ENXTBR:PROX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.7%

PROX

1.8%

BE Telecom

1.1%

BE Market


1 Year Return

20.2%

PROX

8.3%

BE Telecom

9.5%

BE Market

Return vs Industry: PROX exceeded the Belgian Telecom industry which returned 8.3% over the past year.

Return vs Market: PROX exceeded the Belgian Market which returned 9.5% over the past year.


Shareholder returns

PROXIndustryMarket
7 Day-0.7%1.8%1.1%
30 Day2.3%3.9%-1.2%
90 Day6.0%7.4%0.7%
1 Year25.3%20.2%13.7%8.3%11.9%9.5%
3 Year18.6%5.3%12.3%-1.7%-3.9%-10.5%
5 Year12.1%-7.4%19.7%-3.7%29.7%14.5%

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?

6.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PROX (€27.35) is trading below our estimate of fair value (€29.12)

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 (16.6x) compared to the Telecom industry average (21.4x).

PE vs Market: PROX is poor value based on its PE Ratio (16.6x) compared to the Belgian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: PROX is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: PROX is overvalued based on its PB Ratio (3x) compared to the XE Telecom industry average (1.8x).


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PROX's forecast earnings growth (3.2% per year) is above the savings rate (0.8%).

Earnings vs Market: PROX's earnings (3.2% per year) are forecast to grow slower than the Belgian market (6.4% 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 (-0.5% per year).

High Growth Revenue: PROX's revenue is forecast to decline over the next 3 years (-0.5% 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 (18.2%).


Next Steps

Past Performance

How has Proximus performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PROX's earnings have declined by -4.3% per year over the past 5 years.

Accelerating Growth: PROX's earnings growth over the past year (0.8%) exceeds its 5-year average (-4.3% per year).

Earnings vs Industry: PROX earnings growth over the past year (0.8%) underperformed the Telecom industry 1.4%.


Return on Equity

High ROE: PROX's Return on Equity (17.8%) is considered low.


Return on Assets

ROA vs Industry: PROX has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: PROX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Proximus's financial position?


Financial Position Analysis

Short Term Liabilities: PROX's short term assets (€1.7B) do not cover its short term liabilities (€2.3B)

Long Term Liabilities: PROX's short term assets (1.7B) do not cover its long term liabilities (3.5B)


Debt to Equity History and Analysis

Debt Level: PROX's debt to equity ratio (82.7%) is considered high

Reducing Debt: PROX's debt to equity ratio has reduced from 87.5% to 82.7% over the past 5 years.

Debt Coverage: PROX's debt is well covered by operating cash flow (66.5%).

Interest Coverage: PROX's interest payments on its debt are well covered by EBIT (28.3x coverage).


Balance Sheet

Inventory Level: PROX has a high level of physical assets or inventory.

Debt Coverage by Assets: PROX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

5.48%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.1%markettop25%4.4%industryaverage4.7%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PROX's dividend (5.48%) is higher than the bottom 25% of dividend payers in the Belgian market (2.1%).

High Dividend: PROX's dividend (5.48%) is in the top 25% of dividend payers in the Belgian market (4.45%)

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 (91.2%), 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 (87.8% payout ratio).


Next Steps

Management

What is the CEO of Proximus's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Sandrine Dufour (52yo)

0.08yrs

Tenure

0

Mrs. Sandrine Dufour, CFA, has been the Chief Financial Officer of Proximus PLC since April 1, 2015 and its interim Chief Executive Officer since September 21, 2019. Mrs. Dufour was the Chief Financial Of ...


Management Age and Tenure

3.4yrs

Average Tenure

52yo

Average Age

Experienced Management: PROX's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: PROX's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Sandrine Dufour (52yo)

    CFO & Interim CEO

    • Tenure: 0.08yrs
  • Nancy Goossens

    Director of Investor Relations

    • Tenure: 0yrs
  • Jan Van Acoleyen (56yo)

    Chief Human Resources Officer

    • Tenure: 3.4yrs
  • Bart Meersche (61yo)

    Chief Enterprise Market Officer

    • Tenure: 0yrs
  • Geert Standaert (49yo)

    Chief Technology Officer

    • Tenure: 7.6yrs
  • Katleen Vandeweyer (50yo)

    Interim Chief Financial Officer

    • Tenure: 0.08yrs
  • Alex Lorette

    Head of Telecom Solutions Department

    • Tenure: 0yrs
  • Dirk Lybaert (58yo)

    Chief Corporate Affairs Officer

    • Tenure: 5.8yrs
  • Renaud Tilmans (50yo)

    Chief Customer Operations Officer

    • Tenure: 5.4yrs
  • Guillaume Boutin

    Chief Consumer Market Officer

    • Tenure: 2.2yrs

Board Members

  • Martin De Prycker (64yo)

    Independent Director

    • Tenure: 4.5yrs
  • Agnès Touraine (64yo)

    Independent Director

    • Tenure: 5.4yrs
  • Karel de Gucht (65yo)

    Director

    • Tenure: 4yrs
  • Paul Van de Perre (66yo)

    Director

    • Tenure: 24.8yrs
  • Martine Durez (69yo)

    Director

    • Tenure: 24.8yrs
  • Pierre De Muelenaere (61yo)

    Independent Director

    • Tenure: 8.8yrs
  • Luc den hove (59yo)

    Independent Director

    • Tenure: 3.5yrs
  • Catherine Vandenborre (48yo)

    Independent Director

    • Tenure: 5.4yrs
  • Stefaan De Clerck (67yo)

    Chairman

    • Tenure: 6.1yrs
  • Isabelle Santens (59yo)

    Director

    • Tenure: 6.1yrs

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: €8.826b
  • Shares outstanding: 322.70m
  • Website: https://www.proximus.com

Number of Employees


Location

  • Proximus PLC
  • Proximus Towers
  • Koning Albert ll-laan 27
  • 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
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 markets in Belgium and internationally ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:31
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.