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 27 industry peers in the Diversified Telecommunication Services industry. While TEL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TEL is valued correctly, but it does not seem to be growing.
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.
In the past 5 years TEL has always been profitable.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.09%, TEL is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.15%, TEL is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
The Return On Invested Capital of TEL (7.86%) is better than 74.07% 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 7.62%.
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 70.37% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.59%, TEL belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
TEL's Operating Margin has been stable in the last couple of years.
TEL has a better Gross Margin (77.95%) than 74.07% 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.
Compared to 5 years ago, TEL has less shares outstanding
Compared to 1 year ago, TEL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.89 indicates that TEL is not a great score, but indicates only limited risk for bankruptcy at the moment.
TEL's Altman-Z score of 1.89 is amongst the best of the industry. TEL outperforms 88.89% 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.
The Debt to FCF ratio of TEL (5.31) is better than 70.37% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that TEL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.14, TEL perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.1
WACC7.12%
2.3 Liquidity
TEL has a Current 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.
TEL has a Current ratio of 0.62. This is in the lower half of the industry: TEL underperforms 70.37% of its industry peers.
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.
TEL has a worse Quick ratio (0.60) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for TEL have decreased strongly by -31.35% in the last 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.
Looking at the last year, TEL shows a decrease in Revenue. The Revenue has decreased by -0.68% in the last year.
The Revenue has been decreasing by -6.80% on average over the past years.
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
The Earnings Per Share is expected to decrease by -3.64% on average over the next years.
The Revenue is expected to grow by 1.50% on average over the next years.
EPS Next Y-36.57%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
EPS Next 5Y-3.64%
Revenue Next Year0.98%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5Y1.5%
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 20.47, which indicates a rather expensive current valuation of TEL.
TEL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.48. TEL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.20, TEL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (36.52), we can say TEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
TEL's Enterprise Value to EBITDA ratio is in line with the industry average.
TEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
The decent 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 -5.41% in the coming years.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.14%, TEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, TEL pays a better dividend. On top of this TEL pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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.
TEL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP145.84%
EPS Next 2Y-13.48%
EPS Next 3Y-5.41%
OSL:TEL (7/18/2025, 3:50:08 PM)
162.7
+1.7 (+1.06%)
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 Cap222.63B
Analysts69.6
Price Target164.46 (1.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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)0%
PT rev (3m)3.32%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 16.2 | ||
| P/S | 2.78 | ||
| P/FCF | 12.42 | ||
| P/OCF | 7.3 | ||
| P/B | 3.02 | ||
| P/tB | 5.74 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)7.95
EY4.89%
EPS(NY)10.04
Fwd EY6.17%
FCF(TTM)13.1
FCFY8.05%
OCF(TTM)22.28
OCFY13.69%
SpS58.59
BVpS53.95
TBVpS28.33
PEG (NY)N/A
PEG (5Y)2.75
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 | 1.89 |
F-Score8
WACC7.12%
ROIC/WACC1.1
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-3.64%
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 5Y1.5%
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 5Y17.12%
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%