PROXIMUS (PROX.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:PROX - BE0003810273 - Common Stock
7.505 EUR
+0.04 (+0.54%)
Taking everything into account, PROX scores 4 out of 10 in our fundamental rating. PROX was compared to 35 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of PROX while its profitability can be described as average. PROX has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- PROX had positive earnings in the past year.
- PROX had a positive operating cash flow in the past year.
- PROX had positive earnings in each of the past 5 years.
- In the past 5 years PROX always reported a positive cash flow from operatings.
1.2 Ratios
- PROX's Return On Assets of 4.24% is in line compared to the rest of the industry. PROX outperforms 57.14% of its industry peers.
- PROX has a Return On Equity (12.68%) which is comparable to the rest of the 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.
- Measured over the past 3 years, the Average Return On Invested Capital for PROX is below the industry average of 8.42%.
- The 3 year average ROIC (6.28%) for PROX is below the current ROIC(6.73%), indicating increased profibility in the last year.
| 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.
- PROX's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 13.24%, PROX is in line with its industry, outperforming 54.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of PROX has grown nicely.
- Looking at the Gross Margin, with a value of 63.05%, PROX is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
- In the last couple of years the Gross Margin of PROX has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PROX is still 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.
- With a Altman-Z score value of 1.23, PROX perfoms like the industry average, 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.
- PROX has a worse Debt to FCF ratio (20.29) than 65.71% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that PROX is somewhat dependend on debt financing.
- PROX's Debt to Equity ratio of 1.00 is in line compared to the rest of the industry. PROX outperforms 57.14% of 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.
- PROX has a Current ratio of 0.94. This is in the better half of the industry: PROX outperforms 71.43% of its industry peers.
- A Quick Ratio of 0.89 indicates that PROX may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, PROX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| 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%.
- Measured over the past 5 years, PROX shows a small growth in Earnings Per Share. The EPS has been growing by 3.59% on average per year.
- PROX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.33%.
- PROX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
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.
- Based on estimates for the next years, PROX will show a decrease in Revenue. The Revenue will decrease by -0.05% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 5.36, which indicates a rather cheap valuation of PROX.
- PROX's Price/Earnings ratio is rather cheap when compared to the industry. PROX is cheaper than 97.14% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, PROX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.11, the valuation of PROX can be described as very cheap.
- PROX's Price/Forward Earnings ratio is rather cheap when compared to the industry. PROX is cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, PROX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 7.11 |
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.
- 71.43% of the companies in the same industry are more expensive than PROX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| EV/EBITDA | 3.03 |
4.3 Compensation for Growth
- PROX has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as PROX's earnings are expected to decrease with -7.91% in the coming years.
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 1.82, 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
- PROX pays out 33.86% of its income as dividend. This is a sustainable payout ratio.
- PROX's earnings and Dividend Rate are 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 5.36 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.