ENXTBR:PROX

Stock Analysis Report

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Executive Summary

Proximus PLC, a telecommunication and ICT company, provides telephony, Internet, television, and network-based ICT services to the residential, enterprise, and public customers in Belgium and internationally.


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.1%

PROX

4.9%

BE Telecom

4.5%

BE Market


1 Year Return

-22.7%

PROX

-7.6%

BE Telecom

-17.5%

BE Market

Return vs Industry: PROX underperformed the Belgian Telecom industry which returned -9.3% over the past year.

Return vs Market: PROX underperformed the Belgian Market which returned -18.2% over the past year.


Shareholder returns

PROXIndustryMarket
7 Day8.1%4.9%4.5%
30 Day8.2%6.9%8.9%
90 Day-11.1%-3.5%-7.2%
1 Year-19.0%-22.7%-4.2%-7.6%-16.5%-17.5%
3 Year-31.1%-39.3%-8.8%-19.5%-26.9%-31.1%
5 Year-22.6%-36.8%-10.7%-26.8%-22.5%-30.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PROX (€19.85) is trading below our estimate of fair value (€20.58)

Significantly Below Fair Value: PROX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PROX is good value based on its PE Ratio (16.4x) compared to the Telecom industry average (17.9x).

PE vs Market: PROX is poor value based on its PE Ratio (16.4x) compared to the Belgian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: PROX is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: PROX is overvalued based on its PB Ratio (2.1x) compared to the XE Telecom industry average (1.6x).


Next Steps

Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PROX's forecast earnings growth (2.1% per year) is above the savings rate (1.6%).

Earnings vs Market: PROX's earnings (2.1% per year) are forecast to grow slower than the Belgian market (19.5% per year).

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

Revenue vs Market: PROX's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: PROX's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PROX's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Proximus performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PROX has high quality earnings.

Growing Profit Margin: PROX's current net profit margins (7%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: PROX's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: PROX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PROX had negative earnings growth (-24.3%) over the past year, making it difficult to compare to the Telecom industry average (9.8%).


Return on Equity

High ROE: PROX's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is Proximus's financial position?


Financial Position Analysis

Short Term Liabilities: PROX's short term assets (€1.9B) do not cover its short term liabilities (€2.2B).

Long Term Liabilities: PROX's short term assets (€1.9B) do not cover its long term liabilities (€3.6B).


Debt to Equity History and Analysis

Debt Level: PROX's debt to equity ratio (74.8%) is considered high.

Reducing Debt: PROX's debt to equity ratio has reduced from 81.9% to 74.8% over the past 5 years.

Debt Coverage: PROX's debt is well covered by operating cash flow (68.5%).

Interest Coverage: PROX's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Proximus's current dividend yield, its reliability and sustainability?

7.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PROX's dividend (7.56%) is higher than the bottom 25% of dividend payers in the Belgian market (2.46%).

High Dividend: PROX's dividend (7.56%) is in the top 25% of dividend payers in the Belgian market (5.58%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.6%), PROX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PROX's dividends in 3 years are forecast to be covered by earnings (75.7% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Guillaume Boutin (44yo)

0.50

Tenure

Mr. Guillaume Boutin serves as Chief Executive Officer and Managing Director at Proximus PLC since December 01, 2019 and also serves as its Director since December 12, 2019. He served as Chief Consumer Mar ...


Leadership Team

NamePositionTenureCompensationOwnership
Guillaume Boutin
CEO, MD & Director0.50yrno datano data
Bart Van Meersche
Chief Enterprise Market Officerno datano datano data
Geert Standaert
Chief Technology Officer8.25yrsno datano data
Nancy Goossens
Director of Investor Relationsno datano datano data
Jan Van Acoleyen
Chief Human Resources Officer4.08yrsno datano data
Alex Lorette
Head of Telecom Solutions Departmentno datano datano data
Renaud Tilmans
Chief Customer Operations Officer6.08yrsno datano data
Jim Casteele
Chief Consumer Market Officer0.50yrno datano data
Dirk Lybaert
Chief Corporate Affairs Officer & Secretary Generalno datano datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: PROX's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guillaume Boutin
CEO, MD & Director0.50yrno datano data
Martin De Prycker
Independent Director5.17yrs€104.50kno data
Agnes Touraine
Independent Director6.08yrs€82.00kno data
Karel de Gucht
Director4.67yrs€82.00kno data
Paul Van de Perre
Director25.5yrs€89.50kno data
Martine Durez
Director25.5yrs€99.50kno data
Pierre De Muelenaere
Independent Director9.42yrs€104.50kno data
Catherine Vandenborre
Independent Director6.08yrs€99.50kno data
Stefaan De Clerck
Chairman6.75yrs€224.31kno data
Isabelle Santens
Director6.75yrs€77.00kno data

6.4yrs

Average Tenure

64yo

Average Age

Experienced Board: PROX's board of directors are considered experienced (6.4 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

Proximus PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Proximus PLC
  • Ticker: PROX
  • Exchange: ENXTBR
  • Founded: 1930
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €6.410b
  • Shares outstanding: 322.98m
  • Website: https://www.proximus.com

Number of Employees


Location

  • Proximus PLC
  • Boulevard du Roi Albert II, 27 B
  • Brussels
  • Brussels
  • 1030
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGAO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
PROXENXTBR (Euronext Brussels)YesOrdinary SharesBEEURMar 2004
BX7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004
0DPULSE (London Stock Exchange)YesOrdinary SharesGBEURMar 2004
PROXBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 2004
PROXSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMar 2004
PROXWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMar 2004
BX7ETLX (Eurotlx)YesOrdinary SharesITEURMar 2004
BGAO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Proximus PLC, a telecommunication and ICT company, provides telephony, Internet, television, and network-based ICT services to the residential, enterprise, and public customers in Belgium and internationally. It operates through Consumer Business Unit (CBU), Enterprise Business Unit (EBU), Wholesale Unit (WU), Technology Unit (TEC), International Carrier Services (ICS), and Staff and Support (S&S) segments. The CBU segment sells voice products and services, and Internet and television services on fixed and mobile networks to residential customers and small offices; and offers ICT services primarily in the Belgian market, as well as provides related customer operations. The EBU segment sells ICT, and telecom services and products to medium and corporate enterprises primarily under the Proximus and Telindus brands. The WU segment sells services to the telecom and cable operators. The ICS segment engages in the international carrier activities. The TEC segment offers network and IT services. The S&S segment is involved in real estate activities. The company was formerly known as Belgacom SA and changed its name to Proximus PLC in June 2015. Proximus PLC was founded in 1930 and is headquartered in Brussels, Belgium. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 20:47
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.