# Tele2 (TEL2-B.ST)

Canonical: https://gigainvestors.com/s/TEL2-B.ST

Analysis as of: 2026-10-16T07:35:43.962Z. Financial observations: FY1997–FY2025.

Listing currency: SEK. Reporting currency: SEK.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: SEK 157.95 per share; close as of 2026-10-15.

Estimated value: low SEK 102.12 per share, central SEK 115.61 per share, high SEK 133.56 per share. Buy at or below the central value SEK 115.61 per share. Valuation as of 2026-10-16T07:35:43.962Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; SE 10-year bond 3.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.48×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.04×

- FY2017: 0.14×

- FY2018: 0.16×

- FY2019: 0.15×

- FY2020: 0.28×

- FY2021: 0.18×

- FY2022: 0.23×

- FY2023: 0.19×

- FY2024: 0.20×

- FY2025: 0.22×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 17.1%

- ROIC, second-lowest year: 7.2%

- Typical minus recent gross margin: -2.4 pp

- Typical gross margin (annual median): 40.7%

- Recent gross margin (lower of latest and 3-year median): 43.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.0%

- ROIC including acquisitions, ten-year median: 9.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -4.5%

- FY2017: 14.9%

- FY2018: 7.2%

- FY2019: 8.3%

- FY2020: 22.8%

- FY2021: 13.4%

- FY2022: 23.2%

- FY2023: 19.4%

- FY2024: 20.8%

- FY2025: 24.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.32×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: SEK 29B

- Net income, five-year total: SEK 22B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -6.6 pp

- Working capital / revenue, final three-year average: 11.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.36×

- FY2022: 1.27×

- FY2023: 1.33×

- FY2024: 1.30×

- FY2025: 1.34×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.2% vs 20.8%

- Per-share earnings: 0.84 to 5.56 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.1%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: SEK 71B

- Cumulative retained earnings: SEK -15B

- Diluted shares, 10-year annual growth: 4.1%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 26.6%

- Per-share value change: SEK 4.72

- Per-share value, starting three-year median: SEK 0.84

- Per-share value, ending three-year median: SEK 5.56

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: SEK 41B

- Cumulative net income, 10 years: SEK 32B

- ROIC, first three-year median: 7.2%

- ROIC, last three-year median: 20.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: SEK -3.89

- FY2017: SEK 0.84

- FY2018: SEK 2.33

- FY2019: SEK 3.76

- FY2020: SEK 10.70

- FY2021: SEK 6.21

- FY2022: SEK 8.07

- FY2023: SEK 5.37

- FY2024: SEK 5.56

- FY2025: SEK 6.58

### accounting: pass

- Sloan accruals: -10.7%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.75×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -17.2%

- FY2017: -13.6%

- FY2018: -4.3%

- FY2019: -8.9%

- FY2020: -1.9%

- FY2021: -8.1%

- FY2022: -4.0%

- FY2023: -9.5%

- FY2024: -9.2%

- FY2025: -10.7%

## Holders

## Price story

Price needs cash profits to grow 4.9% a year for ten years · "Tele2 Shares Jump After Earnings Guidance Raise" (finance.yahoo.com, Jul 2025) · sales +1%

Story as of 2026-10-16T10:00:05.947Z; price observation 2026-10-15.

Price needs cash profits to grow 4.9% a year for ten years

- 2025-07-17: Tele2 Shares Jump After Earnings Guidance Raise ([finance.yahoo.com](https://finance.yahoo.com/m/736b156e-df15-3578-88c8-c18edbdcb65e/tele2-shares-jump-after.html))

### Sales · FY2024–2025

sales +1%; source https://filings.xbrl.org/213800EKD193RVI9HL76/2024-12-31/ESEF/SE/0/Tele2-2024-12-31-0-sv/reports/Tele2-2024-12-31-0-sv.xhtml; observed 2025-05-08.

- FY2016: SEK 28B 

- FY2017: SEK 25B 

- FY2018: SEK 24B 

- FY2019: SEK 28B 

- FY2020: SEK 27B 

- FY2021: SEK 27B 

- FY2022: SEK 28B 

- FY2023: SEK 29B 

- FY2024: SEK 30B 

- FY2025: SEK 30B 

### Gross margin · FY2025

gross margin 43.5%; source https://filings.xbrl.org/213800EKD193RVI9HL76/2024-12-31/ESEF/SE/0/Tele2-2024-12-31-0-sv/reports/Tele2-2024-12-31-0-sv.xhtml; observed 2025-05-08.

- FY2016: 26.7% 

- FY2017: 40.5% 

- FY2018: 43.7% 

- FY2019: 40.0% 

- FY2020: 43.1% 

- FY2021: 40.8% 

- FY2022: 39.9% 

- FY2023: 40.6% 

- FY2024: 43.0% 

- FY2025: 43.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are SEK 29.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: revenue 29890000000; grossProfit 13000000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TEL2-B.ST: Tele2 AB (publ) provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers handset related data services, linear and streaming services, mobile telephony and data, fixed broadband and telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. It also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, the company offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. Tele2 AB (publ) was formerly known as NetCom AB and changed its name to Tele2 AB (publ) in February 2001. The company was incorporated in 1990 and is headquartered in Kista, Sweden.

### Why customers stay

Margins ranged from 40.6% to 43.5% during 2023–25; it earns 17.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: grossProfit / revenue = 40.6%.

- Source: https://filings.xbrl.org/213800EKD193RVI9HL76/2024-12-31/ESEF/SE/0/Tele2-2024-12-31-0-sv/reports/Tele2-2024-12-31-0-sv.xhtml (filed 2025-05-08); FY2024: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: grossProfit / revenue = 43.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); 10-year return on capital observations [[2016,-0.045301063129174896],[2017,0.14875079428452537],[2018,0.07179253063147974],[2019,0.08265216760308744],[2020,0.22752106676544123],[2021,0.13355569930459027],[2022,0.23203455799785933],[2023,0.19352444704385652],[2024,0.2078896039342315],[2025,0.24409156722114841]]; median 0.17113762066419094. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 40% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800EKD193RVI9HL76/2024-12-31/ESEF/SE/0/Tele2-2024-12-31-0-sv/reports/Tele2-2024-12-31-0-sv.xhtml (filed 2025-05-08); Gross margin observations: [[2021,0.4075926686326477],[2022,0.39910329858022275],[2023,0.40589023677789615]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2018: growth capex 0; upkeep 3424000000; owner earnings 538000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2019: growth capex 0; upkeep 3610000000; owner earnings 3082400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2020: growth capex 0; upkeep 2750000000; owner earnings 8851600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2021: growth capex 0; upkeep 3328000000; owner earnings 5847200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2022: growth capex 0; upkeep 3581000000; owner earnings 7091800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: growth capex 0; upkeep 4059000000; owner earnings 4962000000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800EKD193RVI9HL76/2024-12-31/ESEF/SE/0/Tele2-2024-12-31-0-sv/reports/Tele2-2024-12-31-0-sv.xhtml (filed 2025-05-08); FY2024: growth capex 0; upkeep 3972000000; owner earnings 5018000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: growth capex 0; upkeep 3718000000; owner earnings 6159600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Dividend observations: [[2016,2389000000],[2017,2629000000],[2018,2013000000],[2019,7153000000],[2020,6198000000],[2021,6205000000],[2022,13629000000],[2023,4702000000],[2024,4777000000],[2025,4403000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 24.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TEL2-B.ST SharesStats.PercentInsiders = 24.542 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.9% yearly over ten years; actual growth was 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Ten-year compound average after fade. Initial solved rate 0.057711800770104627. Price 157.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.725373635457402 → FY2025 8.839014730256219. Closing-price date 2026-10-15.

## Monthly share-price history (SEK per share)

- 2016-10: SEK 74.65 per share

- 2016-11: SEK 70.45 per share

- 2016-12: SEK 73.05 per share

- 2017-01: SEK 77.15 per share

- 2017-02: SEK 80.75 per share

- 2017-03: SEK 85.55 per share

- 2017-04: SEK 89.20 per share

- 2017-05: SEK 89.45 per share

- 2017-06: SEK 88.20 per share

- 2017-07: SEK 96.10 per share

- 2017-08: SEK 92.50 per share

- 2017-09: SEK 93.20 per share

- 2017-10: SEK 106.50 per share

- 2017-11: SEK 107.10 per share

- 2017-12: SEK 100.80 per share

- 2018-01: SEK 98.56 per share

- 2018-02: SEK 98.48 per share

- 2018-03: SEK 100.15 per share

- 2018-04: SEK 114.00 per share

- 2018-05: SEK 107.90 per share

- 2018-06: SEK 105.30 per share

- 2018-07: SEK 118.05 per share

- 2018-08: SEK 112.80 per share

- 2018-09: SEK 107.00 per share

- 2018-10: SEK 104.00 per share

- 2018-11: SEK 113.85 per share

- 2018-12: SEK 112.95 per share

- 2019-01: SEK 112.90 per share

- 2019-02: SEK 121.65 per share

- 2019-03: SEK 123.85 per share

- 2019-04: SEK 126.70 per share

- 2019-05: SEK 131.10 per share

- 2019-06: SEK 135.50 per share

- 2019-07: SEK 138.45 per share

- 2019-08: SEK 138.45 per share

- 2019-09: SEK 146.50 per share

- 2019-10: SEK 138.05 per share

- 2019-11: SEK 141.30 per share

- 2019-12: SEK 135.85 per share

- 2020-01: SEK 145.40 per share

- 2020-02: SEK 139.45 per share

- 2020-03: SEK 133.40 per share

- 2020-04: SEK 126.60 per share

- 2020-05: SEK 125.30 per share

- 2020-06: SEK 123.55 per share

- 2020-07: SEK 124.05 per share

- 2020-08: SEK 122.55 per share

- 2020-09: SEK 126.80 per share

- 2020-10: SEK 105.55 per share

- 2020-11: SEK 110.30 per share

- 2020-12: SEK 108.60 per share

- 2021-01: SEK 115.50 per share

- 2021-02: SEK 106.55 per share

- 2021-03: SEK 117.80 per share

- 2021-04: SEK 109.35 per share

- 2021-05: SEK 111.60 per share

- 2021-06: SEK 116.60 per share

- 2021-07: SEK 126.45 per share

- 2021-08: SEK 129.35 per share

- 2021-09: SEK 129.85 per share

- 2021-10: SEK 121.15 per share

- 2021-11: SEK 129.10 per share

- 2021-12: SEK 129.10 per share

- 2022-01: SEK 134.95 per share

- 2022-02: SEK 125.75 per share

- 2022-03: SEK 142.30 per share

- 2022-04: SEK 130.30 per share

- 2022-05: SEK 119.45 per share

- 2022-06: SEK 116.50 per share

- 2022-07: SEK 115.95 per share

- 2022-08: SEK 113.60 per share

- 2022-09: SEK 96.00 per share

- 2022-10: SEK 90.52 per share

- 2022-11: SEK 92.82 per share

- 2022-12: SEK 85.10 per share

- 2023-01: SEK 90.20 per share

- 2023-02: SEK 96.34 per share

- 2023-03: SEK 103.25 per share

- 2023-04: SEK 108.95 per share

- 2023-05: SEK 98.60 per share

- 2023-06: SEK 89.12 per share

- 2023-07: SEK 79.22 per share

- 2023-08: SEK 77.34 per share

- 2023-09: SEK 83.68 per share

- 2023-10: SEK 79.14 per share

- 2023-11: SEK 82.26 per share

- 2023-12: SEK 86.54 per share

- 2024-01: SEK 88.86 per share

- 2024-02: SEK 86.92 per share

- 2024-03: SEK 87.90 per share

- 2024-04: SEK 103.10 per share

- 2024-05: SEK 102.60 per share

- 2024-06: SEK 106.70 per share

- 2024-07: SEK 110.20 per share

- 2024-08: SEK 116.50 per share

- 2024-09: SEK 114.90 per share

- 2024-10: SEK 111.65 per share

- 2024-11: SEK 114.45 per share

- 2024-12: SEK 109.25 per share

- 2025-01: SEK 123.35 per share

- 2025-02: SEK 127.60 per share

- 2025-03: SEK 135.55 per share

- 2025-04: SEK 142.25 per share

- 2025-05: SEK 143.45 per share

- 2025-06: SEK 138.25 per share

- 2025-07: SEK 151.30 per share

- 2025-08: SEK 166.60 per share

- 2025-09: SEK 160.55 per share

- 2025-10: SEK 150.45 per share

- 2025-11: SEK 150.20 per share

- 2025-12: SEK 154.55 per share

- 2026-01: SEK 162.95 per share

- 2026-02: SEK 190.80 per share

- 2026-03: SEK 194.60 per share

- 2026-04: SEK 189.45 per share

- 2026-05: SEK 173.30 per share

- 2026-06: SEK 168.65 per share

- 2026-07: SEK 165.15 per share

- 2026-08: SEK 169.95 per share

- 2026-09: SEK 162.45 per share

- 2026-10: SEK 157.95 per share

## Annual estimated value (SEK per share)

- FY2016: low SEK 45.71 per share, central SEK 52.02 per share, high SEK 60.41 per share

- FY2017: low SEK 23.64 per share, central SEK 26.81 per share, high SEK 31.04 per share

- FY2018: low SEK 8.52 per share, central SEK 9.70 per share, high SEK 11.26 per share

- FY2019: low SEK 9.93 per share, central SEK 11.30 per share, high SEK 13.12 per share

- FY2020: low SEK 10.09 per share, central SEK 11.41 per share, high SEK 13.15 per share

- FY2021: low SEK 47.49 per share, central SEK 53.98 per share, high SEK 62.62 per share

- FY2022: low SEK 97.87 per share, central SEK 111.24 per share, high SEK 129.05 per share

- FY2023: low SEK 101.33 per share, central SEK 115.09 per share, high SEK 133.41 per share

- FY2024: low SEK 101.32 per share, central SEK 115.29 per share, high SEK 133.89 per share

- FY2025: low SEK 96.61 per share, central SEK 109.93 per share, high SEK 127.67 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:31.610Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800EKD193RVI9HL76/2024-12-31/ESEF/SE/0/Tele2-2024-12-31-0-sv/reports/Tele2-2024-12-31-0-sv.xhtml); period 2024-12-31, filed 2025-05-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.