TELENOR ASA (TEL.OL) Stock Fundamental Analysis
Europe - OSL:TEL - NO0010063308 - Common Stock
165.7 NOK
-0.5 (-0.3%)
Taking everything into account, TEL scores 5 out of 10 in our fundamental rating. TEL was compared to 33 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 has a valuation in line with the averages, but it does not seem to be growing.
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
Looking at the Return On Assets, with a value of 4.63%, TEL is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
TEL's Return On Equity of 15.73% is fine compared to the rest of the industry. TEL outperforms 72.73% of its industry peers.
TEL has a better Return On Invested Capital (8.55%) than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEL is in line with the industry average of 7.55%.
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
Looking at the Profit Margin, with a value of 12.61%, TEL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
TEL's Profit Margin has improved in the last couple of years.
TEL's Operating Margin of 22.98% is amongst the best of the industry. TEL outperforms 84.85% 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 78.17% is fine compared to the rest of the industry. TEL outperforms 78.79% 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
TEL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
Compared to 1 year ago, TEL has an improved debt to assets ratio.
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.
TEL has a Altman-Z score of 1.74. This is amongst the best in the industry. TEL outperforms 84.85% 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's Debt to FCF ratio of 5.85 is fine compared to the rest of the industry. TEL outperforms 78.79% 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.
With a Debt to Equity ratio value of 1.29, TEL is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.21
WACC7.05%
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 81.82% 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 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
TEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.53%.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
The Revenue has been growing slightly by 0.15% 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)-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 -3.41% on average per year.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.10% yearly.
EPS Next Y-33.24%
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
EPS Next 5Y-3.41%
Revenue Next Year0.74%
Revenue Next 2Y0.84%
Revenue Next 3Y1.11%
Revenue Next 5Y1.1%
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.
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
The Price/Earnings ratio is 20.26, which indicates a rather expensive current valuation of TEL.
TEL's Price/Earnings ratio is a bit cheaper when compared to the industry. TEL is cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, TEL is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.08, which indicates a correct valuation of TEL.
The rest of the industry has a similar Price/Forward Earnings ratio as TEL.
When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (22.94), we can say TEL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 16.08 |
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 63.64% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 8.92 |
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 -5.75% in the coming years.
PEG (NY)N/A
PEG (5Y)2.72
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.86%, TEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.42, TEL pays a better dividend. On top of this TEL pays more dividend than 87.88% of the companies listed in the same industry.
TEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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-12.35%
EPS Next 3Y-5.75%
OSL:TEL (10/17/2025, 7:00:00 PM)
165.7
-0.5 (-0.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners32.26%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap226.74B
Analysts69.17
Price Target170.94 (3.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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)2.54%
PT rev (3m)3.94%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)4.81%
EPS NY rev (1m)1.43%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 16.08 | ||
| P/S | 2.81 | ||
| P/FCF | 13.25 | ||
| P/OCF | 7.69 | ||
| P/B | 3.51 | ||
| P/tB | 7.99 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)8.18
EY4.94%
EPS(NY)10.31
Fwd EY6.22%
FCF(TTM)12.5
FCFY7.54%
OCF(TTM)21.54
OCFY13%
SpS58.87
BVpS47.19
TBVpS20.74
PEG (NY)N/A
PEG (5Y)2.72
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
WACC7.05%
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-33.24%
EPS Next 2Y-12.35%
EPS Next 3Y-5.75%
EPS Next 5Y-3.41%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%1.9%
Revenue Next Year0.74%
Revenue Next 2Y0.84%
Revenue Next 3Y1.11%
Revenue Next 5Y1.1%
EBIT growth 1Y0.93%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year91.7%
EBIT Next 3Y26.47%
EBIT Next 5Y16.6%
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%