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Telia Company AB TELIA

Morningstar Rating
SEK 25.65 −0.25 (0.97%)
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Company Report

Telia Earnings: EBITDA Growth of 4.6% Due to Cost Savings and Service Revenue

Telia’s first-quarter revenue declined by 2%, with 2.2% growth in service revenue offset by lower equipment sales. EBITDA performance was stronger, up 4.6%, boosted by a 5% decline in personnel and other operating expenses in reported terms. Telia has started the year on track to meet its full-year guidance and expects low- to mid-single-digit growth in EBITDA and low-single-digit growth in revenue. We maintain our EUR 29 fair value estimate.

Price vs Fair Value

TELIA is trading at a 6% discount.
Price
SEK 27.20
Fair Value
SEK 62.00
Uncertainty
Medium
1-Star Price
SEK 61.48
5-Star Price
SEK 36.80
Economic Moat
Szwtwvj
Capital Allocation
Cqgdz

Bulls Say, Bears Say

Bulls

Telia is very strong in Sweden and Norway, where it has high market share. These regions represent around 60% of profits and revenue.

Bears

Telia is a poor capital allocator. It has extended its operations too much and its balance sheet is not optimal, also having exposure to interest-rate changes.

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News

Trading Information

Previous Close Price
SEK 25.90
Day Range
SEK 25.5225.96
52-Week Range
SEK 20.9828.76
Bid/Ask
SEK 25.70 / SEK 25.72
Market Cap
SEK 100.86 Bil
Volume/Avg
21.5 Mil / 11.5 Mil

Key Statistics

Price/Earnings (Normalized)
19.54
Price/Sales
1.12
Dividend Yield (Trailing)
7.80%
Dividend Yield (Forward)
7.80%
Total Yield
7.80%

Company Profile

Telia is the incumbent telecommunications operator in Sweden but is also present in Norway, Finland, Denmark, and the Baltic countries. In the past five years, Telia has been narrowing its business focus, divesting businesses in Asia and focusing on its core markets. In 2022 Telia had revenue of more than SEK 90 billion, with the majority of it coming from the Nordic markets.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Mid Core
Total Number of Employees
18,646

Competitors

Valuation

Metric
TELIA
TELNY
TEL2 B
Price/Earnings (Normalized)
19.5418.20
Price/Book Value
1.792.543.04
Price/Sales
1.122.122.49
Price/Cash Flow
4.175.887.32
Price/Earnings
TELIA
TELNY
TEL2 B

Financial Strength

Metric
TELIA
TELNY
TEL2 B
Quick Ratio
0.600.760.51
Current Ratio
0.920.860.65
Interest Coverage
1.311.075.22
Quick Ratio
TELIA
TELNY
TEL2 B

Profitability

Metric
TELIA
TELNY
TEL2 B
Return on Assets (Normalized)
0.14%−3.05%5.72%
Return on Equity (Normalized)
0.53%−9.77%16.88%
Return on Invested Capital (Normalized)
2.65%−2.76%8.51%
Return on Assets
TELIA
TELNY
TEL2 B
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