ORANGE (FTE.DE) Stock Fundamental Analysis
FRA:FTE - Deutsche Boerse Ag - FR0000133308 - Common Stock - Currency: EUR
FTE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of FTE while its profitability can be described as average. FTE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTE was profitable.
In the past year FTE had a positive cash flow from operations.
Each year in the past 5 years FTE has been profitable.
In the past 5 years FTE always reported a positive cash flow from operatings.
1.2 Ratios
FTE's Return On Assets of 2.09% is in line compared to the rest of the industry. FTE outperforms 42.31% of its industry peers.
With a Return On Equity value of 6.84%, FTE perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
FTE's Return On Invested Capital of 5.67% is in line compared to the rest of the industry. FTE outperforms 46.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTE is below the industry average of 7.93%.
The 3 year average ROIC (5.20%) for FTE is below the current ROIC(5.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.84% | ||
| ROIC | 5.67% |
ROA(3y)1.97%
ROA(5y)2.03%
ROE(3y)6.69%
ROE(5y)6.68%
ROIC(3y)5.2%
ROIC(5y)5.12%
1.3 Margins
FTE's Profit Margin of 5.40% is in line compared to the rest of the industry. FTE outperforms 50.00% of its industry peers.
FTE's Profit Margin has declined in the last couple of years.
FTE has a Operating Margin (15.19%) which is comparable to the rest of the industry.
FTE's Operating Margin has improved in the last couple of years.
FTE's Gross Margin of 60.66% is in line compared to the rest of the industry. FTE outperforms 57.69% of its industry peers.
FTE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 5.4% | ||
| GM | 60.66% |
OM growth 3Y4.37%
OM growth 5Y1.56%
PM growth 3Y559.53%
PM growth 5Y-3.58%
GM growth 3Y0.41%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
FTE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FTE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FTE has more shares outstanding
The debt/assets ratio for FTE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that FTE is in the distress zone and has some risk of bankruptcy.
FTE has a worse Altman-Z score (0.84) than 84.62% of its industry peers.
FTE has a debt to FCF ratio of 12.34. This is a negative value and a sign of low solvency as FTE would need 12.34 years to pay back of all of its debts.
The Debt to FCF ratio of FTE (12.34) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that FTE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.14, FTE is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 12.34 | ||
| Altman-Z | 0.84 |
ROIC/WACC1.25
WACC4.53%
2.3 Liquidity
A Current Ratio of 0.92 indicates that FTE may have some problems paying its short term obligations.
The Current ratio of FTE (0.92) is better than 69.23% of its industry peers.
FTE has a Quick Ratio of 0.92. This is a bad value and indicates that FTE is not financially healthy enough and could expect problems in meeting its short term obligations.
FTE has a Quick ratio of 0.89. This is in the better half of the industry: FTE outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
FTE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.38%.
FTE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.51% yearly.
FTE shows a decrease in Revenue. In the last year, the revenue decreased by -3.85%.
The Revenue has been decreasing by -0.95% on average over the past years.
EPS 1Y (TTM)-0.38%
EPS 3YN/A
EPS 5Y-4.51%
EPS Q2Q%-2.52%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.47%
3.2 Future
Based on estimates for the next years, FTE will show a small growth in Earnings Per Share. The EPS will grow by 3.91% on average per year.
FTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.73% yearly.
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y3.91%
Revenue Next Year0.98%
Revenue Next 2Y1.01%
Revenue Next 3Y1.03%
Revenue Next 5Y0.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.42, the valuation of FTE can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FTE indicates a somewhat cheap valuation: FTE is cheaper than 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, FTE is valued a bit cheaper.
FTE is valuated correctly with a Price/Forward Earnings ratio of 12.62.
Based on the Price/Forward Earnings ratio, FTE is valued a bit cheaper than 65.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, FTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTE is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTE indicates a somewhat cheap valuation: FTE is cheaper than 73.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.65 | ||
| EV/EBITDA | 4.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.59%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
FTE has a Yearly Dividend Yield of 5.96%, which is a nice return.
Compared to an average industry Dividend Yield of 5.08, FTE pays a bit more dividend than its industry peers.
FTE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
5.2 History
The dividend of FTE has a limited annual growth rate of 0.57%.
Dividend Growth(5Y)0.57%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
FTE pays out 88.09% of its income as dividend. This is not a sustainable payout ratio.
FTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP88.09%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
FRA:FTE (4/24/2025, 7:00:00 PM)
12.645
+0.05 (+0.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners46.22%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap33.62B
Analysts79.26
Price Target13.06 (3.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
Yearly Dividend0.72
Dividend Growth(5Y)0.57%
DP88.09%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.67%
PT rev (3m)1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-11.57%
EPS NY rev (3m)-14.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 12.62 | ||
| P/S | 0.83 | ||
| P/FCF | 9.65 | ||
| P/OCF | 3.3 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.26 |
EPS(TTM)0.82
EY6.48%
EPS(NY)1
Fwd EY7.93%
FCF(TTM)1.31
FCFY10.37%
OCF(TTM)3.83
OCFY30.33%
SpS15.14
BVpS11.95
TBVpS-0.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.84% | ||
| ROCE | 8.05% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 13.86% | ||
| OM | 15.19% | ||
| PM (TTM) | 5.4% | ||
| GM | 60.66% | ||
| FCFM | 8.66% |
ROA(3y)1.97%
ROA(5y)2.03%
ROE(3y)6.69%
ROE(5y)6.68%
ROIC(3y)5.2%
ROIC(5y)5.12%
ROICexc(3y)6.07%
ROICexc(5y)5.96%
ROICexgc(3y)13.08%
ROICexgc(5y)13.48%
ROCE(3y)7.38%
ROCE(5y)7.26%
ROICexcg growth 3Y3.45%
ROICexcg growth 5Y-3.55%
ROICexc growth 3Y5.78%
ROICexc growth 5Y1.45%
OM growth 3Y4.37%
OM growth 5Y1.56%
PM growth 3Y559.53%
PM growth 5Y-3.58%
GM growth 3Y0.41%
GM growth 5Y0.14%
F-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 12.34 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 84.58% | ||
| Cap/Sales | 16.67% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 72.57% | ||
| Profit Quality | 160.3% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.84 |
F-Score9
WACC4.53%
ROIC/WACC1.25
Cap/Depr(3y)91.99%
Cap/Depr(5y)95.71%
Cap/Sales(3y)18.2%
Cap/Sales(5y)19.08%
Profit Quality(3y)157.74%
Profit Quality(5y)6330.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.38%
EPS 3YN/A
EPS 5Y-4.51%
EPS Q2Q%-2.52%
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y3.91%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.47%
Revenue Next Year0.98%
Revenue Next 2Y1.01%
Revenue Next 3Y1.03%
Revenue Next 5Y0.73%
EBIT growth 1Y13.05%
EBIT growth 3Y2.49%
EBIT growth 5Y0.59%
EBIT Next Year147.87%
EBIT Next 3Y37.48%
EBIT Next 5Y19.23%
FCF growth 1Y-17.51%
FCF growth 3Y11.9%
FCF growth 5Y14.54%
OCF growth 1Y-15.42%
OCF growth 3Y-3.19%
OCF growth 5Y0.01%