Tele2 AB (TEL2.B) AI Stock Analysis

• Market Cap: kr131.90B
• Dividend Yield: 4.15%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.20
• 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: 685,344,200
• 10 Day Avg. Volume: 1,358,044
• 30 Day Avg. Volume: 1,840,046
• PEG Ratio: 1.20
• Price to Book (P/B): 4.81
• Price to Sales (P/S): 3.58
• P/FCF Ratio: 14.05
• 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: -7.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 7.81
• Revenue Forecast (FY): kr30.23B

• Rating: 66 Neutral
• Price Target: kr205.00 ▲(7.98% Upside)
• Action: Downgraded Date: 01/30/26
• Date: Action: Downgraded 01/30/26

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

Strong profit margins

Sustained mid-to-high margins across gross, EBIT and net lines indicate Tele2 captures value from services and controls operating costs. Durable margins support reinvestment, dividend capacity and resilience to modest revenue swings over a 2–6 month horizon.

Solid cash generation

Consistent OCF and meaningful FCF provide funding for capex, dividends and debt service without reliance on equity raises. This cash generation underpins financial flexibility and supports strategic investments across the medium term.

Improving earnings and ROE

Rising net income and a high ROE reflect efficient capital deployment and operating leverage in core connectivity services. Strong returns on equity indicate management is extracting profitable growth from existing assets over coming quarters.

Negative Factors

Elevated leverage

High debt-to-equity and reduced equity buffer leave less balance-sheet flexibility. If operating performance softens, interest and refinancing risk rise, constraining strategic moves and increasing downside over a multi-month horizon.

Declining free cash flow growth

A notable decline in FCF growth and weaker OCF-to-earnings conversion reduces the cushion for dividends, capex and debt reduction. Persistent negative FCF trends would pressure funding options and capital allocation flexibility over time.

Profitability below prior peak

Failure to regain 2020–2022 peak margins suggests structural pressures—competitive, pricing or cost-related—that may limit margin expansion. This restrains long-term EPS leverage and makes future margin recovery uncertain across several quarters.

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: 189.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 189.85 is above the 20-day moving average (MA) of 183.65, above the 50-day MA of 166.59, and above the 200-day MA of 153.39, indicating a bullish trend. The MACD of 7.37 indicates Positive momentum. The RSI at 73.59 is Negative, neither overbought nor oversold. The STOCH value of 61.39 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	kr348.51B	12.29	26.04%	3.18%	-2.65%	―
OVZON	67 Neutral	kr6.58B	48.38	-1.33%	―	77.67%	68.35%
TEL2.B	66 Neutral	kr131.90B	28.88	20.60%	4.15%	0.51%	14.15%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SINCH	54 Neutral	kr17.11B	81.22	-1.23%	―	-1.62%	94.01%
TELIA	54 Neutral	$175.81B	35.97	10.93%	5.14%	-5.76%	-10.05%

Tele2 AB Corporate Events

Tele2 and GCI Launch First Pan-Baltic Tower Company in Asset-Light Shift

Tele2 AB has completed the separation of its telecom infrastructure assets to form Baltic Tower Company UAB with Global Communications Infrastructure, creating the first pan-Baltic tower operator. Based in Lithuania, the new entity will own around 2,700 tower and rooftop sites across Estonia, Latvia and Lithuania, with Tele2 as anchor tenant under a 20-year master service agreement to secure long-term access to critical infrastructure.

The partners have agreed a 10-year investment plan to build additional sites, supporting 5G rollout and improved network coverage across the Baltics. For Tele2, the transaction unlocks approximately EUR 430 million in net cash proceeds but is expected to reduce underlying EBITDAaL by about EUR 35 million over the next 12 months, reflecting a shift toward an asset-light model with potential long-term strategic benefits for network expansion and capital efficiency.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

Tele2 Adjusts Voting Structure After Conversion of Class A Shares

Tele2 AB has adjusted its share capital structure following the conversion of 5,994 class A shares, each carrying ten votes, into class B shares with one vote each at the request of their owners. After the reclassification, the company’s total share count remains 696,221,597, now consisting of 9,777,408 class A shares, 685,344,189 class B shares and 1,100,000 class C shares, corresponding to a reduced total of 784,218,269 votes.

The change marginally decreases the voting concentration attached to high-vote class A shares and slightly increases the relative influence of holders of class B shares, reflecting ongoing use of Tele2’s built-in share conversion mechanism. While financially neutral in terms of share count, this adjustment may have incremental implications for governance dynamics and investor power balance within the company’s shareholder base.

The most recent analyst rating on ($SE:TEL2.B) stock is a Buy with a SEK213.00 price target. To see the full list of analyst forecasts on Tele2 AB stock, see the SE:TEL2.B Stock Forecast page.

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.