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. ORAN scores excellent on profitability, but there are concerns on its financial health. ORAN is valued quite cheap, but it does not seem to be growing. Finally 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.
- In the past 5 years ORAN has always been profitable.
- 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 Return On Equity of 7.30%. This is in the better half of the industry: ORAN outperforms 61.76% of its industry peers.
- 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.
- ORAN had an Average Return On Invested Capital over the past 3 years of 4.98%. This 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
- With a decent Profit Margin value of 5.41%, ORAN is doing good in 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.
- 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.
- In the last couple of years the Operating Margin of ORAN has remained more or less at the same level.
- With a Gross Margin value of 59.39%, ORAN perfoms like the industry average, 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
- ORAN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ORAN remains at a similar level compared to 1 year ago.
- The debt/assets ratio for ORAN has been reduced compared to a year ago.
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.
- The Altman-Z score of ORAN (0.79) is worse than 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.
- 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 (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
- 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
- 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
- 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.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.99 indicates a reasonable valuation of ORAN.
- Based on the Price/Earnings ratio, ORAN is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
- ORAN is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.99, the valuation of ORAN can be described as very reasonable.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ORAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORAN indicates a rather cheap valuation: ORAN is cheaper than 97.06% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ORAN is valued cheaper than 91.18% of the companies in the same industry.
| 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.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.
- ORAN's earnings are growing more than its dividend. This makes the dividend growth 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%.