PROXIMUS (PROX.BR) Stock Fundamental Analysis
EBR:PROX - Euronext Brussels - BE0003810273 - Common Stock - Currency: EUR
Taking everything into account, PROX scores 4 out of 10 in our fundamental rating. PROX was compared to 29 industry peers in the Diversified Telecommunication Services industry. While PROX is still in line with the averages on profitability rating, there are concerns on its financial health. PROX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year PROX was profitable.
In the past year PROX had a positive cash flow from operations.
In the past 5 years PROX has always been profitable.
Each year in the past 5 years PROX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PROX (2.97%) is comparable to the rest of the industry.
With a decent Return On Equity value of 10.43%, PROX is doing good in the industry, outperforming 63.33% of the companies in the same industry.
With a Return On Invested Capital value of 5.26%, PROX is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for PROX is in line with the industry average of 7.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 10.43% | ||
| ROIC | 5.26% |
ROA(3y)4.09%
ROA(5y)4.57%
ROE(3y)13.1%
ROE(5y)14.36%
ROIC(3y)6.57%
ROIC(5y)7.05%
1.3 Margins
PROX has a Profit Margin (5.87%) which is in line with its industry peers.
PROX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.34%, PROX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PROX has declined.
With a decent Gross Margin value of 63.99%, PROX is doing good in the industry, outperforming 73.33% of the companies in the same industry.
PROX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.34% | ||
| PM (TTM) | 5.87% | ||
| GM | 63.99% |
OM growth 3Y-12.33%
OM growth 5Y-5.62%
PM growth 3Y-16.85%
PM growth 5Y-7.54%
GM growth 3Y-0.9%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
PROX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PROX has about the same amount of shares outstanding.
The number of shares outstanding for PROX remains at a similar level compared to 5 years ago.
PROX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that PROX is in the distress zone and has some risk of bankruptcy.
PROX has a Altman-Z score (1.07) which is in line with its industry peers.
The Debt to FCF ratio of PROX is 34.88, which is on the high side as it means it would take PROX, 34.88 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 34.88, PROX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.23 is on the high side and indicates that PROX has dependencies on debt financing.
The Debt to Equity ratio of PROX (1.23) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 34.88 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.56
WACC3.38%
2.3 Liquidity
A Current Ratio of 0.76 indicates that PROX may have some problems paying its short term obligations.
PROX has a Current ratio (0.76) which is in line with its industry peers.
A Quick Ratio of 0.70 indicates that PROX may have some problems paying its short term obligations.
With a Quick ratio value of 0.70, PROX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
PROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.41%, which is quite impressive.
PROX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.58% yearly.
The Revenue has been growing slightly by 3.39% in the past year.
The Revenue has been growing slightly by 0.78% on average over the past years.
EPS 1Y (TTM)32.41%
EPS 3Y-14.08%
EPS 5Y-6.58%
EPS Q2Q%124%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y3.26%
Revenue growth 5Y0.78%
Sales Q2Q%14.28%
3.2 Future
The Earnings Per Share is expected to grow by 3.51% on average over the next years.
The Revenue is expected to grow by 3.28% on average over the next years.
EPS Next Y16.03%
EPS Next 2Y3.04%
EPS Next 3Y2.37%
EPS Next 5Y3.51%
Revenue Next Year3.67%
Revenue Next 2Y4.4%
Revenue Next 3Y4.01%
Revenue Next 5Y3.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.43, the valuation of PROX can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PROX indicates a rather cheap valuation: PROX is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, PROX is valued rather cheaply.
The Price/Forward Earnings ratio is 5.38, which indicates a rather cheap valuation of PROX.
PROX's Price/Forward Earnings ratio is rather cheap when compared to the industry. PROX is cheaper than 96.67% of the companies in the same industry.
PROX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.43 | ||
| Fwd PE | 5.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PROX is valued cheaper than 93.33% of the companies in the same industry.
PROX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.86 | ||
| EV/EBITDA | 3.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y3.04%
EPS Next 3Y2.37%
5. Dividend
5.1 Amount
PROX has a Yearly Dividend Yield of 13.35%, which is a nice return.
Compared to an average industry Dividend Yield of 5.01, PROX pays a better dividend. On top of this PROX pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, PROX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.35% |
5.2 History
The dividend of PROX decreases each year by -4.42%.
Dividend Growth(5Y)-4.42%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
107.80% of the earnings are spent on dividend by PROX. This is not a sustainable payout ratio.
DP107.8%
EPS Next 2Y3.04%
EPS Next 3Y2.37%
EBR:PROX (3/7/2025, 7:00:00 PM)
6.335
+0.04 (+0.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.79%
Inst Owner ChangeN/A
Ins Owners6.01%
Ins Owner ChangeN/A
Market Cap2.14B
Analysts68.57
Price Target7.1 (12.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.35% |
Yearly Dividend1.2
Dividend Growth(5Y)-4.42%
DP107.8%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.41%
Min EPS beat(2)14.69%
Max EPS beat(2)20.14%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-30.42%
Max EPS beat(4)20.14%
EPS beat(8)4
Avg EPS beat(8)-1.39%
EPS beat(12)6
Avg EPS beat(12)-2.04%
EPS beat(16)9
Avg EPS beat(16)0.81%
Revenue beat(2)2
Avg Revenue beat(2)1.48%
Min Revenue beat(2)1.27%
Max Revenue beat(2)1.69%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)1.69%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)7
Avg Revenue beat(12)0.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)-1.89%
PT rev (3m)-15.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)3.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.15%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.43 | ||
| Fwd PE | 5.38 | ||
| P/S | 0.35 | ||
| P/FCF | 15.86 | ||
| P/OCF | 1.39 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.56 |
EPS(TTM)1.43
EY22.57%
EPS(NY)1.18
Fwd EY18.6%
FCF(TTM)0.4
FCFY6.3%
OCF(TTM)4.57
OCFY72.15%
SpS18.09
BVpS10.18
TBVpS-5.08
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 10.43% | ||
| ROCE | 6.79% | ||
| ROIC | 5.26% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 12.48% | ||
| OM | 10.34% | ||
| PM (TTM) | 5.87% | ||
| GM | 63.99% | ||
| FCFM | 2.21% |
ROA(3y)4.09%
ROA(5y)4.57%
ROE(3y)13.1%
ROE(5y)14.36%
ROIC(3y)6.57%
ROIC(5y)7.05%
ROICexc(3y)6.95%
ROICexc(5y)7.6%
ROICexgc(3y)16.75%
ROICexgc(5y)18.23%
ROCE(3y)8.47%
ROCE(5y)9.12%
ROICexcg growth 3Y-15.26%
ROICexcg growth 5Y-10.65%
ROICexc growth 3Y-15.31%
ROICexc growth 5Y-9.1%
OM growth 3Y-12.33%
OM growth 5Y-5.62%
PM growth 3Y-16.85%
PM growth 5Y-7.54%
GM growth 3Y-0.9%
GM growth 5Y0.07%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 34.88 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 116.34% | ||
| Cap/Sales | 23.06% | ||
| Interest Coverage | 9.58 | ||
| Cash Conversion | 83.79% | ||
| Profit Quality | 37.6% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.07 |
F-Score5
WACC3.38%
ROIC/WACC1.56
Cap/Depr(3y)113.65%
Cap/Depr(5y)107.19%
Cap/Sales(3y)23.13%
Cap/Sales(5y)21.75%
Profit Quality(3y)72.55%
Profit Quality(5y)88.88%
High Growth Momentum
Growth
EPS 1Y (TTM)32.41%
EPS 3Y-14.08%
EPS 5Y-6.58%
EPS Q2Q%124%
EPS Next Y16.03%
EPS Next 2Y3.04%
EPS Next 3Y2.37%
EPS Next 5Y3.51%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y3.26%
Revenue growth 5Y0.78%
Sales Q2Q%14.28%
Revenue Next Year3.67%
Revenue Next 2Y4.4%
Revenue Next 3Y4.01%
Revenue Next 5Y3.28%
EBIT growth 1Y5.86%
EBIT growth 3Y-9.47%
EBIT growth 5Y-4.88%
EBIT Next Year222.38%
EBIT Next 3Y48.79%
EBIT Next 5Y25.92%
FCF growth 1Y-21.97%
FCF growth 3Y-26.67%
FCF growth 5Y-18.21%
OCF growth 1Y3%
OCF growth 3Y2.28%
OCF growth 5Y0.8%