Tele2 AB (TEL2.B) AI Stock Analysis

• Market Cap: kr104.34B
• Dividend Yield: 4.31%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.20
• Revenue Growth: 0.51%
• EPS Growth: 14.15%
• Country: SE
• Employees: 4,135
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 1.85
• Shares Outstanding: 684,338,200
• 10 Day Avg. Volume: 1,358,044
• 30 Day Avg. Volume: 1,840,046
• PEG Ratio: 7.54
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 2.56
• P/FCF Ratio: 13.02
• 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: kr177.17
• Price Target Upside: 20.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: kr167.00 ▲(13.37% Upside)

Tele2 AB's strong financial performance is the primary driver of its overall score, supported by robust revenue growth and profitability. The technical analysis suggests a neutral to slightly bearish trend, while the valuation indicates a high P/E ratio, offset by a solid dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand and market position in the telecommunications sector, supporting long-term business expansion.

Profitability Margins

Strong profitability margins reflect efficient operational management and pricing power, contributing to sustainable financial health.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, enabling investments in growth opportunities and debt management.

Negative Factors

Rising Debt Levels

Rising debt levels can strain cash flow and limit financial flexibility, impacting long-term stability if not controlled.

EBITDA Margin Decline

Declining EBITDA margins may indicate rising costs or competitive pressures, potentially affecting profitability if not addressed.

Operating Cash Flow Coverage

A decrease in operating cash flow coverage ratio may signal potential cash flow management challenges, impacting liquidity.

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

Tele2 AB exhibits strong financial health with robust revenue growth and profitability. The company effectively manages its capital structure, although rising debt levels warrant monitoring. Cash flow generation is solid, supporting ongoing operations and potential investments. Continued focus on cost management and debt control will be crucial to sustaining this positive trajectory.

Income Statement

Tele2 AB demonstrates strong revenue growth with a TTM increase of 17.6%, indicating robust demand in the telecommunications sector. The company maintains healthy profitability margins, with a gross profit margin of 43.66% and a net profit margin of 14.03% in the TTM. EBIT and EBITDA margins are also solid at 21.07% and 36.45%, respectively, reflecting efficient operational management. However, the slight decline in EBITDA margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.52, indicating a balanced approach to leveraging. Return on equity is strong at 19.36%, showcasing effective use of shareholder funds. The equity ratio stands at 32.34%, suggesting a stable capital structure. However, the increase in debt levels over the past year could pose a risk if not managed carefully.

Cash Flow

Tele2 AB's cash flow statement reveals a positive trajectory with a 10.11% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.74, and the free cash flow to net income ratio is 0.66, reflecting strong cash conversion. Despite these strengths, the operating cash flow coverage ratio has slightly decreased, which may require attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.15B	29.58B	29.10B	28.10B	26.79B	26.55B
Gross Profit	32.54B	12.73B	11.81B	11.22B	10.92B	11.46B
EBITDA	28.90B	11.89B	11.79B	11.02B	10.72B	12.28B
Net Income	11.24B	3.87B	3.73B	5.57B	4.31B	7.41B
Balance Sheet
Total Assets	65.07B	64.44B	66.06B	67.66B	74.25B	75.41B
Cash, Cash Equivalents and Short-Term Investments	2.83B	191.00M	1.63B	1.14B	837.00M	934.00M
Total Debt	30.27B	30.67B	31.78B	32.45B	30.81B	30.23B
Total Liabilities	44.03B	42.34B	43.28B	43.97B	43.11B	42.66B
Stockholders Equity	21.04B	22.10B	22.78B	23.68B	31.14B	32.75B
Cash Flow
Free Cash Flow	19.58B	5.81B	5.96B	4.67B	6.97B	6.07B
Operating Cash Flow	27.95B	9.78B	10.01B	8.25B	10.30B	8.82B
Investing Cash Flow	-8.29B	-4.00B	-3.93B	5.26B	-3.02B	-654.00M
Financing Cash Flow	-12.71B	-7.10B	-5.59B	-13.64B	-7.26B	-7.63B

Tele2 AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 147.30
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 147.3 is below the 20-day moving average (MA) of 147.67, below the 50-day MA of 151.23, and above the 200-day MA of 143.57, indicating a neutral trend. The MACD of -0.78 indicates Negative momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 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
TEL2.B	73 Outperform	kr104.34B	24.03	20.60%	4.31%	0.51%	14.15%
ERIC.B	72 Outperform	kr319.22B	12.86	26.04%	3.15%	-2.65%	―
TELIA	66 Neutral	$144.42B	34.65	10.93%	5.32%	-5.76%	-10.05%
BRE2	66 Neutral	kr2.79B	25.37	―	5.13%	9.72%	4.26%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SINCH	51 Neutral	$28.74B	-4.46	-1.23%	―	-1.62%	94.01%
OVZON	49 Neutral	€3.76B	-150.31	-1.33%	―	77.67%	68.35%

Tele2 AB Corporate Events

Tele2 Expands 5G Network and Reports Strong Q3 2025 Financials

Tele2 AB has announced the successful expansion of its 5G network, now covering 99.9% of the Swedish population and 90% of the country’s landmass, enhancing connectivity and service reliability. The company reported strong financial performance in Q3 2025, driven by cost control and growth in end-user service revenue, particularly in the Baltics. Tele2’s strategic partnership with GCI to form a pan-Baltic tower company underscores its commitment to long-term infrastructure development, positioning it for sustained growth and improved market competitiveness.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK184.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 to Announce Q3 2025 Financial Results

Tele2 AB is set to release its third-quarter 2025 financial results on October 21, 2025. The announcement will be accompanied by a webcast and conference call hosted by the company’s top executives, providing insights into the company’s performance and strategic direction. This event is crucial for stakeholders to understand Tele2’s current market position and future outlook.

The most recent analyst rating on ($SE:TEL2.B) stock is a Hold with a SEK135.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 Announces Change in Voting Structure

Tele2 AB announced a decrease in the total number of votes due to the conversion of 34,595 class A shares to class B shares. This change affects the company’s voting structure, with the total number of votes now amounting to 784,272,215. This reclassification aligns with the company’s governance provisions and may impact shareholder influence.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK170.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

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.