Tele2’s third-quarter results reinforce our view that while the company has become a much more cash-generative business, we’d need to see higher revenue growth to justify the current valuation.
Tele2 is a well-managed firm with a clear focus on cost reductions and the right approach to capital allocation. The company has narrowed its focus since 2015, divesting many noncore operations.
The B2B Swedish market will be a source of pricing pressure. Public contracts work under tender, where price is the main variable.
|
Metric
|
TEL2 B
|
KPN
|
TELIA
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.14 | 17.56 | 21.50 |
Price/Book Value | 4.52 | 6.66 | 3.63 |
Price/Sales | 3.64 | 2.66 | 2.21 |
Price/Cash Flow | 9.63 | 6.86 | 6.99 |
|
Metric
|
TEL2 B
|
KPN
|
TELIA
|
|---|---|---|---|
Quick Ratio | 0.72 | 0.63 | 0.62 |
Current Ratio | 0.77 | 0.66 | 0.66 |
Interest Coverage | 12.28 | 5.18 | 3.55 |
|
Metric
|
TEL2 B
|
KPN
|
TELIA
|
|---|---|---|---|
Return on Assets (Normalized) | 8.85% | 7.23% | 3.10% |
Return on Equity (Normalized) | 24.87% | 37.75% | 11.42% |
Return on Invested Capital (Normalized) | 12.36% | 10.60% | 5.88% |
|
1-Day Chart
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United States