Tele2 AB (TEL2.B) AI Stock Analysis

• Market Cap: kr99.89B
• Dividend Yield: 4.82%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.34
• Revenue Growth: 1.16%
• EPS Growth: 5.52%
• Country: SE
• Employees: 4,135
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 1.26
• Shares Outstanding: 684,303,600
• 10 Day Avg. Volume: 1,913,908
• 30 Day Avg. Volume: 2,138,044
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: kr140.33
• Price Target Upside: -0.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Tele2 AB's overall stock score is driven by its strong financial performance, characterized by robust cash flow and stable profitability, despite modest revenue growth. The technical analysis indicates positive momentum, although caution is advised due to overbought signals. Valuation shows a high P/E ratio, balanced by an attractive dividend yield, making the stock appealing for income-focused investors.

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, primarily by providing mobile telephony services, which include voice, messaging, and data services to individual consumers and businesses. Another significant revenue stream is its broadband and fixed-line services, offering high-speed internet access and telephony services to residential and business clients. Additionally, Tele2 engages in equipment sales, including mobile devices and related accessories. The company also engages in strategic partnerships and collaborations with other telecommunications providers and technology companies to expand its service offerings and market reach, which further contributes to its revenue. Tele2’s earnings are influenced by factors such as subscription growth, pricing strategies, network investments, and operational efficiencies.

Tele2 AB Financial Statement Overview

Summary

Tele2 AB's financial performance is marked by strong operational efficiency and stable profitability, with consistent margins across key metrics. While revenue growth is modest, the company benefits from solid cash flow generation and a stable capital structure. Potential risks include the need to enhance equity levels and manage leverage prudently. Overall, Tele2 AB displays financial stability with efficient operations, making it well-positioned within the telecommunications industry.

Income Statement

Tele2 AB exhibits a strong gross profit margin of 43.4% TTM, indicating efficient cost management. However, the net profit margin has decreased slightly to 13.2% TTM from 13.1% in the previous annual period, reflecting stable profitability. Revenue growth is marginal at 1.5% from the previous year, suggesting limited top-line expansion. The EBIT margin is healthy at 19.8% TTM, and EBITDA margin remains robust at 35.3% TTM, showcasing operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.32, which indicates a balanced approach to leveraging its equity. Return on equity stands at 17.1% TTM, reflecting efficient utilization of shareholder capital, although slightly lower compared to historical levels. The equity ratio is 35.5% TTM, suggesting a stable capital structure with a reasonable proportion of equity financing. The balance sheet reflects financial stability, though there is room for improvement in strengthening equity.

Cash Flow

Tele2 AB demonstrates strong cash flow performance with a 11.6% growth in free cash flow TTM. The operating cash flow to net income ratio is 2.63, indicating robust cash generation relative to earnings. The free cash flow to net income ratio is 1.66, highlighting effective cash flow management. Overall, the cash flow metrics point towards a healthy liquidity position and efficient capital investment strategy.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
29.58B	29.10B	28.10B	26.79B	26.55B
	Gross Profit
12.73B	11.81B	11.22B	10.92B	11.46B
	EBIT
5.82B	5.47B	6.60B	4.79B	7.37B
	EBITDA
11.89B	11.79B	11.02B	10.50B	12.28B
	Net Income Common Stockholders
3.87B	3.73B	5.57B	4.31B	7.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
191.00M	1.63B	1.14B	837.00M	934.00M
	Total Assets
64.44B	66.06B	67.66B	74.25B	75.41B
	Total Debt
30.67B	31.78B	32.45B	30.81B	30.23B
	Net Debt
30.55B	30.14B	31.46B	29.98B	29.30B
	Total Liabilities
42.34B	43.28B	43.97B	43.11B	42.66B
	Stockholders Equity
22.10B	22.78B	23.68B	31.14B	32.75B
Cash Flow		Free Cash Flow
5.81B	5.96B	4.67B	6.97B	6.07B
	Operating Cash Flow
9.78B	10.01B	8.25B	10.30B	8.82B
	Investing Cash Flow
-4.00B	-3.93B	5.26B	-3.02B	-654.00M
	Financing Cash Flow
-7.10B	-5.59B	-13.64B	-7.26B	-7.63B

Tele2 AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.45
• 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 140.45 is above the 20-day moving average (MA) of 137.30, above the 50-day MA of 132.78, and above the 200-day MA of 117.93, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 58.31 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
TEL2.B	75 Outperform	kr99.89B	25.35	16.69%	4.82%	1.16%	5.52%
Sector *	60 Neutral	$13.50B	7.33	-2.74%	3.80%	2.09%	-39.49%