OB:TEL

Stock Analysis Report

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Executive Summary

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. More Details


Snowflake Analysis

Average 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: TEL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

TEL

-4.2%

NO Telecom

-2.3%

NO Market


1 Year Return

-16.5%

TEL

-19.3%

NO Telecom

-7.7%

NO Market

Return vs Industry: TEL exceeded the Norwegian Telecom industry which returned -18.4% over the past year.

Return vs Market: TEL underperformed the Norwegian Market which returned -11.6% over the past year.


Shareholder returns

TELIndustryMarket
7 Day-1.5%-4.2%-2.3%
30 Day2.5%-1.5%0.8%
90 Day1.1%-9.1%1.6%
1 Year-11.5%-16.5%-15.6%-19.3%-4.5%-7.7%
3 Year7.3%-12.3%-10.3%-21.6%-0.04%-11.3%
5 Year24.0%-9.1%-16.5%-32.6%42.1%13.2%

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

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: TEL (NOK151.6) is trading below our estimate of fair value (NOK341.5)

Significantly Below Fair Value: TEL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TEL is poor value based on its PE Ratio (38.9x) compared to the XE Telecom industry average (19.5x).

PE vs Market: TEL is poor value based on its PE Ratio (38.9x) compared to the Norwegian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: TEL is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: TEL is overvalued based on its PB Ratio (7.7x) compared to the XE Telecom industry average (1.8x).


Next Steps

Future Growth

How is Telenor forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL's forecast earnings growth (13.6% per year) is above the savings rate (1.6%).

Earnings vs Market: TEL's earnings (13.6% per year) are forecast to grow slower than the Norwegian market (31.2% per year).

High Growth Earnings: TEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEL's revenue (1.5% per year) is forecast to grow slower than the Norwegian market (5.4% per year).

High Growth Revenue: TEL's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEL's Return on Equity is forecast to be very high in 3 years time (47.7%).


Next Steps

Past Performance

How has Telenor performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEL has high quality earnings.

Growing Profit Margin: TEL's current net profit margins (4.5%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: TEL's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: TEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEL had negative earnings growth (-33.1%) over the past year, making it difficult to compare to the Telecom industry average (6.1%).


Return on Equity

High ROE: Whilst TEL's Return on Equity (27.29%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Telenor's financial position?


Financial Position Analysis

Short Term Liabilities: TEL's short term assets (NOK46.8B) do not cover its short term liabilities (NOK74.1B).

Long Term Liabilities: TEL's short term assets (NOK46.8B) do not cover its long term liabilities (NOK156.3B).


Debt to Equity History and Analysis

Debt Level: TEL's debt to equity ratio (336.5%) is considered high.

Reducing Debt: TEL's debt to equity ratio has increased from 91.6% to 336.5% over the past 5 years.

Debt Coverage: TEL's debt is well covered by operating cash flow (35.1%).

Interest Coverage: TEL's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Telenor current dividend yield, its reliability and sustainability?

5.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TEL's dividend (5.74%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: TEL's dividend (5.74%) is low compared to the top 25% of dividend payers in the Norwegian market (6.54%).


Stability and Growth of Payments

Stable Dividend: TEL's dividends per share have been stable in the past 10 years.

Growing Dividend: TEL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (223.3%), TEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEL's dividends in 3 years are forecast to be covered by earnings (78.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Sigve Brekke (61 yo)

5.17yrs

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 ($USD1.58M) is about average for companies of similar size in the Norwegian market ($USD1.32M).

Compensation vs Earnings: Sigve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sigve Brekke
President & CEO5.17yrskr14.52m0.011%
NOK 22.1m
Ruza Sabanovic
Executive VP & CTO3.5yrskr7.77m0.0013%
NOK 2.6m
Lars Thomsen
Acting Executive VP1.5yrskr3.60m0.00062%
NOK 1.3m
Cecilie Heuch
Executive VP and Chief People & Sustainability Officer2.83yrskr5.04m0.00075%
NOK 1.6m
Petter-Børre Furberg
Executive VP & CEO of Telenor Norge AS3.92yrskr6.20m0.0033%
NOK 6.9m
Anne Kvam
Executive VP & Chief Corporate Affairs Officer2yrskr4.54m0.00051%
NOK 1.1m
Jørgen C. Rostrup
Executive VP & Head of Asia Business0.42yrkr7.32m0.0018%
NOK 3.7m
Jukka Leinonen
Executive VP of Nordic Cluster & CEO of DNA at Finland0.92yrkr6.49m0.00065%
NOK 1.4m
Tone Bachke
Executive VP & CFO0.42yrno data0.00031%
NOK 651.0k
Marianne Moe
Head of Investor Relationsno datano datano data
Siri Birgitte Berge
General Counselno datano data0.00037%
NOK 776.9k
Atle Lessum
Acting Senior VP & Head of Communicationsno datano datano data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: TEL's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pieter Knook
Director0.42yrno datano data
Sally Davis
Director8.92yrskr640.00kno data
Jon Erik Reinhardsen
Director6.42yrskr638.00k0.00011%
NOK 231.0k
Jørgen Kildahl
Vice Chair of the Board3.33yrskr700.00k0.00014%
NOK 294.0k
Gunn Waersted
Chair of the Board4.75yrskr848.00k0.00087%
NOK 1.8m
Lars Tronsgaard
Vice Chairman of Corporate Assembly2.75yrsno datano data
Jacob Aqraou
Director4.42yrskr628.00k0.00072%
NOK 1.5m
Jan Eriksen
Employee Representative Director1.42yrskr274.00k0.0042%
NOK 8.9m
Astrid Joos
Director0.42yrno datano data
Esben Smistad
Employee Representative Director1.42yrskr277.00kno data
Anita Steine
Employee Representative Director1.42yrskr323.00k0.000050%
NOK 105.0k
Bjørn Næss
Chairman of Corporate Assembly1.42yrsno datano data

2.1yrs

Average Tenure

62yo

Average Age

Experienced Board: TEL's board of directors are not considered experienced ( 2.1 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: Insufficient data to determine if 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: TEL
  • Exchange: OB
  • Founded: 1855
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: kr209.985b
  • Shares outstanding: 1.38b
  • Website: https://www.telenor.com

Number of Employees


Location

  • Telenor ASA
  • Snarøyveien 30
  • Fornebu
  • Akershus
  • 1360
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TELN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2000
TELOB (Oslo Bors)YesOrdinary SharesNONOKDec 2000
TEQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2000
0G8CLSE (London Stock Exchange)YesOrdinary SharesGBNOKDec 2000
TELN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2000
TELOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKDec 2000
TELSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFDec 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:42
End of Day Share Price2020/10/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.