Tele2 AB (TEL2.B) AI Stock Analysis

• Market Cap: kr113.02B
• Dividend Yield: 4.15%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.18
• Revenue Growth: 0.51%
• EPS Growth: 14.15%
• Country: SE
• Employees: 4,135
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.76
• Shares Outstanding: 684,338,200
• 10 Day Avg. Volume: 1,358,044
• 30 Day Avg. Volume: 1,840,046
• PEG Ratio: 6.01
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 3.76
• P/FCF Ratio: 14.54
• 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: kr175.00
• Price Target Upside: 7.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: kr173.00 ▲(6.17% Upside)

The score is driven primarily by steady financial performance with solid profitability and cash generation, tempered by elevated leverage, reduced equity, and declining free cash flow. Technicals add support with an uptrend across key moving averages and positive MACD, while valuation is a modest headwind due to the higher P/E despite an attractive dividend yield.

Positive Factors

Profitability Margins

Sustained double-digit operating and net margins indicate an efficient, scalable telecom business model with pricing and cost control levers. These margins support reinvestment and shareholder distributions over the medium term and reflect structural advantages in network economics and fixed cost recovery.

Cash Generation

Consistent operating and free cash flow levels demonstrate the group's ability to convert earnings into spendable cash. This durable cash generation underpins dividend capacity, routine capex and debt service, providing financial flexibility for strategic investments over the next several quarters.

Return on Equity

A roughly 20% ROE signals effective capital allocation and profitable operations relative to shareholder equity. Sustained high ROE supports long-term shareholder value creation and suggests management can extract strong returns from network investments and customer base.

Negative Factors

Elevated Leverage

High debt-to-equity reduces balance-sheet flexibility and raises refinancing and interest-rate risk, particularly if revenues or margins weaken. Lower equity cushions amplify capital structure risk and constrain the company's ability to pursue large strategic investments without increasing leverage further.

Declining Free Cash Flow & Conversion

A material decline in FCF and sub‑par cash conversion reduce the firm's buffer for dividends, capex and debt reduction. If this trend persists, it will pressure capital allocation choices and limit the company's ability to lower leverage or fund growth without external financing.

Modest Revenue Growth

Very modest top-line growth in competitive European telecom markets constrains long-term margin expansion and reliance on scale. Without stronger revenue momentum, the company may need to depend on cost cuts or pricing moves to drive profit growth, limiting strategic optionality.

Tele2 AB Business Overview & Revenue Model

Company Description

Tele2 AB (publ), a telecom operator, provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, and security services. It also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, the company offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. Tele2 AB (publ) was founded in 1993 and is based in Stockholm, Sweden.

How the Company Makes Money

Tele2 AB generates revenue through several key streams: mobile services, which include voice and data plans for both prepaid and postpaid customers; fixed-line services, which encompass broadband and telephony services for residential and business clients; and television services. The company also earns money through wholesale services by providing network access to other operators. Additionally, Tele2 engages in partnerships with various technology and content providers, enhancing its service offerings and expanding its market reach. Factors contributing to its earnings include competitive pricing strategies, cost efficiency through operational optimization, and a focus on customer retention and acquisition.

Tele2 AB Financial Statement Overview

Summary

Fundamentals are resilient: TTM revenue is slightly up (~+0.9%) with solid profitability (gross margin ~43.7%, EBIT margin ~21.6%, net margin ~14.6%) and improved net income vs 2024. Offsetting this, leverage is elevated (debt-to-equity ~1.44) with materially lower equity than prior years, and free cash flow is solid (7.6B) but declining (~-22%) with weaker cash conversion (OCF coverage ~0.80).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up versus 2024 (about +0.9%) with solid profitability: gross margin ~43.7%, EBIT margin ~21.6%, and net margin ~14.6%. Net income improved from 2024 (4.6B vs 3.9B), showing better earnings momentum. Offsetting this, margins and profits are below the unusually strong 2020–2022 period, indicating the company has not fully regained prior peak profitability.

Balance Sheet

Leverage is elevated with debt-to-equity around ~1.44 in TTM (Trailing-Twelve-Months), and equity has declined materially since 2020–2021, reducing balance-sheet flexibility. A positive is that profitability on equity is healthy (ROE ~20% TTM), and total debt has edged down versus 2024 (29.1B vs 30.7B). Overall, the balance sheet looks serviceable but more leveraged than earlier years, which increases risk if operating performance softens.

Cash Flow

Cash generation remains solid with TTM (Trailing-Twelve-Months) operating cash flow of 11.3B and free cash flow of 7.6B. Free cash flow covers a meaningful portion of net income (about 69%), supporting dividends/debt service capacity. However, free cash flow growth is negative (about -22% TTM), and operating cash flow is below net income (coverage ~0.80), pointing to some earnings-to-cash conversion pressure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.89B	29.58B	29.10B	28.10B	26.79B
Gross Profit	13.00B	12.73B	11.81B	11.22B	10.92B
EBITDA	12.85B	11.89B	11.79B	11.02B	10.72B
Net Income	4.59B	3.87B	3.73B	5.57B	4.31B
Balance Sheet
Total Assets	62.88B	64.44B	66.06B	67.66B	74.25B
Cash, Cash Equivalents and Short-Term Investments	305.00M	191.00M	1.63B	1.14B	837.00M
Total Debt	29.12B	30.67B	31.78B	32.45B	30.81B
Total Liabilities	40.61B	42.34B	43.28B	43.97B	43.11B
Stockholders Equity	22.27B	22.10B	22.78B	23.68B	31.14B
Cash Flow
Free Cash Flow	7.63B	5.81B	5.96B	4.67B	6.97B
Operating Cash Flow	11.34B	9.78B	10.01B	8.25B	10.30B
Investing Cash Flow	-3.67B	-4.00B	-3.93B	5.26B	-3.02B
Financing Cash Flow	-7.72B	-7.10B	-5.59B	-13.64B	-7.26B

Tele2 AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 162.95
• 50DMA: Positive
• 100DMA: Positive
• 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:TEL2.B, the sentiment is Positive. The current price of 162.95 is above the 20-day moving average (MA) of 156.96, above the 50-day MA of 152.20, and above the 200-day MA of 148.24, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 56.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TEL2.B.

Tele2 AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERIC.B	71 Outperform	kr322.21B	11.30	26.04%	3.18%	-2.65%	―
TEL2.B	66 Neutral	kr113.02B	24.18	20.60%	4.15%	0.51%	14.15%
BRE2	66 Neutral	kr3.09B	28.07	―	4.67%	9.72%	4.26%
TELIA	62 Neutral	kr155.42B	31.02	10.93%	5.14%	-5.76%	-10.05%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
OVZON	58 Neutral	kr6.11B	-244.42	-1.33%	―	77.67%	68.35%
SINCH	53 Neutral	kr22.61B	-63.41	-1.23%	―	-1.62%	94.01%

Tele2 AB Corporate Events

Tele2 lifts dividend after 42% cash-flow surge on cost cuts and 5G push

Tele2 reported solid fourth-quarter and full-year 2025 results, with end-user service revenue up 2% organically for the year and underlying EBITDAaL rising 11%, supported by sharp cost control, contract renegotiations and a workforce reduction of about 650 positions. Equity free cash flow grew 42% to SEK 6.2 billion over the last 12 months, enabling the board to propose a 65% higher dividend of SEK 10.50 per share, equivalent to 118% of eFCF, while the group accelerates nationwide 5G upgrades following its 2G/3G shutdown, maintains strong commercial momentum in Sweden and the Baltics, and guides for modest organic growth in 2026 with capex kept at 10–11% of sales.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK185.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 Appoints Nicholas Högberg as New EVP and Deputy CEO

Tele2 AB has appointed Nicholas Högberg as the new Executive Vice President, Chief Commercial Officer, and Deputy CEO for Sweden, effective December 1, 2025. With over 25 years of leadership experience in telecommunications, media, and technology, Högberg is expected to leverage his expertise to drive Tele2’s growth plans. His previous roles include CEO of 3 (Hi3G Access) and Group CEO of Satellite Group, and he has served on Tele2’s Board of Directors for the past 18 months. This strategic appointment is anticipated to strengthen Tele2’s market position and operational focus.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK172.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 AB Establishes New Nomination Committee

Tele2 AB has convened a Nomination Committee as part of its governance procedures, with representatives from its three largest shareholders, who collectively hold approximately 30.4% of the voting interest. The committee, chaired by Nicolas Didio, will oversee the nomination process for the Board of Directors, potentially impacting the company’s strategic direction and governance structure.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK172.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.