Telenor ASA (TELNY) AI Stock Analysis

• Market Cap: $19.29B
• Dividend Yield: 5.35%
• Average Volume (3M): 5.07K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.02
• Revenue Growth: 1.54%
• EPS Growth: 10.58%
• Country: US
• Employees: 10,867
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.19
• Shares Outstanding: 1,368,350,000
• 10 Day Avg. Volume: 2,350
• 30 Day Avg. Volume: 5,072
• PEG Ratio: 0.24
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 2.18
• P/FCF Ratio: 9.65
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: 1.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.85
• Revenue Forecast (FY): $8.04B

• Rating: 66 Neutral
• Price Target: $15.50 ▲(7.49% Upside)

Telenor ASA's overall stock score reflects a stable but challenged financial performance, with strong profitability but declining revenue and cash flow growth. The technical analysis suggests bearish momentum, while the valuation is reasonable with a good dividend yield. The earnings call highlighted strong performance in the Nordics and strategic partnerships, though challenges in Asia remain a concern.

Positive Factors

Nordics Performance

Strong performance in the Nordics, particularly in Norway, indicates robust market position and operational efficiency, supporting long-term growth.

Strategic Partnership

The Vodafone partnership enhances competitiveness and cost efficiency, potentially leading to sustainable growth and market expansion.

Free Cash Flow Growth

Significant free cash flow growth indicates strong cash generation ability, enhancing financial flexibility for future investments.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a challenge to maintaining market share and profitability, potentially impacting long-term business sustainability.

High Leverage

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial health and stability.

Challenges in Asia

Macroeconomic and competitive challenges in Asia could hinder growth and profitability, affecting Telenor's overall performance in key markets.

Telenor ASA Business Overview & Revenue Model

Company Description

Telenor ASA (TELNY) is a leading telecommunications company headquartered in Norway, operating in multiple markets across Scandinavia, Eastern Europe, and Asia. The company provides a wide range of services including mobile and fixed-line telecommunications, data services, and digital solutions. Telenor is known for its focus on innovation and customer experience, offering products such as mobile voice and broadband, internet of things (IoT) services, and digital financial services.

How the Company Makes Money

Telenor ASA generates revenue primarily through its telecommunications services, which include voice, data, and broadband services for both individual and corporate customers. The company operates on a subscription-based model where customers pay monthly fees for mobile and broadband services. Additionally, Telenor earns revenue from value-added services such as digital content, IoT solutions, and mobile financial services such as e-wallets and payment processing. Key revenue streams include mobile services, which account for a significant portion of its earnings, and fixed-line services. Telenor also engages in strategic partnerships with technology providers and local businesses to enhance its service offerings and expand its market reach, contributing to its overall revenue growth.

Telenor ASA Financial Statement Overview

Summary

Telenor ASA's financial performance shows a mix of strengths and weaknesses. The company maintains strong profitability margins, but declining revenue and cash flow growth rates raise concerns about future growth prospects. High leverage remains a risk, though the company effectively utilizes its equity. Overall, while the company is stable, it faces challenges in sustaining growth and managing leverage.

Income Statement

Telenor ASA's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth rate by 22.38%, which is concerning. Gross profit margin remains strong at 67.04%, but net profit margin has decreased to 13.21% from 22.94% in the previous year. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Overall, while profitability remains decent, the declining revenue and margins suggest challenges in maintaining growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.49 in the TTM period, reflecting significant leverage, though it has improved from previous years. Return on equity is healthy at 15.18%, indicating effective use of equity to generate profits. The equity ratio stands at 30.25%, suggesting a moderate reliance on equity financing. While leverage remains a concern, the company shows stability in equity utilization.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 22.90% in the TTM period, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.57, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is 0.60, indicating that a significant portion of net income is converted into free cash flow. Despite the decline in growth, cash flow generation remains relatively stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.53B	79.93B	80.45B	98.95B	110.24B	122.81B
Gross Profit	48.26B	62.20B	61.40B	72.55B	81.06B	93.04B
EBITDA	29.05B	46.23B	22.89B	39.39B	39.45B	56.77B
Net Income	7.95B	18.34B	13.73B	13.65B	11.34B	17.34B
Balance Sheet
Total Assets	22.19B	229.58B	218.38B	239.25B	225.74B	256.53B
Cash, Cash Equivalents and Short-Term Investments	1.16B	10.77B	20.86B	10.26B	15.60B	20.97B
Total Debt	9.97B	101.62B	102.19B	118.52B	131.40B	150.00B
Total Liabilities	14.99B	147.04B	147.95B	174.88B	194.25B	212.62B
Stockholders Equity	6.71B	76.62B	64.48B	60.13B	26.29B	38.32B
Cash Flow
Free Cash Flow	13.19B	18.10B	14.39B	19.92B	22.82B	24.82B
Operating Cash Flow	23.09B	31.48B	29.12B	39.22B	42.27B	43.82B
Investing Cash Flow	-10.48B	-11.49B	-18.30B	-23.14B	-17.23B	-10.56B
Financing Cash Flow	-22.88B	-29.39B	-1.53B	-23.98B	-27.90B	-27.58B

Telenor ASA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELNY, the sentiment is Negative. The current price of 14.42 is above the 20-day moving average (MA) of 14.28, below the 50-day MA of 14.92, and below the 200-day MA of 14.98, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 37.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELNY.

Telenor ASA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$19.04B	17.89	8.36%	5.03%	-3.16%	4.70%
TLK	75 Outperform	$20.23B	15.47	15.54%	6.16%	-5.21%	-7.45%
TELNY	66 Neutral	$19.29B	18.61	15.01%	5.35%	1.54%	10.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.66B	19.20	4.72%	5.04%	-8.16%	-52.52%
VOD	58 Neutral	$30.48B	-7.01	-7.08%	3.83%	19.67%	-278.51%
TEF	45 Neutral	$22.61B	-10.20	-0.70%	7.56%	-5.49%	-75.51%

Telenor ASA Corporate Events

Telenor ASA Reports Strong Q3 2025 Performance

Telenor ASA (ADR) is a leading telecommunications company operating in the Nordics and Asia, known for its customer-focused and technology-driven communication services. In the third quarter of 2025, Telenor reported solid financial performance, driven by strong results in the Nordics and steady progress in Asia. The company achieved a 2.7% increase in service revenues and a 5.4% rise in adjusted EBITDA on an organic basis, with free cash flow before M&A reaching NOK 4,191 million. Key highlights include a strategic partnership with Vodafone and continued growth in mobile subscriptions in the Nordics. Despite challenges in Asia, particularly in Bangladesh, Telenor’s strategic initiatives and cost management efforts contributed to positive EBITDA growth. Looking ahead, Telenor remains focused on delivering value to its customers and shareholders, with expectations of continued growth in service revenues and adjusted EBITDA for the remainder of 2025.

Telenor ASA Earnings Call: Strong Nordics, Asia Challenges

The recent earnings call for Telenor ASA (ADR) conveyed a generally positive sentiment, highlighting strong performance in the Nordics and strategic initiatives such as the Vodafone partnership. Despite these positive notes, the company faces challenges in Asia, particularly with data costs and the financial situation of CelcomDigi. Telenor is addressing these challenges while continuing to focus on growth and efficiency.