26.39%
EBIT Next 5Y15.98%
FCF growth 1Y109.68%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y3.62%
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 for TEL 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 7 / 10.
Can you provide the PE and PB ratios for TEL stock?
The Price/Earnings (PE) ratio for TELENOR ASA (TEL.OL) is 19.01 and the Price/Book (PB) ratio is 2.93.
How sustainable is the dividend of TELENOR ASA (TEL.OL) stock?
The dividend rating of TELENOR ASA (TEL.OL) is 6 / 10 and the dividend payout ratio is 131.16%.