NOS SGPS (NOS.LS)
PTZON0AM0006 - Common Stock
Overall NOS gets a fundamental rating of 5 out of 10. We evaluated NOS against 31 industry peers in the Diversified Telecommunication Services industry. While NOS belongs to the best of the industry regarding profitability, 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.
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.
NOS had positive earnings in each of the past 5 years.
NOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOS has a Return On Assets of 5.22%. This is in the better half of the industry: NOS outperforms 79.31% of its industry peers.
The Return On Equity of NOS (18.32%) is better than 82.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.00%, NOS belongs to the top of the industry, outperforming 82.76% 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 (8.00%) for NOS is above the 3 year average (7.29%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
NOS has a better Profit Margin (11.33%) than 75.86% of its industry peers.
In the last couple of years the Profit Margin of NOS has grown nicely.
NOS has a better Operating Margin (15.07%) than 68.97% of its industry peers.
In the last couple of years the Operating Margin of NOS has grown nicely.
With a decent Gross Margin value of 71.77%, NOS is doing good in the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Gross Margin of NOS has grown nicely.
| Industry Rank | Sector 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%
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.
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
NOS has an Altman-Z score of 1.12. This is a bad value and indicates that NOS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.12, NOS perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
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.
NOS has a better Debt to FCF ratio (6.23) than 89.66% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that NOS has dependencies on debt financing.
NOS has a worse Debt to Equity ratio (1.52) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 1.12 |
ROIC/WACC1.3
WACC6.16%
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.
NOS has a Current ratio (0.72) which 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 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for NOS have decreased strongly by -20.45% in the last year.
NOS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.83% yearly.
The Revenue has been growing slightly by 5.03% in the past year.
NOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.27% yearly.
EPS 1Y (TTM)-20.45%
EPS 3Y22.59%
EPS 5Y3.83%
EPS growth Q2Q-47.37%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y5.31%
Revenue growth 5Y0.27%
Revenue growth Q2Q4.23%
3.2 Future
The Earnings Per Share is expected to decrease by -4.31% on average over the next years.
Based on estimates for the next years, NOS will show a decrease in Revenue. The Revenue will decrease by -0.09% on average per year.
EPS Next Y-18.13%
EPS Next 2Y-6.59%
EPS Next 3Y-1.02%
EPS Next 5Y-4.31%
Revenue Next Year2.42%
Revenue Next 2Y1.81%
Revenue Next 3Y2.2%
Revenue Next 5Y-0.09%
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.
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
The Price/Earnings ratio is 10.37, which indicates a very decent valuation of NOS.
Based on the Price/Earnings ratio, NOS is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.80. NOS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.67, the valuation of NOS can be described as correct.
62.07% of the companies in the same industry are more expensive than NOS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.27. NOS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
NOS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NOS is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NOS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.71
EPS Next 2Y-6.59%
EPS Next 3Y-1.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.72%, NOS is a good candidate for dividend investing.
NOS's Dividend Yield is rather good when compared to the industry average which is at 5.12. NOS pays more dividend than 93.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NOS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.72% |
5.2 History
On average, the dividend of NOS grows each year by 7.48%, which is quite nice.
Dividend Growth(5Y)7.48%
Div Incr Years0
Div Non Decr Years3
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-6.59%
EPS Next 3Y-1.02%
NOS SGPS
ELI:NOS (4/18/2024, 7:00:00 PM)
3.63
+0.04 (+1.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap1.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.72% |
Dividend Growth(5Y)
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 12.67 | ||
| 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)2.71
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)-20.45%
EPS 3Y22.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y-18.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.03%
Revenue growth 3Y5.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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