ORANGE (FTE.DE) Stock Fundamental Analysis
FRA:FTE - Deutsche Boerse Ag - FR0000133308 - Common Stock - Currency: EUR
Overall FTE gets a fundamental rating of 4 out of 10. We evaluated FTE against 31 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. FTE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FTE had positive earnings in the past year.
In the past year FTE had a positive cash flow from operations.
In the past 5 years FTE has always 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 2.20% is in line compared to the rest of the industry. FTE outperforms 50.00% of its industry peers.
FTE's Return On Equity of 7.30% is in line compared to the rest of the industry. FTE outperforms 46.43% of its industry peers.
FTE has a Return On Invested Capital (5.40%) which is in line with its industry peers.
FTE had an Average Return On Invested Capital over the past 3 years of 4.98%. This is below the industry average of 7.24%.
The 3 year average ROIC (4.98%) for FTE is below the current ROIC(5.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 7.3% | ||
| ROIC | 5.4% |
ROA(3y)1.28%
ROA(5y)2.13%
ROE(3y)4.42%
ROE(5y)7.03%
ROIC(3y)4.98%
ROIC(5y)5.09%
1.3 Margins
FTE's Profit Margin of 5.41% is in line compared to the rest of the industry. FTE outperforms 53.57% of its industry peers.
FTE's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 13.69%, FTE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FTE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.39%, FTE is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.69% | ||
| PM (TTM) | 5.41% | ||
| GM | 59.39% |
OM growth 3Y-2.17%
OM growth 5Y1.03%
PM growth 3Y-21.97%
PM growth 5Y5.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FTE is still creating some value.
Compared to 1 year ago, FTE has about the same amount of shares outstanding.
The number of shares outstanding for FTE remains at a similar level compared to 5 years ago.
FTE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that FTE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FTE (0.79) is worse than 85.71% of its industry peers.
FTE has a debt to FCF ratio of 12.15. This is a negative value and a sign of low solvency as FTE would need 12.15 years to pay back of all of its debts.
FTE's Debt to FCF ratio of 12.15 is on the low side compared to the rest of the industry. FTE is outperformed by 60.71% of its industry peers.
FTE has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
FTE has a Debt to Equity ratio of 1.18. This is comparable to the rest of the industry: FTE outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.15 | ||
| Altman-Z | 0.79 |
ROIC/WACC1.37
WACC3.95%
2.3 Liquidity
A Current Ratio of 0.94 indicates that FTE may have some problems paying its short term obligations.
With a decent Current ratio value of 0.94, FTE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that FTE may have some problems paying its short term obligations.
The Quick ratio of FTE (0.91) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
FTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.17%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.51% on average over the past years.
Looking at the last year, FTE shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
FTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
EPS 1Y (TTM)41.17%
EPS 3Y-20.78%
EPS 5Y6.51%
EPS Q2Q%3.33%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y1.44%
Revenue growth 5Y1.29%
Sales Q2Q%-7.92%
3.2 Future
FTE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.96% yearly.
Based on estimates for the next years, FTE will show a small growth in Revenue. The Revenue will grow by 0.19% on average per year.
EPS Next Y-8.94%
EPS Next 2Y1.77%
EPS Next 3Y3.9%
EPS Next 5Y2.96%
Revenue Next Year-8.66%
Revenue Next 2Y-3.97%
Revenue Next 3Y-2.37%
Revenue Next 5Y0.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.06, FTE is valued correctly.
Based on the Price/Earnings ratio, FTE is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
FTE is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.08, which indicates a very decent valuation of FTE.
Based on the Price/Forward Earnings ratio, FTE is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, FTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
89.29% of the companies in the same industry are more expensive than FTE, based on the Enterprise Value to EBITDA ratio.
FTE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTE is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y1.77%
EPS Next 3Y3.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.92%, FTE is a good candidate for dividend investing.
FTE's Dividend Yield is a higher than the industry average which is at 5.48.
FTE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
5.2 History
The dividend of FTE has a limited annual growth rate of 0.01%.
Dividend Growth(5Y)0.01%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
83.52% of the earnings are spent on dividend by FTE. This is not a sustainable payout ratio.
FTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP83.52%
EPS Next 2Y1.77%
EPS Next 3Y3.9%
ORANGE
FRA:FTE (2/4/2025, 7:00:00 PM)
10.375
-0.03 (-0.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.36%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap27.58B
Analysts81.48
Price Target12.93 (24.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
Yearly Dividend0.7
Dividend Growth(5Y)0.01%
DP83.52%
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)0%
PT rev (3m)0.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-4.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 9.08 | ||
| P/S | 0.65 | ||
| P/FCF | 7.49 | ||
| P/OCF | 2.5 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.92 |
EPS(TTM)0.86
EY8.29%
EPS(NY)1.14
Fwd EY11.01%
FCF(TTM)1.39
FCFY13.36%
OCF(TTM)4.15
OCFY40.01%
SpS15.96
BVpS11.81
TBVpS-0.91
PEG (NY)N/A
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 7.3% | ||
| ROCE | 7.61% | ||
| ROIC | 5.4% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 13.02% | ||
| OM | 13.69% | ||
| PM (TTM) | 5.41% | ||
| GM | 59.39% | ||
| FCFM | 8.69% |
ROA(3y)1.28%
ROA(5y)2.13%
ROE(3y)4.42%
ROE(5y)7.03%
ROIC(3y)4.98%
ROIC(5y)5.09%
ROICexc(3y)5.76%
ROICexc(5y)5.91%
ROICexgc(3y)12.71%
ROICexgc(5y)14.12%
ROCE(3y)7.04%
ROCE(5y)7.16%
ROICexcg growth 3Y-6.01%
ROICexcg growth 5Y-7.94%
ROICexc growth 3Y-1.12%
ROICexc growth 5Y-0.87%
OM growth 3Y-2.17%
OM growth 5Y1.03%
PM growth 3Y-21.97%
PM growth 5Y5.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.15 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 86.7% | ||
| Cap/Sales | 17.33% | ||
| Interest Coverage | 4.94 | ||
| Cash Conversion | 77.25% | ||
| Profit Quality | 160.66% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.79 |
F-Score9
WACC3.95%
ROIC/WACC1.37
Cap/Depr(3y)97.88%
Cap/Depr(5y)98.88%
Cap/Sales(3y)19.5%
Cap/Sales(5y)19.73%
Profit Quality(3y)10466.8%
Profit Quality(5y)6311.17%
High Growth Momentum
Growth
EPS 1Y (TTM)41.17%
EPS 3Y-20.78%
EPS 5Y6.51%
EPS Q2Q%3.33%
EPS Next Y-8.94%
EPS Next 2Y1.77%
EPS Next 3Y3.9%
EPS Next 5Y2.96%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y1.44%
Revenue growth 5Y1.29%
Sales Q2Q%-7.92%
Revenue Next Year-8.66%
Revenue Next 2Y-3.97%
Revenue Next 3Y-2.37%
Revenue Next 5Y0.19%
EBIT growth 1Y-4.11%
EBIT growth 3Y-0.76%
EBIT growth 5Y2.33%
EBIT Next Year115.93%
EBIT Next 3Y31.45%
EBIT Next 5Y17.93%
FCF growth 1Y16.29%
FCF growth 3Y0.59%
FCF growth 5Y17.78%
OCF growth 1Y-4.15%
OCF growth 3Y-1.72%
OCF growth 5Y4.86%