TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TEL - NO0010063308 - Common Stock
145.1 NOK
+1.1 (+0.76%)
Taking everything into account, TEL scores 5 out of 10 in our fundamental rating. 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TEL was profitable.
TEL had a positive operating cash flow in the past year.
TEL had positive earnings in each of the past 5 years.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
TEL has a better Return On Assets (4.47%) than 70.00% of its industry peers.
TEL has a better Return On Equity (14.79%) than 70.00% of its industry peers.
TEL has a Return On Invested Capital of 8.58%. This is amongst the best in the industry. TEL outperforms 83.33% of its industry peers.
TEL had an Average Return On Invested Capital over the past 3 years of 7.81%. This is in line with the industry average of 8.12%.
The last Return On Invested Capital (8.58%) for TEL is above the 3 year average (7.81%), which is a sign of increasing profitability.
| 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 Profit Margin of 12.26%. This is in the better half of the industry: TEL outperforms 80.00% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.18%, TEL belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
TEL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 78.29%, TEL is in the better half of the industry, outperforming 80.00% 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
TEL has less shares outstanding than it did 5 years ago.
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 has a better Altman-Z score (1.67) than 83.33% of its industry peers.
TEL has a debt to FCF ratio of 5.37. This is a neutral value as TEL would need 5.37 years to pay back of all of its debts.
TEL has a Debt to FCF ratio of 5.37. This is in the better half of the industry: TEL outperforms 80.00% of its industry peers.
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 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.23
WACC6.96%
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.
The Current ratio of TEL (0.52) is worse than 83.33% 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.
The Quick ratio of TEL (0.51) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
TEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.98%.
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.
The Revenue has been growing slightly by 0.57% in the past year.
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 -3.34% on average per year.
Based on estimates for the next years, TEL will show a small growth in Revenue. The Revenue will grow by 1.38% on average per year.
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 19.19, the valuation of TEL can be described as rather expensive.
TEL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.45. TEL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.03 indicates a correct valuation of TEL.
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 34.46, TEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than TEL, based on the Enterprise Value to EBITDA ratio.
TEL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TEL is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 7.89 |
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 6.67%, TEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.92, TEL pays a better dividend. On top of this TEL pays more dividend than 90.00% 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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 (11/21/2025, 7:00:00 PM)
145.1
+1.1 (+0.76%)
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 Cap198.55B
Revenue(TTM)80.82B
Net Income(TTM)9.91B
Analysts70
Price Target174.36 (20.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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 | 19.19 | ||
| Fwd PE | 14.03 | ||
| P/S | 2.46 | ||
| P/FCF | 10.72 | ||
| P/OCF | 6.48 | ||
| P/B | 2.96 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)7.56
EY5.21%
EPS(NY)10.34
Fwd EY7.13%
FCF(TTM)13.53
FCFY9.33%
OCF(TTM)22.39
OCFY15.43%
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
WACC6.96%
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-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 19.19 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.