TELIA Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Telia Company AB - Alpha Spread

Telia Company AB
STO:TELIA

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Telia Company AB
STO:TELIA
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Price: 33.57 SEK -0.09% Market Closed
Market Cap: 132B SEK
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Telia Company AB

Revenue
88.7B SEK
Cost of Revenue
-44.4B SEK
Gross Profit
44.3B SEK
Operating Expenses
-38.1B SEK
Operating Income
6.2B SEK
Other Expenses
-2B SEK
Net Income
4.2B SEK

Margins Comparison
Telia Company AB Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
SE
Telia Company AB
STO:TELIA
132B SEK
50%
7%
5%
US
Verizon Communications Inc
NYSE:VZ
184.7B USD
60%
23%
8%
US
AT&T Inc
NYSE:T
155.4B USD
60%
20%
10%
DE
Deutsche Telekom AG
XETRA:DTE
131.8B EUR
61%
21%
4%
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY
0%
15%
9%
CN
China Telecom Corp Ltd
SSE:601728
542.6B CNY
29%
8%
6%
SA
Saudi Telecom Company SJSC
SAU:7010
189B SAR
42%
20%
19%
SG
Singapore Telecommunications Ltd
SGX:Z74
55B SGD
57%
8%
6%
CH
Swisscom AG
SIX:SCMN
28.4B CHF
80%
20%
15%
FR
Orange SA
PAR:ORA
29B EUR
59%
14%
5%
AU
Telstra Corporation Ltd
ASX:TLS
46.6B AUD
63%
15%
7%
Country SE
Market Cap 132B SEK
Gross Margin
50%
Operating Margin
7%
Net Margin
5%
Country US
Market Cap 184.7B USD
Gross Margin
60%
Operating Margin
23%
Net Margin
8%
Country US
Market Cap 155.4B USD
Gross Margin
60%
Operating Margin
20%
Net Margin
10%
Country DE
Market Cap 131.8B EUR
Gross Margin
61%
Operating Margin
21%
Net Margin
4%
Country JP
Market Cap 12.5T JPY
Gross Margin
0%
Operating Margin
15%
Net Margin
9%
Country CN
Market Cap 542.6B CNY
Gross Margin
29%
Operating Margin
8%
Net Margin
6%
Country SA
Market Cap 189B SAR
Gross Margin
42%
Operating Margin
20%
Net Margin
19%
Country SG
Market Cap 55B SGD
Gross Margin
57%
Operating Margin
8%
Net Margin
6%
Country CH
Market Cap 28.4B CHF
Gross Margin
80%
Operating Margin
20%
Net Margin
15%
Country FR
Market Cap 29B EUR
Gross Margin
59%
Operating Margin
14%
Net Margin
5%
Country AU
Market Cap 46.6B AUD
Gross Margin
63%
Operating Margin
15%
Net Margin
7%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Telia Company AB Competitors

Country Company Market Cap ROE ROA ROCE ROIC
SE
Telia Company AB
STO:TELIA
132B SEK
8%
2%
4%
2%
US
Verizon Communications Inc
NYSE:VZ
184.7B USD
12%
3%
9%
6%
US
AT&T Inc
NYSE:T
155.4B USD
12%
3%
7%
5%
DE
Deutsche Telekom AG
XETRA:DTE
131.8B EUR
8%
2%
9%
6%
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY
12%
4%
10%
6%
CN
China Telecom Corp Ltd
SSE:601728
542.6B CNY
7%
4%
8%
5%
SA
Saudi Telecom Company SJSC
SAU:7010
189B SAR
18%
9%
14%
14%
SG
Singapore Telecommunications Ltd
SGX:Z74
55B SGD
3%
2%
3%
3%
CH
Swisscom AG
SIX:SCMN
28.4B CHF
15%
6%
10%
8%
FR
Orange SA
PAR:ORA
29B EUR
7%
2%
7%
5%
AU
Telstra Corporation Ltd
ASX:TLS
46.6B AUD
11%
4%
10%
6%
Country SE
Market Cap 132B SEK
ROE
8%
ROA
2%
ROCE
4%
ROIC
2%
Country US
Market Cap 184.7B USD
ROE
12%
ROA
3%
ROCE
9%
ROIC
6%
Country US
Market Cap 155.4B USD
ROE
12%
ROA
3%
ROCE
7%
ROIC
5%
Country DE
Market Cap 131.8B EUR
ROE
8%
ROA
2%
ROCE
9%
ROIC
6%
Country JP
Market Cap 12.5T JPY
ROE
12%
ROA
4%
ROCE
10%
ROIC
6%
Country CN
Market Cap 542.6B CNY
ROE
7%
ROA
4%
ROCE
8%
ROIC
5%
Country SA
Market Cap 189B SAR
ROE
18%
ROA
9%
ROCE
14%
ROIC
14%
Country SG
Market Cap 55B SGD
ROE
3%
ROA
2%
ROCE
3%
ROIC
3%
Country CH
Market Cap 28.4B CHF
ROE
15%
ROA
6%
ROCE
10%
ROIC
8%
Country FR
Market Cap 29B EUR
ROE
7%
ROA
2%
ROCE
7%
ROIC
5%
Country AU
Market Cap 46.6B AUD
ROE
11%
ROA
4%
ROCE
10%
ROIC
6%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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