Eltel AB (ELTEL) AI Stock Analysis

• Market Cap: €1.33B
• Dividend Yield: N/A
• Average Volume (3M): 49.14K
• Price to Earnings (P/E): 98.5
• Beta (1Y): 0.32
• Revenue Growth: -6.38%
• EPS Growth: N/A
• Country: SE
• Employees: 3,956
• Sector: Communication Services
• Sector Strength: 97
• Industry: Engineering & Construction
• EPS (TTM): 0.20
• Shares Outstanding: 156,736,790
• 10 Day Avg. Volume: 37,496
• 30 Day Avg. Volume: 49,144
• PEG Ratio: -0.01
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 3.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: kr9.00 ▼(-0.88% Downside)

Eltel AB's overall stock score is primarily impacted by its financial performance, which is concerning due to declining revenue and profitability, high leverage, and decreasing cash flow growth. Technical analysis provides mixed signals, with some bullish momentum but potential resistance levels. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a moderate overall stock score.

Positive Factors

Cash Conversion Efficiency

Despite profitability challenges, Eltel's high cash conversion efficiency indicates strong cash management, supporting operational stability.

Service Contracts

Long-term service contracts with major operators provide stable revenue streams, enhancing predictability and resilience against market fluctuations.

Industry Position

Eltel's strong market position in the Nordic region ensures a competitive edge, leveraging its expertise in critical infrastructure services.

Negative Factors

Declining Revenue

The decline in revenue growth reflects challenges in market demand or competitive pressures, potentially impacting long-term financial health.

High Leverage

Significant leverage increases financial risk and limits flexibility, necessitating improved revenue and profitability to manage debt effectively.

Profitability Challenges

Low profit margins indicate operational inefficiencies, requiring strategic improvements to enhance profitability and shareholder value.

Eltel AB Business Overview & Revenue Model

Company Description

Eltel AB (publ) provides technical services for the power and communication infrastructure networks in Sweden, Finland, Norway, Poland, Denmark, Germany, Lithuania, and internationally. The company builds, maintains, and upgrades power transmission systems, as well as supplies power distribution services. It also designs, plans, builds, installs, upgrades, operates, and services mobile and fixed networks. In addition, the company offers maintenance services, which comprise scheduled and corrective care services and connect services; upgrade and conversion services to recover and upgrade the condition or technology of an existing infrastructure network; and project delivery services, which include engineering and delivering customer specific network infrastructure projects. It provides its services to national transmission system operators, power distribution grids, telecom operators, and other communication network owners. The company was founded in 2001 is headquartered in Bromma, Sweden.

How the Company Makes Money

Eltel generates revenue primarily through its service contracts in the telecommunications and energy sectors. The company earns money by providing installation and maintenance services for telecommunication networks, including fiber optics and mobile infrastructure, as well as electrical grid services, such as construction and maintenance of power lines and substations. Key revenue streams include long-term contracts with major telecommunications operators and utility companies, project-based work, and ongoing maintenance agreements. Eltel's partnerships with prominent industry players, along with its ability to deliver comprehensive solutions tailored to customer needs, are significant factors contributing to its earnings.

Eltel AB Financial Statement Overview

Summary

Eltel AB faces significant financial challenges, with declining revenue and profitability, high leverage, and decreasing cash flow growth. While there are some positive aspects, such as cash conversion efficiency, the overall financial health is concerning. The company needs to address its operational inefficiencies and manage its debt to improve its financial standing.

Income Statement

Eltel AB's income statement reveals challenges in revenue growth and profitability. The TTM data shows a decline in revenue and zero net income, indicating operational difficulties. Gross profit margin is relatively low at 11.93%, and the net profit margin is at 0%, reflecting no profitability. The EBIT and EBITDA margins are modest, suggesting limited operational efficiency. The negative revenue growth rate of -1.81% in the TTM period highlights a declining trend.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.76 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is 0%, showing no return for shareholders. However, the equity ratio is reasonable, suggesting some stability in asset financing. The company's financial structure may pose risks if revenue and profitability do not improve.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by -12.53% in the TTM period, which is concerning. However, the operating cash flow to net income ratio is positive, suggesting some cash generation capability. The free cash flow to net income ratio is high at 0.93, indicating efficient cash conversion despite profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	807.10M	828.70M	850.10M	823.60M	812.60M	938.00M
Gross Profit	96.30M	91.90M	75.60M	74.70M	88.10M	99.40M
EBITDA	41.60M	13.70M	24.80M	25.90M	45.40M	59.40M
Net Income	0.00	-29.70M	-7.90M	-14.90M	4.30M	4.70M
Balance Sheet
Total Assets	692.40M	585.40M	624.30M	621.70M	630.80M	677.30M
Cash, Cash Equivalents and Short-Term Investments	118.60M	21.30M	24.70M	47.90M	32.30M	61.00M
Total Debt	263.00M	135.00M	124.90M	172.90M	154.10M	150.60M
Total Liabilities	534.80M	396.10M	400.60M	410.20M	402.90M	458.20M
Stockholders Equity	149.80M	181.30M	216.10M	204.10M	220.20M	211.60M
Cash Flow
Free Cash Flow	41.20M	25.10M	29.60M	12.30M	17.90M	43.00M
Operating Cash Flow	44.30M	27.50M	34.00M	16.40M	22.30M	49.40M
Investing Cash Flow	-3.60M	-6.60M	-4.30M	-3.90M	-2.90M	33.50M
Financing Cash Flow	64.60M	-24.00M	-52.30M	3.10M	-13.70M	-121.60M

Eltel AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ELTEL, the sentiment is Positive. The current price of 9.08 is above the 20-day moving average (MA) of 8.87, above the 50-day MA of 8.78, and above the 200-day MA of 8.83, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ELTEL.

Eltel AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYGGP	70 Outperform	kr1.55B	18.98	―	1.23%	4.25%	127.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
INSTAL	59 Neutral	€6.36B	24.64	8.12%	2.70%	-3.68%	-48.79%
FG	54 Neutral	kr1.45B	-943.86	―	―	8.40%	-101.19%
ELTEL	50 Neutral	€1.33B	98.49	0.72%	―	-6.38%	―
VESTUM	50 Neutral	€3.16B	-108.94	-0.85%	―	-27.41%	49.11%
WBGR.B	40 Underperform	€537.56M	-0.86	-56.98%	―	-0.02%	-50.72%

Eltel AB Corporate Events

Eltel AB Reports Strong Quarter with Strategic Growth and Improved Profitability

Eltel AB reported a strong quarter with improved profitability and strategic growth in new business areas like Solar PV and Data Centers. The company achieved an all-time high in adjusted EBITA over a ten-year perspective and expanded its customer base, particularly in Power. Despite a slight decline in net sales, Eltel’s gross profit and margins improved, driven by operational excellence and a focus on new contracts, including significant agreements in Finland and Sweden. The company’s efforts in green energy and infrastructure restoration, especially during storm Amy, highlight its commitment to societal contributions.

Eltel AB Announces Nomination Committee for 2026 AGM

Eltel AB has announced the composition of its Nomination Committee for the 2026 Annual General Meeting (AGM), which includes representatives from its four largest shareholders. The committee, chaired by Gustaf Backemar, is tasked with proposing the election and remuneration of the Board of Directors and statutory auditor. This development is significant for stakeholders as it outlines the governance framework and shareholder influence in Eltel’s strategic decisions leading up to the AGM scheduled for May 2026.

Eltel AB to Present Q3 2025 Financial Report

Eltel AB has announced the release of its Q3 2025 financial report, scheduled for October 30, 2025. The report will be presented by the company’s President and CEO, Håkan Dahlström, and CFO, Tarja Leikas, during a webcast and teleconference. This event provides an opportunity for investors, analysts, and media to engage with the company’s leadership and gain insights into its financial performance and strategic direction.

Eltel AB Announces Early Redemption of Hybrid Bonds

Eltel AB has announced the early redemption of its subordinated sustainability-linked capital securities, known as Hybrid Bonds, with ISIN SE0019914250. This decision follows a successful tender offer in June 2025, which reduced the nominal amount of the bonds, allowing Eltel to exercise a call option for redemption. The redemption will occur on 11 November 2025, with bondholders receiving 101% of the nominal amount plus accrued interest. This move will result in the delisting of the Hybrid Bonds from Nasdaq Stockholm, potentially impacting stakeholders by altering the company’s financial structure and market positioning.

Eltel Secures EUR 81 Million Agreement with Caruna

Eltel Finland has signed a significant frame agreement with Caruna, Finland’s largest electricity distribution company, valued at approximately EUR 81 million. This agreement, which spans from March 2026 to 2030 with potential extensions, positions Eltel as a key player in maintaining and servicing large parts of Caruna’s network areas, thereby strengthening its market presence in Finland.

Eltel Secures EUR 38 Million Contract for Finnish Data Center

Eltel AB has secured a EUR 38 million contract to build grid connections for DayOne’s new data center in Lahti, Finland. The project includes the delivery of a 110 kV substation and cabling to the Lahti Energia grid, with completion expected by early 2027. This contract highlights Eltel’s expertise in integrating power and communication services for data centers, reinforcing its position in the data center market with a focus on reliability and sustainability.