TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TEL - NO0010063308 - Common Stock
145.8 NOK
-0.5 (-0.34%)
TEL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 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
- TEL had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 4.47%, TEL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.79%, TEL is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 8.58%, TEL belongs to the best of the industry, outperforming 80.56% 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 7.93%.
- 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
- Looking at the Profit Margin, with a value of 12.26%, TEL is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
- TEL's Profit Margin has improved in the last couple of years.
- TEL has a better Operating Margin (23.18%) than 83.33% of its industry peers.
- 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 77.78% 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
- 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
- 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
- TEL has an Altman-Z score of 1.68. This is a bad value and indicates that TEL is not financially healthy and even has some risk of bankruptcy.
- TEL has a better Altman-Z score (1.68) than 86.11% of its industry peers.
- The Debt to FCF ratio of TEL is 5.37, which is a neutral value as it means it would take TEL, 5.37 years of fcf income to pay off 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 83.33% 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 | 1.68 |
ROIC/WACC1.23
WACC6.96%
2.3 Liquidity
- A Current Ratio of 0.52 indicates that TEL may have some problems paying its short term obligations.
- With a Current ratio value of 0.52, TEL is not doing good in the industry: 86.11% of the companies in the same industry are doing better.
- A Quick Ratio of 0.51 indicates that TEL may have some problems paying its short term obligations.
- TEL has a Quick ratio of 0.51. This is amonst the worse of the industry: TEL underperforms 86.11% 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.
- TEL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
- 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
- Based on estimates for the next years, TEL will show a decrease in Earnings Per Share. The EPS will decrease by -3.77% on average per year.
- TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.58% yearly.
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
- 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
- Based on the Price/Earnings ratio of 19.29, the valuation of TEL can be described as rather expensive.
- TEL's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (27.38), we can say TEL is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.38, which indicates a correct valuation of TEL.
- TEL's Price/Forward Earnings ratio is in line with the industry average.
- TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 14.38 |
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 66.67% of the companies listed in the same industry.
- TEL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TEL is cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.77 | ||
| EV/EBITDA | 7.96 |
4.3 Compensation for Growth
- The excellent profitability rating of TEL may justify a higher PE ratio.
- TEL's earnings are expected to decrease with -5.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.59
EPS Next 2Y-13.07%
EPS Next 3Y-5.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.70%, TEL is a good candidate for dividend investing.
- TEL's Dividend Yield is rather good when compared to the industry average which is at 3.36. TEL pays more dividend than 86.11% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
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 (1/20/2026, 4:26:15 PM)
145.8
-0.5 (-0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-06 2026-02-06/amc
Inst Owners35.72%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap199.51B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts71.82
Price Target172.02 (17.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
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)-0.42%
PT rev (3m)0.63%
EPS NQ rev (1m)2.71%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)-2.65%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 14.38 | ||
| P/S | 2.47 | ||
| P/FCF | 10.77 | ||
| P/OCF | 6.51 | ||
| P/B | 2.98 | ||
| P/tB | 6.37 | ||
| EV/EBITDA | 7.96 |
EPS(TTM)7.56
EY5.19%
EPS(NY)10.14
Fwd EY6.95%
FCF(TTM)13.53
FCFY9.28%
OCF(TTM)22.39
OCFY15.36%
SpS59.07
BVpS48.96
TBVpS22.89
PEG (NY)N/A
PEG (5Y)2.59
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 | 1.68 |
F-Score7
WACC6.96%
ROIC/WACC1.23
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 8 / 10.
Can you provide the PE and PB ratios for TEL stock?
The Price/Earnings (PE) ratio for TELENOR ASA (TEL.OL) is 19.29 and the Price/Book (PB) ratio is 2.98.
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%.