OB:TEL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


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

4.1%

TEL

3.1%

NO Telecom

1.8%

NO Market


1 Year Return

-18.1%

TEL

-9.5%

NO Telecom

-13.5%

NO Market

Return vs Industry: TEL underperformed the Norwegian Telecom industry which returned -9.4% over the past year.

Return vs Market: TEL underperformed the Norwegian Market which returned -13.3% over the past year.


Shareholder returns

TELIndustryMarket
7 Day4.1%3.1%1.8%
30 Day-6.3%2.1%2.0%
90 Day-2.4%-5.1%-7.9%
1 Year-13.8%-18.1%-6.1%-9.5%-10.6%-13.5%
3 Year27.2%6.9%-12.5%-22.5%-8.0%-1.7%
5 Year10.5%-16.7%-14.1%-29.6%-3.1%2.6%

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 (NOK147.4) is trading below our estimate of fair value (NOK344.84)

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 (38.3x) compared to the Telecom industry average (18.3x).

PE vs Market: TEL is poor value based on its PE Ratio (38.3x) compared to the Norwegian market (12x).


Price to Earnings Growth Ratio

PEG Ratio: TEL is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: TEL is overvalued based on its PB Ratio (5x) compared to the XE Telecom industry average (1.6x).


Next Steps

Future Growth

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

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL's forecast earnings growth (13.8% per year) is above the savings rate (1.6%).

Earnings vs Market: TEL's earnings (13.8% per year) are forecast to grow slower than the Norwegian market (35.2% per year).

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

Revenue vs Market: TEL's revenue (1.1% per year) is forecast to grow slower than the Norwegian market (5% per year).

High Growth Revenue: TEL's revenue (1.1% 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 (41.9%).


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: TEL has high quality earnings.

Growing Profit Margin: TEL's current net profit margins (4.7%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: TEL's earnings have grown by 2.9% 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 (-28.9%) over the past year, making it difficult to compare to the Telecom industry average (9.8%).


Return on Equity

High ROE: TEL'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: TEL's short term assets (NOK53.3B) do not cover its short term liabilities (NOK66.8B).

Long Term Liabilities: TEL's short term assets (NOK53.3B) do not cover its long term liabilities (NOK162.9B).


Debt to Equity History and Analysis

Debt Level: TEL's debt to equity ratio (240.8%) is considered high.

Reducing Debt: TEL's debt to equity ratio has increased from 89% to 240.8% over the past 5 years.

Debt Coverage: TEL's debt is well covered by operating cash flow (30.4%).

Interest Coverage: TEL's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

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

5.90%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TEL's dividend (5.9%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.96%).

High Dividend: TEL's dividend (5.9%) is low compared to the top 25% of dividend payers in the Norwegian market (7%).


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 (226.1%), 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 (80.4% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Sigve Brekke (60yo)

4.75yrs

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 ($USD16.14K) is below average for companies of similar size in the Norwegian market ($USD1.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sigve Brekke
President & CEO4.75yrskr14.52m0.010% NOK21.4m
Ruza Sabanovic
Executive VP & CTO3yrskr7.77m0.0012% NOK2.5m
Lars Thomsen
Acting Executive VP & Chief Marketing Officer1yrkr3.60m0.00060% NOK1.3m
Cecilie Heuch
Executive VP & Chief People Officer2.42yrskr5.04m0.00073% NOK1.5m
Petter-Børre Furberg
Executive VP & CEO of Telenor Norge AS3.42yrskr6.20m0.0033% NOK6.9m
Anne Kvam
Executive VP & Chief Corporate Affairs Officer1.58yrskr4.54m0.00049% NOK1.0m
Jørgen C. Rostrup
Executive VP & Head of Asia Businessno datakr7.32m0.0017% NOK3.6m
Jukka Leinonen
Executive VP of Nordic Cluster & CEO of DNA at Finland0.42yrkr6.49m0.00063% NOK1.3m
Marianne Moe
Head of Investor Relationsno datano datano data
Siri Birgitte Berge
General Counselno datano data0.00036% NOK754.9k

2.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: TEL's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sally Davis
Director8.42yrskr640.00kno data
Jon Erik Reinhardsen
Director6yrskr638.00k0.00011% NOK230.7k
Jørgen Kildahl
Vice Chair of the Board2.83yrskr700.00k0.00014% NOK293.6k
Gunn Waersted
Chair of the Board4.33yrskr848.00k0.00084% NOK1.8m
Lars Tronsgaard
Vice Chairman of Corporate Assembly2.33yrsno datano data
Jacob Aqraou
Director4yrskr628.00k0.00070% NOK1.5m
Jan Eriksen
Employee Representative Director1yrkr274.00k0.0041% NOK8.6m
Esben Smistad
Employee Representative Director1yrkr277.00kno data
Anita Steine
Employee Representative Director1yrkr323.00k0.000050% NOK104.9k
Bjørn Næss
Chairman of Corporate Assembly1yrno datano data

2.6yrs

Average Tenure

63yo

Average Age

Experienced Board: TEL's board of directors are not considered experienced ( 2.6 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: TEL 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: kr209.701b
  • Shares outstanding: 1.42b
  • 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
TELNFOTCPK (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 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 DTH, and 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; and leases base station sites and equipment. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 20:53
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.