TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
144.2 NOK
-0.8 (-0.55%)
We assign a fundamental rating of 5 out of 10 to TEL. TEL was compared to 30 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.
TEL had a positive operating cash flow in the past year.
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 70.00% of its industry peers.
TEL has a better Return On Equity (14.79%) than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.58%, TEL belongs to the top of the industry, outperforming 83.33% 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 8.12%.
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 has a better Profit Margin (12.26%) than 80.00% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
TEL has a Operating Margin of 23.18%. This is amongst the best in the industry. TEL outperforms 86.67% of its industry peers.
TEL's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 78.29%, TEL is doing good in the industry, outperforming 80.00% 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
TEL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
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's Altman-Z score of 1.67 is amongst the best of the industry. TEL outperforms 83.33% 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.
With a decent Debt to FCF ratio value of 5.37, TEL is doing good in the industry, outperforming 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 1.23, TEL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.24
WACC6.95%
2.3 Liquidity
TEL has a Current 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 Current ratio (0.52) than 83.33% 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 83.33% 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
Based on estimates for the next years, TEL will show a decrease in Earnings Per Share. The EPS will decrease by -3.34% on average per year.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.38% yearly.
EPS Next Y-33.75%
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
EPS Next 5Y-3.34%
Revenue Next Year0.77%
Revenue Next 2Y0.7%
Revenue Next 3Y1.04%
Revenue Next 5Y1.38%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 19.07, which indicates a rather expensive current valuation of TEL.
TEL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.56, TEL is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.94 indicates a correct valuation of TEL.
TEL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (34.62), we can say TEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TEL.
Based on the Price/Free Cash Flow ratio, TEL is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 7.91 |
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 -5.20% in the coming years.
PEG (NY)N/A
PEG (5Y)2.56
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 6.61%, which is a nice return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.92. TEL pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
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
131.16% of the earnings are spent on dividend by TEL. 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.
DP131.16%
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
OSL:TEL (11/17/2025, 7:00:00 PM)
144.2
-0.8 (-0.55%)
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 Cap197.32B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts70
Price Target175.38 (21.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
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)2.6%
PT rev (3m)5.98%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)4.87%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)4.45%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 13.94 | ||
| P/S | 2.44 | ||
| P/FCF | 10.65 | ||
| P/OCF | 6.44 | ||
| P/B | 2.95 | ||
| P/tB | 6.3 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)7.56
EY5.24%
EPS(NY)10.34
Fwd EY7.17%
FCF(TTM)13.53
FCFY9.39%
OCF(TTM)22.39
OCFY15.53%
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 | 1.67 |
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-3.34%
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 5Y1.38%
EBIT growth 1Y2.9%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year91.7%
EBIT Next 3Y26.47%
EBIT Next 5Y16.82%
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 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 19.07 and the Price/Book (PB) ratio is 2.95.
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.