TELENOR ASA (TEL.OL) Stock Fundamental Analysis
OSL:TEL - Euronext Oslo - NO0010063308 - Common Stock - Currency: NOK
Overall TEL gets a fundamental rating of 5 out of 10. We evaluated TEL against 32 industry peers in the Diversified Telecommunication Services industry. TEL scores excellent on profitability, but 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
In the past year TEL was profitable.
In the past year TEL had a positive cash flow from operations.
TEL had positive earnings in each of the past 5 years.
Each year in the past 5 years TEL had a positive operating cash flow.
1.2 Ratios
TEL's Return On Assets of 4.09% is fine compared to the rest of the industry. TEL outperforms 71.88% 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 68.75% 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 75.00% 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 7.75%.
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 better Profit Margin (11.19%) than 71.88% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
The Operating Margin of TEL (22.59%) is better than 81.25% of its industry peers.
In the last couple of years the Operating Margin of TEL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 77.95%, TEL is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEL is creating some value.
Compared to 1 year ago, TEL has less shares outstanding
TEL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TEL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that TEL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TEL (1.86) is better than 84.38% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 5.31, TEL belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.12
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.62 indicates that TEL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, TEL is doing worse than 71.88% of the companies in the same industry.
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.
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.
TEL shows a decrease in Revenue. In the last year, the revenue decreased by -0.68%.
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)-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 -0.90% yearly.
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
A Price/Earnings ratio of 19.61 indicates a rather expensive valuation of TEL.
TEL's Price/Earnings ratio is in line with the industry average.
TEL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
With a Price/Forward Earnings ratio of 15.53, 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 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 15.53 |
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 65.63% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TEL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 8.4 |
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
TEL has a Yearly Dividend Yield of 6.06%, which is a nice return.
Compared to an average industry Dividend Yield of 4.30, TEL pays a better dividend. On top of this TEL pays more dividend than 87.50% 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 2.40.
| 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
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 (5/27/2025, 7:00:00 PM)
155.9
+0.3 (+0.19%)
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 Cap213.33B
Analysts72
Price Target160.82 (3.16%)
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 | 19.61 | ||
| Fwd PE | 15.53 | ||
| P/S | 2.66 | ||
| P/FCF | 11.9 | ||
| P/OCF | 7 | ||
| P/B | 2.89 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 8.4 |
EPS(TTM)7.95
EY5.1%
EPS(NY)10.04
Fwd EY6.44%
FCF(TTM)13.1
FCFY8.4%
OCF(TTM)22.28
OCFY14.29%
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
WACC7.01%
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%