TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
TEL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. TEL has an excellent profitability rating, but there are some minor concerns on its financial health. TEL does not seem to be growing, but still is valued expensively.
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.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
TEL has a better Return On Assets (4.09%) than 74.19% of its industry peers.
Looking at the Return On Equity, with a value of 12.15%, TEL is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.86%, TEL is in the better half of the industry, outperforming 77.42% 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 7.13%.
The 3 year average ROIC (7.81%) for TEL is below the current ROIC(7.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 12.15% | ||
| ROIC | 7.86% |
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 11.19% is fine compared to the rest of the industry. TEL outperforms 74.19% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
TEL's Operating Margin of 22.59% is amongst the best of the industry. TEL outperforms 87.10% 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's Gross Margin of 77.95% is fine compared to the rest 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 | 22.59% | ||
| PM (TTM) | 11.19% | ||
| GM | 77.95% |
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.
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.
TEL has a better debt/assets ratio than last year.
2.2 Solvency
TEL has an Altman-Z score of 1.85. This is not the best score and indicates that TEL is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.85, TEL belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
TEL has a debt to FCF ratio of 5.31. This is a neutral value as TEL would need 5.31 years to pay back of all of its debts.
The Debt to FCF ratio of TEL (5.31) is better than 74.19% of its industry peers.
TEL has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TEL (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.12
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.62 indicates that TEL may have some problems paying its short term obligations.
With a Current ratio value of 0.62, TEL is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
TEL has a Quick Ratio of 0.62. 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 0.60. This is in the lower half of the industry: TEL underperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
TEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.35%.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
The Revenue has decreased by -0.68% in the past year.
TEL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.80% yearly.
EPS 1Y (TTM)-31.35%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%-73.58%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.28%
3.2 Future
TEL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.07% yearly.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.17% yearly.
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-4.07%
Revenue Next Year0.98%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5Y1.17%
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
TEL is valuated rather expensively with a Price/Earnings ratio of 19.50.
TEL's Price/Earnings ratio is in line with the industry average.
TEL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.44, which indicates a correct valuation of TEL.
The rest of the industry has a similar Price/Forward Earnings ratio as TEL.
TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TEL.
TEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.83 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
TEL has a very decent profitability rating, which may justify a higher PE ratio.
TEL's earnings are expected to decrease with -5.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.62
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.25%, TEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.51, TEL pays a better dividend. On top of this TEL pays more dividend than 90.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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
TEL pays out 145.84% of its income as dividend. 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.
DP145.84%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (6/19/2025, 4:26:15 PM)
155
+2.3 (+1.51%)
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 Cap212.09B
Analysts71.67
Price Target164.46 (6.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP145.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.31%
Min EPS beat(2)-6.48%
Max EPS beat(2)15.1%
EPS beat(4)3
Avg EPS beat(4)10.36%
Min EPS beat(4)-6.48%
Max EPS beat(4)20%
EPS beat(8)5
Avg EPS beat(8)51.26%
EPS beat(12)7
Avg EPS beat(12)35.85%
EPS beat(16)8
Avg EPS beat(16)27.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)-1.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)-3.86%
Revenue beat(16)5
Avg Revenue beat(16)-6.2%
PT rev (1m)2.26%
PT rev (3m)3.5%
EPS NQ rev (1m)-4.9%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 15.44 | ||
| P/S | 2.65 | ||
| P/FCF | 11.83 | ||
| P/OCF | 6.96 | ||
| P/B | 2.87 | ||
| P/tB | 5.47 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)7.95
EY5.13%
EPS(NY)10.04
Fwd EY6.48%
FCF(TTM)13.1
FCFY8.45%
OCF(TTM)22.28
OCFY14.38%
SpS58.59
BVpS53.95
TBVpS28.33
PEG (NY)N/A
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 12.15% | ||
| ROCE | 10.21% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 10.64% | ||
| OM | 22.59% | ||
| PM (TTM) | 11.19% | ||
| GM | 77.95% | ||
| FCFM | 22.36% |
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-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 73.55% | ||
| Cap/Sales | 15.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.63% | ||
| Profit Quality | 199.82% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.85 |
F-Score8
WACC6.99%
ROIC/WACC1.12
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)-31.35%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%-73.58%
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-4.07%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.28%
Revenue Next Year0.98%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5Y1.17%
EBIT growth 1Y-1.14%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year89.91%
EBIT Next 3Y26.8%
EBIT Next 5Y16.77%
FCF growth 1Y50.9%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y-15.1%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%