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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. ORAN has a bad growth rate and is valued cheaply. 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.
- In the past 5 years ORAN has always been profitable.
- Each year in the past 5 years ORAN had a positive operating cash flow.
1.2 Ratios
- ORAN has a better Return On Assets (2.20%) than 61.76% of its industry peers.
- ORAN has a better Return On Equity (7.30%) than 61.76% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.40%, ORAN is in the better half of 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 6.71%.
- 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 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.
- With a Altman-Z score value of 0.79, ORAN is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- 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.
- 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.
- A Quick Ratio of 0.91 indicates that ORAN may have some problems paying its short term obligations.
- ORAN has a Quick ratio of 0.91. This is comparable to the rest of the industry: ORAN outperforms 41.18% of its industry peers.
| 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.
- 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.
- Looking at the last year, ORAN shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last 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
- The Earnings Per Share is expected to grow by 2.28% on average over the next years.
- 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
- 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
- Based on the Price/Earnings ratio of 11.99, the valuation of ORAN can be described as reasonable.
- 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.
- ORAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 8.99, the valuation of ORAN can be described as 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 25.96. 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 1.82, 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 been paying a dividend for at least 10 years, so it has 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.
- 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%.