OTCPK:TLTZ.F

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 34.4% below its fair value

Earnings are forecast to grow 15.19% per year

Earnings grew by 154.7% over the past year

Risk Analysis

Dividend of 4.02% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record and slightly 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

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


Market Performance


7 Day Return

0%

TLTZ.F

4.3%

US Wireless Telecom

9.4%

US Market


1 Year Return

n/a

TLTZ.F

13.5%

US Wireless Telecom

-6.8%

US Market

Return vs Industry: Insufficient data to determine how TLTZ.F performed against the US Wireless Telecom industry.

Return vs Market: Insufficient data to determine how TLTZ.F performed against the US Market.


Shareholder returns

TLTZ.FIndustryMarket
7 Day0%4.3%9.4%
30 Day-17.1%-2.1%-3.9%
90 Dayn/a11.1%-16.5%
1 Yearn/a14.8%13.5%-4.8%-6.8%
3 Year30.4%30.4%16.4%12.7%23.4%15.2%
5 Year4.3%4.3%83.8%68.1%41.3%25.7%

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

No news available

Valuation

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

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLTZ.F ($12.42) is trading below our estimate of fair value ($18.92)

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


Price To Earnings Ratio

PE vs Industry: TLTZ.F is poor value based on its PE Ratio (38x) compared to the Wireless Telecom industry average (20.4x).

PE vs Market: TLTZ.F is poor value based on its PE Ratio (38x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: TLTZ.F is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: TLTZ.F is overvalued based on its PB Ratio (2.7x) compared to the US Wireless Telecom industry average (1.5x).


Next Steps

Future Growth

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

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLTZ.F's forecast earnings growth (15.2% per year) is above the savings rate (1.7%).

Earnings vs Market: TLTZ.F's earnings (15.2% per year) are forecast to grow faster than the US market (13.3% per year).

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

Revenue vs Market: TLTZ.F's revenue (0.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: TLTZ.F'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: TLTZ.F's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Tele2 performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLTZ.F has a large one-off loss of SEK1.1B impacting its December 31 2019 financial results.

Growing Profit Margin: TLTZ.F's current net profit margins (8.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: TLTZ.F's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: TLTZ.F's earnings growth over the past year (154.7%) exceeds its 5-year average (1.1% per year).

Earnings vs Industry: TLTZ.F earnings growth over the past year (154.7%) exceeded the Wireless Telecom industry -10.4%.


Return on Equity

High ROE: TLTZ.F's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Tele2's financial position?


Financial Position Analysis

Short Term Liabilities: TLTZ.F's short term assets (SEK9.6B) do not cover its short term liabilities (SEK12.9B).

Long Term Liabilities: TLTZ.F's short term assets (SEK9.6B) do not cover its long term liabilities (SEK32.1B).


Debt to Equity History and Analysis

Debt Level: TLTZ.F's debt to equity ratio (73%) is considered high.

Reducing Debt: TLTZ.F's debt to equity ratio has increased from 36.6% to 73% over the past 5 years.

Debt Coverage: TLTZ.F's debt is well covered by operating cash flow (38.3%).

Interest Coverage: TLTZ.F's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TLTZ.F's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: TLTZ.F's dividend (4.02%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (153%), TLTZ.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLTZ.F's dividends in 3 years are not forecast to be well covered by earnings (110.1% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Anders Nilsson (52yo)

1.42s

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's total compensation ($USD269.32K) is below average for companies of similar size in the US market ($USD7.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anders Nilsson
President & CEO1.42yrskr2.70m0.032% SEK3.0m
Mikael Larsson
Executive VP & Group CFO1.42yrsno data0.012% SEK1.1m
Kim Hagberg
Executive VP & Chief of Operations1.42yrsno data0.0034% SEK321.5k
Marcus Lindberg
Head of Investor Relations1.25yrsno datano data
Stefan Backman
Executive VP & Group General Counsel1.42yrsno data0.0020% SEK184.2k
Joel Ibson
Head of Corporate Communicationsno datano datano data
Jonas Lundquist
Marketing Directorno datano datano data
Karin Svensson
Executive VP and Chief of People & Change1.42yrsno data0.0013% SEK122.2k
Jan Berntsson
Head of Audit13.92yrsno datano data
Vadim Goncharov
Chief Technical Officer of South Macro Region5.83yrsno datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: TLTZ.F's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anders Björkman
Independent Board Member2.92yrskr620.00k0.0010% SEK94.9k
Eva Lindqvist
Independent Board Member1.42yrskr342.50k0.00042% SEK39.5k
Andrew Barron
Independent Deputy Chairman0.92yrkr310.00k0.0081% SEK764.2k
Cynthia Gordon
Board Member3.92yrskr630.00k0.00029% SEK27.3k
Lars-Åke Norling
Independent Board Member1.58yrskr456.25kno data
Clara M. Smits-Nusteling
Independent Chairman0.92yrkr795.00k0.00024% SEK22.6k
Georgi Ganev
Board Member3.92yrskr1.78m0.00015% SEK14.1k

1.6yrs

Average Tenure

54yo

Average Age

Experienced Board: TLTZ.F's board of directors are not considered experienced ( 1.6 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: TLTZ.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Tele2 AB (publ)
  • Ticker: TLTZ.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: kr93.597b
  • Listing Market Cap: kr9.399b
  • Shares outstanding: 690.34m
  • 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
0QE5LSE (London Stock Exchange)Class A 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, and messaging services, as well as value-added services, such as handset insurance, antivirus, and content services; mobile broadband services; and fixed voice and broadband, TV, and fixed and mobile telephony services. It also provides business-to-business telecommunication services, such as secure and encrypted connections, company-specific mobile network access points, etc.; cloud services comprising voice switching, data center services, business productivity solutions, etc.; and Internet of things solutions, such as connectivity solutions, APN/VPN connections, SIM cards, professional services, and education and training services. It has operations in Sweden, Lithuania, Latvia, Estonia, and Germany. Tele2 AB (publ) was founded in 1993 and is based in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 09:04
End of Day Share Price2020/03/24 00:00
Earnings2019/12/31
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.