NOS SGPS (NOS.LS)

PTZON0AM0006 - Common Stock

3.618  -0.03 (-0.88%)

Fundamental Rating

5

Overall NOS gets a fundamental rating of 5 out of 10. We evaluated NOS against 31 industry peers in the Diversified Telecommunication Services industry. NOS has an excellent profitability rating, but there are concerns on its financial health. NOS has a valuation in line with the averages, but on the other hand it scores bad on growth.



8

1. Profitability

1.1 Basic Checks

In the past year NOS was profitable.
NOS had a positive operating cash flow in the past year.
Each year in the past 5 years NOS has been profitable.
NOS had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 5.22%, NOS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of NOS (18.32%) is better than 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.00%, NOS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NOS is in line with the industry average of 7.17%.
The 3 year average ROIC (7.29%) for NOS is below the current ROIC(8.00%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.22%
ROE 18.32%
ROIC 8%
ROA(3y)5.37%
ROA(5y)4.73%
ROE(3y)18.29%
ROE(5y)15.76%
ROIC(3y)7.29%
ROIC(5y)7.43%

1.3 Margins

With a decent Profit Margin value of 11.33%, NOS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NOS has grown nicely.
NOS has a better Operating Margin (15.07%) than 63.33% of its industry peers.
In the last couple of years the Operating Margin of NOS has grown nicely.
Looking at the Gross Margin, with a value of 71.77%, NOS is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Gross Margin of NOS has grown nicely.
Industry RankSector Rank
OM 15.07%
PM (TTM) 11.33%
GM 71.77%
OM growth 3Y1.88%
OM growth 5Y4.55%
PM growth 3Y18.99%
PM growth 5Y5.33%
GM growth 3Y1.23%
GM growth 5Y2.42%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NOS is creating some value.
NOS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NOS has been reduced compared to 5 years ago.
NOS has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.12, we must say that NOS is in the distress zone and has some risk of bankruptcy.
NOS's Altman-Z score of 1.12 is in line compared to the rest of the industry. NOS outperforms 46.67% of its industry peers.
NOS has a debt to FCF ratio of 6.23. This is a slightly negative value and a sign of low solvency as NOS would need 6.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.23, NOS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
NOS has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
NOS has a worse Debt to Equity ratio (1.52) than 63.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.52
Debt/FCF 6.23
Altman-Z 1.12
ROIC/WACC1.28
WACC6.23%

2.3 Liquidity

NOS has a Current Ratio of 0.72. This is a bad value and indicates that NOS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NOS (0.72) is comparable to the rest of the industry.
A Quick Ratio of 0.66 indicates that NOS may have some problems paying its short term obligations.
The Quick ratio of NOS (0.66) is worse than 63.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.72
Quick Ratio 0.66

3

3. Growth

3.1 Past

The earnings per share for NOS have decreased by -4.65% in the last year.
Measured over the past 5 years, NOS shows a small growth in Earnings Per Share. The EPS has been growing by 3.83% on average per year.
The Revenue has been growing slightly by 5.91% in the past year.
Measured over the past years, NOS shows a small growth in Revenue. The Revenue has been growing by 0.27% on average per year.
EPS 1Y (TTM)-4.65%
EPS 3Y22.59%
EPS 5Y3.83%
EPS Q2Q%85.71%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y5.31%
Revenue growth 5Y0.27%
Sales Q2Q%5.74%

3.2 Future

NOS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.31% yearly.
The Revenue is expected to grow by 0.32% on average over the next years.
EPS Next Y-12.06%
EPS Next 2Y-7.4%
EPS Next 3Y-3.43%
EPS Next 5Y-4.31%
Revenue Next Year3.41%
Revenue Next 2Y2.15%
Revenue Next 3Y1.69%
Revenue Next 5Y0.32%

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 stable: in the next years the growth will be about the same than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

NOS is valuated reasonably with a Price/Earnings ratio of 8.82.
Based on the Price/Earnings ratio, NOS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
NOS is valuated cheaply when we compare the Price/Earnings ratio to 29.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.05, NOS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, NOS is valued a bit cheaper.
Industry RankSector Rank
PE 8.82
Fwd PE 12.05

4.2 Price Multiples

80.00% of the companies in the same industry are more expensive than NOS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.7
EV/EBITDA N/A

4.3 Compensation for Growth

The excellent profitability rating of NOS may justify a higher PE ratio.
A cheap valuation may be justified as NOS's earnings are expected to decrease with -3.43% in the coming years.
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y-7.4%
EPS Next 3Y-3.43%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.85%, NOS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.07, NOS pays a better dividend. On top of this NOS pays more dividend than 96.67% 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 2.29.
Industry RankSector Rank
Dividend Yield 9.85%

5.2 History

The dividend of NOS is nicely growing with an annual growth rate of 7.48%!
Dividend Growth(5Y)7.48%
Div Incr Years1
Div Non Decr Years4

5.3 Sustainability

NOS pays out 121.54% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of NOS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP121.54%
EPS Next 2Y-7.4%
EPS Next 3Y-3.43%

NOS SGPS

ELI:NOS (7/23/2024, 5:29:52 PM)

3.618

-0.03 (-0.88%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.86B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 9.85%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.82
Fwd PE 12.05
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.3
Profitability
Industry RankSector Rank
ROA 5.22%
ROE 18.32%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.07%
PM (TTM) 11.33%
GM 71.77%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 1.52
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.72
Quick Ratio 0.66
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.65%
EPS 3Y22.59%
EPS 5Y
EPS Q2Q%
EPS Next Y-12.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.91%
Revenue growth 3Y5.31%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y