ORANGE (ORA.PA) Stock Fundamental Analysis
EPA:ORA - Euronext Paris - Matif - FR0000133308 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to ORA. ORA was compared to 31 industry peers in the Diversified Telecommunication Services industry. ORA may be in some trouble as it scores bad on both profitability and health. ORA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ORA was profitable.
In the past year ORA had a positive cash flow from operations.
In the past 5 years ORA has always been profitable.
Each year in the past 5 years ORA had a positive operating cash flow.
1.2 Ratios
ORA has a worse Return On Assets (0.93%) than 65.63% of its industry peers.
ORA has a Return On Equity of 3.23%. This is in the lower half of the industry: ORA underperforms 65.63% of its industry peers.
The Return On Invested Capital of ORA (4.18%) is worse than 71.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORA is below the industry average of 7.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.23% | ||
| ROIC | 4.18% |
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
ORA has a Profit Margin of 2.36%. This is in the lower half of the industry: ORA underperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of ORA has declined.
ORA has a Operating Margin of 11.01%. This is comparable to the rest of the industry: ORA outperforms 40.63% of its industry peers.
ORA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.96%, ORA is in line with its industry, outperforming 53.13% of the companies in the same industry.
In the last couple of years the Gross Margin of ORA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 2.36% | ||
| GM | 60.96% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ORA is still creating some value.
The number of shares outstanding for ORA remains at a similar level compared to 1 year ago.
The number of shares outstanding for ORA has been increased compared to 5 years ago.
The debt/assets ratio for ORA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that ORA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, ORA is doing worse than 81.25% of the companies in the same industry.
ORA has a debt to FCF ratio of 13.23. This is a negative value and a sign of low solvency as ORA would need 13.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.23, ORA is doing worse than 68.75% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that ORA has dependencies on debt financing.
ORA's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. ORA is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 13.23 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.91
WACC4.58%
2.3 Liquidity
A Current Ratio of 0.89 indicates that ORA may have some problems paying its short term obligations.
ORA has a Current ratio of 0.89. This is in the better half of the industry: ORA outperforms 62.50% of its industry peers.
ORA has a Quick Ratio of 0.89. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ORA (0.86) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
ORA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.82%.
ORA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.51% yearly.
ORA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.27%.
Measured over the past years, ORA shows a decrease in Revenue. The Revenue has been decreasing by -0.95% on average per year.
EPS 1Y (TTM)-61.82%
EPS 3YN/A
EPS 5Y-4.51%
EPS Q2Q%-161.29%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.07%
3.2 Future
The Earnings Per Share is expected to grow by 4.24% on average over the next years.
The Revenue is expected to grow by 0.77% on average over the next years.
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y4.24%
Revenue Next Year0.47%
Revenue Next 2Y1.26%
Revenue Next 3Y1.3%
Revenue Next 5Y0.77%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 43.20, the valuation of ORA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ORA indicates a slightly more expensive valuation: ORA is more expensive than 71.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. ORA is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 11.38 indicates a reasonable valuation of ORA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORA indicates a somewhat cheap valuation: ORA is cheaper than 78.13% of the companies listed in the same industry.
ORA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.2 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
ORA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ORA is cheaper than 78.13% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ORA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 5.16 |
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
ORA has a Yearly Dividend Yield of 5.62%, which is a nice return.
ORA's Dividend Yield is a higher than the industry average which is at 4.65.
Compared to an average S&P500 Dividend Yield of 2.39, ORA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
5.2 History
The dividend of ORA has a limited annual growth rate of 0.57%.
Dividend Growth(5Y)0.57%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
ORA pays out 209.89% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ORA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP209.89%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPA:ORA (8/1/2025, 7:00:00 PM)
13.825
+0.48 (+3.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap36.75B
Analysts77.69
Price Target14.32 (3.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend0.72
Dividend Growth(5Y)0.57%
DP209.89%
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)6.04%
PT rev (3m)7.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.2 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.91 | ||
| P/FCF | 11.66 | ||
| P/OCF | 3.61 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.16 |
EPS(TTM)0.32
EY2.31%
EPS(NY)1.22
Fwd EY8.79%
FCF(TTM)1.19
FCFY8.57%
OCF(TTM)3.83
OCFY27.72%
SpS15.15
BVpS11.07
TBVpS-1.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.23% | ||
| ROCE | 5.93% | ||
| ROIC | 4.18% | ||
| ROICexc | 4.85% | ||
| ROICexgc | 9.93% | ||
| OM | 11.01% | ||
| PM (TTM) | 2.36% | ||
| GM | 60.96% | ||
| FCFM | 7.82% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 13.23 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 89.16% | ||
| Cap/Sales | 17.48% | ||
| Interest Coverage | 3.74 | ||
| Cash Conversion | 82.64% | ||
| Profit Quality | 331.68% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.79 |
F-Score6
WACC4.58%
ROIC/WACC0.91
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)-61.82%
EPS 3YN/A
EPS 5Y-4.51%
EPS Q2Q%-161.29%
EPS Next Y-0.96%
EPS Next 2Y9.59%
EPS Next 3Y7.66%
EPS Next 5Y4.24%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-1.81%
Revenue growth 5Y-0.95%
Sales Q2Q%0.07%
Revenue Next Year0.47%
Revenue Next 2Y1.26%
Revenue Next 3Y1.3%
Revenue Next 5Y0.77%
EBIT growth 1Y-21.49%
EBIT growth 3Y2.49%
EBIT growth 5Y0.59%
EBIT Next Year148.18%
EBIT Next 3Y37.59%
EBIT Next 5Y19.13%
FCF growth 1Y18.95%
FCF growth 3Y11.9%
FCF growth 5Y14.54%
OCF growth 1Y-10.11%
OCF growth 3Y-3.19%
OCF growth 5Y0.01%