NOS SGPS (NOS.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:NOS - PTZON0AM0006 - Common Stock
4.385 EUR
+0.05 (+1.27%)
We assign a fundamental rating of 5 out of 10 to NOS. NOS was compared to 35 industry peers in the Diversified Telecommunication Services industry. NOS has an excellent profitability rating, but there are concerns on its financial health. NOS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NOS was profitable.
- NOS had a positive operating cash flow in the past year.
- In the past 5 years NOS has always been profitable.
- In the past 5 years NOS always reported a positive cash flow from operatings.
1.2 Ratios
- NOS has a Return On Assets of 7.14%. This is amongst the best in the industry. NOS outperforms 88.57% of its industry peers.
- NOS has a Return On Equity of 24.06%. This is amongst the best in the industry. NOS outperforms 91.43% of its industry peers.
- The Return On Invested Capital of NOS (10.18%) is better than 88.57% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NOS is in line with the industry average of 8.42%.
- The 3 year average ROIC (7.84%) for NOS is below the current ROIC(10.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 24.06% | ||
| ROIC | 10.18% |
ROA(3y)6.6%
ROA(5y)5.43%
ROE(3y)21.67%
ROE(5y)17.95%
ROIC(3y)7.84%
ROIC(5y)7.63%
1.3 Margins
- The Profit Margin of NOS (14.18%) is better than 74.29% of its industry peers.
- In the last couple of years the Profit Margin of NOS has grown nicely.
- The Operating Margin of NOS (16.79%) is comparable to the rest of the industry.
- NOS's Operating Margin has been stable in the last couple of years.
- NOS's Gross Margin of 71.16% is fine compared to the rest of the industry. NOS outperforms 71.43% of its industry peers.
- NOS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.79% | ||
| PM (TTM) | 14.18% | ||
| GM | 71.16% |
OM growth 3Y3.9%
OM growth 5Y1.36%
PM growth 3Y16.78%
PM growth 5Y10.28%
GM growth 3Y2.11%
GM growth 5Y0.6%
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.
- Compared to 1 year ago, NOS has about the same amount of shares outstanding.
- Compared to 5 years ago, NOS has less shares outstanding
- NOS has a better debt/assets ratio than last year.
2.2 Solvency
- NOS has an Altman-Z score of 1.51. This is a bad value and indicates that NOS is not financially healthy and even has some risk of bankruptcy.
- NOS has a better Altman-Z score (1.51) than 74.29% of its industry peers.
- The Debt to FCF ratio of NOS is 4.88, which is a neutral value as it means it would take NOS, 4.88 years of fcf income to pay off all of its debts.
- NOS has a better Debt to FCF ratio (4.88) than 85.71% of its industry peers.
- A Debt/Equity ratio of 1.30 is on the high side and indicates that NOS has dependencies on debt financing.
- NOS has a worse Debt to Equity ratio (1.30) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 4.88 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.6
WACC6.37%
2.3 Liquidity
- A Current Ratio of 0.61 indicates that NOS may have some problems paying its short term obligations.
- NOS has a Current ratio of 0.61. This is amonst the worse of the industry: NOS underperforms 80.00% of its industry peers.
- A Quick Ratio of 0.57 indicates that NOS may have some problems paying its short term obligations.
- NOS has a Quick ratio of 0.57. This is amonst the worse of the industry: NOS underperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- NOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.43%, which is quite impressive.
- The Earnings Per Share has been growing by 14.44% on average over the past years. This is quite good.
- NOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.36%.
- The Revenue has been growing slightly by 3.07% on average over the past years.
EPS 1Y (TTM)51.43%
EPS 3Y23.41%
EPS 5Y14.44%
EPS Q2Q%30%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y5.85%
Revenue growth 5Y3.07%
Sales Q2Q%5.69%
3.2 Future
- NOS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.66% yearly.
- Based on estimates for the next years, NOS will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y-25.2%
EPS Next 2Y-15.04%
EPS Next 3Y-9.99%
EPS Next 5Y-7.66%
Revenue Next Year8.39%
Revenue Next 2Y4.79%
Revenue Next 3Y3.43%
Revenue Next 5Y3.57%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.27, which indicates a very decent valuation of NOS.
- NOS's Price/Earnings ratio is rather cheap when compared to the industry. NOS is cheaper than 91.43% of the companies in the same industry.
- NOS is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.46, the valuation of NOS can be described as very reasonable.
- 68.57% of the companies in the same industry are more expensive than NOS, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, NOS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, NOS is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- NOS has an outstanding profitability rating, which may justify a higher PE ratio.
- NOS's earnings are expected to decrease with -9.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-15.04%
EPS Next 3Y-9.99%
5. Dividend
5.1 Amount
- NOS has a Yearly Dividend Yield of 8.11%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.26, NOS pays a better dividend. On top of this NOS pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, NOS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
5.2 History
- The dividend of NOS decreases each year by -0.01%.
Dividend Growth(5Y)-0.01%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- 80.98% of the earnings are spent on dividend by NOS. This is not a sustainable payout ratio.
- NOS's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP80.98%
EPS Next 2Y-15.04%
EPS Next 3Y-9.99%
NOS SGPS / NOS.LS FAQ
What is the ChartMill fundamental rating of NOS SGPS (NOS.LS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOS.LS.
Can you provide the valuation status for NOS SGPS?
ChartMill assigns a valuation rating of 6 / 10 to NOS SGPS (NOS.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for NOS SGPS?
NOS SGPS (NOS.LS) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for NOS stock?
The Earnings per Share (EPS) of NOS SGPS (NOS.LS) is expected to decline by -25.2% in the next year.
How sustainable is the dividend of NOS SGPS (NOS.LS) stock?
The dividend rating of NOS SGPS (NOS.LS) is 6 / 10 and the dividend payout ratio is 80.98%.