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 28 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.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
TEL has a Return On Assets of 8.01%. This is amongst the best in the industry. TEL outperforms 93.33% of its industry peers.
Looking at the Return On Equity, with a value of 24.17%, TEL belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Invested Capital of TEL (7.64%) is better than 73.33% 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 8.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 24.17% | ||
| ROIC | 7.64% |
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 an excellent Profit Margin value of 22.94%, TEL belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of TEL has grown nicely.
The Operating Margin of TEL (22.66%) is better than 80.00% 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 (77.82%) than 80.00% 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 | 22.66% | ||
| PM (TTM) | 22.94% | ||
| GM | 77.82% |
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.
TEL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TEL has less shares outstanding
The debt/assets ratio for TEL has been reduced compared to a year ago.
2.2 Solvency
TEL has an Altman-Z score of 1.76. 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 1.76. This is amongst the best in the industry. TEL outperforms 83.33% of its industry peers.
The Debt to FCF ratio of TEL is 5.62, which is a neutral value as it means it would take TEL, 5.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.62, TEL is doing good in the industry, outperforming 80.00% 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 of 1.14. This is comparable to the rest of the industry: TEL outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.08
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.59 indicates that TEL may have some problems paying its short term obligations.
TEL's Current ratio of 0.59 is on the low side compared to the rest of the industry. TEL is outperformed by 76.67% of its industry peers.
A Quick Ratio of 0.57 indicates that TEL may have some problems paying its short term obligations.
The Quick ratio of TEL (0.57) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 222.84% over the past year.
Measured over the past 5 years, TEL shows a small growth in Earnings Per Share. The EPS has been growing by 7.44% on average per year.
TEL shows a decrease in Revenue. In the last year, the revenue decreased by -0.65%.
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)222.84%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%63.89%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%-2.08%
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 Year1.35%
Revenue Next 2Y1.79%
Revenue Next 3Y1.94%
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.
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 11.71, which indicates a very decent valuation of TEL.
70.00% of the companies in the same industry are more expensive than TEL, based on the Price/Earnings ratio.
TEL is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.45, which indicates a rather expensive current valuation of TEL.
TEL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TEL is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. TEL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than TEL, based on the Enterprise Value to EBITDA ratio.
TEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 8.63 |
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 -5.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 6.15%, which is a nice return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 4.52. TEL pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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
71.35% 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.
DP71.35%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (5/5/2025, 9:30:04 AM)
157
+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 Cap214.83B
Analysts72
Price Target160.42 (2.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
Yearly Dividend9.5
Dividend Growth(5Y)2.7%
DP71.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.76%
Min EPS beat(2)-6.48%
Max EPS beat(2)20%
EPS beat(4)3
Avg EPS beat(4)112.19%
Min EPS beat(4)-6.48%
Max EPS beat(4)422.42%
EPS beat(8)4
Avg EPS beat(8)36.78%
EPS beat(12)7
Avg EPS beat(12)41.32%
EPS beat(16)7
Avg EPS beat(16)25.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)-1.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)-3.85%
Revenue beat(16)5
Avg Revenue beat(16)-6.42%
PT rev (1m)0.78%
PT rev (3m)4.46%
EPS NQ rev (1m)-17.43%
EPS NQ rev (3m)-9.84%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 18.45 | ||
| P/S | 2.69 | ||
| P/FCF | 11.87 | ||
| P/OCF | 6.82 | ||
| P/B | 2.83 | ||
| P/tB | 5.37 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)13.41
EY8.54%
EPS(NY)8.51
Fwd EY5.42%
FCF(TTM)13.23
FCFY8.42%
OCF(TTM)23.01
OCFY14.65%
SpS58.41
BVpS55.44
TBVpS29.23
PEG (NY)N/A
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 24.17% | ||
| ROCE | 9.93% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.18% | ||
| ROICexgc | 10.36% | ||
| OM | 22.66% | ||
| PM (TTM) | 22.94% | ||
| GM | 77.82% | ||
| FCFM | 22.64% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 78.98% | ||
| Cap/Sales | 16.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.81% | ||
| Profit Quality | 98.7% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.76 |
F-Score7
WACC7.1%
ROIC/WACC1.08
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)222.84%
EPS 3Y23.32%
EPS 5Y7.44%
EPS Q2Q%63.89%
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-0.9%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-6.3%
Revenue growth 5Y-6.8%
Sales Q2Q%-2.08%
Revenue Next Year1.35%
Revenue Next 2Y1.79%
Revenue Next 3Y1.94%
Revenue Next 5Y1.48%
EBIT growth 1Y0.45%
EBIT growth 3Y-2.33%
EBIT growth 5Y-7.16%
EBIT Next Year90.78%
EBIT Next 3Y27.18%
EBIT Next 5Y16.9%
FCF growth 1Y25.74%
FCF growth 3Y-7.44%
FCF growth 5Y10.14%
OCF growth 1Y8.1%
OCF growth 3Y-9.36%
OCF growth 5Y-1.66%