NOS SGPS (NOS.LS) Stock Fundamental Analysis
ELI:NOS - Euronext Lisbon - PTZON0AM0006 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NOS. NOS was compared to 31 industry peers in the Diversified Telecommunication Services industry. While NOS has a great profitability rating, there are quite some concerns on its financial health. NOS has a decent growth rate and is not valued too expensively.
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
NOS has a Return On Assets of 7.41%. This is amongst the best in the industry. NOS outperforms 96.77% of its industry peers.
NOS has a better Return On Equity (23.17%) than 96.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.87%, NOS belongs to the top of the industry, outperforming 83.87% 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 7.13%.
The last Return On Invested Capital (8.87%) for NOS is above the 3 year average (7.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 23.17% | ||
| ROIC | 8.87% |
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
The Profit Margin of NOS (15.37%) is better than 93.55% of its industry peers.
In the last couple of years the Profit Margin of NOS has grown nicely.
NOS has a Operating Margin of 16.05%. This is in the better half of the industry: NOS outperforms 64.52% of its industry peers.
In the last couple of years the Operating Margin of NOS has remained more or less at the same level.
NOS has a Gross Margin of 71.15%. This is in the better half of the industry: NOS outperforms 74.19% 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 | 16.05% | ||
| PM (TTM) | 15.37% | ||
| GM | 71.15% |
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.
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.
Compared to 1 year ago, NOS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that NOS is in the distress zone and has some risk of bankruptcy.
NOS has a Altman-Z score of 1.24. This is comparable to the rest of the industry: NOS outperforms 58.06% of its industry peers.
NOS has a debt to FCF ratio of 3.62. This is a good value and a sign of high solvency as NOS would need 3.62 years to pay back of all of its debts.
NOS's Debt to FCF ratio of 3.62 is amongst the best of the industry. NOS outperforms 83.87% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that NOS has dependencies on debt financing.
NOS's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. NOS is outperformed by 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 1.24 |
ROIC/WACC1.4
WACC6.33%
2.3 Liquidity
A Current Ratio of 0.69 indicates that NOS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, NOS is doing worse than 67.74% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that NOS may have some problems paying its short term obligations.
NOS has a Quick ratio of 0.64. This is in the lower half of the industry: NOS underperforms 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.64 |
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.
NOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.44% yearly.
Looking at the last year, NOS shows a small growth in Revenue. The Revenue has grown by 5.87% in the last year.
Measured over the past years, NOS shows a small growth in Revenue. The Revenue has been growing by 3.07% on average per year.
EPS 1Y (TTM)51.43%
EPS 3Y23.41%
EPS 5Y14.44%
EPS Q2Q%-13.05%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y5.85%
Revenue growth 5Y3.07%
Sales Q2Q%4.48%
3.2 Future
NOS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.69% yearly.
The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y-41.95%
EPS Next 2Y-24.14%
EPS Next 3Y-14.79%
EPS Next 5Y-14.69%
Revenue Next Year3.54%
Revenue Next 2Y2.68%
Revenue Next 3Y1.34%
Revenue Next 5Y1.75%
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 7.14, which indicates a rather cheap valuation of NOS.
96.77% of the companies in the same industry are more expensive than NOS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.35. NOS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.41, NOS is valued correctly.
Based on the Price/Forward Earnings ratio, NOS is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NOS to the average of the S&P500 Index (22.19), we can say NOS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOS indicates a rather cheap valuation: NOS is cheaper than 93.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.35 | ||
| 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 -14.79% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-24.14%
EPS Next 3Y-14.79%
5. Dividend
5.1 Amount
NOS has a Yearly Dividend Yield of 9.32%, which is a nice return.
NOS's Dividend Yield is rather good when compared to the industry average which is at 4.49. NOS pays more dividend than 100.00% of the companies in the same industry.
NOS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
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
NOS pays out 67.94% of its income as dividend. 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.
DP67.94%
EPS Next 2Y-24.14%
EPS Next 3Y-14.79%
ELI:NOS (6/20/2025, 7:00:00 PM)
3.785
+0.03 (+0.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners16.41%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap1.95B
Analysts68.24
Price Target4.19 (10.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
Yearly Dividend0.35
Dividend Growth(5Y)-0.01%
DP67.94%
Div Incr Years1
Div Non Decr Years5
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)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.7%
Revenue beat(4)3
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-0.08%
Max Revenue beat(4)1.7%
Revenue beat(8)6
Avg Revenue beat(8)0.35%
Revenue beat(12)8
Avg Revenue beat(12)0.11%
Revenue beat(16)11
Avg Revenue beat(16)0.69%
PT rev (1m)3.66%
PT rev (3m)3.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.14 | ||
| P/FCF | 4.35 | ||
| P/OCF | 2.17 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.53
EY14%
EPS(NY)0.31
Fwd EY8.06%
FCF(TTM)0.87
FCFY22.98%
OCF(TTM)1.75
OCFY46.17%
SpS3.33
BVpS2.21
TBVpS-0.26
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 23.17% | ||
| ROCE | 10.08% | ||
| ROIC | 8.87% | ||
| ROICexc | 8.91% | ||
| ROICexgc | 16.6% | ||
| OM | 16.05% | ||
| PM (TTM) | 15.37% | ||
| GM | 71.15% | ||
| FCFM | 26.13% |
ROA(3y)6.6%
ROA(5y)5.43%
ROE(3y)21.67%
ROE(5y)17.95%
ROIC(3y)7.84%
ROIC(5y)7.63%
ROICexc(3y)7.88%
ROICexc(5y)7.76%
ROICexgc(3y)14.7%
ROICexgc(5y)14.69%
ROCE(3y)8.86%
ROCE(5y)8.63%
ROICexcg growth 3Y2.8%
ROICexcg growth 5Y3.18%
ROICexc growth 3Y7.04%
ROICexc growth 5Y2.64%
OM growth 3Y3.9%
OM growth 5Y1.36%
PM growth 3Y16.78%
PM growth 5Y10.28%
GM growth 3Y2.11%
GM growth 5Y0.6%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 26.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 170.08% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.24 |
F-Score7
WACC6.33%
ROIC/WACC1.4
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)28.72%
Cap/Sales(5y)33.66%
Profit Quality(3y)131.24%
Profit Quality(5y)127.18%
High Growth Momentum
Growth
EPS 1Y (TTM)51.43%
EPS 3Y23.41%
EPS 5Y14.44%
EPS Q2Q%-13.05%
EPS Next Y-41.95%
EPS Next 2Y-24.14%
EPS Next 3Y-14.79%
EPS Next 5Y-14.69%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y5.85%
Revenue growth 5Y3.07%
Sales Q2Q%4.48%
Revenue Next Year3.54%
Revenue Next 2Y2.68%
Revenue Next 3Y1.34%
Revenue Next 5Y1.75%
EBIT growth 1Y9.7%
EBIT growth 3Y9.97%
EBIT growth 5Y4.47%
EBIT Next Year148.63%
EBIT Next 3Y35.27%
EBIT Next 5Y25.72%
FCF growth 1Y117.18%
FCF growth 3Y149.07%
FCF growth 5Y14.29%
OCF growth 1Y35.93%
OCF growth 3Y8.56%
OCF growth 5Y6.27%