ORANGE (ORA.PA) Stock Fundamental Analysis
EPA:ORA - Euronext Paris - Matif - FR0000133308 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to ORA. ORA was compared to 27 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of ORA while its profitability can be described as average. ORA is valued correctly, but it does not seem to be growing. Finally ORA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ORA was profitable.
In the past year ORA had a positive cash flow from operations.
Each year in the past 5 years ORA has been profitable.
Each year in the past 5 years ORA had a positive operating cash flow.
1.2 Ratios
ORA has a Return On Assets of 2.09%. This is in the lower half of the industry: ORA underperforms 62.96% of its industry peers.
The Return On Equity of ORA (6.84%) is worse than 62.96% of its industry peers.
ORA has a Return On Invested Capital (5.67%) which is in line with its industry peers.
ORA had an Average Return On Invested Capital over the past 3 years of 5.20%. This is below the industry average of 7.76%.
The last Return On Invested Capital (5.67%) for ORA is above the 3 year average (5.20%), which is a sign of increasing profitability.
| 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
ORA's Profit Margin of 5.40% is in line compared to the rest of the industry. ORA outperforms 48.15% of its industry peers.
ORA's Profit Margin has declined in the last couple of years.
ORA has a Operating Margin (15.19%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ORA has grown nicely.
The Gross Margin of ORA (60.66%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ORA has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ORA is creating some value.
ORA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ORA has been increased compared to 5 years ago.
Compared to 1 year ago, ORA has an improved debt to assets ratio.
2.2 Solvency
ORA has an Altman-Z score of 0.85. This is a bad value and indicates that ORA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.85, ORA is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
ORA has a debt to FCF ratio of 12.34. This is a negative value and a sign of low solvency as ORA would need 12.34 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.34, ORA is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.14 is on the high side and indicates that ORA has dependencies on debt financing.
ORA has a Debt to Equity ratio of 1.14. This is comparable to the rest of the industry: ORA outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 12.34 | ||
| Altman-Z | 0.85 |
ROIC/WACC1.27
WACC4.48%
2.3 Liquidity
ORA has a Current Ratio of 0.92. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
ORA's Current ratio of 0.92 is fine compared to the rest of the industry. ORA outperforms 70.37% of its industry peers.
A Quick Ratio of 0.89 indicates that ORA may have some problems paying its short term obligations.
ORA's Quick ratio of 0.89 is fine compared to the rest of the industry. ORA outperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for ORA have decreased by -0.38% in the last year.
The Earnings Per Share has been decreasing by -4.51% on average over the past years.
The Revenue has decreased by -3.85% in the past year.
Measured over the past years, ORA shows a decrease in Revenue. The Revenue has been decreasing by -0.95% on average per year.
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, ORA will show a small growth in Earnings Per Share. The EPS will grow by 4.24% on average per year.
The Revenue is expected to grow by 0.77% on average over the next years.
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y4.24%
Revenue Next Year0.83%
Revenue Next 2Y0.96%
Revenue Next 3Y1.06%
Revenue Next 5Y0.77%
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
With a Price/Earnings ratio of 16.10, ORA is valued correctly.
Based on the Price/Earnings ratio, ORA is valued a bit cheaper than 62.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, ORA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.17, ORA is valued correctly.
ORA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.70. ORA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORA is valued a bit cheaper than 77.78% of the companies in the same industry.
ORA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ORA is cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.07 | ||
| EV/EBITDA | 4.31 |
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
ORA has a Yearly Dividend Yield of 5.88%, which is a nice return.
Compared to an average industry Dividend Yield of 4.71, ORA pays a better dividend. On top of this ORA pays more dividend than 81.48% of the companies listed in the same industry.
ORA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of ORA has a limited annual growth rate of 0.57%.
Dividend Growth(5Y)0.57%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
ORA pays out 88.09% of its income as dividend. This is not a sustainable payout ratio.
ORA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP88.09%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPA:ORA (7/1/2025, 7:00:00 PM)
13.2
+0.29 (+2.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap35.09B
Analysts77.6
Price Target13.5 (2.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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)0.91%
PT rev (3m)4.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-11.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 13.17 | ||
| P/S | 0.87 | ||
| P/FCF | 10.07 | ||
| P/OCF | 3.44 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.31 |
EPS(TTM)0.82
EY6.21%
EPS(NY)1
Fwd EY7.59%
FCF(TTM)1.31
FCFY9.93%
OCF(TTM)3.83
OCFY29.05%
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 | 0.85 |
F-Score9
WACC4.48%
ROIC/WACC1.27
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 5Y4.24%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.47%
Revenue Next Year0.83%
Revenue Next 2Y0.96%
Revenue Next 3Y1.06%
Revenue Next 5Y0.77%
EBIT growth 1Y13.05%
EBIT growth 3Y2.49%
EBIT growth 5Y0.59%
EBIT Next Year148.18%
EBIT Next 3Y37.59%
EBIT Next 5Y19.13%
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%