Tele2 AB (TEL2.B) AI Stock Analysis

• Market Cap: kr96.09B
• Dividend Yield: 4.62%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.33
• Revenue Growth: 1.16%
• EPS Growth: 5.52%
• Country: SE
• Employees: 4,135
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): 1.26
• Shares Outstanding: 684,303,600
• 10 Day Avg. Volume: 1,432,942
• 30 Day Avg. Volume: 1,457,212
• PEG Ratio: 0.33
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.59
• 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: kr139.50
• Price Target Upside: 2.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: kr151.00 ▲(10.66%Upside)

The overall stock score of 68.4 reflects Tele2 AB's strong financial performance characterized by operational efficiency and stable profitability. Technical analysis suggests a neutral stance, with limited momentum in stock price trends. The relatively high P/E ratio is offset by a favorable dividend yield, providing some balance. The absence of recent earnings call insights or corporate events leaves these areas unaddressed in the evaluation.

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 its comprehensive suite of telecommunications services. The company's primary revenue streams include mobile services, which encompass voice, data, and messaging services for both prepaid and postpaid customers. Fixed broadband and telephony services also contribute significantly to its income, providing connectivity solutions for residential and business customers. Tele2 leverages its extensive network infrastructure to offer competitive pricing and packages, often bundled with value-added services. Additionally, the company engages in strategic partnerships and wholesale agreements to expand its market reach and optimize its network utilization. These partnerships, along with investments in technology and network upgrades, play a crucial role in sustaining and enhancing revenue generation.

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	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	12.86B	12.73B	11.81B	11.22B	10.92B	11.46B
EBITDA	10.44B	11.89B	11.79B	11.02B	10.50B	12.28B
Net Income	3.91B	3.87B	3.73B	5.57B	4.31B	7.41B
Balance Sheet
Total Assets	64.58B	64.44B	66.06B	67.66B	74.25B	75.41B
Cash, Cash Equivalents and Short-Term Investments	1.74B	191.00M	1.63B	1.14B	837.00M	934.00M
Total Debt	30.14B	30.67B	31.78B	32.45B	30.81B	30.23B
Total Liabilities	41.68B	42.34B	43.28B	43.97B	43.11B	42.66B
Stockholders Equity	22.90B	22.10B	22.78B	23.68B	31.14B	32.75B
Cash Flow
Free Cash Flow	6.48B	5.81B	5.96B	4.67B	6.97B	6.07B
Operating Cash Flow	10.29B	9.78B	10.01B	8.25B	10.30B	8.82B
Investing Cash Flow	-3.81B	-4.00B	-3.93B	5.26B	-3.02B	-654.00M
Financing Cash Flow	-9.16B	-7.10B	-5.59B	-13.64B	-7.26B	-7.63B

Tele2 AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 136.45 is below the 20-day moving average (MA) of 140.33, below the 50-day MA of 140.41, and above the 200-day MA of 121.85, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TEL2.B.

Tele2 AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TELIA	70 Outperform	kr128.74B	18.79	9.32%	5.95%	-1.98%	2245.91%
TEL2.B	68 Neutral	kr96.09B	24.23	16.69%	4.62%	1.16%	5.52%
SINCH	63 Neutral	$24.76B	―	-20.56%	―	1.25%	-20115.92%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%
OVZON	58 Neutral	kr5.26B	―	-7.19%	―	20.47%	-2.65%

Tele2 AB Corporate Events

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.