Telenor ASA
Telenor ASA Fundamental Analysis
Telenor ASA (TELNF) shows moderate financial fundamentals with a PE ratio of 15.51, profit margin of 18.05%, and ROE of 20.35%. The company generates $78.6B in annual revenue with weak year-over-year growth of -4.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TELNF's fundamental strength across five key dimensions:
Efficiency Score
WeakTELNF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTELNF trades at attractive valuation levels.
Growth Score
WeakTELNF faces weak or negative growth trends.
Financial Health Score
ModerateTELNF shows balanced financial health with some risks.
Profitability Score
ExcellentTELNF achieves industry-leading margins.
Key Financial Metrics
Is TELNF Expensive or Cheap?
P/E Ratio
TELNF trades at 15.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TELNF's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Telenor ASA at 2.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.94 times EBITDA. This is generally considered low.
How Well Does TELNF Make Money?
Net Profit Margin
For every $100 in sales, Telenor ASA keeps $18.05 as profit after all expenses.
Operating Margin
Core operations generate 24.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.35 in profit for every $100 of shareholder equity.
ROA
Telenor ASA generates $6.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telenor ASA generates strong operating cash flow of $29.36B, reflecting robust business health.
Free Cash Flow
Telenor ASA generates strong free cash flow of $17.54B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.82 in free cash annually.
FCF Yield
TELNF converts 7.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How TELNF Stacks Against Its Sector Peers
| Metric | TELNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.51 | 23.97 | Better (Cheaper) |
| ROE | 20.35% | 990.00% | Weak |
| Net Margin | 18.05% | -58825.00% (disorted) | Strong |
| Debt/Equity | 1.28 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.57 | 1.70 | Neutral |
| ROA | 6.40% | -6510.00% (disorted) | Weak |
TELNF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telenor ASA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.90%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-51.45%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-26.73%
Industry Style: Growth, Technology, Streaming
Declining