PROXIMUS (PROX.BR) Stock Fundamental Analysis
EBR:PROX - Euronext Brussels - BE0003810273 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to PROX. PROX was compared to 27 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of PROX while its profitability can be described as average. PROX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PROX had positive earnings in the past year.
In the past year PROX had a positive cash flow from operations.
Each year in the past 5 years PROX has been profitable.
In the past 5 years PROX always reported a positive cash flow from operatings.
1.2 Ratios
PROX has a Return On Assets (3.36%) which is in line with its industry peers.
The Return On Equity of PROX (10.39%) is comparable to the rest of the industry.
The Return On Invested Capital of PROX (5.66%) is comparable to the rest of the industry.
PROX had an Average Return On Invested Capital over the past 3 years of 6.28%. This is in line with the industry average of 7.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 10.39% | ||
| ROIC | 5.66% |
ROA(3y)3.61%
ROA(5y)4.41%
ROE(3y)11.6%
ROE(5y)13.82%
ROIC(3y)6.28%
ROIC(5y)7.35%
1.3 Margins
PROX has a Profit Margin (7.03%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PROX has remained more or less at the same level.
PROX's Operating Margin of 10.82% is in line compared to the rest of the industry. PROX outperforms 40.74% of its industry peers.
In the last couple of years the Operating Margin of PROX has grown nicely.
The Gross Margin of PROX (62.91%) is better than 70.37% of its industry peers.
In the last couple of years the Gross Margin of PROX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.82% | ||
| PM (TTM) | 7.03% | ||
| GM | 62.91% |
OM growth 3Y-2.47%
OM growth 5Y2.45%
PM growth 3Y-4.31%
PM growth 5Y1.17%
GM growth 3Y-0.54%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PROX is still creating some value.
PROX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PROX has about the same amount of shares outstanding.
Compared to 1 year ago, PROX has an improved debt to assets ratio.
2.2 Solvency
PROX has an Altman-Z score of 1.12. This is a bad value and indicates that PROX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.12, PROX perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
The Debt to FCF ratio of PROX is 37.51, which is on the high side as it means it would take PROX, 37.51 years of fcf income to pay off all of its debts.
PROX has a Debt to FCF ratio of 37.51. This is amonst the worse of the industry: PROX underperforms 81.48% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that PROX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, PROX is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 37.51 | ||
| Altman-Z | 1.12 |
ROIC/WACC1.22
WACC4.64%
2.3 Liquidity
PROX has a Current Ratio of 0.74. This is a bad value and indicates that PROX is not financially healthy enough and could expect problems in meeting its short term obligations.
PROX has a Current ratio of 0.74. This is comparable to the rest of the industry: PROX outperforms 48.15% of its industry peers.
A Quick Ratio of 0.69 indicates that PROX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, PROX is in line with its industry, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.09%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.59% on average over the past years.
Looking at the last year, PROX shows a quite strong growth in Revenue. The Revenue has grown by 8.23% in the last year.
Measured over the past years, PROX shows a small growth in Revenue. The Revenue has been growing by 2.49% on average per year.
EPS 1Y (TTM)30.09%
EPS 3Y0%
EPS 5Y3.59%
EPS Q2Q%29.03%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.82%
Revenue growth 5Y2.49%
Sales Q2Q%8.78%
3.2 Future
The Earnings Per Share is expected to decrease by -2.74% on average over the next years.
Based on estimates for the next years, PROX will show a decrease in Revenue. The Revenue will decrease by -1.36% on average per year.
EPS Next Y-13.78%
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
EPS Next 5Y-2.74%
Revenue Next Year4.27%
Revenue Next 2Y2.98%
Revenue Next 3Y2.44%
Revenue Next 5Y-1.36%
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 5.61, which indicates a rather cheap valuation of PROX.
Compared to the rest of the industry, the Price/Earnings ratio of PROX indicates a rather cheap valuation: PROX is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, PROX is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.99, the valuation of PROX can be described as very cheap.
Based on the Price/Forward Earnings ratio, PROX is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. PROX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.61 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
PROX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PROX is cheaper than 88.89% of the companies in the same industry.
66.67% of the companies in the same industry are cheaper than PROX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 3.6 |
4.3 Compensation for Growth
A cheap valuation may be justified as PROX's earnings are expected to decrease with -6.40% in the coming years.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
PROX has a Yearly Dividend Yield of 4.98%, which is a nice return.
PROX's Dividend Yield is a higher than the industry average which is at 4.71.
Compared to an average S&P500 Dividend Yield of 2.42, PROX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
5.2 History
The dividend of PROX decreases each year by -5.81%.
Dividend Growth(5Y)-5.81%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
PROX pays out 80.36% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of PROX has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP80.36%
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
EBR:PROX (7/4/2025, 5:05:01 PM)
8.245
-0.04 (-0.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.32%
Inst Owner ChangeN/A
Ins Owners5.12%
Ins Owner ChangeN/A
Market Cap2.79B
Analysts70
Price Target7.38 (-10.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend1.12
Dividend Growth(5Y)-5.81%
DP80.36%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)164.45%
Min EPS beat(2)143.47%
Max EPS beat(2)185.43%
EPS beat(4)4
Avg EPS beat(4)90.93%
Min EPS beat(4)14.69%
Max EPS beat(4)185.43%
EPS beat(8)5
Avg EPS beat(8)40.52%
EPS beat(12)8
Avg EPS beat(12)27.48%
EPS beat(16)9
Avg EPS beat(16)18.88%
Revenue beat(2)2
Avg Revenue beat(2)2.52%
Min Revenue beat(2)0.42%
Max Revenue beat(2)4.62%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.42%
Max Revenue beat(4)4.62%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)8
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)5.39%
PT rev (3m)1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.61 | ||
| Fwd PE | 6.99 | ||
| P/S | 0.44 | ||
| P/FCF | 21.77 | ||
| P/OCF | 1.74 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.6 |
EPS(TTM)1.47
EY17.83%
EPS(NY)1.18
Fwd EY14.31%
FCF(TTM)0.38
FCFY4.59%
OCF(TTM)4.74
OCFY57.48%
SpS18.86
BVpS12.75
TBVpS-3.08
PEG (NY)N/A
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 10.39% | ||
| ROCE | 6.81% | ||
| ROIC | 5.66% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 13.51% | ||
| OM | 10.82% | ||
| PM (TTM) | 7.03% | ||
| GM | 62.91% | ||
| FCFM | 2.01% |
ROA(3y)3.61%
ROA(5y)4.41%
ROE(3y)11.6%
ROE(5y)13.82%
ROIC(3y)6.28%
ROIC(5y)7.35%
ROICexc(3y)6.68%
ROICexc(5y)7.86%
ROICexgc(3y)16.07%
ROICexgc(5y)18.73%
ROCE(3y)7.55%
ROCE(5y)8.84%
ROICexcg growth 3Y-10.94%
ROICexcg growth 5Y-5.07%
ROICexc growth 3Y-10.19%
ROICexc growth 5Y-4.03%
OM growth 3Y-2.47%
OM growth 5Y2.45%
PM growth 3Y-4.31%
PM growth 5Y1.17%
GM growth 3Y-0.54%
GM growth 5Y-0.42%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 37.51 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 117.08% | ||
| Cap/Sales | 23.12% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 82.2% | ||
| Profit Quality | 28.57% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.12 |
F-Score6
WACC4.64%
ROIC/WACC1.22
Cap/Depr(3y)120.64%
Cap/Depr(5y)111.12%
Cap/Sales(3y)23.99%
Cap/Sales(5y)22.5%
Profit Quality(3y)45.68%
Profit Quality(5y)64.36%
High Growth Momentum
Growth
EPS 1Y (TTM)30.09%
EPS 3Y0%
EPS 5Y3.59%
EPS Q2Q%29.03%
EPS Next Y-13.78%
EPS Next 2Y-7.55%
EPS Next 3Y-6.4%
EPS Next 5Y-2.74%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.82%
Revenue growth 5Y2.49%
Sales Q2Q%8.78%
Revenue Next Year4.27%
Revenue Next 2Y2.98%
Revenue Next 3Y2.44%
Revenue Next 5Y-1.36%
EBIT growth 1Y15%
EBIT growth 3Y2.23%
EBIT growth 5Y5%
EBIT Next Year187.77%
EBIT Next 3Y42.47%
EBIT Next 5Y19.34%
FCF growth 1Y-23.81%
FCF growth 3Y-35.81%
FCF growth 5Y-25.67%
OCF growth 1Y-1.17%
OCF growth 3Y-0.39%
OCF growth 5Y-0.65%