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 36 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 has a bad growth rate and is valued cheaply. Finally ORAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ORAN was profitable.
- In the past year ORAN had a positive cash flow from operations.
- ORAN had positive earnings in each of the past 5 years.
- ORAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.20%, ORAN is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- ORAN has a better Return On Equity (7.30%) than 61.76% of its industry peers.
- The Return On Invested Capital of ORAN (5.40%) is better than 70.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ORAN is in line with the industry average of 6.71%.
- The 3 year average ROIC (4.98%) for ORAN is below the current ROIC(5.40%), indicating increased profibility in the last year.
| 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
- ORAN has a better Profit Margin (5.41%) than 67.65% of its industry peers.
- In the last couple of years the Profit Margin of ORAN has grown nicely.
- ORAN has a Operating Margin of 13.69%. This is in the better half of the industry: ORAN outperforms 64.71% of its industry peers.
- ORAN's Operating Margin has been stable in the last couple of years.
- ORAN has a Gross Margin of 59.39%. This is comparable to the rest of the industry: ORAN outperforms 52.94% of its industry peers.
| 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
- ORAN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ORAN has about the same amount of shares outstanding.
- The debt/assets ratio for ORAN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.79, we must say that ORAN is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.79, ORAN is doing worse than 64.71% of the companies in the same industry.
- ORAN has a debt to FCF ratio of 12.15. This is a negative value and a sign of low solvency as ORAN would need 12.15 years to pay back of all of its debts.
- ORAN's Debt to FCF ratio of 12.15 is in line compared to the rest of the industry. ORAN outperforms 58.82% of its industry peers.
- 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 of 1.18. This is comparable to the rest of the industry: ORAN outperforms 52.94% of 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 has a Current ratio of 0.94. This is in the lower half of the industry: ORAN underperforms 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.
- Looking at the Quick ratio, with a value of 0.91, ORAN is in line with its industry, 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
- The Earnings Per Share has grown by an impressive 41.17% over the past year.
- Measured over the past 5 years, ORAN shows a small growth in Earnings Per Share. The EPS has been growing by 6.51% on average per year.
- The Revenue has decreased by -2.98% in the past year.
- ORAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
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
- Based on estimates for the next years, ORAN will show a small growth in Earnings Per Share. The EPS will grow by 2.28% on average per year.
- The Revenue is expected to decrease by -0.11% on average over the next years.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.99, which indicates a very decent valuation of ORAN.
- Compared to the rest of the industry, the Price/Earnings ratio of ORAN indicates a somewhat cheap valuation: ORAN is cheaper than 79.41% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ORAN is valued rather cheaply.
- ORAN is valuated reasonably with a Price/Forward Earnings ratio of 8.99.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ORAN indicates a rather cheap valuation: ORAN is cheaper than 94.12% of the companies listed in the same industry.
- ORAN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
- ORAN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ORAN is 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
- ORAN has a very decent profitability rating, which 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.
- Compared to an average industry Dividend Yield of 2.29, ORAN pays a better dividend. On top of this ORAN pays more dividend than 91.18% of the companies listed in the same industry.
- ORAN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- ORAN pays out 83.52% of its income as dividend. 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%.