OM:TELIA

Stock Analysis Report

Executive Summary

Telia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, and Estonia.

Rewards

Trading at 38.1% below its fair value

Earnings are forecast to grow 7.38% per year

Risk Analysis

Has a high level of debt

Dividend of 5.84% is not well covered by earnings



Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TELIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

TELIA

1.9%

SE Telecom

-0.6%

SE Market


1 Year Return

3.8%

TELIA

4.0%

SE Telecom

23.8%

SE Market

Return vs Industry: TELIA matched the Swedish Telecom industry which returned 4% over the past year.

Return vs Market: TELIA underperformed the Swedish Market which returned 26.1% over the past year.


Shareholder returns

TELIAIndustryMarket
7 Day1.9%1.9%-0.6%
30 Day1.0%0.8%1.8%
90 Day-5.3%-5.0%6.9%
1 Year9.7%3.8%9.8%4.0%28.9%23.8%
3 Year36.3%15.4%35.3%14.8%38.9%17.6%
5 Year8.9%-19.1%10.3%-18.0%53.2%20.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TELIA (SEK40.44) is trading below our estimate of fair value (SEK65.28)

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


Price To Earnings Ratio

PE vs Industry: TELIA is good value based on its PE Ratio (20.2x) compared to the Telecom industry average (25.4x).

PE vs Market: TELIA is poor value based on its PE Ratio (20.2x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: TELIA is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: TELIA is good value based on its PB Ratio (1.9x) compared to the SE Telecom industry average (1.9x).


Next Steps

Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TELIA's forecast earnings growth (7.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: TELIA's earnings (7.4% per year) are forecast to grow slower than the Swedish market (9.6% per year).

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

Revenue vs Market: TELIA's revenue (1.7% per year) is forecast to grow slower than the Swedish market (4.4% per year).

High Growth Revenue: TELIA's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TELIA's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Telia Company performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TELIA has high quality earnings.

Growing Profit Margin: TELIA's current net profit margins (9.9%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: TELIA's earnings have declined by -1% per year over the past 5 years.

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

Earnings vs Industry: TELIA had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Telecom industry average (0.5%).


Return on Equity

High ROE: TELIA's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Telia Company's financial position?


Financial Position Analysis

Short Term Liabilities: TELIA's short term assets (SEK45.5B) do not cover its short term liabilities (SEK45.8B).

Long Term Liabilities: TELIA's short term assets (SEK45.5B) do not cover its long term liabilities (SEK124.5B).


Debt to Equity History and Analysis

Debt Level: TELIA's debt to equity ratio (109.6%) is considered high.

Reducing Debt: TELIA's debt to equity ratio has increased from 83.4% to 109.6% over the past 5 years.

Debt Coverage: TELIA's debt is well covered by operating cash flow (27.4%).

Interest Coverage: TELIA's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: TELIA has a high level of physical assets or inventory.

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


Next Steps

Dividend

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

5.72%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.6%markettop25%4.4%industryaverage4.9%forecastin3Years5.8%

Current dividend yield vs market & industry

Notable Dividend: TELIA's dividend (5.84%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: TELIA's dividend (5.84%) is in the top 25% of dividend payers in the Swedish market (4.45%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.6%), TELIA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TELIA's dividends in 3 years are forecast to be covered by earnings (83% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Christian Luiga (51yo)

0.3yrs

Tenure

0

Mr. Christian Luiga serves as Acting President and Chief Executive Officer at Telia Company AB since September 12, 2019. She served as the Chief Financial Officer of Telia Company AB since April 2014 and i ...


Management Age and Tenure

2.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: TELIA's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: TELIA's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr247,13109 May 19
Abraham Foss
EntityIndividual
Shares6,102
Max Pricekr40.50
Buykr597,30028 Jan 19
Christian Luiga
EntityIndividual
Role
Chief Executive Officer
Acting President & CEO
Shares15,000
Max Pricekr39.82
Buykr974,61028 Jan 19
Johan Dennelind
EntityIndividual
Role
Senior Key Executive
Shares24,500
Max Pricekr39.78

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Christian Luiga (51yo)

    Acting President & CEO

    • Tenure: 0.3yrs
  • Johan Dennelind (50yo)

    • Tenure: 0.3yrs
    • Compensation: kr24.73m
  • Cecilia Lundin (49yo)

    Executive VP and Head of People & Brand

    • Tenure: 2.9yrs
  • Peter Borsos (50yo)

    Head of Telia Global & Senior VP

    • Tenure: 6yrs
  • J. Bengtsson (49yo)

    Executive VP

    • Tenure: 6yrs
  • Andreas Ekström (44yo)

    Head of Mergers & Acquisitions

    • Tenure: 6.8yrs
  • Andreas Joelsson

    Head of Investor Relations

    • Tenure: 3.1yrs
  • Douglas Lubbe

    Acting Chief Financial Officer

    • Tenure: 0.3yrs
  • Magnus Zetterberg (50yo)

    Senior VP

    • Tenure: 1.6yrs
  • Åsa Jamal (47yo)

    Senior VP & Head of Group Communications

    • Tenure: 0.9yrs

Board Members

  • Olli-Pekka Kallasvuo (66yo)

    Vice Chairman

    • Tenure: 6.8yrs
    • Compensation: kr862.00k
  • Nina Linander (60yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: kr824.00k
  • Stefan Carlsson (63yo)

    Director

    • Tenure: 10.2yrs
  • Gusta Gustafson (55yo)

    Director

    • Tenure: 0.8yrs
  • Olaf Swantee (53yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr724.00k
  • Agneta Ahlström (59yo)

    Director

    • Tenure: 12.1yrs
  • Jimmy Maymann (48yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: kr420.00k
  • Anna Settman (49yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr724.00k
  • Martin Tivéus (49yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: kr420.00k
  • Lars-Johan Jarnheimer (59yo)

    Chair of the Board

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Telia Company AB (publ)
  • Ticker: TELIA
  • Exchange: OM
  • Founded: 1853
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: kr169.524b
  • Shares outstanding: 4.11b
  • Website: https://www.teliacompany.com

Number of Employees


Location

  • Telia Company AB (publ)
  • Stjärntorget 1
  • Solna
  • Stockholm County
  • 169 94
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLSN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2000
TELIAOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKJun 2000
TELIA1HLSE (OMX Nordic Exchange Helsinki)YesCommon StockFIEURJun 2000
0H6XLSE (London Stock Exchange)YesCommon StockGBSEKJun 2000
TLSDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000
TELIASWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 2000
TLSN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Telia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, and Estonia. The company offers mobile, broadband, television, and fixed-line services to businesses, individuals, families, and communities. It also provides contact center, Internet of Things (IoT), hosting, managed Wi-Fi, and cloud and security services; data center and infrastructure services; IP-network solutions and system integration services; and financing solutions. In addition, the company owns and operates fiber backbones. The company markets its products and services under the Telia, Halebop, OneCall, MyCall, Phonero, Get, TDC, Call me, DLG Tele, Diil, Lmt, Amigo, Ezys, and Moldcell brands. It has 16.8 million mobile subscriptions, 1.9 million fixed voice subscriptions, 2.9 million broadband subscriptions, 2.4 million TV subscriptions, 2.1 million IoT subscriptions. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 20:43
End of Day Share Price2020/01/24 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.