ENXTPA:ORA

Stock Analysis Report

Executive Summary

Orange S.A. provides a range of fixed telephony and mobile telecommunications, data transmission, and other value-added services to consumers, businesses, and other telecommunications operators in Europe, Africa, and the Middle East.

Snowflake

Fundamentals

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

ORA

3.2%

FR Telecom

2.9%

FR Market


1 Year Return

10.0%

ORA

5.9%

FR Telecom

10.2%

FR Market

Return vs Industry: ORA exceeded the French Telecom industry which returned 5.9% over the past year.

Return vs Market: ORA matched the French Market which returned 10.2% over the past year.


Share holder returns

ORAIndustryMarket
7 Day3.6%3.2%2.9%
30 Day6.7%6.7%-0.3%
90 Day11.3%8.3%0.1%
1 Year15.5%10.0%10.5%5.9%14.0%10.2%
3 Year21.8%6.5%4.0%-6.6%44.3%30.4%
5 Year72.9%39.0%35.3%15.2%75.2%49.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Orange undervalued based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ORA (€14.81) is trading below our estimate of fair value (€25.13)

Significantly Undervalued: ORA is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: ORA is good value based on its PE Ratio (18.1x) compared to the Telecom industry average (18.1x).

PE vs Market: ORA is poor value based on its PE Ratio (18.1x) compared to the French market (17.1x).


Price Based on Expected Growth

Low PEG Ratio: ORA is poor value based on its PEG Ratio (2.2x)


Price Based on Value of Assets

PB vs Industry: ORA is good value based on its PB Ratio (1.3x) compared to the FR Telecom industry average (1.6x).


Next Steps

Future Growth

How is Orange expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ORA's forecast earnings growth (8.4% per year) is above the savings rate (0.7%).

Earnings vs Market: ORA's earnings (8.4% per year) are forecast to grow slower than the French market (11.1% per year).

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

Revenue vs Market: ORA's revenue (0.7% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: ORA's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ORA's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Orange performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: ORA's earnings growth over the past year (10.1%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: ORA earnings growth over the past year (10.1%) underperformed the Telecom industry 28%.


Return on Equity

High ROE: ORA's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: ORA's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Orange's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets (€23.0B) do not cover its short term liabilities (€29.1B)

Long Term Liabilities: ORA's short term assets (23.0B) do not cover its long term liabilities (42.0B)


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (113.1%) is considered high

Reducing Debt: ORA's debt to equity ratio has reduced from 127.8% to 113.1% over the past 5 years.

Debt Coverage: ORA's debt is well covered by operating cash flow (25.5%).

Interest Coverage: ORA's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: ORA's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

5.09%

Expected Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.6%markettop25%4.6%industryaverage4.7%forecastin3Years5.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ORA's dividend (4.73%) is higher than the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: ORA's dividend (4.73%) is in the top 25% of dividend payers in the French market (4.65%)

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.7%), ORA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORA's dividends in 3 years are forecast to be covered by earnings (63.4% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Stéphane Richard (58yo)

8.6yrs

Tenure

€2,263,637

Compensation

Mr. Stéphane Richard has been the Chairman and Chief Executive Officer at Orange SA since March 1, 2011. Mr. Richard serves as Managing Partner of SCI du at 18 rue Philippe-Hecht. He serves as the Chairman ...


CEO Compensation Analysis

Compensation vs. Market: Stéphane's total compensation ($USD2.50M) is about average for companies of similar size in the French market ($USD3.51M).

Compensation vs Earnings: Stéphane's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.0yrs

Average Tenure

58yo

Average Age

Experienced Management: ORA's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: ORA's board of directors are considered experienced (3.9 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

  • Brigitte Bourgoin (65yo)

    Group Chief Compliance Officer

    • Tenure: 0yrs
  • Stéphane Richard (58yo)

    Chairman & CEO

    • Tenure: 8.6yrs
    • Compensation: €2.26m
  • Gervais Gilles Pellissier (60yo)

    Delegate CEO of Group Transformation & President of Orange Business Services

    • Tenure: 7.9yrs
    • Compensation: €1.31m
  • Béatrice Mandine (51yo)

    Executive Director of Communications & Brand

    • Tenure: 6.4yrs
  • Patrick Roussel

    Executive Vice President for Consumer Sales

    • Tenure: 6yrs
  • Ramon Fernandez (52yo)

    Delegate Chief Executive Officer of Finance

    • Tenure: 5.1yrs
    • Compensation: €1.31m
  • Christine Albanel (64yo)

    Senior EVP of CSR

    • Tenure: 0yrs
  • Patrice De Diesbach (63yo)

    Senior VP & Head of Investor Relations

    • Tenure: 0yrs
  • Mari-Noëlle Jégo-Laveissière (51yo)

    Deputy CEO of Technology & Global Innovation

    • Tenure: 5.6yrs
  • Valérie Le Boulanger (57yo)

    Executive Director of Group Human Resources

    • Tenure: 1.4yrs

Board Members

  • Nicolas Dufourcq (56yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: €30.00k
  • Charles-Henri Filippi (67yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: €63.00k
  • Stéphane Richard (58yo)

    Chairman & CEO

    • Tenure: 8.6yrs
    • Compensation: €2.26m
  • Bernard Ramanantsoa (71yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: €59.00k
  • Helle Kristoffersen (55yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: €42.00k
  • Jean-Michel Severino (62yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: €48.00k
  • Alexandre Bompard (47yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: €24.00k
  • Christel Heydemann (45yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €46.00k
  • Anne Lange (51yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: €46.00k
  • Sébastien Crozier (51yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: €253.82k

Company Information

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


Key Information

  • Name: Orange S.A.
  • Ticker: ORA
  • Exchange: ENXTPA
  • Founded: 1990
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €39.280b
  • Shares outstanding: 2.65b
  • Website: https://www.orange.com

Number of Employees


Location

  • Orange S.A.
  • 78, rue Olivier de Serres
  • Paris
  • Ile-de-France
  • 75015
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORABIT (Borsa Italiana)YesOrdinary SharesITEUROct 1997
ORANNYSE (New York Stock Exchange)ADR EACH REPR 1 ORD EUR4USUSDOct 1997
ORAENXTPA (Euronext Paris)YesOrdinary SharesFREUROct 1997
ORAN NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 ORD EUR4MXMXNOct 1997
FTEDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997
ORASWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1997
0OQVLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1997
FNCT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1997
FTEXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1997
FTE1DB (Deutsche Boerse AG)ADR EACH REPR 1 ORD EUR4DEEUROct 1997
ORAPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1997
ORAWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 1997
0A2QLSE (London Stock Exchange)ADR EACH REPR 1 ORD EUR4GBUSDOct 1997
FTEUDB (Deutsche Boerse AG)5.25%-FRN SUB EMTN PERP EUR100000 'REGS'DEEURJan 2014

Biography

Orange S.A. provides a range of fixed telephony and mobile telecommunications, data transmission, and other value-added services to consumers, businesses, and other telecommunications operators in Europe,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:37
End of Day Share Price2019/10/11 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.

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