Executive Summary
Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Telenor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TEQ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.9%
TEQ
-0.4%
DE Telecom
0.2%
DE Market
1 Year Return
-24.5%
TEQ
3.6%
DE Telecom
4.5%
DE Market
Return vs Industry: TEQ underperformed the German Telecom industry which returned 3.6% over the past year.
Return vs Market: TEQ underperformed the German Market which returned 4.5% over the past year.
Shareholder returns
| TEQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.9% | -0.4% | 0.2% |
| 30 Day | -1.8% | 3.5% | 6.4% |
| 90 Day | -2.8% | 19.2% | 16.9% |
| 1 Year | -20.5%-24.5% | 7.9%3.6% | 6.8%4.5% |
| 3 Year | -1.7%-17.4% | 1.6%-11.3% | 3.0%-5.0% |
| 5 Year | -10.5%-32.6% | 0.3%-18.6% | 9.9%-4.8% |
Price Volatility Vs. Market
How volatile is Telenor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Telenor undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TEQ (€13.73) is trading below our estimate of fair value (€41.73)
Significantly Below Fair Value: TEQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TEQ is poor value based on its PE Ratio (38.6x) compared to the XE Telecom industry average (19.3x).
PE vs Market: TEQ is poor value based on its PE Ratio (38.6x) compared to the German market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: TEQ is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: TEQ is overvalued based on its PB Ratio (5.1x) compared to the DE Telecom industry average (1.3x).
Next Steps
Future Growth
How is Telenor forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
14.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEQ's forecast earnings growth (14.2% per year) is above the savings rate (0.2%).
Earnings vs Market: TEQ's earnings (14.2% per year) are forecast to grow slower than the German market (22.3% per year).
High Growth Earnings: TEQ's earnings are forecast to grow, but not significantly.
Revenue vs Market: TEQ's revenue (1.2% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: TEQ's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TEQ's Return on Equity is forecast to be high in 3 years time (39.5%)
Next Steps
Past Performance
How has Telenor performed over the past 5 years?
2.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEQ has high quality earnings.
Growing Profit Margin: TEQ's current net profit margins (4.7%) are lower than last year (7.4%).
Past Earnings Growth Analysis
Earnings Trend: TEQ's earnings have grown by 2.9% per year over the past 5 years.
Accelerating Growth: TEQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TEQ had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Telecom industry average (9.9%).
Return on Equity
High ROE: TEQ's Return on Equity (18.9%) is considered low.
Next Steps
Financial Health
How is Telenor's financial position?
Financial Position Analysis
Short Term Liabilities: TEQ's short term assets (NOK53.3B) do not cover its short term liabilities (NOK66.8B).
Long Term Liabilities: TEQ's short term assets (NOK53.3B) do not cover its long term liabilities (NOK162.9B).
Debt to Equity History and Analysis
Debt Level: TEQ's debt to equity ratio (240.8%) is considered high.
Reducing Debt: TEQ's debt to equity ratio has increased from 89% to 240.8% over the past 5 years.
Debt Coverage: TEQ's debt is well covered by operating cash flow (30.4%).
Interest Coverage: TEQ's interest payments on its debt are well covered by EBIT (7x coverage).
Balance Sheet
Next Steps
Dividend
What is Telenor current dividend yield, its reliability and sustainability?
5.86%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TEQ's dividend (5.86%) is higher than the bottom 25% of dividend payers in the German market (1.24%).
High Dividend: TEQ's dividend (5.86%) is in the top 25% of dividend payers in the German market (3.77%)
Stability and Growth of Payments
Stable Dividend: TEQ's dividends per share have been stable in the past 10 years.
Growing Dividend: TEQ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (226.1%), TEQ's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TEQ's dividends in 3 years are forecast to be covered by earnings (79.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Sigve Brekke (61yo)
4.92yrs
Tenure
kr14,522,000
Compensation
Mr. Sigve Brekke has been the Chief Executive Officer and President of Telenor ASA since August 17, 2015. Mr. Brekke served as the Chief Executive Officer of Total Access Communication Public Company Limit ...
CEO Compensation Analysis
Compensation vs Market: Sigve's total compensation ($USD16.14K) is below average for companies of similar size in the German market ($USD5.06M).
Compensation vs Earnings: Sigve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 4.92yrs | kr14.52m | 0.011% NOK2.0m | |
| Executive VP & CTO | 3.25yrs | kr7.77m | 0.0013% NOK239.0k | |
| Acting Executive VP & Chief Marketing Officer | 1.25yrs | kr3.60m | 0.00062% NOK118.6k | |
| Executive VP and Chief People & Sustainability Officer | 2.58yrs | kr5.04m | 0.00075% NOK143.4k | |
| Executive VP & CEO of Telenor Norge AS | 3.67yrs | kr6.20m | 0.0033% NOK629.1k | |
| Executive VP & Chief Corporate Affairs Officer | 1.75yrs | kr4.54m | 0.00051% NOK97.5k | |
| Executive VP & Head of Asia Business | 0.17yr | kr7.32m | 0.0018% NOK340.4k | |
| Executive VP of Nordic Cluster & CEO of DNA at Finland | 0.67yr | kr6.49m | 0.00065% NOK124.3k | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel | no data | no data | 0.00037% NOK70.7k | |
| Acting Senior VP & Head of Communications | no data | no data | no data | |
| Chief of Research | no data | no data | no data |
2.2yrs
Average Tenure
54yo
Average Age
Experienced Management: TEQ's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 0.17yr | no data | no data | |
| Director | 8.67yrs | kr640.00k | no data | |
| Director | 6.17yrs | kr638.00k | 0.00011% NOK21.0k | |
| Vice Chair of the Board | 3.08yrs | kr700.00k | 0.00014% NOK26.8k | |
| Chair of the Board | 4.5yrs | kr848.00k | 0.00087% NOK166.4k | |
| Vice Chairman of Corporate Assembly | 2.5yrs | no data | no data | |
| Director | 4.17yrs | kr628.00k | 0.00072% NOK137.7k | |
| Employee Representative Director | 1.17yrs | kr274.00k | 0.0042% NOK810.7k | |
| Director | 0.17yr | no data | no data | |
| Employee Representative Director | 1.17yrs | kr277.00k | no data | |
| Employee Representative Director | 1.17yrs | kr323.00k | 0.000050% NOK9.6k | |
| Chairman of Corporate Assembly | 1.17yrs | no data | no data |
1.8yrs
Average Tenure
62yo
Average Age
Experienced Board: TEQ's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TEQ insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Telenor ASA's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Telenor ASA
- Ticker: TEQ
- Exchange: DB
- Founded: 1855
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: kr204.811b
- Listing Market Cap: kr19.121b
- Shares outstanding: 1.38b
- Website: https://www.telenor.com
Number of Employees
Location
- Telenor ASA
- Snarøyveien 30
- Fornebu
- Akershus
- 1360
- Norway
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TELN.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Dec 2000 | |
| TEL | OB (Oslo Bors) | Yes | Ordinary Shares | NO | NOK | Dec 2000 |
| TEQ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2000 |
| 0G8C | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | NOK | Dec 2000 |
| TELNF | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2000 |
| TELO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | NOK | Dec 2000 |
| TEL | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Dec 2000 |
Biography
Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company’s mobile communication services comprise voice, data, internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcast services include broadcasting and data communication services through satellite, and terrestrial radio and TV transmission. The company also provides wholesale services that enable the operators to route international voice, messaging, data, and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services, such as international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices/phones. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/14 21:19 |
| End of Day Share Price | 2020/07/14 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.