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1. Company Snapshot

1.a. Company Description

Elisa Oyj provides data communications and digital services.It operates in two segments, Consumer Customers and Corporate Customers segments.The company offers telecommunications and communications services, such as fixed and mobile subscription, digital, cable-tv subscription, entertainment, and e-reading services, as well as video conferencing services.


It also provides industrial IoT solutions for manufacturers, remote patient monitoring and healthcare solutions, and B2B customer support services; and online services.The company serves approximately 2.8 million consumers, companies, and public administration organizations in Finland, rest of Europe, and internationally.Elisa Oyj was founded in 1882 and is headquartered in Helsinki, Finland.

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1.b. Last Insights on ELISA

Elisa Oyj faces scrutiny amid quiet market conditions. The Finnish telecom's valuation comes into focus as investors reevaluate their stance. With no major events driving the recent stock movement, deeper valuation themes take center stage. The company's fundamentals and growth prospects are being reassessed. Recent earnings expectations and market sentiment shifts may influence investor decisions. Regulatory changes or industry trends could impact Elisa's future performance. Investor attention is drawn to the stock's intrinsic value.

1.c. Company Highlights

2. Elisa's Q3 2025 Earnings: Steady Performance Amidst Intense Competition

Elisa reported a revenue growth of 4.6% in Q3 2025, driven by international software services and mobile service revenue growth. EBITDA grew by 3.7% to EUR 214 million. The company's EPS came in at EUR 0.64, beating analyst estimates of EUR 0.621. Revenue growth was supported by a 3.3% increase in mobile service revenue, driven by 5G upselling and security feature introductions, and a 53% increase in international software services revenue.

Publication Date: Oct -25

📋 Highlights
  • Revenue Growth:: Total revenue increased by 4.6%, driven by 53% growth in international software services and 3.3% rise in mobile service revenue from 5G upselling.
  • Mobile Service Performance:: Mobile service revenue grew 3.3%, supported by 600,000 security feature upgrades and 5G adoption, while post-paid churn in Finland rose due to 4G competition.
  • Corporate Segment Strength:: Corporate business revenue rose 5.6% (vs. 0.9% in Consumer), driven by price increases and fixed service growth, with EBITDA up 9% despite market challenges.
  • Transformation Program:: EUR 40 million annual cost savings target announced for 2026 via job cuts (450 total, 400 in Finland) and operational streamlining, aiming to improve agility and efficiency.

Segment Performance

The Consumer business was impacted by intense competition in the 4G category, resulting in a revenue growth of 0.9% and EBITDA growth of 0.4%. In contrast, the Corporate business had a strong quarter, with revenue up 5.6% due to price increases and fixed service revenue growth. International Software Services EBITDA improved by EUR 5 million, with the segment now breakeven for the first 9 months of the year.

Transformation Program and Outlook

Elisa announced a transformation program aimed at accelerating its strategy, with a target of EUR 40 million in annual cost savings by 2026. The program will focus on organizational streamlining, process simplification, and procurement efficiencies. Management expects low to mid-single-digit mobile service revenue growth in 2025, driven by 5G upselling and security feature sales. Analysts estimate revenue growth of 2.7% for the next year.

Valuation and Metrics

Elisa's current valuation metrics indicate a P/E Ratio of 17.5, P/B Ratio of 5.87, and EV/EBITDA of 9.88. The company's Dividend Yield stands at 5.93%, and its ROE is 29.44%. These metrics suggest that the market has priced in a certain level of growth and profitability, but the company's efforts to improve operational efficiency and drive growth through its transformation program could potentially lead to further upside.

3. NewsRoom

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Instant reaction: Finnish call blocking solution reveals phone scammers' playbook

Sep -24

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Evaluating Elisa Oyj (HLSE:ELISA)'s Valuation as Shares Cool Off This Week

Sep -20

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Elisa DES is now Gridle - delivering energy flexibility services at scale

Sep -10

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Vaisala Corporation: Share Repurchase 9.9.2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.89%)

6. Segments

Consumer Customers

Expected Growth: 1.5%

Elisa Oyj's 1.5% growth in Consumer Customers is driven by increasing demand for mobile data and digital services, particularly among Finnish youth and urban populations. Additionally, Elisa's strategic investments in 5G network expansion, competitive pricing, and innovative digital solutions have improved customer experience, leading to higher customer retention and acquisition rates.

Corporate Customers

Expected Growth: 2.5%

Elisa Oyj's 2.5% growth with corporate customers is driven by increasing demand for digitalization, IoT, and cloud services. Additionally, the Finnish company's strong network infrastructure and reliable connectivity enable corporate customers to adopt 5G technology, further boosting growth. Furthermore, Elisa's customized solutions and tailored services for large enterprises also contribute to this steady growth.

7. Detailed Products

Mobile Services

Elisa Oyj provides mobile voice and data services to individuals and businesses, including 4G and 5G connectivity, mobile broadband, and mobile TV.

Fixed Network Services

Elisa Oyj offers fixed-line voice and data services, including broadband, TV, and telephony services to households and businesses.

ICT Services

Elisa Oyj provides information and communication technology (ICT) services, including cloud services, cybersecurity, and IT consulting to businesses.

Internet of Things (IoT) Services

Elisa Oyj offers IoT services, including device management, data analytics, and IoT connectivity solutions to businesses.

Cybersecurity Services

Elisa Oyj provides cybersecurity services, including threat detection, incident response, and security consulting to businesses.

Data Center Services

Elisa Oyj offers data center services, including colocation, hosting, and managed services to businesses.

8. Elisa Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Elisa Oyj operates in a highly competitive industry, and there are many substitutes available in the market. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Elisa Oyj's customers have some bargaining power due to the availability of substitutes, but the company's strong brand reputation and customer loyalty help to reduce this power.

Bargaining Power Of Suppliers

Elisa Oyj's suppliers have some bargaining power due to the company's dependence on them for network equipment and services. However, the company's strong relationships with its suppliers help to mitigate this power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the telecommunications industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with many players competing for market share. Elisa Oyj faces intense rivalry from its competitors, which puts pressure on its pricing and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.45%
Debt Cost 3.95%
Equity Weight 48.55%
Equity Cost 4.95%
WACC 4.43%
Leverage 105.97%

11. Quality Control: Elisa Oyj passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Millicom

A-Score: 6.5/10

Value: 6.8

Growth: 3.7

Quality: 6.3

Yield: 8.1

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Telia Company

A-Score: 6.2/10

Value: 4.4

Growth: 2.6

Quality: 4.0

Yield: 9.4

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Itissalat Al-Maghrib

A-Score: 6.2/10

Value: 3.6

Growth: 2.3

Quality: 6.9

Yield: 6.2

Momentum: 9.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Airtel Africa

A-Score: 5.4/10

Value: 3.9

Growth: 4.9

Quality: 5.2

Yield: 4.4

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Elisa

A-Score: 5.0/10

Value: 3.9

Growth: 4.0

Quality: 6.6

Yield: 8.1

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
1&1

A-Score: 4.4/10

Value: 6.5

Growth: 3.3

Quality: 4.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.56$

Current Price

37.56$

Potential

-0.00%

Expected Cash-Flows