OM:TEL2 B

Stock Analysis Report

Executive Summary

Tele2 AB (publ), a telecom operator, provides telecommunication services for residential and business customers.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Tele2's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

TEL2 B

0.5%

SE Wireless Telecom

3.1%

SE Market


1 Year Return

28.4%

TEL2 B

6.8%

SE Wireless Telecom

13.7%

SE Market

Return vs Industry: TEL2 B exceeded the Swedish Wireless Telecom industry which returned 6.8% over the past year.

Return vs Market: TEL2 B exceeded the Swedish Market which returned 13.7% over the past year.


Shareholder returns

TEL2 BIndustryMarket
7 Day1.7%0.5%3.1%
30 Day-2.9%0.8%2.6%
90 Day2.7%15.3%3.5%
1 Year38.5%28.4%12.2%6.8%18.5%13.7%
3 Year119.7%78.8%-3.4%-18.9%33.7%13.6%
5 Year136.6%55.7%14.2%-14.3%64.2%29.1%

Price Volatility Vs. Market

How volatile is Tele2's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tele2 undervalued compared to its fair value and its price relative to the market?

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEL2 B (SEK140.15) is trading below our estimate of fair value (SEK192.14)

Significantly Below Fair Value: TEL2 B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TEL2 B is poor value based on its PE Ratio (65.7x) compared to the Wireless Telecom industry average (22.3x).

PE vs Market: TEL2 B is poor value based on its PE Ratio (65.7x) compared to the Swedish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: TEL2 B is poor value based on its PEG Ratio (16.1x)


Price to Book Ratio

PB vs Industry: TEL2 B is overvalued based on its PB Ratio (2.8x) compared to the XE Wireless Telecom industry average (2x).


Next Steps

  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

How is Tele2 forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL2 B's forecast earnings growth (4.1% per year) is above the savings rate (0.4%).

Earnings vs Market: TEL2 B's earnings (4.1% per year) are forecast to grow slower than the Swedish market (8.8% per year).

High Growth Earnings: TEL2 B's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEL2 B's revenue (0.7% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: TEL2 B's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEL2 B's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Tele2 performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TEL2 B's earnings have declined by -0.9% per year over the past 5 years.

Accelerating Growth: TEL2 B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEL2 B had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-38.3%).


Return on Equity

High ROE: TEL2 B's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: TEL2 B's Return on Assets is below or equal to the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: TEL2 B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tele2's financial position?


Financial Position Analysis

Short Term Liabilities: TEL2 B's short term assets (SEK9.8B) do not cover its short term liabilities (SEK12.4B)

Long Term Liabilities: TEL2 B's short term assets (9.8B) do not cover its long term liabilities (34.0B)


Debt to Equity History and Analysis

Debt Level: TEL2 B's debt to equity ratio (74.4%) is considered high

Reducing Debt: TEL2 B's debt to equity ratio has increased from 42.9% to 74.4% over the past 5 years.

Debt Coverage: TEL2 B's debt is well covered by operating cash flow (33.3%).

Interest Coverage: TEL2 B's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet

Inventory Level: TEL2 B has a low level of unsold assets or inventory.

Debt Coverage by Assets: TEL2 B's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Tele2's current dividend yield, its reliability and sustainability?

3.14%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.8%markettop25%4.7%industryaverage4.7%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TEL2 B's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: TEL2 B's dividend (3.14%) is low compared to the top 25% of dividend payers in the Swedish market (4.7%).

Stable Dividend: TEL2 B's dividend payments have been volatile in the past 10 years.

Growing Dividend: TEL2 B's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (206.1%), TEL2 B's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEL2 B's dividends in 3 years are not forecast to be well covered by earnings (120.8% payout ratio).


Next Steps

Management

What is the CEO of Tele2's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Anders Nilsson (52yo)

0.9yrs

Tenure

kr2,700,000

Compensation

Mr. Anders Nilsson has been the President and Chief Executive Officer of Tele2 AB (publ) since November 05, 2018. He has been Chief Executive Officer of NorCell Sweden Holding 2 AB (publ), Com Hem Holding  ...


CEO Compensation Analysis

Compensation vs. Market: Anders has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Swedish market.

Compensation vs Earnings: Insufficient data to compare Anders's compensation with company performance.


Management Age and Tenure

0.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: TEL2 B's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

54yo

Average Age

Experienced Board: TEL2 B's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: TEL2 B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr408,15013 Sep 19
Thomas Helbo
EntityIndividual
Role
Chief Technology Officer
Executive Vice President of Technology
Shares3,000
Max Pricekr136.05
Buykr157,50013 Jun 19
Joel Westin
EntityIndividual
Shares1,200
Max Pricekr131.25
Buykr564,13507 Jun 19
Joss Delissen
EntityIndividual
Shares4,397
Max Pricekr128.30
Sellkr1,310,50007 Jun 19
Guillaume Van Gaver
EntityIndividual
Shares10,000
Max Pricekr131.05
Sellkr130,00005 Jun 19
Kim Hagberg
EntityIndividual
Role
Chief Operating Officer
Executive VP & Chief Operations
Shares1,000
Max Pricekr130.00
Sellkr1,301,50024 May 19
Guillaume Van Gaver
EntityIndividual
Shares10,000
Max Pricekr130.15
Buykr578,53122 May 19
Karin Svensson
EntityIndividual
Role
Head of Human Resources
Executive VP and Chief of People & Change
Shares4,500
Max Pricekr128.56
Buykr317,87517 May 19
Viktor Wallström
EntityIndividual
Shares2,500
Max Pricekr127.15
Buykr625,00015 May 19
Anders Björkman
EntityIndividual
Role
Member of the Board of Directors
Board Member
Shares5,000
Max Pricekr125.00
Buykr183,90008 May 19
Samuel Skott
EntityIndividual
Shares1,500
Max Pricekr122.60
Sellkr1,458,09203 May 19
Guillaume Van Gaver
EntityIndividual
Shares11,162
Max Pricekr130.63
Sellkr1,043,60302 May 19
Thomas Björklund
EntityIndividual
Shares7,989
Max Pricekr130.63
Sellkr6,112,04702 May 19
Samuel Skott
EntityIndividual
Shares46,789
Max Pricekr130.63
Sellkr1,043,60330 Apr 19
Viktor Wallström
EntityIndividual
Shares7,989
Max Pricekr130.63
Sellkr1,043,60330 Apr 19
Stefan Backman
EntityIndividual
Role
Chief Legal Officer
Executive VP & Group General Counsel
Shares7,989
Max Pricekr130.63
Buykr884,94026 Apr 19
Guillaume Van Gaver
EntityIndividual
Shares7,000
Max Pricekr126.42
Buykr302,82524 Apr 19
Stefan Backman
EntityIndividual
Role
Chief Legal Officer
Executive VP & Group General Counsel
Shares2,457
Max Pricekr123.25

Ownership Breakdown


Management Team

  • Mikael Larsson (51yo)

    Executive VP & Group CFO

    • Tenure: 0.9yrs
  • Jan Berntsson

    Head of Audit

    • Tenure: 13.4yrs
  • Anders Nilsson (52yo)

    President & CEO

    • Tenure: 0.9yrs
    • Compensation: kr2.70m
  • Karin Svensson (54yo)

    Executive VP and Chief of People & Change

    • Tenure: 0.9yrs
  • Stefan Backman (44yo)

    Executive VP & Group General Counsel

    • Tenure: 0.9yrs
  • Vadim Goncharov

    Chief Technical Officer of South Macro Region

    • Tenure: 5.3yrs
  • Joel Ibson

    Head of Corporate Communications

    • Tenure: 0yrs
  • Thomas Helbo (47yo)

    Executive Vice President of Technology

    • Tenure: 0.8yrs
  • Kim Hagberg (53yo)

    Executive VP & Chief Operations

    • Tenure: 0.9yrs
  • Marcus Lindberg

    Head of Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Anders Björkman (60yo)

    Board Member

    • Tenure: 2.4yrs
    • Compensation: kr620.00k
  • Eva Lindqvist (61yo)

    Board Member

    • Tenure: 0.9yrs
    • Compensation: kr342.50k
  • Andrew Barron (54yo)

    Deputy Chairman

    • Tenure: 0.4yrs
    • Compensation: kr310.00k
  • Cynthia Gordon (57yo)

    Board Member

    • Tenure: 3.4yrs
    • Compensation: kr630.00k
  • Lars-Åke Norling (51yo)

    Board Member

    • Tenure: 1.1yrs
  • Carla Smits-Nusteling (53yo)

    Chairman

    • Tenure: 0.4yrs
    • Compensation: kr795.00k
  • Georgi Ganev (43yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: kr1.78m

Company Information

Tele2 AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tele2 AB (publ)
  • Ticker: TEL2 B
  • Exchange: OM
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: kr96.366b
  • Shares outstanding: 687.78m
  • Website: https://www.tele2.com

Number of Employees


Location

  • Tele2 AB (publ)
  • Skeppsbron 18
  • PO Box 2094
  • Stockholm
  • Stockholm County
  • 103 13
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLTZ.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDMay 1996
TEL2 AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKMay 1996
TEL2 BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKMay 1996
NCYDDB (Deutsche Boerse AG)YesClass B SharesDEEURMay 1996
0QE6LSE (London Stock Exchange)YesClass B SharesGBSEKMay 1996
TEL2BSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKMay 1996
TLTZ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Tele2 AB (publ), a telecom operator, provides telecommunication services for residential and business customers. The company offers mobile voice telephony, handset data, messaging, and value-added services ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:42
End of Day Share Price2019/10/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.