Eltel AB (ELTEL) AI Stock Analysis

• Market Cap: kr1.51B
• Dividend Yield: N/A
• Average Volume (3M): 137.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -6.41%
• EPS Growth: 90.48%
• Country: SE
• Employees: 3,956
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.09
• Shares Outstanding: 156,649,100
• 10 Day Avg. Volume: 285,114
• 30 Day Avg. Volume: 137,314
• 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: kr9.50
• Price Target Upside: -6.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: kr9.50 ▼(-6.40% Downside)

Eltel AB's overall stock score is primarily impacted by its financial performance and technical analysis. The company's financial health is concerning due to declining revenue, profitability, and high leverage. Technical indicators suggest bearish momentum, with the stock nearing oversold conditions. Valuation metrics further highlight potential overvaluation, with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Eltel AB Business Overview & Revenue Model

Company Description

Eltel AB (ELTEL) is a leading Nordic field service provider specializing in maintenance and installation services for critical infrastructure networks, primarily in the electricity and telecommunications sectors. The company's core services include the design, construction, and maintenance of power and communication networks, ensuring high availability and reliability for its clients. Eltel operates primarily in the Nordic region with a strong market presence in Sweden, Finland, Norway, and Denmark.

How the Company Makes Money

Eltel AB generates revenue through a combination of long-term contracts and project-based engagements for the maintenance, upgrading, and installation of power and telecommunications networks. The company's key revenue streams include service agreements for the ongoing maintenance of electrical grids and telecommunications infrastructure, as well as new installation projects. Revenue is also derived from upgrading existing network systems to enhance capacity and functionality. Eltel's significant partnerships with major utilities and telecommunications operators in the Nordic region contribute substantially to its earnings, ensuring a steady flow of contract work and projects. Additionally, Eltel benefits from regulatory and government incentives that drive investments in infrastructure development and modernization.

Eltel AB Financial Statement Overview

Summary

Eltel AB's financial performance is mixed. Strong cash flow metrics provide liquidity, but the negative net income and high debt levels present challenges. Profitability improvements and better debt management are necessary for financial health.

Income Statement

Eltel AB's income statement shows a challenging financial position with several key areas of concern. The TTM (Trailing-Twelve-Months) gross profit margin stands at 11.6%, indicating moderate profitability. However, the company faces a negative net profit margin of -0.23% and an EBIT margin of 1.16%, reflecting operational challenges. The revenue has decreased from 2023 to TTM, showing a contraction in growth. Despite these challenges, there is an improvement in EBITDA margin to 5.06% in the TTM, suggesting some operational efficiencies. Overall, the income statement indicates a need for strategic adjustments to improve profitability and growth.

Balance Sheet

Eltel AB's balance sheet reveals a high debt-to-equity ratio of 0.71, indicating considerable leverage. The equity ratio is 31.4%, reflecting a moderate equity position. Return on equity (ROE) is negative due to the net loss, highlighting profitability issues. The company's financial stability is compromised by high liabilities relative to equity, posing potential risks. Addressing leverage and enhancing equity could improve financial stability.

Cash Flow

Eltel AB's cash flow analysis presents a positive scenario with a strong operating cash flow to net income ratio of 26.26 in TTM, indicating robust cash generation relative to income. Free cash flow growth is substantial, improving significantly over the previous period, highlighting effective cash management. The free cash flow to net income ratio is also strong at -24.79, reflecting efficiency in cash conversion. Overall, cash flow management appears to be a strength for Eltel AB, providing a cushion against operational 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: Neutral
• Last Price: 10.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ELTEL, the sentiment is Neutral. The current price of 10.15 is below the 20-day moving average (MA) of 10.70, above the 50-day MA of 9.99, and above the 200-day MA of 7.68, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 3.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:ELTEL.

Eltel AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCC.B	76 Outperform	kr16.72B	11.92	20.77%	4.20%	6.35%	9.38%
SKA.B	72 Outperform	kr93.09B	15.08	10.55%	3.56%	8.54%	32.65%
INSTAL	65 Neutral	kr7.07B	25.37	8.65%	2.64%	-3.99%	-49.97%
PEAB.B	62 Neutral	kr21.80B	13.72	10.37%	2.06%	-3.46%	12.20%
Sector *	60 Neutral	kr41.58B	12.28	-0.40%	2.20%	1.33%	-2.77%
VESTUM	46 Neutral	kr3.57B	―	-1.10%	―	-25.66%	62.75%
ELTEL	45 Neutral	kr1.51B	―	-1.65%	―	-6.41%	90.48%

Eltel AB Corporate Events

Eltel AB Reports Improved Profitability Amidst Declining Sales

Eltel AB reported a decrease in net sales for the first half of 2025, but showed improved profitability with an increase in gross profit and adjusted EBITA. The company signed significant new contracts and completed a comprehensive refinancing of its debt portfolio, positioning itself for future growth. Despite global uncertainties affecting decision-making, Eltel’s operations in Sweden and Finland showed strong growth, particularly in renewable energy and data centers. The company’s strategic focus on operational excellence and new business development is expected to drive future profitability and market positioning.

Eltel AB Announces Half-Year 2025 Report Presentation

Eltel AB has announced that it will release its half-year report for 2025 on July 24, inviting investors, analysts, and media to a webcast and teleconference. The presentation, led by CEO Håkan Dahlström and CFO Tarja Leikas, will provide insights into the company’s performance and strategic direction, potentially impacting stakeholders’ perspectives on Eltel’s market positioning.

Eltel Secures Frame Agreement with E.ON for Infrastructure Services

Eltel AB has signed a new frame agreement with E.ON for connection and metering services across five geographical areas, valued at EUR 24.6 million for the initial three-year period. This agreement, which includes potential extensions, reinforces Eltel’s position in critical infrastructure and supports the electrification efforts in Sweden.

Eltel AB Completes Hybrid Bonds Repurchase and Cancellation

Eltel AB has completed the settlement of its tender offer and canceled repurchased hybrid bonds, amounting to approximately EUR 24 million. This move is part of the company’s strategy to issue new EUR-denominated senior secured floating rate bonds, enhancing its financial structure and potentially impacting its market position.

Eltel AB Secures EUR 16 Million Contract for Finnish Data Center

Eltel AB has secured a EUR 16 million contract to construct grid connections for Hyperco’s new Data Center in Kouvola, Finland. The project involves the turnkey delivery of a 110 kV substation and cabling, with construction starting in summer 2025 and completion expected in 2026. This contract highlights Eltel’s expertise in integrating power and communication services, reinforcing its position in the critical infrastructure sector.

Eltel AB Secures EUR 130 Million in Bond Issue Amid Strong Investor Demand

Eltel AB has successfully issued EUR 130 million in senior secured bonds with a four-year tenor, attracting strong demand from institutional investors. The company also completed a tender offer for its existing sustainability-linked capital securities, accepting EUR 24 million in valid tenders. These financial maneuvers aim to strengthen Eltel’s market position and support its operations in the critical infrastructure sector.

Eltel AB Initiates Bond Book-Building Process

Eltel AB announced the expiration date for its tender offer and the initiation of a book-building process for new senior secured floating rate bonds. This move is part of a transaction involving the purchase of existing sustainability-linked capital securities, aiming to enhance the company’s financial structure and market positioning. The settlement of the tender offer is contingent upon the successful issuance of the new bonds, potentially impacting stakeholders by stabilizing Eltel’s financial operations.

Eltel AB Plans New Bond Issuance and Tender Offer

Eltel AB is considering issuing senior secured bonds worth EUR 120 million to refinance existing debt, including sustainability-linked hybrid bonds. The proceeds will also support general corporate purposes such as investments and acquisitions. The company has announced a tender offer for its outstanding hybrid bonds, offering a purchase price of 106.5% plus accrued interest, with settlement expected shortly after the bond issuance process.

Eltel Appoints New Managing Director for Denmark & Germany

Eltel AB has announced a change in its Group Management Team with the appointment of Yathukulan Kankesan as the new Managing Director for Eltel Denmark & Germany, effective August 1. Kankesan, who has been with Eltel since 2007, brings extensive managerial experience and a strong financial background to the role. This leadership change is expected to support the continued development of Eltel’s operations in communication and power services, amid growing demand for critical infrastructure and renewable energy solutions.

Eltel AB’s 2025 Annual General Meeting: Key Resolutions and Strategic Decisions

Eltel AB’s Annual General Meeting in 2025 resulted in several key resolutions, including the adoption of financial statements for 2024, a decision not to pay dividends, and the discharge of the Board and CEO from liability. The meeting also saw the re-election of board members and the introduction of a new member, along with the approval of a Long-Term Incentive Program for senior executives. Additionally, the Board was authorized to issue new shares and repurchase existing ones, and amendments to the articles of association were made to reduce share capital, pending regulatory approval. These decisions are likely to impact Eltel’s financial strategy and shareholder value.

Eltel AB Appoints New Managing Director for Sweden

Eltel AB has announced the appointment of Klas Elmberg as the new Managing Director for Eltel Sweden, effective August 1. Elmberg, with a strong background in the service industry and leadership roles at Coor and OCAB, is expected to drive Eltel Sweden towards new opportunities in public infrastructure and renewable energy.