NOS SGPS (NOS.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:NOS - PTZON0AM0006 - Common Stock
4.38 EUR
+0.06 (+1.51%)
We assign a fundamental rating of 5 out of 10 to NOS. NOS was compared to 36 industry peers in the Diversified Telecommunication Services industry. NOS has an excellent profitability rating, but there are concerns on its financial health. NOS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NOS was profitable.
- In the past year NOS had a positive cash flow from operations.
- In the past 5 years NOS has always been profitable.
- In the past 5 years NOS always reported a positive cash flow from operatings.
1.2 Ratios
- NOS has a better Return On Assets (7.14%) than 86.11% of its industry peers.
- The Return On Equity of NOS (24.06%) is better than 91.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.18%, NOS belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for NOS is in line with the industry average of 7.93%.
- The 3 year average ROIC (7.84%) for NOS is below the current ROIC(10.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 24.06% | ||
| ROIC | 10.18% |
ROA(3y)6.6%
ROA(5y)5.43%
ROE(3y)21.67%
ROE(5y)17.95%
ROIC(3y)7.84%
ROIC(5y)7.63%
1.3 Margins
- With a decent Profit Margin value of 14.18%, NOS is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- NOS's Profit Margin has improved in the last couple of years.
- The Operating Margin of NOS (16.79%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of NOS has remained more or less at the same level.
- NOS's Gross Margin of 71.16% is fine compared to the rest of the industry. NOS outperforms 69.44% of its industry peers.
- In the last couple of years the Gross Margin of NOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.79% | ||
| PM (TTM) | 14.18% | ||
| GM | 71.16% |
OM growth 3Y3.9%
OM growth 5Y1.36%
PM growth 3Y16.78%
PM growth 5Y10.28%
GM growth 3Y2.11%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NOS is still creating some value.
- The number of shares outstanding for NOS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, NOS has less shares outstanding
- The debt/assets ratio for NOS has been reduced compared to a year ago.
2.2 Solvency
- NOS has an Altman-Z score of 1.51. This is a bad value and indicates that NOS is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of NOS (1.51) is better than 77.78% of its industry peers.
- NOS has a debt to FCF ratio of 4.88. This is a neutral value as NOS would need 4.88 years to pay back of all of its debts.
- The Debt to FCF ratio of NOS (4.88) is better than 86.11% of its industry peers.
- A Debt/Equity ratio of 1.30 is on the high side and indicates that NOS has dependencies on debt financing.
- NOS has a Debt to Equity ratio of 1.30. This is in the lower half of the industry: NOS underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 4.88 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.6
WACC6.36%
2.3 Liquidity
- NOS has a Current Ratio of 0.61. This is a bad value and indicates that NOS is not financially healthy enough and could expect problems in meeting its short term obligations.
- NOS's Current ratio of 0.61 is on the low side compared to the rest of the industry. NOS is outperformed by 80.56% of its industry peers.
- A Quick Ratio of 0.57 indicates that NOS may have some problems paying its short term obligations.
- NOS has a Quick ratio of 0.57. This is amonst the worse of the industry: NOS underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- NOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.43%, which is quite impressive.
- Measured over the past years, NOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.44% on average per year.
- Looking at the last year, NOS shows a small growth in Revenue. The Revenue has grown by 7.36% in the last year.
- The Revenue has been growing slightly by 3.07% on average over the past years.
EPS 1Y (TTM)51.43%
EPS 3Y23.41%
EPS 5Y14.44%
EPS Q2Q%30%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y5.85%
Revenue growth 5Y3.07%
Sales Q2Q%5.69%
3.2 Future
- NOS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.66% yearly.
- The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y-25.2%
EPS Next 2Y-15.04%
EPS Next 3Y-9.99%
EPS Next 5Y-7.66%
Revenue Next Year8.39%
Revenue Next 2Y4.79%
Revenue Next 3Y3.43%
Revenue Next 5Y3.57%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.26, which indicates a very decent valuation of NOS.
- Based on the Price/Earnings ratio, NOS is valued cheaper than 88.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. NOS is valued rather cheaply when compared to this.
- NOS is valuated reasonably with a Price/Forward Earnings ratio of 11.45.
- Based on the Price/Forward Earnings ratio, NOS is valued a bit cheaper than 69.44% of the companies in the same industry.
- NOS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
- 83.33% of the companies in the same industry are more expensive than NOS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- NOS has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as NOS's earnings are expected to decrease with -9.99% in the coming years.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-15.04%
EPS Next 3Y-9.99%
5. Dividend
5.1 Amount
- NOS has a Yearly Dividend Yield of 8.22%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.36, NOS pays a better dividend. On top of this NOS pays more dividend than 100.00% of the companies listed in the same industry.
- NOS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.22% |
5.2 History
- The dividend of NOS decreases each year by -0.01%.
Dividend Growth(5Y)-0.01%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- 80.98% of the earnings are spent on dividend by NOS. This is not a sustainable payout ratio.
- The Dividend Rate of NOS has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP80.98%
EPS Next 2Y-15.04%
EPS Next 3Y-9.99%
NOS SGPS / NOS.LS FAQ
What is the ChartMill fundamental rating of NOS SGPS (NOS.LS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOS.LS.
Can you provide the valuation status for NOS SGPS?
ChartMill assigns a valuation rating of 6 / 10 to NOS SGPS (NOS.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for NOS SGPS?
NOS SGPS (NOS.LS) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for NOS stock?
The Earnings per Share (EPS) of NOS SGPS (NOS.LS) is expected to decline by -25.2% in the next year.
How sustainable is the dividend of NOS SGPS (NOS.LS) stock?
The dividend rating of NOS SGPS (NOS.LS) is 6 / 10 and the dividend payout ratio is 80.98%.