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NOS SGPS (NOS.LS) Stock Fundamental Analysis

ELI:NOS - Euronext Lisbon - PTZON0AM0006 - Common Stock - Currency: EUR

3.495  +0.06 (+1.6%)

Fundamental Rating

6

Taking everything into account, NOS scores 6 out of 10 in our fundamental rating. NOS was compared to 31 industry peers in the Diversified Telecommunication Services industry. While NOS has a great profitability rating, there are quite some concerns on its financial health. NOS may be a bit undervalued, certainly considering the very reasonable score on growth Finally NOS also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

NOS had positive earnings in the past year.
In the past year NOS had a positive cash flow from operations.
Each year in the past 5 years NOS has been profitable.
Each year in the past 5 years NOS had a positive operating cash flow.
NOS.LS Yearly Net Income VS EBIT VS OCF VS FCFNOS.LS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

1.2 Ratios

Looking at the Return On Assets, with a value of 7.65%, NOS belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Return On Equity of NOS (25.46%) is better than 96.43% of its industry peers.
With an excellent Return On Invested Capital value of 9.18%, NOS belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
NOS had an Average Return On Invested Capital over the past 3 years of 7.29%. This is in line with the industry average of 7.24%.
The 3 year average ROIC (7.29%) for NOS is below the current ROIC(9.18%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.65%
ROE 25.46%
ROIC 9.18%
ROA(3y)5.37%
ROA(5y)4.73%
ROE(3y)18.29%
ROE(5y)15.76%
ROIC(3y)7.29%
ROIC(5y)7.43%
NOS.LS Yearly ROA, ROE, ROICNOS.LS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

NOS has a better Profit Margin (15.38%) than 92.86% of its industry peers.
NOS's Profit Margin has improved in the last couple of years.
NOS's Operating Margin of 15.24% is in line compared to the rest of the industry. NOS outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of NOS has grown nicely.
NOS has a Gross Margin of 71.52%. This is in the better half of the industry: NOS outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of NOS has grown nicely.
Industry RankSector Rank
OM 15.24%
PM (TTM) 15.38%
GM 71.52%
OM growth 3Y1.88%
OM growth 5Y4.55%
PM growth 3Y18.99%
PM growth 5Y5.33%
GM growth 3Y1.23%
GM growth 5Y2.42%
NOS.LS Yearly Profit, Operating, Gross MarginsNOS.LS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NOS is still creating some value.
The number of shares outstanding for NOS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, NOS has less shares outstanding
NOS has a worse debt/assets ratio than last year.
NOS.LS Yearly Shares OutstandingNOS.LS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
NOS.LS Yearly Total Debt VS Total AssetsNOS.LS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.13, we must say that NOS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NOS (1.13) is comparable to the rest of the industry.
NOS has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as NOS would need 3.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.49, NOS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that NOS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.27, NOS is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.27
Debt/FCF 3.49
Altman-Z 1.13
ROIC/WACC1.55
WACC5.92%
NOS.LS Yearly LT Debt VS Equity VS FCFNOS.LS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

2.3 Liquidity

A Current Ratio of 0.57 indicates that NOS may have some problems paying its short term obligations.
NOS has a worse Current ratio (0.57) than 85.71% of its industry peers.
NOS has a Quick Ratio of 0.57. This is a bad value and indicates that NOS is not financially healthy enough and could expect problems in meeting its short term obligations.
NOS has a Quick ratio of 0.52. This is amonst the worse of the industry: NOS underperforms 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.52
NOS.LS Yearly Current Assets VS Current LiabilitesNOS.LS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.36% over the past year.
Measured over the past 5 years, NOS shows a small growth in Earnings Per Share. The EPS has been growing by 3.83% on average per year.
The Revenue has been growing slightly by 5.19% in the past year.
Measured over the past years, NOS shows a small growth in Revenue. The Revenue has been growing by 0.27% on average per year.
EPS 1Y (TTM)11.36%
EPS 3Y22.59%
EPS 5Y3.83%
EPS Q2Q%11.11%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y5.31%
Revenue growth 5Y0.27%
Sales Q2Q%6.08%

3.2 Future

NOS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.31% yearly.
Based on estimates for the next years, NOS will show a small growth in Revenue. The Revenue will grow by 1.14% on average per year.
EPS Next Y9.19%
EPS Next 2Y-6.52%
EPS Next 3Y-3.55%
EPS Next 5Y-4.31%
Revenue Next Year4.96%
Revenue Next 2Y2.81%
Revenue Next 3Y2.08%
Revenue Next 5Y1.14%

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 accelerating.
NOS.LS Yearly Revenue VS EstimatesNOS.LS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
NOS.LS Yearly EPS VS EstimatesNOS.LS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.1 0.2 0.3 0.4

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.13, which indicates a rather cheap valuation of NOS.
Based on the Price/Earnings ratio, NOS is valued cheaper than 92.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. NOS is valued rather cheaply when compared to this.
NOS is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
The rest of the industry has a similar Price/Forward Earnings ratio as NOS.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, NOS is valued rather cheaply.
Industry RankSector Rank
PE 7.13
Fwd PE 11.43
NOS.LS Price Earnings VS Forward Price EarningsNOS.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, NOS is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.92
EV/EBITDA N/A
NOS.LS Per share dataNOS.LS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

NOS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NOS may justify a higher PE ratio.
NOS's earnings are expected to decrease with -3.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.78
PEG (5Y)1.86
EPS Next 2Y-6.52%
EPS Next 3Y-3.55%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.34%, NOS is a good candidate for dividend investing.
NOS's Dividend Yield is rather good when compared to the industry average which is at 5.48. NOS pays more dividend than 96.43% of the companies in the same industry.
NOS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 10.34%

5.2 History

On average, the dividend of NOS grows each year by 7.48%, which is quite nice.
Dividend Growth(5Y)7.48%
Div Incr Years1
Div Non Decr Years4
NOS.LS Yearly Dividends per shareNOS.LS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3

5.3 Sustainability

NOS pays out 69.96% of its income as dividend. This is not a sustainable payout ratio.
NOS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP69.96%
EPS Next 2Y-6.52%
EPS Next 3Y-3.55%
NOS.LS Yearly Income VS Free CF VS DividendNOS.LS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
NOS.LS Dividend Payout.NOS.LS Dividend Payout, showing the Payout Ratio.NOS.LS Dividend Payout.PayoutRetained Earnings

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NOS SGPS

ELI:NOS (2/5/2025, 4:39:43 PM)

3.495

+0.06 (+1.6%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)N/A N/A
Inst Owners16.19%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap1.80B
Analysts69.47
Price Target3.96 (13.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 10.34%
Yearly Dividend0.43
Dividend Growth(5Y)7.48%
DP69.96%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.26%
Min EPS beat(2)4.22%
Max EPS beat(2)126.31%
EPS beat(4)4
Avg EPS beat(4)94.61%
Min EPS beat(4)4.22%
Max EPS beat(4)164.03%
EPS beat(8)6
Avg EPS beat(8)129.77%
EPS beat(12)9
Avg EPS beat(12)97.8%
EPS beat(16)12
Avg EPS beat(16)92.24%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)1.08%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)1.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.04%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)9
Avg Revenue beat(16)0.47%
PT rev (1m)-2.86%
PT rev (3m)-3.03%
EPS NQ rev (1m)225%
EPS NQ rev (3m)66.67%
EPS NY rev (1m)1.76%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)0.95%
Valuation
Industry RankSector Rank
PE 7.13
Fwd PE 11.43
P/S 1.08
P/FCF 3.92
P/OCF 1.97
P/B 1.79
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.49
EY14.02%
EPS(NY)0.31
Fwd EY8.75%
FCF(TTM)0.89
FCFY25.48%
OCF(TTM)1.77
OCFY50.69%
SpS3.23
BVpS1.95
TBVpS-0.31
PEG (NY)0.78
PEG (5Y)1.86
Profitability
Industry RankSector Rank
ROA 7.65%
ROE 25.46%
ROCE 10.32%
ROIC 9.18%
ROICexc 9.3%
ROICexgc 17.9%
OM 15.24%
PM (TTM) 15.38%
GM 71.52%
FCFM 27.59%
ROA(3y)5.37%
ROA(5y)4.73%
ROE(3y)18.29%
ROE(5y)15.76%
ROIC(3y)7.29%
ROIC(5y)7.43%
ROICexc(3y)7.33%
ROICexc(5y)7.56%
ROICexgc(3y)14.31%
ROICexgc(5y)14.26%
ROCE(3y)8.21%
ROCE(5y)8.37%
ROICexcg growth 3Y2.15%
ROICexcg growth 5Y1.18%
ROICexc growth 3Y2.13%
ROICexc growth 5Y1.25%
OM growth 3Y1.88%
OM growth 5Y4.55%
PM growth 3Y18.99%
PM growth 5Y5.33%
GM growth 3Y1.23%
GM growth 5Y2.42%
F-Score8
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 1.27
Debt/FCF 3.49
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 27.3%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 179.35%
Current Ratio 0.57
Quick Ratio 0.52
Altman-Z 1.13
F-Score8
WACC5.92%
ROIC/WACC1.55
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)35.51%
Cap/Sales(5y)34.27%
Profit Quality(3y)83.36%
Profit Quality(5y)126.31%
High Growth Momentum
Growth
EPS 1Y (TTM)11.36%
EPS 3Y22.59%
EPS 5Y3.83%
EPS Q2Q%11.11%
EPS Next Y9.19%
EPS Next 2Y-6.52%
EPS Next 3Y-3.55%
EPS Next 5Y-4.31%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y5.31%
Revenue growth 5Y0.27%
Sales Q2Q%6.08%
Revenue Next Year4.96%
Revenue Next 2Y2.81%
Revenue Next 3Y2.08%
Revenue Next 5Y1.14%
EBIT growth 1Y20.15%
EBIT growth 3Y7.29%
EBIT growth 5Y4.83%
EBIT Next Year236.07%
EBIT Next 3Y49.62%
EBIT Next 5Y27.2%
FCF growth 1Y2427.08%
FCF growth 3Y10.82%
FCF growth 5Y1.93%
OCF growth 1Y25.92%
OCF growth 3Y2.32%
OCF growth 5Y0.66%