PROXIMUS (PROX.BR) Stock Fundamental Analysis
EBR:PROX - Euronext Brussels - BE0003810273 - Common Stock - Currency: EUR
Overall PROX gets a fundamental rating of 4 out of 10. We evaluated PROX against 28 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 is valued correctly, but it does not seem to be growing.
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.
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 3.36%, PROX is in line with its industry, outperforming 53.57% of the companies in the same industry.
PROX's Return On Equity of 10.39% is in line compared to the rest of the industry. PROX outperforms 57.14% of its industry peers.
The Return On Invested Capital of PROX (5.66%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PROX is in line with the industry average of 7.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 10.39% | ||
| ROIC | 5.66% |
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
The Profit Margin of PROX (7.03%) is better than 60.71% 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 has a Operating Margin of 10.82%. This is comparable to the rest of the industry: PROX outperforms 46.43% of its industry peers.
In the last couple of years the Operating Margin of PROX has grown nicely.
PROX has a Gross Margin of 62.91%. This is in the better half of the industry: PROX outperforms 71.43% of its industry peers.
PROX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.82% | ||
| PM (TTM) | 7.03% | ||
| GM | 62.91% |
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.
The number of shares outstanding for PROX remains at a similar level compared to 1 year ago.
The number of shares outstanding for PROX remains at a similar level compared to 5 years ago.
The debt/assets ratio for PROX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that PROX is in the distress zone and has some risk of bankruptcy.
PROX has a Altman-Z score (1.13) which is comparable to the rest of the industry.
The Debt to FCF ratio of PROX is 37.51, which is on the high side as it means it would take PROX, 37.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 37.51, PROX is doing worse than 78.57% of the companies in the same industry.
PROX has a Debt/Equity ratio of 0.97. This is a neutral value indicating PROX is somewhat dependend on debt financing.
PROX has a Debt to Equity ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 37.51 | ||
| Altman-Z | 1.13 |
ROIC/WACC1.21
WACC4.68%
2.3 Liquidity
PROX has a Current Ratio of 0.74. 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 (0.74) which is in line with its industry peers.
A Quick Ratio of 0.69 indicates that PROX may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, PROX perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.09%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.59% on average over the past years.
The Revenue has grown by 8.23% in the past year. This is quite good.
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)30.09%
EPS 3Y0%
EPS 5Y3.59%
EPS Q2Q%29.03%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.82%
Revenue growth 5Y2.49%
Sales Q2Q%8.78%
3.2 Future
Based on estimates for the next years, PROX will show a decrease in Earnings Per Share. The EPS will decrease by -2.74% on average per year.
PROX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.36% yearly.
EPS Next Y-13.78%
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
EPS Next 5Y-2.74%
Revenue Next Year4.27%
Revenue Next 2Y2.98%
Revenue Next 3Y2.44%
Revenue Next 5Y-1.36%
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
PROX is valuated cheaply with a Price/Earnings ratio of 5.81.
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 27.30, PROX is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.24, the valuation of PROX can be described as very cheap.
Based on the Price/Forward Earnings ratio, PROX is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
PROX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.81 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PROX is valued cheaper than 89.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PROX is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.57 | ||
| EV/EBITDA | 3.63 |
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 -6.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
PROX has a Yearly Dividend Yield of 5.07%, which is a nice return.
Compared to an average industry Dividend Yield of 4.57, PROX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, PROX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
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 80.36% of its income as dividend. This is not a sustainable payout ratio.
PROX's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP80.36%
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
EBR:PROX (7/11/2025, 7:00:00 PM)
8.545
+0.1 (+1.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.32%
Inst Owner ChangeN/A
Ins Owners5.12%
Ins Owner ChangeN/A
Market Cap2.89B
Analysts71.11
Price Target7.38 (-13.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend1.12
Dividend Growth(5Y)-5.81%
DP80.36%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)164.45%
Min EPS beat(2)143.47%
Max EPS beat(2)185.43%
EPS beat(4)4
Avg EPS beat(4)90.93%
Min EPS beat(4)14.69%
Max EPS beat(4)185.43%
EPS beat(8)5
Avg EPS beat(8)40.52%
EPS beat(12)8
Avg EPS beat(12)27.48%
EPS beat(16)9
Avg EPS beat(16)18.88%
Revenue beat(2)2
Avg Revenue beat(2)2.52%
Min Revenue beat(2)0.42%
Max Revenue beat(2)4.62%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.42%
Max Revenue beat(4)4.62%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)8
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)5.39%
PT rev (3m)1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.81 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.45 | ||
| P/FCF | 22.57 | ||
| P/OCF | 1.8 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.63 |
EPS(TTM)1.47
EY17.2%
EPS(NY)1.18
Fwd EY13.8%
FCF(TTM)0.38
FCFY4.43%
OCF(TTM)4.74
OCFY55.46%
SpS18.86
BVpS12.75
TBVpS-3.08
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 10.39% | ||
| ROCE | 6.81% | ||
| ROIC | 5.66% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 13.51% | ||
| OM | 10.82% | ||
| PM (TTM) | 7.03% | ||
| GM | 62.91% | ||
| FCFM | 2.01% |
ROA(3y)3.61%
ROA(5y)4.41%
ROE(3y)11.6%
ROE(5y)13.82%
ROIC(3y)6.28%
ROIC(5y)7.35%
ROICexc(3y)6.68%
ROICexc(5y)7.86%
ROICexgc(3y)16.07%
ROICexgc(5y)18.73%
ROCE(3y)7.55%
ROCE(5y)8.84%
ROICexcg growth 3Y-10.94%
ROICexcg growth 5Y-5.07%
ROICexc growth 3Y-10.19%
ROICexc growth 5Y-4.03%
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%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 37.51 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 117.08% | ||
| Cap/Sales | 23.12% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 82.2% | ||
| Profit Quality | 28.57% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.13 |
F-Score6
WACC4.68%
ROIC/WACC1.21
Cap/Depr(3y)120.64%
Cap/Depr(5y)111.12%
Cap/Sales(3y)23.99%
Cap/Sales(5y)22.5%
Profit Quality(3y)45.68%
Profit Quality(5y)64.36%
High Growth Momentum
Growth
EPS 1Y (TTM)30.09%
EPS 3Y0%
EPS 5Y3.59%
EPS Q2Q%29.03%
EPS Next Y-13.78%
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
EPS Next 5Y-2.74%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.82%
Revenue growth 5Y2.49%
Sales Q2Q%8.78%
Revenue Next Year4.27%
Revenue Next 2Y2.98%
Revenue Next 3Y2.44%
Revenue Next 5Y-1.36%
EBIT growth 1Y15%
EBIT growth 3Y2.23%
EBIT growth 5Y5%
EBIT Next Year187.77%
EBIT Next 3Y42.47%
EBIT Next 5Y19.34%
FCF growth 1Y-23.81%
FCF growth 3Y-35.81%
FCF growth 5Y-25.67%
OCF growth 1Y-1.17%
OCF growth 3Y-0.39%
OCF growth 5Y-0.65%