TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
Overall TEL gets a fundamental rating of 4 out of 10. We evaluated TEL against 30 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, but there are 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.
In the past year TEL had a positive cash flow from operations.
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's Return On Assets of 4.63% is fine compared to the rest of the industry. TEL outperforms 73.33% of its industry peers.
TEL has a better Return On Equity (15.73%) than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.55%, TEL is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 8.18%.
The 3 year average ROIC (7.81%) for TEL is below the current ROIC(8.55%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (12.61%) than 76.67% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
TEL's Operating Margin of 22.98% is amongst the best of the industry. TEL outperforms 83.33% 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 better Gross Margin (78.17%) than 76.67% 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
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
The number of shares outstanding for TEL has been reduced compared to 5 years ago.
TEL has a better debt/assets ratio than last year.
2.2 Solvency
TEL has an Altman-Z score of 1.71. This is a bad value and indicates that TEL is not financially healthy and even has some risk of bankruptcy.
TEL has a Altman-Z score of 1.71. This is in the better half of the industry: TEL outperforms 76.67% of its industry peers.
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 has a better Debt to FCF ratio (5.85) than 63.33% 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's Debt to Equity ratio of 1.29 is on the low side compared to the rest of the industry. TEL is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.21
WACC7.08%
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.
TEL has a worse Current ratio (0.44) than 76.67% 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 worse Quick ratio (0.42) than 76.67% 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.
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 0.15%.
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)-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
Based on estimates for the next years, TEL will show a decrease in Earnings Per Share. The EPS will decrease by -3.64% on average per year.
The Revenue is expected to grow by 1.50% on average over the next years.
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-3.64%
Revenue Next Year0.72%
Revenue Next 2Y1.06%
Revenue Next 3Y1.19%
Revenue Next 5Y1.5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TEL is valuated rather expensively with a Price/Earnings ratio of 19.56.
TEL's Price/Earnings ratio is a bit cheaper when compared to the industry. TEL is cheaper than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, TEL is valued a bit cheaper.
TEL is valuated correctly with a Price/Forward Earnings ratio of 15.93.
TEL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.28. TEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TEL.
The rest of the industry has a similar Price/Free Cash Flow ratio as TEL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.8 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
The decent 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 -5.41% in the coming years.
PEG (NY)N/A
PEG (5Y)2.63
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.05%, TEL is a good candidate for dividend investing.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.41. TEL pays more dividend than 90.00% of the companies 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 | 6.05% |
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 124.70% 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.
DP124.7%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (8/8/2025, 2:00:06 PM)
160
-0.3 (-0.19%)
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 Cap218.94B
Analysts69.6
Price Target162.3 (1.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.05% |
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)-1.31%
PT rev (3m)1.17%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 15.93 | ||
| P/S | 2.72 | ||
| P/FCF | 12.8 | ||
| P/OCF | 7.43 | ||
| P/B | 3.39 | ||
| P/tB | 7.72 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)8.18
EY5.11%
EPS(NY)10.04
Fwd EY6.28%
FCF(TTM)12.5
FCFY7.81%
OCF(TTM)21.54
OCFY13.46%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.63
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 | 1.71 |
F-Score7
WACC7.08%
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-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-3.64%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
Revenue Next Year0.72%
Revenue Next 2Y1.06%
Revenue Next 3Y1.19%
Revenue Next 5Y1.5%
EBIT growth 1Y0.93%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year89.91%
EBIT Next 3Y26.8%
EBIT Next 5Y17.12%
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%