ORANGE-SPON ADR (ORAN) Stock Fundamental Analysis
NYSE:ORAN - New York Stock Exchange, Inc. - US6840601065 - ADR - Currency: USD
Taking everything into account, ORAN scores 5 out of 10 in our fundamental rating. ORAN was compared to 31 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 cheap, but on the other hand it scores bad on growth. Finally ORAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ORAN had positive earnings in the past year.
ORAN had a positive operating cash flow in the past year.
ORAN had positive earnings in each of the past 5 years.
In the past 5 years ORAN always reported a positive cash flow from operatings.
1.2 Ratios
ORAN's Return On Assets of 2.20% is fine compared to the rest of the industry. ORAN outperforms 61.76% of its industry peers.
Looking at the Return On Equity, with a value of 7.30%, ORAN is in the better half of 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.
The Average Return On Invested Capital over the past 3 years for ORAN is in line with the industry average of 5.74%.
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
ORAN's Profit Margin of 5.41% is fine compared to the rest of the industry. ORAN outperforms 67.65% of its industry peers.
In the last couple of years the Profit Margin of ORAN has grown nicely.
With a decent Operating Margin value of 13.69%, ORAN is doing good in 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.
ORAN has a Gross Margin (59.39%) which is in line with 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORAN is still creating some value.
ORAN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ORAN has about the same amount of shares outstanding.
ORAN has a better debt/assets ratio than last year.
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.
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.
Looking at the Debt to FCF ratio, with a value of 12.15, ORAN is in line with its industry, 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.
With a Debt to Equity ratio value of 1.18, ORAN perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.15 | ||
| Altman-Z | 0.79 |
ROIC/WACC1.38
WACC3.9%
2.3 Liquidity
ORAN has a Current 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 Current ratio, with a value of 0.94, ORAN is doing worse than 61.76% of the companies in the same industry.
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.
ORAN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.51% yearly.
ORAN shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
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
The Earnings Per Share is expected to grow by 2.28% on average over the next years.
ORAN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.11% yearly.
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.
Based on the Price/Earnings ratio, ORAN is valued a bit cheaper than 79.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of ORAN to the average of the S&P500 Index (28.29), we can say ORAN is valued rather cheaply.
ORAN is valuated reasonably with a Price/Forward Earnings ratio of 8.99.
Based on the Price/Forward Earnings ratio, ORAN is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.32. ORAN is valued rather cheaply when compared to this.
| 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
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
With a Yearly Dividend Yield of 7.03%, ORAN is a good candidate for dividend investing.
ORAN's Dividend Yield is rather good when compared to the industry average which is at 5.12. ORAN pays more dividend than 91.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, 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%
11.15
+0.04 (+0.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners1.21%
Inst Owner Change3.64%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.64B
Analysts83.7
Price Target14.05 (26.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
Yearly Dividend0.7
Dividend Growth(5Y)0.01%
DP83.52%
Div Incr Years0
Div Non Decr Years0
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)-3.89%
PT rev (3m)-0.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.02%
EPS NY rev (3m)-5.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 8.99 | ||
| P/S | 0.65 | ||
| P/FCF | 7.43 | ||
| P/OCF | 2.48 | ||
| P/B | 0.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.91 |
EPS(TTM)0.93
EY8.34%
EPS(NY)1.24
Fwd EY11.12%
FCF(TTM)1.5
FCFY13.45%
OCF(TTM)4.49
OCFY40.3%
SpS17.27
BVpS12.79
TBVpS-0.99
PEG (NY)N/A
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 7.3% | ||
| ROCE | 7.61% | ||
| ROIC | 5.4% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 13.02% | ||
| OM | 13.69% | ||
| PM (TTM) | 5.41% | ||
| GM | 59.39% | ||
| FCFM | 8.69% |
ROA(3y)1.28%
ROA(5y)2.13%
ROE(3y)4.42%
ROE(5y)7.03%
ROIC(3y)4.98%
ROIC(5y)5.09%
ROICexc(3y)5.76%
ROICexc(5y)5.91%
ROICexgc(3y)12.71%
ROICexgc(5y)14.12%
ROCE(3y)7.04%
ROCE(5y)7.16%
ROICexcg growth 3Y-6.01%
ROICexcg growth 5Y-7.94%
ROICexc growth 3Y-1.12%
ROICexc growth 5Y-0.87%
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
F-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 12.15 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 86.7% | ||
| Cap/Sales | 17.33% | ||
| Interest Coverage | 4.94 | ||
| Cash Conversion | 77.25% | ||
| Profit Quality | 160.66% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.79 |
F-Score9
WACC3.9%
ROIC/WACC1.38
Cap/Depr(3y)97.88%
Cap/Depr(5y)98.88%
Cap/Sales(3y)19.5%
Cap/Sales(5y)19.73%
Profit Quality(3y)10466.8%
Profit Quality(5y)6311.17%
High Growth Momentum
Growth
EPS 1Y (TTM)41.17%
EPS 3Y-20.78%
EPS 5Y6.51%
EPS Q2Q%3.33%
EPS Next Y-6.37%
EPS Next 2Y1.89%
EPS Next 3Y4.69%
EPS Next 5Y2.28%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y1.44%
Revenue growth 5Y1.29%
Sales Q2Q%-7.92%
Revenue Next Year-8.01%
Revenue Next 2Y-3.52%
Revenue Next 3Y-2.14%
Revenue Next 5Y-0.11%
EBIT growth 1Y-4.11%
EBIT growth 3Y-0.76%
EBIT growth 5Y2.33%
EBIT Next Year115.05%
EBIT Next 3Y30.94%
EBIT Next 5Y18.77%
FCF growth 1Y16.29%
FCF growth 3Y0.59%
FCF growth 5Y17.78%
OCF growth 1Y-4.15%
OCF growth 3Y-1.72%
OCF growth 5Y4.86%