OTCPK:TELN.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer with limited growth.


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


Market Performance


7 Day Return

-1.3%

TELN.Y

1.0%

US Telecom

1.8%

US Market


1 Year Return

6.4%

TELN.Y

10.4%

US Telecom

7.3%

US Market

Return vs Industry: TELN.Y underperformed the US Telecom industry which returned 10.4% over the past year.

Return vs Market: TELN.Y matched the US Market which returned 7.3% over the past year.


Shareholder returns

TELN.YIndustryMarket
7 Day-1.3%1.0%1.8%
30 Day-5.6%0.9%-0.7%
90 Day-4.1%10.1%0.06%
1 Year8.5%6.4%16.2%10.4%9.7%7.3%
3 Year36.0%17.9%22.5%4.7%46.3%36.9%
5 Year11.4%-9.0%41.9%9.5%64.5%46.5%

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?

26.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TELN.Y ($19.71) is trading above our estimate of fair value ($18.86)

Significantly Undervalued: TELN.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TELN.Y is poor value based on its PE Ratio (26.7x) compared to the Telecom industry average (18.8x).

PE vs Market: TELN.Y is poor value based on its PE Ratio (26.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TELN.Y is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: TELN.Y is overvalued based on its PB Ratio (6.6x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is Telenor forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TELN.Y's forecast earnings growth (5.3% per year) is above the savings rate (2.7%).

Earnings vs Market: TELN.Y's earnings (5.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: TELN.Y's revenue (2.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TELN.Y's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TELN.Y's Return on Equity is forecast to be very high in 3 years time (52.3%).


Next Steps

Past Performance

How has Telenor performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TELN.Y's earnings have grown by 9.8% per year over the past 5 years.

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

Earnings vs Industry: TELN.Y had negative earnings growth (-29.9%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: Whilst TELN.Y's Return on Equity (28.49%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: TELN.Y has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Telenor's financial position?


Financial Position Analysis

Short Term Liabilities: TELN.Y's short term assets (NOK66.1B) do not cover its short term liabilities (NOK81.0B)

Long Term Liabilities: TELN.Y's short term assets (66.1B) do not cover its long term liabilities (108.7B)


Debt to Equity History and Analysis

Debt Level: TELN.Y's debt to equity ratio (198.5%) is considered high

Reducing Debt: TELN.Y's debt to equity ratio has increased from 89.5% to 198.5% over the past 5 years.

Debt Coverage: TELN.Y's debt is well covered by operating cash flow (39.4%).

Interest Coverage: TELN.Y's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: TELN.Y's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

4.66%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.5%markettop25%3.7%industryaverage4.8%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TELN.Y's dividend (4.66%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TELN.Y's dividend (4.66%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: Whilst dividend payments have been stable, TELN.Y has been paying a dividend for less than 10 years.

Growing Dividend: TELN.Y's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.2%), TELN.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TELN.Y's dividends in 3 years are forecast to be covered by earnings (79.6% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Sigve Brekke (60yo)

4.2yrs

Tenure

kr15,618,000

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 ($USD1.70M) is below average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

2.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TELN.Y's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: TELN.Y's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Jørgen C. Rostrup (53yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: kr6.39m
  • Morten Sørby (60yo)

    Executive VP & Acting Cluster Head of Scandinavia

    • Tenure: 16.8yrs
    • Compensation: kr10.33m
  • Sigve Brekke (60yo)

    President & CEO

    • Tenure: 4.2yrs
    • Compensation: kr15.62m
  • Petter-Børre Furberg (52yo)

    Chief Executive Officer of Norway

    • Tenure: 1.1yrs
    • Compensation: kr8.12m
  • Albern Murty (46yo)

    Executive VP of Developed Asia Cluster & CEO of Digi - Malaysia

    • Tenure: 1.2yrs
    • Compensation: kr3.44m
  • Anne Kvam (52yo)

    Executive VP & Chief Corporate Affairs Officer

    • Tenure: 1yrs
    • Compensation: kr3.56m
  • Cecilie Heuch (54yo)

    Executive VP & Chief People Officer

    • Tenure: 1.8yrs
    • Compensation: kr4.88m
  • Ruza Sabanovic (48yo)

    Executive VP and Head of Technologies & Services

    • Tenure: 2.5yrs
    • Compensation: kr7.09m
  • Wenche Agerup (55yo)

    Head of Group Holdings Unit

    • Tenure: 3.9yrs
    • Compensation: kr4.12m
  • Alexandra Reich (56yo)

    CEO of Dtac

    • Tenure: 2.9yrs
    • Compensation: kr3.94m

Board Members

  • Sally Davis (66yo)

    Board Member

    • Tenure: 7.9yrs
    • Compensation: kr528.00k
  • Jon Erik Reinhardsen (63yo)

    Board Member

    • Tenure: 5.4yrs
    • Compensation: kr597.00k
  • Jørgen Kildahl (56yo)

    Vice Chair of the Board

    • Tenure: 2.3yrs
    • Compensation: kr633.00k
  • Gunn Waersted (64yo)

    Chair of the Board

    • Tenure: 3.8yrs
    • Compensation: kr805.00k
  • Lars Tronsgaard (65yo)

    Vice Chairman of Corporate Assembly

    • Tenure: 1.8yrs
  • Grethe Viksaas (61yo)

    Board Member

    • Tenure: 2.4yrs
    • Compensation: kr530.00k
  • Jacob Aqraou (47yo)

    Board Member

    • Tenure: 3.4yrs
    • Compensation: kr555.00k
  • Jan Eriksen (65yo)

    Employee Representative Director

    • Tenure: 0.4yrs
  • Esben Smistad (34yo)

    Employee Representative Director

    • Tenure: 0.4yrs
  • Bjørn Næss

    Chairman of Corporate Assembly

    • Tenure: 0.4yrs

Company Information

Telenor ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telenor ASA
  • Ticker: TELN.Y
  • Exchange: OTCPK
  • Founded: 1855
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: kr257.210b
  • Listing Market Cap: kr28.009b
  • Shares outstanding: 1.43b
  • 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 Analysis2019/10/18 23:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.