TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - NO0010063308 - Common Stock
167.6 NOK
+0.9 (+0.54%)
Taking everything into account, TEL scores 4 out of 10 in our fundamental rating. TEL was compared to 31 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, but there are concerns on its financial health. TEL is valued expensive and 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.
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 (4.63%) is better than 77.42% of its industry peers.
TEL's Return On Equity of 15.73% is fine compared to the rest of the industry. TEL outperforms 74.19% of its industry peers.
TEL has a better Return On Invested Capital (8.55%) than 77.42% 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 7.60%.
The last Return On Invested Capital (8.55%) for TEL is above the 3 year average (7.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.73% | ||
| ROIC | 8.55% |
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's Profit Margin of 12.61% is amongst the best of the industry. TEL outperforms 80.65% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
TEL has a Operating Margin of 22.98%. This is amongst the best in the industry. TEL outperforms 83.87% of its industry peers.
In the last couple of years the Operating Margin of TEL has remained more or less at the same level.
TEL has a Gross Margin of 78.17%. This is in the better half of the industry: TEL outperforms 77.42% of its industry peers.
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 | 22.98% | ||
| PM (TTM) | 12.61% | ||
| GM | 78.17% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEL is creating some value.
Compared to 1 year ago, TEL has less shares outstanding
TEL has less shares outstanding than it did 5 years ago.
TEL has a better debt/assets ratio than last year.
2.2 Solvency
TEL has an Altman-Z score of 1.74. This is a bad value and indicates that TEL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, TEL is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
TEL has a debt to FCF ratio of 5.85. This is a neutral value as TEL would need 5.85 years to pay back of all of its debts.
TEL's Debt to FCF ratio of 5.85 is fine compared to the rest of the industry. TEL outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that TEL has dependencies on debt financing.
TEL has a worse Debt to Equity ratio (1.29) than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.21
WACC7.07%
2.3 Liquidity
TEL has a Current Ratio of 0.44. 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 (0.44) is worse than 80.65% of its industry peers.
A Quick Ratio of 0.42 indicates that TEL may have some problems paying its short term obligations.
TEL has a Quick ratio of 0.42. This is amonst the worse of the industry: TEL underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for TEL have decreased strongly by -33.53% 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.
Looking at the last year, TEL shows a small growth in Revenue. The Revenue has grown by 0.15% in the last year.
The Revenue has been decreasing by -6.80% on average over the past years.
EPS 1Y (TTM)-33.53%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%11.56%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
3.2 Future
The Earnings Per Share is expected to decrease by -4.09% on average over the next years.
Based on estimates for the next years, TEL will show a small growth in Revenue. The Revenue will grow by 1.25% on average per year.
EPS Next Y-34.18%
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
EPS Next 5Y-4.09%
Revenue Next Year0.87%
Revenue Next 2Y0.96%
Revenue Next 3Y1.16%
Revenue Next 5Y1.25%
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 20.49, TEL is valued on the expensive side.
TEL's Price/Earnings is on the same level as the industry average.
TEL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
TEL is valuated correctly with a Price/Forward Earnings ratio of 16.31.
TEL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (22.78), we can say TEL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 16.31 |
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 61.29% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TEL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.41 | ||
| EV/EBITDA | 8.94 |
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 -6.04% in the coming years.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 5.78%, which is a nice return.
Compared to an average industry Dividend Yield of 4.44, TEL pays a better dividend. On top of this TEL pays more dividend than 87.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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
124.70% 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.
DP124.7%
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
OSL:TEL (8/29/2025, 4:26:15 PM)
167.6
+0.9 (+0.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.47%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap229.34B
Analysts69.17
Price Target165.48 (-1.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP124.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.29%
Min EPS beat(2)9.48%
Max EPS beat(2)15.1%
EPS beat(4)3
Avg EPS beat(4)9.52%
Min EPS beat(4)-6.48%
Max EPS beat(4)20%
EPS beat(8)6
Avg EPS beat(8)55.13%
EPS beat(12)7
Avg EPS beat(12)35.6%
EPS beat(16)9
Avg EPS beat(16)29.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)5
Avg Revenue beat(12)-3.94%
Revenue beat(16)6
Avg Revenue beat(16)-5.95%
PT rev (1m)1.96%
PT rev (3m)2.9%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)4.32%
EPS NY rev (1m)3.76%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 16.31 | ||
| P/S | 2.85 | ||
| P/FCF | 13.41 | ||
| P/OCF | 7.78 | ||
| P/B | 3.55 | ||
| P/tB | 8.08 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)8.18
EY4.88%
EPS(NY)10.28
Fwd EY6.13%
FCF(TTM)12.5
FCFY7.46%
OCF(TTM)21.54
OCFY12.85%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 15.73% | ||
| ROCE | 11.1% | ||
| ROIC | 8.55% | ||
| ROICexc | 8.95% | ||
| ROICexgc | 11.58% | ||
| OM | 22.98% | ||
| PM (TTM) | 12.61% | ||
| GM | 78.17% | ||
| FCFM | 21.24% |
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%
ROICexcg growth 3Y-8.62%
ROICexcg 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 71.89% | ||
| Cap/Sales | 15.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.52% | ||
| Profit Quality | 168.46% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.74 |
F-Score7
WACC7.07%
ROIC/WACC1.21
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)-33.53%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%11.56%
EPS Next Y-34.18%
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
EPS Next 5Y-4.09%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
Revenue Next Year0.87%
Revenue Next 2Y0.96%
Revenue Next 3Y1.16%
Revenue Next 5Y1.25%
EBIT growth 1Y0.93%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year89.91%
EBIT Next 3Y26.8%
EBIT Next 5Y16.8%
FCF growth 1Y70.34%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y-7.93%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%