TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
Taking everything into account, TEL scores 5 out of 10 in our fundamental rating. TEL was compared to 32 industry peers in the Diversified Telecommunication Services industry. While TEL has a great profitability rating, there are some minor concerns on its financial health. TEL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TEL had positive earnings in the past year.
In the past year TEL had a positive cash flow from operations.
In the past 5 years TEL has always been profitable.
Each year in the past 5 years TEL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TEL (4.09%) is better than 71.88% of its industry peers.
With a decent Return On Equity value of 12.15%, TEL is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of TEL (7.86%) is better than 75.00% 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 7.75%.
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 has a Profit Margin of 11.19%. This is in the better half of the industry: TEL outperforms 71.88% 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 22.59%, TEL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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 77.95%. This is in the better half of the industry: TEL outperforms 78.13% of its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEL is still 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 1.86. 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.
TEL's Altman-Z score of 1.86 is amongst the best of the industry. TEL outperforms 84.38% of its industry peers.
The Debt to FCF ratio of TEL is 5.31, which is a neutral value as it means it would take TEL, 5.31 years of fcf income to pay off all of its debts.
TEL has a better Debt to FCF ratio (5.31) than 81.25% 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.
TEL has a Debt to Equity ratio (1.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.12
WACC7%
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: 71.88% of the companies in the same industry are doing better.
A Quick Ratio of 0.60 indicates that TEL may have some problems paying its short term obligations.
The Quick ratio of TEL (0.60) is worse than 71.88% 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
Based on estimates for the next years, TEL will show a decrease in Earnings Per Share. The EPS will decrease by -0.90% on average per year.
The Revenue is expected to grow by 1.48% on average over the next years.
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-0.9%
Revenue Next Year0.98%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5Y1.48%
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
With a Price/Earnings ratio of 19.62, TEL is valued on the expensive side.
TEL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.20, TEL is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.54, which indicates a correct valuation of TEL.
TEL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. TEL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 15.54 |
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 65.63% of the companies in the same industry.
TEL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.91 | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
TEL has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TEL's earnings are expected to decrease with -5.41% in the coming years.
PEG (NY)N/A
PEG (5Y)2.64
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.06%, TEL is a good candidate for dividend investing.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.30. TEL pays more dividend than 87.50% of the companies in the same industry.
TEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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
145.84% 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.
DP145.84%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (5/30/2025, 9:53:13 AM)
156
+1 (+0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners32%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap213.46B
Analysts72
Price Target160.82 (3.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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)1.03%
PT rev (3m)2.12%
EPS NQ rev (1m)-4.9%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 15.54 | ||
| P/S | 2.66 | ||
| P/FCF | 11.91 | ||
| P/OCF | 7 | ||
| P/B | 2.89 | ||
| P/tB | 5.51 | ||
| EV/EBITDA | 8.37 |
EPS(TTM)7.95
EY5.1%
EPS(NY)10.04
Fwd EY6.44%
FCF(TTM)13.1
FCFY8.4%
OCF(TTM)22.28
OCFY14.28%
SpS58.59
BVpS53.95
TBVpS28.33
PEG (NY)N/A
PEG (5Y)2.64
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 | 1.86 |
F-Score8
WACC7%
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-0.9%
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 5Y1.48%
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 5Y16.9%
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%