TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
Overall TEL gets a fundamental rating of 5 out of 10. We evaluated TEL against 26 industry peers in the Diversified Telecommunication Services industry. TEL has an excellent profitability rating, 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
In the past year TEL was profitable.
In the past year TEL had a positive cash flow from operations.
Each year in the past 5 years TEL has been profitable.
TEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.01%, TEL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
TEL has a Return On Equity of 24.17%. This is amongst the best in the industry. TEL outperforms 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.64%, TEL is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEL is in line with the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 24.17% | ||
| ROIC | 7.64% |
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
With an excellent Profit Margin value of 22.94%, TEL belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
TEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.66%, TEL belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
TEL's Operating Margin has been stable in the last couple of years.
The Gross Margin of TEL (77.82%) is better than 76.92% of its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.66% | ||
| PM (TTM) | 22.94% | ||
| GM | 77.82% |
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
TEL has a better debt/assets ratio than last year.
2.2 Solvency
TEL has an Altman-Z score of 1.71. This is a bad value and indicates that TEL is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.71, TEL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
TEL has a debt to FCF ratio of 5.62. This is a neutral value as TEL would need 5.62 years to pay back of all of its debts.
The Debt to FCF ratio of TEL (5.62) is better than 80.77% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that TEL has dependencies on debt financing.
TEL has a Debt to Equity ratio (1.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.09
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.59 indicates that TEL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.59, TEL is doing worse than 76.92% 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.
With a Quick ratio value of 0.57, TEL is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| 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 222.84%, which is quite impressive.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
TEL shows a decrease in Revenue. In the last year, the revenue decreased by -0.65%.
TEL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.80% yearly.
EPS 1Y (TTM)222.84%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%63.89%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%-2.08%
3.2 Future
Based on estimates for the next years, TEL will show a decrease in Earnings Per Share. The EPS will decrease by -0.90% on average per year.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.48% yearly.
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-0.9%
Revenue Next Year1.53%
Revenue Next 2Y1.83%
Revenue Next 3Y2.12%
Revenue Next 5Y1.48%
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
The Price/Earnings ratio is 11.14, which indicates a very decent valuation of TEL.
Based on the Price/Earnings ratio, TEL is valued a bit cheaper than 73.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.92. TEL is valued rather cheaply when compared to this.
TEL is valuated rather expensively with a Price/Forward Earnings ratio of 17.55.
Based on the Price/Forward Earnings ratio, TEL is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. TEL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
65.38% of the companies in the same industry are cheaper than TEL, based on the Enterprise Value to EBITDA ratio.
65.38% of the companies in the same industry are more expensive than TEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.29 | ||
| EV/EBITDA | 8.32 |
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 -5.41% in the coming years.
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.43%, TEL is a good candidate for dividend investing.
TEL's Dividend Yield is rather good when compared to the industry average which is at 5.08. TEL pays more dividend than 88.46% of the companies in the same industry.
TEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
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 71.35% 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.
DP71.35%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (4/25/2025, 12:59:13 PM)
149.35
+0.45 (+0.3%)
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 Cap204.36B
Analysts75.2
Price Target159.18 (6.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP71.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.76%
Min EPS beat(2)-6.48%
Max EPS beat(2)20%
EPS beat(4)3
Avg EPS beat(4)112.19%
Min EPS beat(4)-6.48%
Max EPS beat(4)422.42%
EPS beat(8)4
Avg EPS beat(8)36.78%
EPS beat(12)7
Avg EPS beat(12)41.32%
EPS beat(16)7
Avg EPS beat(16)25.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)-1.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)-3.85%
Revenue beat(16)5
Avg Revenue beat(16)-6.42%
PT rev (1m)0.18%
PT rev (3m)4.59%
EPS NQ rev (1m)-12.83%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 17.55 | ||
| P/S | 2.56 | ||
| P/FCF | 11.29 | ||
| P/OCF | 6.49 | ||
| P/B | 2.69 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)13.41
EY8.98%
EPS(NY)8.51
Fwd EY5.7%
FCF(TTM)13.23
FCFY8.86%
OCF(TTM)23.01
OCFY15.4%
SpS58.41
BVpS55.44
TBVpS29.23
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 24.17% | ||
| ROCE | 9.93% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.18% | ||
| ROICexgc | 10.36% | ||
| OM | 22.66% | ||
| PM (TTM) | 22.94% | ||
| GM | 77.82% | ||
| FCFM | 22.64% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 78.98% | ||
| Cap/Sales | 16.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.81% | ||
| Profit Quality | 98.7% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.71 |
F-Score7
WACC7.04%
ROIC/WACC1.09
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)222.84%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%63.89%
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-0.9%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%-2.08%
Revenue Next Year1.53%
Revenue Next 2Y1.83%
Revenue Next 3Y2.12%
Revenue Next 5Y1.48%
EBIT growth 1Y0.45%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year90.78%
EBIT Next 3Y27.18%
EBIT Next 5Y16.9%
FCF growth 1Y25.74%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y8.1%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%