TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TEL - NO0010063308 - Common Stock
144.9 NOK
+0.1 (+0.07%)
We assign a fundamental rating of 5 out of 10 to TEL. TEL was compared to 29 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, 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
The Return On Assets of TEL (4.47%) is better than 75.86% of its industry peers.
With a decent Return On Equity value of 14.79%, TEL is doing good in the industry, outperforming 72.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.58%, TEL belongs to the top of the industry, outperforming 82.76% 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 7.77%.
The last Return On Invested Capital (8.58%) for TEL is above the 3 year average (7.81%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 12.26%. This is in the better half of the industry: TEL outperforms 75.86% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
Looking at the Operating Margin, with a value of 23.18%, TEL belongs to the top of the industry, outperforming 82.76% 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.
With a decent Gross Margin value of 78.29%, TEL is doing good in the industry, outperforming 75.86% 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 | 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.
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 1.67, we must say that TEL is in the distress zone and has some risk of bankruptcy.
TEL has a Altman-Z score of 1.67. This is amongst the best in the industry. TEL outperforms 86.21% 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 is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that TEL has dependencies on debt financing.
TEL has a Debt to Equity ratio of 1.23. This is comparable to the rest of the industry: TEL outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.24
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.52 indicates that TEL may have some problems paying its short term obligations.
TEL's Current ratio of 0.52 is on the low side compared to the rest of the industry. TEL is outperformed by 82.76% of its industry peers.
A Quick Ratio of 0.51 indicates that TEL may have some problems paying its short term obligations.
TEL's Quick ratio of 0.51 is on the low side compared to the rest of the industry. TEL is outperformed by 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
TEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.98%.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
Looking at the last year, TEL shows a small growth in Revenue. The Revenue has grown by 0.57% in the last year.
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)-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 -3.20% on average over the next years.
The Revenue is expected to grow by 1.53% on average over the next years.
EPS Next Y-33.75%
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
EPS Next 5Y-3.2%
Revenue Next Year0.77%
Revenue Next 2Y0.7%
Revenue Next 3Y1.04%
Revenue Next 5Y1.53%
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
With a Price/Earnings ratio of 19.17, TEL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 62.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (26.11), we can say TEL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.01, TEL is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as TEL.
When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (36.21), we can say TEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TEL is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
TEL has an outstanding profitability rating, which may justify a higher PE ratio.
TEL's earnings are expected to decrease with -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.58
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.53%, TEL is a good candidate for dividend investing.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.73. TEL pays more dividend than 89.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
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-12.19%
EPS Next 3Y-5.2%
OSL:TEL (12/2/2025, 1:14:16 PM)
144.9
+0.1 (+0.07%)
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 Cap198.27B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts70
Price Target174.36 (20.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
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)2%
PT rev (3m)5.37%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 14.01 | ||
| P/S | 2.45 | ||
| P/FCF | 10.71 | ||
| P/OCF | 6.47 | ||
| P/B | 2.96 | ||
| P/tB | 6.33 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)7.56
EY5.22%
EPS(NY)10.34
Fwd EY7.14%
FCF(TTM)13.53
FCFY9.34%
OCF(TTM)22.39
OCFY15.45%
SpS59.07
BVpS48.96
TBVpS22.89
PEG (NY)N/A
PEG (5Y)2.58
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 | 1.67 |
F-Score7
WACC6.95%
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-33.75%
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
EPS Next 5Y-3.2%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.33%
Revenue Next Year0.77%
Revenue Next 2Y0.7%
Revenue Next 3Y1.04%
Revenue Next 5Y1.53%
EBIT growth 1Y2.9%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year91.7%
EBIT Next 3Y26.47%
EBIT Next 5Y16.99%
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 of TELENOR ASA (TEL.OL) stock?
ChartMill assigns a valuation rating of 5 / 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 8 / 10.
Can you provide the PE and PB ratios for TEL stock?
The Price/Earnings (PE) ratio for TELENOR ASA (TEL.OL) is 19.17 and the Price/Book (PB) ratio is 2.96.
Can you provide the expected EPS growth for TEL stock?
The Earnings per Share (EPS) of TELENOR ASA (TEL.OL) is expected to decline by -33.75% in the next year.