Elisa Oyj (ELISA.HE) | Investment Case

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's recent performance was driven by a 1.5% revenue increase, fueled by growth in mobile and international software services. The company's Q4 2025 earnings call highlighted strategic advancements, including a 12th consecutive year of dividend growth. A framework agreement with Ooredoo Group for mobile and fixed broadband analytics solutions also boosted prospects. Polystar, part of Elisa Industriq, will deploy advanced analytics solutions, leveraging AI and DataOps. This partnership expands Elisa's software services reach.

1.c. Company Highlights

Last Price	43.48
Change Percentage	-0.41%
Open	43.8
Previous Close	43.66
Market Cap ( Millions)	6979
Volume	46835
Year High	55
Year Low	34.48
M A 50	39.86
M A 200	42.47

FCF Yield	5.87%
Dividend Yield	6.78%
ROE	27.95%
Debt / Equity	135.58%
Net Debt / EBIDTA	194.97%
Price To Book	5.57
Price Earnings Ratio	20.41
Price To FCF	17.04
Price To sales	3.09
EV / EBITDA	10.97

2. Elisa's Q4 2025 Earnings: A Resilient Performance Amidst Intense Competition

Elisa reported a revenue growth of 1.5% in Q4 2025, driven by a 2.4% increase in mobile service revenue and an 11.3% growth in international software services revenue. The company's comparable EBITDA remained at the previous year's level, despite intense competition leading to increased temporary sales costs. Earnings per share (EPS) came in at €0.3647, below analyst estimates of €0.59. The company's revenue landed at €588 million, with a comparable cash flow growth of 37.6% driven by net working capital efficiency.

Publication Date: Feb -10

                                    📋 Highlights
                                    Revenue Growth Drivers::
                                                1.5% revenue increase driven by 2.4% mobile service growth and 11.3% international software services growth (organic flat due to postponed projects).
Cost Savings Progress::
                                                EUR 40 million cost savings target achieved (360 jobs cut), with restructuring costs at EUR 26 million impacting OpEx.
EBITDA and Margin Pressure::
                                                Comparable EBITDA flat YoY; 1% margin decline from EUR 5-6 million temporary sales costs to counter competition.
Dividend and Cash Flow::
                                                EUR 2.40 dividend proposed (12th consecutive increase); 37.6% comparable cash flow growth from working capital efficiency.
2026 Guidance::
                                                Telecom revenue growth 1-3% (mobile as main driver), international software services organic growth >10%, and EBITDA guidance EUR 815-845 million.

                                

Segment Performance

Elisa's mobile service revenue grew 2.4%, driven by 5G upselling, and ARPU grew 3% on a year-on-year basis. The company's postpaid churn in Finland was 23%, higher than usual due to intense competition. However, Elisa maintained its market share in consumer postpaid subscriptions, and its fixed broadband subscription base increased by 6,000. International software services profitability picked up, and the company reached a record-high backlog, driven by wins in the telco vertical, including a big deal from Ooredoo Group.

Guidance and Outlook

Elisa expects revenue to be at the same level or slightly higher in 2026, with comparable EBITDA in the range of €815-845 million. The company expects telecom service revenue growth to be in the bracket of 1-3%, with mobile service revenue growth being the main driver. International Software Services organic revenue growth is expected to be above 10%. The company's guidance is framed around an improving trading environment, with positive signals in the market dynamics. As Topi Manner stated, "we expect our operating environment to improve in the first half of 2026."

Valuation

Elisa's current valuation multiples are: P/E Ratio at 19.67, P/B Ratio at 5.37, and Dividend Yield at 7.04%. These metrics indicate that the market is pricing in a certain level of growth and profitability. With the company's expected revenue growth and improving profitability, the current valuation seems reasonable. The EV/EBITDA ratio of 10.77 suggests that Elisa's enterprise value is reasonable relative to its EBITDA. The Dividend Yield of 7.04% is attractive, given the company's commitment to maintaining a covered dividend.

3. NewsRoom

Elisa and Elisa Industriq join MWC Barcelona 2026, showcasing innovations in energy optimization, autonomous networks, scam prevention, and more

Feb -27

Source:

Polystar unveils quartet of AI-driven assurance capabilities at MWC 2026

Feb -26

Source:

Vantage Towers Spain partners with Elisa Industriq's Gridle to enable virtual power plant capabilities across mobile sites

Feb -23

Source:

Assessing Elisa Oyj’s (HLSE:ELISA) Valuation After A Strong Recent Share Price Run

Feb -12

Source:

Automatic monitoring of brand counterfeits and protection for the factory - Lumene Group upgraded its cyber solutions to a new era

Feb -09

Source:

Ooredoo Group signs framework agreement with Polystar, part of Elisa Industriq, for mobile and fixed broadband analytics, boosted by AI and DataOps

Feb -03

Source:

Elisa Oyj (ELMUF) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Advancements

Jan -30

Source:

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

Sep -24

Source:

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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Millicom

A-Score: 6.5/10

Value: 6.5

Growth: 3.9

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

Telia Company

A-Score: 6.2/10

Value: 4.3

Growth: 2.6

Quality: 4.4

Yield: 8.8

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

Itissalat Al-Maghrib

A-Score: 6.1/10

Value: 3.6

Growth: 2.3

Quality: 6.9

Yield: 6.2

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

Airtel Africa

A-Score: 5.3/10

Value: 3.5

Growth: 4.8

Quality: 5.5

Yield: 3.8

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

Elisa

A-Score: 5.0/10

Value: 4.0

Growth: 4.0

Quality: 6.9

Yield: 8.1

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

1&1

A-Score: 4.5/10

Value: 5.5

Growth: 3.4

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.02%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.43%

Elisa Oyj - FI0009007884

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ELISA

1.c. Company Highlights

Weak Momentum

Less Volatile

Expensive

Earnings Miss

Revenues Miss

Stable Momentum

Average Quality

Average Yield

Revenues Beats

Higher Yield

Fairly Valued

Earnings Beats

2. Elisa's Q4 2025 Earnings: A Resilient Performance Amidst Intense Competition

Segment Performance

Guidance and Outlook

Valuation

3. NewsRoom

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%

Corporate Customers

Expected Growth: 2.5%

7. Detailed Products

Mobile Services

Fixed Network Services

ICT Services

Internet of Things (IoT) Services

Cybersecurity Services

Data Center Services

8. Elisa Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.48$

Current Price

43.48$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA