Tele2 AB (TEL2.B) AI Stock Analysis

• Market Cap: kr114.83B
• Dividend Yield: 4.03%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.28
• Revenue Growth: 0.80%
• EPS Growth: 10.72%
• Country: SE
• Employees: 4,135
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 1.72
• Shares Outstanding: 684,303,600
• 10 Day Avg. Volume: 1,419,842
• 30 Day Avg. Volume: 1,458,827
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr156.88
• Price Target Upside: -4.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: kr175.00 ▲(6.09% Upside)

Tele2 AB's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust cash flow and efficient operational management support its financial health. While the stock's valuation is on the higher side, the attractive dividend yield provides a compensatory benefit. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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 primarily through subscription-based services, including mobile and fixed-line voice and data plans. The company offers various pricing tiers for its mobile services, targeting both individual consumers and businesses with tailored solutions. Additionally, Tele2 earns revenue from broadband services, allowing customers to access high-speed internet. The company may also generate income through partnerships with other businesses, such as offering bundled services or collaborating on infrastructure projects. Furthermore, value-added services, including cloud solutions and IoT services, contribute to its revenue streams, enhancing the overall customer experience and providing additional monetization opportunities.

Tele2 AB Financial Statement Overview

Summary

Tele2 AB exhibits strong financial health with stable profitability, efficient operational management, and robust cash flow generation. Despite a slight revenue decline, the company's solid margins and effective use of leverage and equity provide a strong foundation for future growth.

Income Statement

Tele2 AB's income statement shows stable profitability with a Gross Profit Margin of 43.66% and a Net Profit Margin of 14.03% for TTM (Trailing-Twelve-Months). However, the company experienced a slight revenue decline of 0.3% in the latest period. EBIT and EBITDA margins remain healthy at 21.07% and 36.45%, respectively, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a moderate Debt-to-Equity Ratio of 1.52, suggesting a balanced approach to leveraging. Return on Equity stands at 19.36%, showcasing effective use of equity to generate profits. The Equity Ratio is 31.11%, indicating a solid equity base relative to total assets.

Cash Flow

Tele2 AB demonstrates strong cash flow management with a Free Cash Flow Growth Rate of 7.39% in the latest period. The Operating Cash Flow to Net Income Ratio is 2.55, and the Free Cash Flow to Net Income Ratio is 0.66, indicating robust cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.58B	29.58B	29.10B	28.10B	26.79B	26.55B
Gross Profit	12.91B	12.73B	11.81B	11.22B	10.92B	11.46B
EBITDA	10.78B	11.89B	11.79B	11.02B	10.50B	12.28B
Net Income	4.15B	3.87B	3.73B	5.57B	4.31B	7.41B
Balance Sheet
Total Assets	63.35B	64.44B	66.06B	67.66B	74.25B	75.41B
Cash, Cash Equivalents and Short-Term Investments	253.00M	191.00M	1.63B	1.14B	837.00M	934.00M
Total Debt	29.92B	30.67B	31.78B	32.45B	30.81B	30.23B
Total Liabilities	43.63B	42.34B	43.28B	43.97B	43.11B	42.66B
Stockholders Equity	19.72B	22.10B	22.78B	23.68B	31.14B	32.75B
Cash Flow
Free Cash Flow	6.96B	5.81B	5.96B	4.67B	6.97B	6.07B
Operating Cash Flow	10.58B	9.78B	10.01B	8.25B	10.30B	8.82B
Investing Cash Flow	-3.55B	-4.00B	-3.93B	5.26B	-3.02B	-654.00M
Financing Cash Flow	-7.81B	-7.10B	-5.59B	-13.64B	-7.26B	-7.63B

Tele2 AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 164.95 is above the 20-day moving average (MA) of 160.22, above the 50-day MA of 150.11, and above the 200-day MA of 129.89, indicating a bullish trend. The MACD of 4.38 indicates Negative momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 91.57 is Negative, 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	73 Outperform	kr114.83B	27.47	20.92%	4.03%	0.80%	10.72%
Sector *	57 Neutral	$1.84B	9.34	8.02%	2.47%	5.38%	-37.86%
0O87	―	kr255.68B	14.69	20.29%	―	―	―
CLCMF	―	$2.65B	―	-20.55%	―	―	―
TLSNF	―	$14.25B	34.16	11.23%	4.95%	―	―
OVZ	―	€371.43M	―	-4.90%	―	―	―
BRE2	68 Neutral	kr3.12B	28.06		2.76%	9.75%	12.84%

Tele2 AB Corporate Events

Tele2 Partners with Manulife IM to Launch Pan-Baltic Tower Company

Tele2 AB has announced a strategic partnership with Manulife IM-backed Global Communications Infrastructure LLC to form the first pan-Baltic tower company. This venture, valued at EUR 560 million, aims to enhance Tele2’s mobile telecom infrastructure and support the growth of mobile and 5G services across Estonia, Latvia, and Lithuania. The new company will own approximately 2,700 tower and rooftop sites, with Tele2 as the anchor tenant under a 20-year Master Service Agreement. The partnership includes a 10-year investment plan to expand network coverage in the Baltics, although it is expected to impact Tele2’s EBITDAaL negatively by EUR 35 million in 2026.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK130.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 Reports Strong Q2 2025 Results and Sustainability Achievements

Tele2 AB reported strong financial results for the second quarter of 2025, driven by efficiencies, strict cost control, and robust performance in the Baltics. The company achieved a 15% organic growth in underlying EBITDAaL and raised its full-year guidance, reflecting confidence in its transformation strategy. Additionally, Tele2 was recognized as Sweden’s most sustainable company for the second consecutive year and ranked 23rd globally by TIME Magazine, highlighting its commitment to sustainability.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK130.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 Appoints Petras Masiulis as Executive Vice President

Tele2 AB has appointed Petras Masiulis as Executive Vice President and a member of the Group Leadership Team. Masiulis, who has been instrumental in making Tele2 the leading mobile operator in Lithuania and a strong performer in the Baltic region, will continue to lead operations there. His leadership has been marked by a focus on growth, efficiency, and customer satisfaction, setting a benchmark for the company. This appointment is expected to further strengthen Tele2’s market position and operational excellence in the region.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK130.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 AB AGM Approves Dividend and Strategic Resolutions

Tele2 AB’s Annual General Meeting approved a dividend of SEK 6.35 per share, to be paid in two installments, and re-elected key board members while introducing new ones. The AGM also approved several resolutions including a performance-based incentive program, share repurchase authorizations, and dismissed certain shareholder proposals, indicating strategic financial maneuvers to enhance shareholder value and corporate governance.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK130.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.