TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
147.1 NOK
-2.3 (-1.54%)
Taking everything into account, TEL scores 5 out of 10 in our fundamental rating. TEL was compared to 31 industry peers in the Diversified Telecommunication Services industry. While TEL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TEL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TEL was profitable.
TEL had a positive operating cash flow in the past year.
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
TEL has a Return On Assets of 4.47%. This is in the better half of the industry: TEL outperforms 70.97% of its industry peers.
With a decent Return On Equity value of 14.79%, TEL is doing good in the industry, outperforming 67.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.58%, TEL belongs to the top of the industry, outperforming 87.10% 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 7.62%.
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 74.19% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
Looking at the Operating Margin, with a value of 23.18%, TEL belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
TEL's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 78.29%, TEL belongs to the best of the industry, outperforming 80.65% 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
The debt/assets ratio for TEL has been reduced compared to a year ago.
2.2 Solvency
TEL has an Altman-Z score of 1.69. 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 (1.69) than 87.10% 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 80.65% 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.
TEL's Debt to Equity ratio of 1.23 is in line compared to the rest of the industry. TEL outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.23
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.52 indicates that TEL may have some problems paying its short term obligations.
The Current ratio of TEL (0.52) is worse than 87.10% of its industry peers.
TEL has a Quick 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 Quick ratio of 0.51. This is amonst the worse of the industry: TEL underperforms 87.10% 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.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
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.
The Revenue is expected to grow by 1.38% on average over the next years.
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
Based on the Price/Earnings ratio of 19.46, the valuation of TEL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TEL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.28, TEL is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.22, which indicates a correct valuation of TEL.
TEL's Price/Forward Earnings is on the same level as the industry average.
TEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 14.22 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as TEL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
TEL has an outstanding profitability rating, which 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)2.62
EPS Next 2Y-12.19%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.39%, TEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.93, TEL pays a better dividend. On top of this TEL pays more dividend than 83.87% of the companies listed in the same industry.
TEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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 (11/11/2025, 1:46:47 PM)
147.1
-2.3 (-1.54%)
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 Cap201.28B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts70
Price Target175.38 (19.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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)0.67%
EPS NQ rev (3m)3.21%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)4.45%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 14.22 | ||
| P/S | 2.49 | ||
| P/FCF | 10.87 | ||
| P/OCF | 6.57 | ||
| P/B | 3 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)7.56
EY5.14%
EPS(NY)10.34
Fwd EY7.03%
FCF(TTM)13.53
FCFY9.2%
OCF(TTM)22.39
OCFY15.22%
SpS59.07
BVpS48.96
TBVpS22.89
PEG (NY)N/A
PEG (5Y)2.62
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 | 1.69 |
F-Score7
WACC6.99%
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-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 19.46 and the Price/Book (PB) ratio is 3.
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.