ENXTBR:OBEL

Stock Analysis Report

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Executive Summary

Orange Belgium S.A. provides telecommunication services in Belgium and Luxembourg. More Details


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Orange Belgium's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OBEL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

OBEL

-2.8%

BE Wireless Telecom

-4.4%

BE Market


1 Year Return

-26.7%

OBEL

-27.7%

BE Wireless Telecom

-23.2%

BE Market

Return vs Industry: OBEL matched the Belgian Wireless Telecom industry which returned -27.7% over the past year.

Return vs Market: OBEL underperformed the Belgian Market which returned -23.2% over the past year.


Shareholder returns

OBELIndustryMarket
7 Day2.3%-2.8%-4.4%
30 Day5.2%-3.2%-5.7%
90 Day1.7%-10.3%-6.3%
1 Year-25.0%-26.7%-24.2%-27.7%-22.0%-23.2%
3 Year-21.7%-26.5%-38.4%-46.8%-31.3%-35.4%
5 Year-28.2%-33.7%-25.7%-43.7%-24.7%-32.4%

Price Volatility Vs. Market

How volatile is Orange Belgium's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Orange Belgium undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OBEL (€14.28) is trading below our estimate of fair value (€34.38)

Significantly Below Fair Value: OBEL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OBEL's PE Ratio (16.2x) is in line with the XE Wireless Telecom industry average.

PE vs Market: OBEL is poor value based on its PE Ratio (16.2x) compared to the Belgian market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: OBEL is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: OBEL's PB Ratio (1.4x) is in line with the XE Wireless Telecom industry average.


Next Steps

Future Growth

How is Orange Belgium forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OBEL's forecast earnings growth (12.8% per year) is above the savings rate (1.6%).

Earnings vs Market: OBEL's earnings (12.8% per year) are forecast to grow slower than the Belgian market (28.7% per year).

High Growth Earnings: OBEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: OBEL's revenue (2.1% per year) is forecast to grow slower than the Belgian market (7.1% per year).

High Growth Revenue: OBEL's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OBEL's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Orange Belgium performed over the past 5 years?

-17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OBEL has a large one-off loss of €21.9M impacting its September 30 2020 financial results.

Growing Profit Margin: OBEL's current net profit margins (3.9%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: OBEL's earnings have declined by 17.7% per year over the past 5 years.

Accelerating Growth: OBEL's earnings growth over the past year (70.2%) exceeds its 5-year average (-17.7% per year).

Earnings vs Industry: OBEL earnings growth over the past year (70.2%) exceeded the Wireless Telecom industry -5.2%.


Return on Equity

High ROE: OBEL's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Orange Belgium's financial position?


Financial Position Analysis

Short Term Liabilities: OBEL's short term assets (€378.8M) do not cover its short term liabilities (€801.4M).

Long Term Liabilities: OBEL's short term assets (€378.8M) exceed its long term liabilities (€360.3M).


Debt to Equity History and Analysis

Debt Level: OBEL's debt to equity ratio (36.7%) is considered satisfactory.

Reducing Debt: OBEL's debt to equity ratio has reduced from 106.9% to 36.7% over the past 5 years.

Debt Coverage: OBEL's debt is well covered by operating cash flow (161.7%).

Interest Coverage: OBEL's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Orange Belgium current dividend yield, its reliability and sustainability?

3.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OBEL's dividend (3.5%) is higher than the bottom 25% of dividend payers in the Belgian market (2.29%).

High Dividend: OBEL's dividend (3.5%) is low compared to the top 25% of dividend payers in the Belgian market (6.25%).


Stability and Growth of Payments

Stable Dividend: OBEL's dividend payments have been volatile in the past 10 years.

Growing Dividend: OBEL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.7%), OBEL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OBEL's dividends in 3 years are forecast to be covered by earnings (77.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Xavier Pichon (53 yo)

0.083

Tenure

Mr. Xavier Pichon is the Chief Executive Officer of Orange Belgium at Orange SA and Orange Belgium S.A. since September 1, 2020. Mr. Xavier Pichon serves as Delegate Director of Finance, Strategic Planning ...


Leadership Team

NamePositionTenureCompensationOwnership
Xavier Pichon
Chief Executive Officer0.083yrno datano data
Arnaud Marie Castille
Chief Financial Officer3.83yrsno datano data
Stefan Slavnicu
Chief Technology Officer2.08yrsno datano data
Eric Chang
Director of Investor Relationsno datano datano data
Isabel Carrion
Chief People Officer5.08yrsno datano data
Werner De Laet
Chief Enterprise Officer4yrsno datano data
Michaël Trabbia
Executive Director4.08yrsno datano data
Ana Catalina Lopez
Investor Relations Expertno datano datano data
Christophe Dujardin
Chief Consumer Officer0.67yrno datano data
Javier Sagredo
Chief Transformation & Digital Officer1.58yrsno datano data
Paul-Marie Dessart
Company Secretary15.75yrsno datano data
Koen Van Mol
Investor Relations Officerno datano datano data

2.1yrs

Average Tenure

48yo

Average Age

Experienced Management: OBEL's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michaël Trabbia
Executive Director4.08yrsno datano data
Wilfried Verstraete
Independent Non-Executive Director3.42yrs€43.20kno data
Francis Gelibter
Non-Executive Directorno datano datano data
Jean-Marc Vignolles
Non-Executive Director2.25yrsno datano data
Béatrice Mandine
Non-Executive Director4.5yrsno datano data
Gregoire Dallemagne
Independent Non-Executive Directorno data€46.20kno data
Ramon Fernandez
Non-Executive Director2.25yrsno datano data
Nadine Lemaitre-Rozencweig
Independent Vice-Chairman of the Board3.42yrs€66.00kno data
Johan Deschuyffeleer
Independent Chairman of the Board3.42yrs€79.20kno data
Christophe Naulleau
Non-Executive Directorno datano datano data
Martine De Rouck
Independent Non-Executive Directorno data€60.00kno data
Valérie Le Boulanger
Non-Executive Director2.25yrsno datano data

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: OBEL's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Orange Belgium S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orange Belgium S.A.
  • Ticker: OBEL
  • Exchange: ENXTBR
  • Founded:
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: €867.286m
  • Shares outstanding: 59.98m
  • Website: https://www.orange.be

Number of Employees


Location

  • Orange Belgium S.A.
  • Avenue du Bourget, 3
  • Brussels
  • Brussels
  • 1140
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OBELENXTBR (Euronext Brussels)YesOrdinary SharesBEEUROct 1998
MOSDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1998
0FBSLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1998
OBELBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1998

Biography

Orange Belgium S.A. provides telecommunication services in Belgium and Luxembourg. The company provides mobile telecommunication, broadband Internet, and TV services to residential clients, as well as mobi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:39
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.