ORANGE (FTE.DE) Stock Fundamental Analysis
FRA:FTE - Deutsche Boerse Ag - FR0000133308 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to FTE. FTE was compared to 32 industry peers in the Diversified Telecommunication Services industry. While FTE is still in line with the averages on profitability rating, there are concerns on its financial health. FTE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FTE had positive earnings in the past year.
In the past year FTE had a positive cash flow from operations.
Each year in the past 5 years FTE has been profitable.
FTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTE has a Return On Assets (2.09%) which is in line with its industry peers.
FTE's Return On Equity of 6.84% is in line compared to the rest of the industry. FTE outperforms 40.63% of its industry peers.
FTE has a Return On Invested Capital of 5.67%. This is comparable to the rest of the industry: FTE outperforms 50.00% of its industry peers.
FTE had an Average Return On Invested Capital over the past 3 years of 5.20%. This is below the industry average of 7.75%.
The last Return On Invested Capital (5.67%) for FTE is above the 3 year average (5.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.84% | ||
| ROIC | 5.67% |
ROA(3y)1.97%
ROA(5y)2.03%
ROE(3y)6.69%
ROE(5y)6.68%
ROIC(3y)5.2%
ROIC(5y)5.12%
1.3 Margins
With a Profit Margin value of 5.40%, FTE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
FTE's Profit Margin has declined in the last couple of years.
FTE's Operating Margin of 15.19% is in line compared to the rest of the industry. FTE outperforms 53.13% of its industry peers.
FTE's Operating Margin has improved in the last couple of years.
FTE has a better Gross Margin (60.66%) than 62.50% of its industry peers.
FTE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 5.4% | ||
| GM | 60.66% |
OM growth 3Y4.37%
OM growth 5Y1.56%
PM growth 3Y559.53%
PM growth 5Y-3.58%
GM growth 3Y0.41%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FTE is creating some value.
FTE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FTE has been increased compared to 5 years ago.
Compared to 1 year ago, FTE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that FTE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.85, FTE is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
The Debt to FCF ratio of FTE is 12.34, which is on the high side as it means it would take FTE, 12.34 years of fcf income to pay off all of its debts.
FTE has a Debt to FCF ratio of 12.34. This is comparable to the rest of the industry: FTE outperforms 43.75% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that FTE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.14, FTE is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 12.34 | ||
| Altman-Z | 0.85 |
ROIC/WACC1.26
WACC4.51%
2.3 Liquidity
A Current Ratio of 0.92 indicates that FTE may have some problems paying its short term obligations.
The Current ratio of FTE (0.92) is better than 78.13% of its industry peers.
FTE has a Quick Ratio of 0.92. This is a bad value and indicates that FTE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.89, FTE is doing good in the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for FTE have decreased by -0.38% in the last year.
FTE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.51% yearly.
Looking at the last year, FTE shows a decrease in Revenue. The Revenue has decreased by -3.85% in the last year.
The Revenue has been decreasing by -0.95% on average over the past years.
EPS 1Y (TTM)-0.38%
EPS 3YN/A
EPS 5Y-4.51%
EPS Q2Q%-2.52%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.47%
3.2 Future
The Earnings Per Share is expected to grow by 3.91% on average over the next years.
The Revenue is expected to grow by 0.73% on average over the next years.
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y3.91%
Revenue Next Year0.83%
Revenue Next 2Y0.96%
Revenue Next 3Y1.06%
Revenue Next 5Y0.73%
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 accelerating.
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
The Price/Earnings ratio is 15.86, which indicates a correct valuation of FTE.
Based on the Price/Earnings ratio, FTE is valued a bit cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTE to the average of the S&P500 Index (26.17), we can say FTE is valued slightly cheaper.
FTE is valuated correctly with a Price/Forward Earnings ratio of 12.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTE indicates a somewhat cheap valuation: FTE is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, FTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than FTE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FTE is valued a bit cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.59%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
FTE has a Yearly Dividend Yield of 5.62%, which is a nice return.
FTE's Dividend Yield is a higher than the industry average which is at 4.30.
FTE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
5.2 History
The dividend of FTE has a limited annual growth rate of 0.57%.
Dividend Growth(5Y)0.57%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
FTE pays out 88.09% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP88.09%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
FRA:FTE (5/28/2025, 7:00:00 PM)
13.005
-0.3 (-2.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners46.22%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap34.57B
Analysts79.23
Price Target13.38 (2.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend0.72
Dividend Growth(5Y)0.57%
DP88.09%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.46%
PT rev (3m)3.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-11.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 12.98 | ||
| P/S | 0.86 | ||
| P/FCF | 9.92 | ||
| P/OCF | 3.39 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.33 |
EPS(TTM)0.82
EY6.31%
EPS(NY)1
Fwd EY7.71%
FCF(TTM)1.31
FCFY10.08%
OCF(TTM)3.83
OCFY29.49%
SpS15.14
BVpS11.95
TBVpS-0.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.84% | ||
| ROCE | 8.05% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 13.86% | ||
| OM | 15.19% | ||
| PM (TTM) | 5.4% | ||
| GM | 60.66% | ||
| FCFM | 8.66% |
ROA(3y)1.97%
ROA(5y)2.03%
ROE(3y)6.69%
ROE(5y)6.68%
ROIC(3y)5.2%
ROIC(5y)5.12%
ROICexc(3y)6.07%
ROICexc(5y)5.96%
ROICexgc(3y)13.08%
ROICexgc(5y)13.48%
ROCE(3y)7.38%
ROCE(5y)7.26%
ROICexcg growth 3Y3.45%
ROICexcg growth 5Y-3.55%
ROICexc growth 3Y5.78%
ROICexc growth 5Y1.45%
OM growth 3Y4.37%
OM growth 5Y1.56%
PM growth 3Y559.53%
PM growth 5Y-3.58%
GM growth 3Y0.41%
GM growth 5Y0.14%
F-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 12.34 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 84.58% | ||
| Cap/Sales | 16.67% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 72.57% | ||
| Profit Quality | 160.3% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.85 |
F-Score9
WACC4.51%
ROIC/WACC1.26
Cap/Depr(3y)91.99%
Cap/Depr(5y)95.71%
Cap/Sales(3y)18.2%
Cap/Sales(5y)19.08%
Profit Quality(3y)157.74%
Profit Quality(5y)6330.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.38%
EPS 3YN/A
EPS 5Y-4.51%
EPS Q2Q%-2.52%
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y3.91%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.47%
Revenue Next Year0.83%
Revenue Next 2Y0.96%
Revenue Next 3Y1.06%
Revenue Next 5Y0.73%
EBIT growth 1Y13.05%
EBIT growth 3Y2.49%
EBIT growth 5Y0.59%
EBIT Next Year148.18%
EBIT Next 3Y37.59%
EBIT Next 5Y19.23%
FCF growth 1Y-17.51%
FCF growth 3Y11.9%
FCF growth 5Y14.54%
OCF growth 1Y-15.42%
OCF growth 3Y-3.19%
OCF growth 5Y0.01%