ORANGE-SPON ADR (ORAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORAN - US6840601065 - ADR
11.15 USD
+0.04 (+0.36%)
11.15 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ORAN. ORAN was compared to 37 industry peers in the Diversified Telecommunication Services industry. While ORAN has a great profitability rating, there are quite some concerns on its financial health. ORAN is valued quite cheap, but it does not seem to be growing. ORAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ORAN was profitable.
- ORAN had a positive operating cash flow in the past year.
- Each year in the past 5 years ORAN has been profitable.
- ORAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ORAN has a Return On Assets of 2.20%. This is in the better half of the industry: ORAN outperforms 61.76% of its industry peers.
- With a decent Return On Equity value of 7.30%, ORAN is doing good in the industry, outperforming 61.76% of the companies in the same industry.
- With a decent Return On Invested Capital value of 5.40%, ORAN is doing good in the industry, outperforming 70.59% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ORAN is in line with the industry average of 6.52%.
- The last Return On Invested Capital (5.40%) for ORAN is above the 3 year average (4.98%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 5.41%, ORAN is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
- In the last couple of years the Profit Margin of ORAN has grown nicely.
- Looking at the Operating Margin, with a value of 13.69%, ORAN is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- ORAN's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 59.39%, ORAN is in line with its industry, outperforming 52.94% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ORAN is creating some value.
- ORAN has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 1 year ago, ORAN has an improved debt to assets ratio.
2.2 Solvency
- ORAN has an Altman-Z score of 0.79. This is a bad value and indicates that ORAN is not financially healthy and even has some risk of bankruptcy.
- ORAN's Altman-Z score of 0.79 is on the low side compared to the rest of the industry. ORAN is outperformed by 64.71% of its industry peers.
- The Debt to FCF ratio of ORAN is 12.15, which is on the high side as it means it would take ORAN, 12.15 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 12.15, ORAN perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that ORAN has dependencies on debt financing.
- ORAN has a Debt to Equity ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.15 | ||
| Altman-Z | 0.79 |
ROIC/WACC1.38
WACC3.9%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that ORAN may have some problems paying its short term obligations.
- ORAN's Current ratio of 0.94 is on the low side compared to the rest of the industry. ORAN is outperformed by 61.76% of its industry peers.
- ORAN has a Quick Ratio of 0.94. This is a bad value and indicates that ORAN is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.91, ORAN perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- ORAN 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.
- The Revenue has decreased by -2.98% in the past year.
- Measured over the past years, ORAN shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.
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
- ORAN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.28% yearly.
- Based on estimates for the next years, ORAN will show a decrease in Revenue. The Revenue will decrease by -0.11% on average per year.
EPS Next Y-6.37%
EPS Next 2Y1.89%
EPS Next 3Y4.69%
EPS Next 5Y2.28%
Revenue Next Year-8.01%
Revenue Next 2Y-3.52%
Revenue Next 3Y-2.14%
Revenue Next 5Y-0.11%
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 11.99 indicates a reasonable valuation of ORAN.
- 79.41% of the companies in the same industry are more expensive than ORAN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, ORAN is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.99 indicates a reasonable valuation of ORAN.
- Based on the Price/Forward Earnings ratio, ORAN is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ORAN to the average of the S&P500 Index (24.32), we can say ORAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ORAN is valued cheaper than 97.06% of the companies in the same industry.
- 91.18% of the companies in the same industry are more expensive than ORAN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 3.91 |
4.3 Compensation for Growth
- The decent profitability rating of ORAN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.84
EPS Next 2Y1.89%
EPS Next 3Y4.69%
5. Dividend
5.1 Amount
- ORAN has a Yearly Dividend Yield of 7.03%, which is a nice return.
- ORAN's Dividend Yield is rather good when compared to the industry average which is at 2.33. ORAN pays more dividend than 91.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ORAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
5.2 History
- The dividend of ORAN has a limited annual growth rate of 0.01%.
- ORAN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 83.52% of the earnings are spent on dividend by ORAN. This is not a sustainable payout ratio.
- The dividend of ORAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP83.52%
EPS Next 2Y1.89%
EPS Next 3Y4.69%
ORANGE-SPON ADR / ORAN FAQ
What is the ChartMill fundamental rating of ORANGE-SPON ADR (ORAN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ORAN.
What is the valuation status for ORAN stock?
ChartMill assigns a valuation rating of 7 / 10 to ORANGE-SPON ADR (ORAN). This can be considered as Undervalued.
What is the profitability of ORAN stock?
ORANGE-SPON ADR (ORAN) has a profitability rating of 7 / 10.
How financially healthy is ORANGE-SPON ADR?
The financial health rating of ORANGE-SPON ADR (ORAN) is 2 / 10.
How sustainable is the dividend of ORANGE-SPON ADR (ORAN) stock?
The dividend rating of ORANGE-SPON ADR (ORAN) is 7 / 10 and the dividend payout ratio is 83.52%.