TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Oslo Bors ASA - NO0010063308 - Common Stock - Currency: NOK
TEL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 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 not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.17%, TEL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
TEL has a better Return On Equity (12.99%) than 82.14% of its industry peers.
The Return On Invested Capital of TEL (8.00%) is better than 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEL is in line with the industry average of 7.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 12.99% | ||
| ROIC | 8% |
ROA(3y)8.58%
ROA(5y)7.12%
ROE(3y)33.93%
ROE(5y)33.49%
ROIC(3y)8.32%
ROIC(5y)9.34%
1.3 Margins
With a decent Profit Margin value of 12.06%, TEL is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of TEL has grown nicely.
TEL's Operating Margin of 22.65% is fine compared to the rest of the industry. TEL outperforms 78.57% of its industry peers.
TEL's Operating Margin has been stable in the last couple of years.
TEL has a Gross Margin of 77.49%. This is in the better half of the industry: TEL outperforms 78.57% of its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.65% | ||
| PM (TTM) | 12.06% | ||
| GM | 77.49% |
OM growth 3Y-0.19%
OM growth 5Y-0.42%
PM growth 3Y4.48%
PM growth 5Y4.18%
GM growth 3Y0.61%
GM growth 5Y-0.28%
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.
The number of shares outstanding for TEL has been reduced compared to 1 year ago.
TEL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TEL has been reduced compared to a year ago.
2.2 Solvency
TEL has an Altman-Z score of 1.60. 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 1.60, TEL belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
The Debt to FCF ratio of TEL is 5.40, which is a neutral value as it means it would take TEL, 5.40 years of fcf income to pay off all of its debts.
TEL has a Debt to FCF ratio of 5.40. This is amongst the best in the industry. TEL outperforms 82.14% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that TEL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.11, TEL perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.36
WACC5.89%
2.3 Liquidity
A Current Ratio of 0.60 indicates that TEL may have some problems paying its short term obligations.
TEL has a worse Current ratio (0.60) than 78.57% of its industry peers.
TEL has a Quick Ratio of 0.60. This is a bad value and indicates that TEL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TEL (0.58) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.33%, which is quite impressive.
The earnings per share for TEL have been decreasing by -16.89% on average. This is quite bad
TEL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.15%.
The Revenue has been decreasing by -5.35% on average over the past years.
EPS 1Y (TTM)82.33%
EPS 3Y-27.54%
EPS 5Y-16.89%
EPS Q2Q%25.57%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y-11.44%
Revenue growth 5Y-5.35%
Sales Q2Q%-0.35%
3.2 Future
TEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.02% yearly.
The Revenue is expected to grow by 1.47% on average over the next years.
EPS Next Y208.88%
EPS Next 2Y44.65%
EPS Next 3Y33.9%
EPS Next 5Y16.02%
Revenue Next Year0.14%
Revenue Next 2Y1.36%
Revenue Next 3Y1.22%
Revenue Next 5Y1.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 10.81 indicates a reasonable valuation of TEL.
Based on the Price/Earnings ratio, TEL is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.47, TEL is valued rather cheaply.
With a Price/Forward Earnings ratio of 15.94, TEL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEL indicates a slightly more expensive valuation: TEL is more expensive than 60.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, TEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
TEL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TEL is more expensive than 64.29% of the companies in the same industry.
TEL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
TEL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TEL has a very decent profitability rating, which may justify a higher PE ratio.
TEL's earnings are expected to grow with 33.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y44.65%
EPS Next 3Y33.9%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 6.84%, which is a nice return.
Compared to an average industry Dividend Yield of 5.48, TEL pays a bit more dividend than its industry peers.
TEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
5.2 History
The dividend of TEL decreases each year by -5.44%.
Dividend Growth(5Y)-5.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
134.37% of the earnings are spent on dividend by TEL. This is not a sustainable payout ratio.
DP134.37%
EPS Next 2Y44.65%
EPS Next 3Y33.9%
TELENOR ASA
OSL:TEL (2/5/2025, 11:37:26 AM)
138.6
-0.3 (-0.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners31.81%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap189.65B
Analysts71.54
Price Target153.57 (10.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
Yearly Dividend9.35
Dividend Growth(5Y)-5.44%
DP134.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.4%
Min EPS beat(2)12.81%
Max EPS beat(2)20%
EPS beat(4)3
Avg EPS beat(4)102.96%
Min EPS beat(4)-43.38%
Max EPS beat(4)422.42%
EPS beat(8)5
Avg EPS beat(8)55.84%
EPS beat(12)7
Avg EPS beat(12)39.97%
EPS beat(16)8
Avg EPS beat(16)28.26%
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)-1.7%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)0.67%
Revenue beat(8)3
Avg Revenue beat(8)-5.63%
Revenue beat(12)5
Avg Revenue beat(12)-7.47%
Revenue beat(16)5
Avg Revenue beat(16)-7.78%
PT rev (1m)0.9%
PT rev (3m)1.55%
EPS NQ rev (1m)189.51%
EPS NQ rev (3m)-13.11%
EPS NY rev (1m)42.45%
EPS NY rev (3m)42.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 15.94 | ||
| P/S | 2.36 | ||
| P/FCF | 9.78 | ||
| P/OCF | 5.87 | ||
| P/B | 2.54 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)12.82
EY9.25%
EPS(NY)8.69
Fwd EY6.27%
FCF(TTM)14.17
FCFY10.23%
OCF(TTM)23.61
OCFY17.03%
SpS58.73
BVpS54.5
TBVpS28.39
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 12.99% | ||
| ROCE | 10.39% | ||
| ROIC | 8% | ||
| ROICexc | 8.95% | ||
| ROICexgc | 11.59% | ||
| OM | 22.65% | ||
| PM (TTM) | 12.06% | ||
| GM | 77.49% | ||
| FCFM | 24.13% |
ROA(3y)8.58%
ROA(5y)7.12%
ROE(3y)33.93%
ROE(5y)33.49%
ROIC(3y)8.32%
ROIC(5y)9.34%
ROICexc(3y)9.16%
ROICexc(5y)10.3%
ROICexgc(3y)11.94%
ROICexgc(5y)13.45%
ROCE(3y)10.8%
ROCE(5y)12.13%
ROICexcg growth 3Y-7.33%
ROICexcg growth 5Y-19.27%
ROICexc growth 3Y-7.26%
ROICexc growth 5Y-12.46%
OM growth 3Y-0.19%
OM growth 5Y-0.42%
PM growth 3Y4.48%
PM growth 5Y4.18%
GM growth 3Y0.61%
GM growth 5Y-0.28%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.4 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 76.87% | ||
| Cap/Sales | 16.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.31% | ||
| Profit Quality | 200.19% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.6 |
F-Score7
WACC5.89%
ROIC/WACC1.36
Cap/Depr(3y)75.18%
Cap/Depr(5y)76.91%
Cap/Sales(3y)23.16%
Cap/Sales(5y)21.24%
Profit Quality(3y)544.21%
Profit Quality(5y)383.88%
High Growth Momentum
Growth
EPS 1Y (TTM)82.33%
EPS 3Y-27.54%
EPS 5Y-16.89%
EPS Q2Q%25.57%
EPS Next Y208.88%
EPS Next 2Y44.65%
EPS Next 3Y33.9%
EPS Next 5Y16.02%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y-11.44%
Revenue growth 5Y-5.35%
Sales Q2Q%-0.35%
Revenue Next Year0.14%
Revenue Next 2Y1.36%
Revenue Next 3Y1.22%
Revenue Next 5Y1.47%
EBIT growth 1Y21.18%
EBIT growth 3Y-11.61%
EBIT growth 5Y-5.75%
EBIT Next Year101.99%
EBIT Next 3Y28.78%
EBIT Next 5Y18.35%
FCF growth 1Y2.84%
FCF growth 3Y-16.61%
FCF growth 5Y-1.32%
OCF growth 1Y-15.83%
OCF growth 3Y-12.73%
OCF growth 5Y-4.36%