ORANGE BELGIUM (OBEL.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:OBEL - BE0003735496 - Common Stock
19.25 EUR
0 (0%)
Overall OBEL gets a fundamental rating of 3 out of 10. We evaluated OBEL against 6 industry peers in the Wireless Telecommunication Services industry. There are concerns on the financial health of OBEL while its profitability can be described as average. OBEL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- OBEL had positive earnings in the past year.
- In the past year OBEL had a positive cash flow from operations.
- Each year in the past 5 years OBEL has been profitable.
- Each year in the past 5 years OBEL had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of OBEL (0.93%) is comparable to the rest of the industry.
- The Return On Equity of OBEL (3.88%) is better than 66.67% of its industry peers.
- OBEL has a Return On Invested Capital of 3.63%. This is in the better half of the industry: OBEL outperforms 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for OBEL is below the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.88% | ||
| ROIC | 3.64% |
ROA(3y)1.11%
ROA(5y)1.76%
ROE(3y)3.59%
ROE(5y)5.18%
ROIC(3y)4.46%
ROIC(5y)4.89%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.89%, OBEL is doing worse than 66.67% of the companies in the same industry.
- OBEL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.62%, OBEL is in line with its industry, outperforming 50.00% of the companies in the same industry.
- OBEL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.11%, OBEL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of OBEL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.62% | ||
| PM (TTM) | 1.89% | ||
| GM | 68.11% |
OM growth 3Y7.61%
OM growth 5Y9.59%
PM growth 3Y-27.48%
PM growth 5Y-15.2%
GM growth 3Y4.71%
GM growth 5Y4.35%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OBEL is destroying value.
- Compared to 1 year ago, OBEL has more shares outstanding
- The number of shares outstanding for OBEL has been increased compared to 5 years ago.
- OBEL has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.96, we must say that OBEL is in the distress zone and has some risk of bankruptcy.
- OBEL has a worse Altman-Z score (0.96) than 66.67% of its industry peers.
- The Debt to FCF ratio of OBEL is 23.91, which is on the high side as it means it would take OBEL, 23.91 years of fcf income to pay off all of its debts.
- OBEL's Debt to FCF ratio of 23.91 is on the low side compared to the rest of the industry. OBEL is outperformed by 83.33% of its industry peers.
- A Debt/Equity ratio of 1.92 is on the high side and indicates that OBEL has dependencies on debt financing.
- The Debt to Equity ratio of OBEL (1.92) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 23.91 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.69
WACC5.27%
2.3 Liquidity
- OBEL has a Current Ratio of 0.49. This is a bad value and indicates that OBEL is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.49, OBEL is doing worse than 83.33% of the companies in the same industry.
- OBEL has a Quick Ratio of 0.49. This is a bad value and indicates that OBEL is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of OBEL (0.46) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- OBEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 780.62%, which is quite impressive.
- OBEL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.64% yearly.
- The Revenue has decreased by -0.39% in the past year.
- OBEL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.26% yearly.
EPS 1Y (TTM)780.62%
EPS 3Y-19.85%
EPS 5Y-9.64%
EPS Q2Q%119.69%
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y13.5%
Revenue growth 5Y8.26%
Sales Q2Q%-1.52%
3.2 Future
- The Earnings Per Share is expected to decrease by -12.63% on average over the next years. This is quite bad
- OBEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-6.88%
EPS Next 2Y-36.27%
EPS Next 3Y-36.38%
EPS Next 5Y-12.63%
Revenue Next Year4.91%
Revenue Next 2Y2.42%
Revenue Next 3Y3.44%
Revenue Next 5Y2.24%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 32.08 indicates a quite expensive valuation of OBEL.
- 66.67% of the companies in the same industry are cheaper than OBEL, based on the Price/Earnings ratio.
- OBEL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 92.06, the valuation of OBEL can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of OBEL indicates a slightly more expensive valuation: OBEL is more expensive than 66.67% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of OBEL to the average of the S&P500 Index (25.98), we can say OBEL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.08 | ||
| Fwd PE | 92.06 |
4.2 Price Multiples
- 83.33% of the companies in the same industry are more expensive than OBEL, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, OBEL is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.76 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
- The decent profitability rating of OBEL may justify a higher PE ratio.
- OBEL's earnings are expected to decrease with -36.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.27%
EPS Next 3Y-36.38%
5. Dividend
5.1 Amount
- No dividends for OBEL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ORANGE BELGIUM / OBEL.BR FAQ
Can you provide the ChartMill fundamental rating for ORANGE BELGIUM?
ChartMill assigns a fundamental rating of 3 / 10 to OBEL.BR.
Can you provide the valuation status for ORANGE BELGIUM?
ChartMill assigns a valuation rating of 3 / 10 to ORANGE BELGIUM (OBEL.BR). This can be considered as Overvalued.
How profitable is ORANGE BELGIUM (OBEL.BR) stock?
ORANGE BELGIUM (OBEL.BR) has a profitability rating of 6 / 10.
How financially healthy is ORANGE BELGIUM?
The financial health rating of ORANGE BELGIUM (OBEL.BR) is 0 / 10.
What is the earnings growth outlook for ORANGE BELGIUM?
The Earnings per Share (EPS) of ORANGE BELGIUM (OBEL.BR) is expected to decline by -6.88% in the next year.