Telia Company AB (TELIA) AI Stock Analysis

• Market Cap: $135.76B
• Dividend Yield: 5.63%
• Average Volume (3M): 6.25M
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.05
• Revenue Growth: -3.89%
• EPS Growth: 1.42%
• Country: SE
• Employees: 15,040
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 0.50
• Shares Outstanding: 3,932,109,400
• 10 Day Avg. Volume: 4,924,796
• 30 Day Avg. Volume: 6,247,476
• 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: 1.63
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 4.06
• Enterprise Value/Ebitda: 7.14
• 1Y Price Target: $34.84
• Price Target Upside: -0.82% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: kr36.00 ▲(2.48% Upside)

Telia Company AB's overall stock score reflects strong profitability and operational efficiency, supported by robust EBITDA growth and strategic advancements. However, high leverage, declining revenue growth, and challenges in Norway and Finland weigh on the score. The stock's high valuation is offset by a strong dividend yield.

Telia Company AB Business Overview & Revenue Model

Company Description

Telia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. The company offers mobile, broadband, television, and fixed-line services to businesses, individuals, families, and communities. It provides networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, colocation, and IoT connectivity solutions, as well as broadcasting and content production services, and customer financing services. The company markets its products and services under the Telia, halebop, Fello, TV4, C More, MTV, MyCall, OneCall, Phonero, Call me, Mit tele, Diil, Lmt Okarte, Telia Latvija, Cloudy, Tet, and Ezys brands for logistics, public transport, manufacturing, retail, utilities, building, and public sector industries. It has 18.1 million mobile subscriptions, 1.0 million fixed telephony subscriptions, 2.9 fixed million broadband subscriptions, and 3.4 million TV subscriptions. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden.

How the Company Makes Money

Telia generates revenue primarily through its telecommunications services, which include mobile subscriptions, fixed broadband services, and digital TV offerings. The company earns recurring income from monthly subscription fees for mobile and internet services, as well as pay-per-view and subscription fees for its television content. Additionally, Telia's business division provides IT and communication solutions to enterprises, contributing to its revenue through contracts and service agreements. The company also benefits from partnerships with content providers and technology firms, which enhance its service offerings and customer experience. Moreover, Telia invests in network infrastructure and technology upgrades, allowing it to maintain competitive pricing and attract new customers, further driving its revenue growth.

Telia Company AB Financial Statement Overview

Summary

Telia Company AB shows strong profitability with solid gross and EBIT margins. However, challenges include declining revenue growth and high leverage, which could impact financial stability. The cash flow position is stable, but the decrease in free cash flow growth warrants attention.

Income Statement

Telia Company AB's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by -2.95%, reflecting challenges in maintaining revenue momentum. However, the company maintains a solid gross profit margin of 63.91% and an EBIT margin of 14.22%, indicating efficient cost management and operational profitability. The net profit margin has decreased to 5.02% from 7.94% in the previous year, suggesting pressure on net earnings. Overall, while profitability metrics are strong, the negative revenue growth is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.81, indicating significant leverage which could pose financial risks. The return on equity (ROE) has decreased to 7.98% from 12.77% in the previous year, reflecting reduced efficiency in generating returns for shareholders. The equity ratio stands at 25.42%, suggesting a moderate level of equity financing. While the company has a stable asset base, the high leverage and declining ROE are potential concerns.

Cash Flow

The cash flow statement shows a decrease in free cash flow growth by -2.17% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.52, suggesting a moderate ability to convert earnings into cash flow. The free cash flow to net income ratio is 0.41, indicating a reasonable level of cash generation relative to net income. Despite the decline in free cash flow growth, the company maintains a stable cash conversion capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.30B	89.13B	88.78B	90.83B	88.34B	89.19B
Gross Profit	54.51B	55.65B	40.22B	30.88B	30.03B	32.16B
EBITDA	30.97B	35.11B	31.17B	14.02B	40.15B	14.06B
Net Income	4.28B	7.08B	303.00M	-14.16B	11.68B	-22.48B
Balance Sheet
Total Assets	195.57B	204.27B	226.47B	222.79B	237.03B	226.68B
Cash, Cash Equivalents and Short-Term Investments	9.78B	10.93B	19.85B	9.18B	20.45B	10.96B
Total Debt	90.03B	94.38B	112.57B	53.72B	40.58B	47.63B
Total Liabilities	142.19B	144.91B	169.47B	155.12B	153.48B	162.73B
Stockholders Equity	49.71B	55.44B	53.47B	64.24B	80.73B	62.84B
Cash Flow
Free Cash Flow	9.56B	7.31B	9.21B	8.09B	11.73B	15.11B
Operating Cash Flow	23.43B	21.20B	24.67B	24.00B	27.38B	28.82B
Investing Cash Flow	-4.33B	4.11B	-22.06B	-9.94B	-10.91B	-3.47B
Financing Cash Flow	-15.01B	-27.34B	2.65B	-21.78B	-10.60B	-23.10B

Telia Company AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.13
• 50DMA: Positive
• 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:TELIA, the sentiment is Positive. The current price of 35.13 is below the 20-day moving average (MA) of 35.19, above the 50-day MA of 34.45, and above the 200-day MA of 33.19, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 43.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TELIA.

Telia Company AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
TELIA	60 Neutral	$135.76B	32.55	11.23%	5.63%	-3.89%	1.42%
0QE6	―	kr114.83B	27.39	20.92%	―	―	―
CLCMF	―	$2.65B	―	-20.55%	―	―	―
0PN	―	€299.33M	34.89	-6.84%	―	―	―
ICQ	―	€1.28B	57.12	27.03%	―	―	―
BRE2	68 Neutral	kr3.12B	28.06		2.76%	9.75%	12.84%

Telia Company AB Corporate Events

Telia Company Reports Revenue Growth and Strategic Divestments in Q2 2025

Telia Company reported a 1.2% increase in revenue for Q2 2025, driven by strong service revenue growth in Sweden and the Baltics. The company’s adjusted EBITDA rose by 6.2% due to increased service revenue and reduced operational expenses. Despite a decline in net income and earnings per share, the company improved its free cash flow and reduced CAPEX. Strategic moves included the completion of a TV and Media divestment and plans to sell shares in Tet and LMT, along with a public offer for Bredband2 AB, indicating a focus on optimizing its portfolio and strengthening its market position.

The most recent analyst rating on (SE:TELIA) stock is a Buy with a SEK40.00 price target. To see the full list of analyst forecasts on Telia Company AB stock, see the SE:TELIA Stock Forecast page.

Telia Announces Cash Offer to Acquire Bredband2

Telia Company AB has announced a recommended cash offer to acquire Bredband2 i Skandinavien AB for SEK 3.25 per share, valuing the company at approximately SEK 3,111 million. The acquisition aims to strengthen both companies by combining their capabilities, offering a broader product range, and enhancing operational efficiency, with no expected material changes to Bredband2’s operations or brand.

The most recent analyst rating on (SE:TELIA) stock is a Hold with a SEK32.00 price target. To see the full list of analyst forecasts on Telia Company AB stock, see the SE:TELIA Stock Forecast page.

Telia Company to Divest Latvian Operations

Telia Company has signed a memorandum of understanding to divest its shares in Latvian fixed network operator Tet and mobile network operator LMT to the Republic of Latvia, Latvenergo, and LVRTC. This move is expected to streamline operations and enhance value creation, allowing Tet and LMT to develop under a new ownership model, benefiting customers and stakeholders.

The most recent analyst rating on (SE:TELIA) stock is a Hold with a SEK29.00 price target. To see the full list of analyst forecasts on Telia Company AB stock, see the SE:TELIA Stock Forecast page.

Telia Company Sells TV & Media Business to Schibsted

Telia Company has completed the sale of its TV & Media business to Schibsted for SEK 6.55 billion, as part of its strategy to simplify operations and focus on its core connectivity services. The proceeds from the sale will be used to reduce debt, positioning Telia’s net debt/adjusted EBITDA at the lower end of its target range, thereby strengthening its financial stability.

The most recent analyst rating on (SE:TELIA) stock is a Buy with a SEK40.00 price target. To see the full list of analyst forecasts on Telia Company AB stock, see the SE:TELIA Stock Forecast page.