TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
Taking everything into account, TEL scores 4 out of 10 in our fundamental rating. TEL was compared to 28 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TEL was profitable.
TEL had a positive operating cash flow in the past year.
TEL had positive earnings in each of the past 5 years.
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 4.09%, TEL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
TEL's Return On Equity of 12.15% is fine compared to the rest of the industry. TEL outperforms 71.43% of its industry peers.
TEL has a better Return On Invested Capital (7.86%) than 75.00% 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 7.49%.
The 3 year average ROIC (7.81%) for TEL is below the current ROIC(7.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 12.15% | ||
| ROIC | 7.86% |
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 11.19%. This is in the better half of the industry: TEL outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
TEL has a better Operating Margin (22.59%) than 85.71% of its industry peers.
TEL's Operating Margin has been stable in the last couple of years.
TEL's Gross Margin of 77.95% is fine compared to the rest of the industry. TEL outperforms 78.57% of its industry peers.
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 | 22.59% | ||
| PM (TTM) | 11.19% | ||
| GM | 77.95% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEL is still 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
An Altman-Z score of 1.87 indicates that TEL is not a great score, but indicates only limited risk for bankruptcy at the moment.
TEL has a Altman-Z score of 1.87. This is amongst the best in the industry. TEL outperforms 82.14% of its industry peers.
The Debt to FCF ratio of TEL is 5.31, which is a neutral value as it means it would take TEL, 5.31 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TEL (5.31) is better than 67.86% 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.
Looking at the Debt to Equity ratio, with a value of 1.14, TEL is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.11
WACC7.09%
2.3 Liquidity
A Current Ratio of 0.62 indicates that TEL may have some problems paying its short term obligations.
The Current ratio of TEL (0.62) is worse than 78.57% of its industry peers.
TEL has a Quick Ratio of 0.62. 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's Quick ratio of 0.60 is on the low side compared to the rest of the industry. TEL is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for TEL have decreased strongly by -31.35% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -0.68%.
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)-31.35%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%-73.58%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.28%
3.2 Future
The Earnings Per Share is expected to decrease by -3.64% on average over the next years.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-3.64%
Revenue Next Year0.98%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5Y1.5%
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
The Price/Earnings ratio is 19.66, which indicates a rather expensive current valuation of TEL.
Compared to the rest of the industry, the Price/Earnings ratio of TEL is on the same level as its industry peers.
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.
With a Price/Forward Earnings ratio of 15.56, TEL is valued correctly.
TEL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEL is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TEL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.93 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The decent 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)2.64
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 6.14%, which is a nice return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.61. TEL pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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 145.84% 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.
DP145.84%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (7/11/2025, 7:00:00 PM)
156.3
0 (0%)
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 Cap213.87B
Analysts69.6
Price Target164.46 (5.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP145.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.31%
Min EPS beat(2)-6.48%
Max EPS beat(2)15.1%
EPS beat(4)3
Avg EPS beat(4)10.36%
Min EPS beat(4)-6.48%
Max EPS beat(4)20%
EPS beat(8)5
Avg EPS beat(8)51.26%
EPS beat(12)7
Avg EPS beat(12)35.85%
EPS beat(16)8
Avg EPS beat(16)27.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)-1.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)-3.86%
Revenue beat(16)5
Avg Revenue beat(16)-6.2%
PT rev (1m)0%
PT rev (3m)3.32%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 15.56 | ||
| P/S | 2.67 | ||
| P/FCF | 11.93 | ||
| P/OCF | 7.01 | ||
| P/B | 2.9 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)7.95
EY5.09%
EPS(NY)10.04
Fwd EY6.42%
FCF(TTM)13.1
FCFY8.38%
OCF(TTM)22.28
OCFY14.26%
SpS58.59
BVpS53.95
TBVpS28.33
PEG (NY)N/A
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 12.15% | ||
| ROCE | 10.21% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 10.64% | ||
| OM | 22.59% | ||
| PM (TTM) | 11.19% | ||
| GM | 77.95% | ||
| FCFM | 22.36% |
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-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 73.55% | ||
| Cap/Sales | 15.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.63% | ||
| Profit Quality | 199.82% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.87 |
F-Score8
WACC7.09%
ROIC/WACC1.11
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)-31.35%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%-73.58%
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-3.64%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.28%
Revenue Next Year0.98%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5Y1.5%
EBIT growth 1Y-1.14%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year89.91%
EBIT Next 3Y26.8%
EBIT Next 5Y17.12%
FCF growth 1Y50.9%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y-15.1%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%