TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TEL - NO0010063308 - Common Stock
145 NOK
0 (0%)
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. While TEL has a great profitability rating, 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.
In the past 5 years TEL has always been profitable.
Each year in the past 5 years TEL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TEL (4.47%) is better than 75.86% of its industry peers.
TEL has a Return On Equity of 14.79%. This is in the better half of the industry: TEL outperforms 72.41% of its industry peers.
With an excellent Return On Invested Capital value of 8.58%, TEL belongs to the best 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 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
With a decent Profit Margin value of 12.26%, TEL is doing good in the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Profit Margin of TEL has grown nicely.
The Operating Margin of TEL (23.18%) is better than 82.76% of its industry peers.
In the last couple of years the Operating Margin of TEL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 78.29%, TEL is in the better half of the industry, outperforming 75.86% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEL is still 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
The debt/assets ratio for TEL has been reduced compared to a year ago.
2.2 Solvency
TEL has an Altman-Z score of 1.67. 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 (1.67) than 86.21% 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.
The Debt to FCF ratio of TEL (5.37) is better than 79.31% of its industry peers.
TEL has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
TEL has a Debt to Equity ratio (1.23) which is in line with 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
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'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.
The Quick ratio of TEL (0.51) is worse than 82.76% 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%.
TEL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.80% yearly.
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
TEL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.20% yearly.
Based on estimates for the next years, TEL will show a small growth in Revenue. The Revenue will grow by 1.53% on average per year.
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.
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
With a Price/Earnings ratio of 19.18, TEL is valued on the expensive side.
Based on the Price/Earnings ratio, TEL is valued a bit cheaper than 62.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. TEL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.02, TEL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, TEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 14.02 |
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.
75.86% of the companies in the same industry are more expensive than TEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 7.91 |
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.
Compared to an average industry Dividend Yield of 4.73, TEL pays a better dividend. On top of this TEL pays more dividend than 89.66% of the companies listed 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
131.16% of the earnings are spent on dividend by TEL. 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 (12/5/2025, 4:25:15 PM)
145
0 (0%)
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 Cap198.41B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts70
Price Target174.36 (20.25%)
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 | 19.18 | ||
| Fwd PE | 14.02 | ||
| P/S | 2.45 | ||
| P/FCF | 10.71 | ||
| P/OCF | 6.48 | ||
| P/B | 2.96 | ||
| P/tB | 6.33 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)7.56
EY5.21%
EPS(NY)10.34
Fwd EY7.13%
FCF(TTM)13.53
FCFY9.33%
OCF(TTM)22.39
OCFY15.44%
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 19.18 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.