OTCPK:TLTZ.Y

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid 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.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

TLTZ.Y

0.2%

US Wireless Telecom

-0.8%

US Market


1 Year Return

-8.0%

TLTZ.Y

32.8%

US Wireless Telecom

13.8%

US Market

Return vs Industry: TLTZ.Y underperformed the US Wireless Telecom industry which returned 32.8% over the past year.

Return vs Market: TLTZ.Y underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

TLTZ.YIndustryMarket
7 Day-3.3%0.2%-0.8%
30 Day-4.2%-4.8%-5.7%
90 Day3.8%4.2%8.6%
1 Year-5.6%-8.0%33.3%32.8%16.4%13.8%
3 Year28.9%17.3%54.3%50.7%36.9%27.8%
5 Year72.5%38.1%121.0%110.8%85.0%64.2%

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?

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLTZ.Y ($6.81) is trading below our estimate of fair value ($12.51)

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


Price To Earnings Ratio

PE vs Industry: TLTZ.Y is poor value based on its PE Ratio (24.9x) compared to the US Wireless Telecom industry average (22.4x).

PE vs Market: TLTZ.Y is poor value based on its PE Ratio (24.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TLTZ.Y is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: TLTZ.Y is overvalued based on its PB Ratio (2.6x) compared to the US Wireless Telecom industry average (2.5x).


Next Steps

Future Growth

How is Tele2 forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLTZ.Y's forecast earnings growth (9.2% per year) is above the savings rate (2.2%).

Earnings vs Market: TLTZ.Y's earnings (9.2% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: TLTZ.Y's revenue (1.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TLTZ.Y's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLTZ.Y's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Tele2 performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLTZ.Y has high quality earnings.

Growing Profit Margin: TLTZ.Y's current net profit margins (12.6%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: TLTZ.Y's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: TLTZ.Y's earnings growth over the past year (516.8%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: TLTZ.Y earnings growth over the past year (516.8%) exceeded the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: TLTZ.Y's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Tele2's financial position?


Financial Position Analysis

Short Term Liabilities: TLTZ.Y's short term assets (SEK9.5B) do not cover its short term liabilities (SEK14.8B).

Long Term Liabilities: TLTZ.Y's short term assets (SEK9.5B) do not cover its long term liabilities (SEK30.4B).


Debt to Equity History and Analysis

Debt Level: TLTZ.Y's debt to equity ratio (79.6%) is considered high.

Reducing Debt: TLTZ.Y's debt to equity ratio has increased from 63.6% to 79.6% over the past 5 years.

Debt Coverage: TLTZ.Y's debt is well covered by operating cash flow (35.4%).

Interest Coverage: TLTZ.Y's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.41%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TLTZ.Y's dividend (4.41%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: TLTZ.Y's dividend (4.41%) is low compared to the top 25% of dividend payers in the US market (4.94%).


Stability and Growth of Payments

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

Growing Dividend: TLTZ.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.7%), TLTZ.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLTZ.Y's dividends in 3 years are not forecast to be well covered by earnings (115.7% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Kjell Johnsen (52 yo)

no data

Tenure

Mr. Kjell Morten Johnsen is an Adviser of VEON Ltd. since November 1, 2019. Mr. Johnsen is a Member of Supervisory Board of Private Joint Stock Company Kyivstar (formerly known as Joint Stock Company Kyivs ...


Leadership Team

NamePositionTenureCompensationOwnership
Kjell Johnsen
President & CEOno datano datano data
Mikael Larsson
Executive VP & Group CFO1.83yrsno data0.012%
SEK 1.1m
Kim Hagberg
Executive VP & Chief of Operations1.83yrsno data0.0017%
SEK 161.1k
Peter Landgren
Interim Head of Investor Relations0.083yrno datano data
Stefan Backman
Executive VP & Group General Counsel1.83yrsno data0.0020%
SEK 184.6k
Joel Ibson
Head of Corporate Communicationsno datano datano data
Jonas Lundquist
Marketing Directorno datano datano data
Karin Svensson
Executive VP and Chief of People & Change1.83yrsno data0.0020%
SEK 184.6k
Jan Berntsson
Head of Audit14.33yrsno datano data
Vadim Goncharov
Chief Technical Officer of South Macro Region6.25yrsno datano data
Dmitriy Lopatukhin
Chief Operations Officer of Tele2no datano datano data
Samuel Skott
Executive VP & Chief Commercial Officer4.42yrsno data0.0033%
SEK 308.0k

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: TLTZ.Y's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anders Björkman
Independent Board Member3.33yrskr675.00k0.0010%
SEK 96.1k
Eva Lindqvist
Independent Board Member1.83yrskr865.00k0.00042%
SEK 39.6k
Andrew Barron
Independent Deputy Chairman1.33yrskr950.00k0.0081%
SEK 767.7k
Cynthia Gordon
Board Member4.33yrskr745.00k0.00029%
SEK 27.3k
Lars-Åke Norling
Independent Board Member2yrskr795.00kno data
Clara M. Smits-Nusteling
Independent Chairman1.33yrskr1.82m0.00024%
SEK 22.6k
Georgi Ganev
Board Member4.33yrskr625.00k0.00015%
SEK 14.1k

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: TLTZ.Y's board of directors are not considered experienced ( 2 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


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.Y
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: kr86.030b
  • Listing Market Cap: kr9.420b
  • Shares outstanding: 689.84m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 04:29
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.