TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
166 NOK
+0.6 (+0.36%)
Overall TEL gets a fundamental rating of 4 out of 10. We evaluated TEL against 30 industry peers in the Diversified Telecommunication Services industry. While TEL has a great profitability rating, there are quite some concerns on its financial health. TEL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TEL had positive earnings in the past year.
TEL had a positive operating cash flow in the past year.
TEL had positive earnings in each of the past 5 years.
TEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.63%, TEL is doing good in the industry, outperforming 73.33% of the companies in the same industry.
TEL has a better Return On Equity (15.73%) than 73.33% 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 76.67% 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 7.68%.
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
With a decent Profit Margin value of 12.61%, TEL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 83.33% of its industry peers.
TEL's Operating Margin has been stable in the last couple of years.
The Gross Margin of TEL (78.17%) is better than 80.00% of its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| 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.
The debt/assets ratio for TEL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that TEL is in the distress zone and has some risk of bankruptcy.
TEL has a Altman-Z score of 1.74. 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.
The Debt to FCF ratio of TEL (5.85) is better than 73.33% of its industry peers.
TEL has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
TEL has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: TEL underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.21
WACC7.06%
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 83.33% of its industry peers.
A Quick Ratio of 0.42 indicates that TEL may have some problems paying its short term obligations.
The Quick ratio of TEL (0.42) is worse than 83.33% 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.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
Looking at the last year, TEL shows a small growth in Revenue. The Revenue has grown by 0.15% in the last 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)-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 -4.29% on average over the next years.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y-34.18%
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
EPS Next 5Y-4.29%
Revenue Next Year0.9%
Revenue Next 2Y0.98%
Revenue Next 3Y1.2%
Revenue Next 5Y1.03%
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
With a Price/Earnings ratio of 20.29, TEL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TEL is on the same level as its industry peers.
TEL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.15, TEL is valued correctly.
TEL's Price/Forward Earnings is on the same level as the industry average.
TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEL indicates a slightly more expensive valuation: TEL is more expensive than 60.00% of the companies listed in the same industry.
TEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 8.89 |
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 -6.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.73
EPS Next 2Y-12.48%
EPS Next 3Y-6.04%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 5.80%, which is a nice return.
Compared to an average industry Dividend Yield of 4.59, TEL pays a better dividend. On top of this TEL pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
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-12.48%
EPS Next 3Y-6.04%
OSL:TEL (9/19/2025, 7:00:00 PM)
166
+0.6 (+0.36%)
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 Cap227.15B
Analysts70.43
Price Target168.56 (1.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
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)1.86%
PT rev (3m)2.49%
EPS NQ rev (1m)4.84%
EPS NQ rev (3m)7.97%
EPS NY rev (1m)3.76%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 16.15 | ||
| P/S | 2.82 | ||
| P/FCF | 13.28 | ||
| P/OCF | 7.71 | ||
| P/B | 3.52 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)8.18
EY4.93%
EPS(NY)10.28
Fwd EY6.19%
FCF(TTM)12.5
FCFY7.53%
OCF(TTM)21.54
OCFY12.98%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.73
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
WACC7.06%
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-4.29%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
Revenue Next Year0.9%
Revenue Next 2Y0.98%
Revenue Next 3Y1.2%
Revenue Next 5Y1.03%
EBIT growth 1Y0.93%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year89.91%
EBIT Next 3Y26.8%
EBIT Next 5Y16.55%
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%