Telia Co. AB (TELIA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Generic Sweden AB

TalkPool AG

Netmore Group AB

Telia Co. AB

Exalt AB

Sonetel AB

Why is Telia Co. AB ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -1.91% and Operating profit at 5.99% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.45% signifying low profitability per unit of shareholders funds

With ROE of 11.89%, it has a very attractive valuation with a 3.69 Price to Book Value

Over the past year, while the stock has generated a return of 36.36%, its profits have risen by 0.4% ; the PEG ratio of the company is 31.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Telia Co. AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Telia Co. AB

39.24%

53.64

18.87%

OMX Stockholm 30

20.65%

1.60

16.04%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.91%

EBIT Growth (5y)

5.99%

EBIT to Interest (avg)

2.12

Debt to EBITDA (avg)

2.58

Net Debt to Equity (avg)

1.27

Sales to Capital Employed (avg)

0.62

Tax Ratio

20.35%

Dividend Payout Ratio

230.70%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

5.43%

ROE (avg)

7.45%

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

3.69

EV to EBIT

17.68

EV to EBITDA

7.92

EV to Capital Employed

2.22

EV to Sales

3.09

PEG Ratio

31.05

Dividend Yield

0.95%

ROCE (Latest)

12.56%

ROE (Latest)

11.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 27,602 MM

DEBT-EQUITY RATIO (HY)

Lowest at 148.68 %

INVENTORY TURNOVER RATIO(HY)

Highest at 24.93 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.52 times

-20What is not working for the Company

INTEREST(Q)

At SEK 871 MM has Grown at 18.34%

RAW MATERIAL COST(Y)

Grown by 13.4% (YoY

OPERATING PROFIT(Q)

Lowest at SEK 7,503 MM

PRE-TAX PROFIT(Q)

Lowest at SEK -1,428 MM

NET PROFIT(Q)

Lowest at SEK -1,308 MM

EPS(Q)

Lowest at SEK -0.33

Here's what is working for Telia Co. AB

Operating Cash Flow

Highest at SEK 27,602 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Debt-Equity Ratio

Lowest at 148.68 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 24.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Telia Co. AB

Pre-Tax Profit

At SEK -1,428 MM has Fallen at -159.78%

over average net sales of the previous four periods of SEK 2,388.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -1,308 MM has Fallen at -172.93%

over average net sales of the previous four periods of SEK 1,793.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Interest

At SEK 871 MM has Grown at 18.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Profit

Lowest at SEK 7,503 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Pre-Tax Profit

Lowest at SEK -1,428 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK -1,308 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK -0.33

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Raw Material Cost

Grown by 13.4% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales