PROXIMUS (PROX.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:PROX - BE0003810273 - Common Stock
7.485 EUR
+0.04 (+0.47%)
PROX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. PROX has a medium profitability rating, but doesn't score so well on its financial health evaluation. PROX is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year PROX was profitable.
- PROX had a positive operating cash flow in the past year.
- Each year in the past 5 years PROX has been profitable.
- Each year in the past 5 years PROX had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.24%, PROX is in line with its industry, outperforming 57.14% of the companies in the same industry.
- With a Return On Equity value of 12.68%, PROX perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- With a Return On Invested Capital value of 6.73%, PROX perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
- PROX had an Average Return On Invested Capital over the past 3 years of 6.28%. This is below the industry average of 8.42%.
- The last Return On Invested Capital (6.73%) for PROX is above the 3 year average (6.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 12.68% | ||
| ROIC | 6.73% |
ROA(3y)3.61%
ROA(5y)4.41%
ROE(3y)11.6%
ROE(5y)13.82%
ROIC(3y)6.28%
ROIC(5y)7.35%
1.3 Margins
- PROX's Profit Margin of 8.83% is in line compared to the rest of the industry. PROX outperforms 54.29% of its industry peers.
- In the last couple of years the Profit Margin of PROX has remained more or less at the same level.
- PROX's Operating Margin of 13.24% is in line compared to the rest of the industry. PROX outperforms 54.29% of its industry peers.
- PROX's Operating Margin has improved in the last couple of years.
- PROX's Gross Margin of 63.05% is fine compared to the rest of the industry. PROX outperforms 68.57% of its industry peers.
- PROX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.24% | ||
| PM (TTM) | 8.83% | ||
| GM | 63.05% |
OM growth 3Y-2.47%
OM growth 5Y2.45%
PM growth 3Y-4.31%
PM growth 5Y1.17%
GM growth 3Y-0.54%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PROX is creating some value.
- Compared to 1 year ago, PROX has about the same amount of shares outstanding.
- Compared to 5 years ago, PROX has about the same amount of shares outstanding.
- The debt/assets ratio for PROX has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.23, we must say that PROX is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.23, PROX is in line with its industry, outperforming 57.14% of the companies in the same industry.
- The Debt to FCF ratio of PROX is 20.29, which is on the high side as it means it would take PROX, 20.29 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 20.29, PROX is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
- PROX has a Debt/Equity ratio of 1.00. This is a neutral value indicating PROX is somewhat dependend on debt financing.
- PROX has a Debt to Equity ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 20.29 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.38
WACC4.86%
2.3 Liquidity
- PROX has a Current Ratio of 0.94. This is a bad value and indicates that PROX 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, PROX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- PROX has a Quick Ratio of 0.94. This is a bad value and indicates that PROX is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of PROX (0.89) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- PROX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.10%.
- The Earnings Per Share has been growing slightly by 3.59% on average over the past years.
- PROX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.33%.
- Measured over the past years, PROX shows a small growth in Revenue. The Revenue has been growing by 2.49% on average per year.
EPS 1Y (TTM)-2.1%
EPS 3Y0%
EPS 5Y3.59%
EPS Q2Q%-53.57%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y4.82%
Revenue growth 5Y2.49%
Sales Q2Q%-11.17%
3.2 Future
- PROX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.63% yearly.
- The Revenue is expected to decrease by -0.05% on average over the next years.
EPS Next Y-3.3%
EPS Next 2Y-12.56%
EPS Next 3Y-7.91%
EPS Next 5Y-5.63%
Revenue Next Year0.57%
Revenue Next 2Y-0.12%
Revenue Next 3Y0.11%
Revenue Next 5Y-0.05%
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.
- 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 5.35, the valuation of PROX can be described as very cheap.
- 97.14% of the companies in the same industry are more expensive than PROX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PROX is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.09, which indicates a rather cheap valuation of PROX.
- Based on the Price/Forward Earnings ratio, PROX is valued cheaper than 91.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PROX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.35 | ||
| Fwd PE | 7.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PROX is valued cheaper than 100.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PROX is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 3.03 |
4.3 Compensation for Growth
- The decent profitability rating of PROX may justify a higher PE ratio.
- PROX's earnings are expected to decrease with -7.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y-12.56%
EPS Next 3Y-7.91%
5. Dividend
5.1 Amount
- PROX has a Yearly Dividend Yield of 5.73%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.26, PROX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, PROX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
- The dividend of PROX decreases each year by -5.81%.
Dividend Growth(5Y)-5.81%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 33.86% of the earnings are spent on dividend by PROX. This is a low number and sustainable payout ratio.
- The Dividend Rate of PROX has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP33.86%
EPS Next 2Y-12.56%
EPS Next 3Y-7.91%
PROXIMUS / PROX.BR FAQ
What is the fundamental rating for PROX stock?
ChartMill assigns a fundamental rating of 4 / 10 to PROX.BR.
What is the valuation status of PROXIMUS (PROX.BR) stock?
ChartMill assigns a valuation rating of 7 / 10 to PROXIMUS (PROX.BR). This can be considered as Undervalued.
What is the profitability of PROX stock?
PROXIMUS (PROX.BR) has a profitability rating of 6 / 10.
What is the valuation of PROXIMUS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PROXIMUS (PROX.BR) is 5.35 and the Price/Book (PB) ratio is 0.56.
What is the earnings growth outlook for PROXIMUS?
The Earnings per Share (EPS) of PROXIMUS (PROX.BR) is expected to decline by -3.3% in the next year.