Tele2 AB (TEL2 B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bredband2 i Skandinavien AB

Tele2 AB

Ovzon AB

Bahnhof AB

Why is Tele2 AB ?

Poor long term growth as Net Sales has grown by an annual rate of 1.69% over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at SEK 10,582 MM
ROCE(HY) Highest at 20.92%
INTEREST COVERAGE RATIO(Q) Highest at 1,334.98

With ROE of 22.76%, it has a attractive valuation with a 5.61 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.60%, its profits have risen by 12.5% ; the PEG ratio of the company is 2.4

Majority shareholders : Non Institution

Market Beating Performance

The stock has generated a return of 28.60% in the last 1 year, much higher than market (OMX Stockholm 30) returns of 9.24%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tele2 AB should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tele2 AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Tele2 AB

27.53%

43.28

21.69%

OMX Stockholm 30

8.01%

0.51

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.69%

EBIT Growth (5y)

4.17%

EBIT to Interest (avg)

7.87

Debt to EBITDA (avg)

2.39

Net Debt to Equity (avg)

1.10

Sales to Capital Employed (avg)

0.58

Tax Ratio

19.38%

Dividend Payout Ratio

114.64%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.91%

ROE (avg)

18.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.61

EV to EBIT

21.58

EV to EBITDA

11.04

EV to Capital Employed

2.98

EV to Sales

4.63

PEG Ratio

2.39

Dividend Yield

3.92%

ROCE (Latest)

13.81%

ROE (Latest)

22.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 10,582 MM

ROCE(HY)

Highest at 20.92%

INTEREST COVERAGE RATIO(Q)

Highest at 1,334.98

RAW MATERIAL COST(Y)

Fallen by -2.14% (YoY

OPERATING PROFIT(Q)

Highest at SEK 3,244 MM

OPERATING PROFIT MARGIN(Q)

Highest at 44.71 %

PRE-TAX PROFIT(Q)

Highest at SEK 1,524 MM

NET PROFIT(Q)

Highest at SEK 1,230.7 MM

EPS(Q)

Highest at SEK 1.73

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at SEK 1,994 MM

DIVIDEND PER SHARE(HY)

Lowest at SEK 5.39

Here's what is working for Tele2 AB

Operating Cash Flow

Highest at SEK 10,582 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Interest Coverage Ratio

Highest at 1,334.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at SEK 3,244 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Operating Profit Margin

Highest at 44.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SEK 1,524 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 1,230.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 1.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Raw Material Cost

Fallen by -2.14% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at SEK 1,554 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Here's what is not working for Tele2 AB

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Lowest at SEK 1,994 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at SEK 5.39

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)