Telia Company AB (TELIA) AI Stock Analysis

• Market Cap: $134.87B
• Dividend Yield: 5.78%
• Average Volume (3M): 7.53M
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.10
• Revenue Growth: -3.89%
• EPS Growth: 1.42%
• Country: SE
• Employees: 15,040
• Sector: Communication Services
• Sector Strength: 80
• Industry: Telecommunications Services
• EPS (TTM): 0.50
• Shares Outstanding: 3,932,109,400
• 10 Day Avg. Volume: 6,826,927
• 30 Day Avg. Volume: 7,531,711
• PEG Ratio: <0.01
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 16.50
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 4.06
• Enterprise Value/Ebitda: 7.14
• 1Y Price Target: $35.07
• Price Target Upside: 1.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: kr38.00 ▲(9.79% Upside)

Telia's overall score is driven by solid financial performance and positive earnings call insights, highlighting strong EBITDA growth and strategic progress. However, technical analysis and valuation concerns, including overvaluation and mixed technical indicators, present challenges.

Telia Company AB Business Overview & Revenue Model

Company Description

Telia Company AB is a leading telecommunications provider based in Sweden, primarily operating in the Nordic and Baltic regions. The company offers a comprehensive range of services, including mobile and fixed telephony, broadband, and digital television. Telia is committed to delivering high-quality connectivity and digitalization solutions to both private and business customers, leveraging its extensive infrastructure and technological expertise.

How the Company Makes Money

Telia Company AB generates revenue primarily through its telecommunications services, which include mobile and fixed telephony, broadband, and television services. The company earns money by providing subscription-based services to individual consumers, as well as packages tailored to business clients. Key revenue streams include mobile service subscriptions, data plans, fixed broadband, and digital TV offerings. Additionally, Telia engages in partnerships with other technology and content providers to enhance its service offerings and drive customer engagement. The company's financial performance is significantly influenced by its ability to attract and retain subscribers in its core markets, as well as its capacity to innovate and adapt to changing consumer preferences and technological advancements.

Telia Company AB Financial Statement Overview

Summary

Telia demonstrates strong operational and cash flow performance, with solid profitability margins. However, challenges with negative revenue growth and high leverage persist. Focus on reducing debt levels is needed for enhanced financial stability.

Income Statement

Telia's TTM (Trailing-Twelve-Months) gross profit margin is healthy at 50.6%, indicating efficient cost management. However, the net profit margin stands at 8%, showing room for improvement in profitability. Revenue growth is slightly negative at -1.4% from the previous annual period, suggesting a need for stronger top-line growth. The EBIT margin is strong at 13.5%, and the EBITDA margin is robust at 35.2%, demonstrating solid operational performance.

Balance Sheet

Telia's balance sheet reflects a high debt-to-equity ratio of 1.60, pointing to significant leverage which increases financial risk. The return on equity (ROE) is moderate at 12.5%, indicating reasonable profitability for equity holders. The equity ratio is at 28.5%, showing a stable capital structure but with a high level of liabilities relative to assets.

Cash Flow

Telia's free cash flow has grown by 33.7% from the previous annual period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high at 3.43, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is 1.40, suggesting good cash flow relative to earnings, supporting future growth and debt servicing.

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: 34.61
• 50DMA: Positive
• 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:TELIA, the sentiment is Positive. The current price of 34.61 is above the 20-day moving average (MA) of 34.33, above the 50-day MA of 34.58, and above the 200-day MA of 32.79, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 47.12 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
TEL2.B	73 Outperform	kr108.84B	26.19	20.92%	4.28%	0.80%	10.58%
TELIA	69 Neutral	$134.87B	32.34	11.23%	5.78%	-3.89%	1.42%
SINCH	62 Neutral	$27.33B	―	-20.55%	―	-0.30%	-3365.84%
Sector *	61 Neutral	$41.49B	-3.35	-10.67%	4.00%	2.70%	-41.55%

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.