ENXTPA:ORA

Stock Analysis Report

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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. More Details


Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


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

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


Market Performance


7 Day Return

2.7%

ORA

2.8%

FR Telecom

-5.5%

FR Market


1 Year Return

-33.5%

ORA

-16.8%

FR Telecom

-13.9%

FR Market

Return vs Industry: ORA underperformed the French Telecom industry which returned -18.9% over the past year.

Return vs Market: ORA underperformed the French Market which returned -11.4% over the past year.


Shareholder returns

ORAIndustryMarket
7 Day2.7%2.8%-5.5%
30 Day9.0%8.3%-4.0%
90 Day-3.1%-1.8%-2.0%
1 Year-30.9%-33.5%-13.8%-16.8%-12.0%-13.9%
3 Year-23.4%-32.8%-21.8%-29.4%-2.1%-10.6%
5 Year-26.0%-40.2%-21.5%-33.6%22.1%4.0%

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 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: ORA (€9.05) is trading below our estimate of fair value (€30.34)

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


Price To Earnings Ratio

PE vs Industry: ORA is good value based on its PE Ratio (8.4x) compared to the XE Telecom industry average (19x).

PE vs Market: ORA is good value based on its PE Ratio (8.4x) compared to the French market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: ORA is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ORA is good value based on its PB Ratio (0.7x) compared to the XE Telecom industry average (1.7x).


Next Steps

Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORA's forecast earnings growth (8.5% per year) is above the savings rate (0.6%).

Earnings vs Market: ORA's earnings (8.5% per year) are forecast to grow slower than the French market (23.4% per year).

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

Revenue vs Market: ORA's revenue (0.9% per year) is forecast to grow slower than the French market (6.8% per year).

High Growth Revenue: ORA's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORA's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Orange performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (6.2%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: ORA's earnings growth over the past year (37.1%) exceeds its 5-year average (16.6% per year).

Earnings vs Industry: ORA earnings growth over the past year (37.1%) exceeded the Telecom industry 7.2%.


Return on Equity

High ROE: ORA's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Orange's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets (€24.2B) do not cover its short term liabilities (€26.9B).

Long Term Liabilities: ORA's short term assets (€24.2B) do not cover its long term liabilities (€43.9B).


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (109.5%) is considered high.

Reducing Debt: ORA's debt to equity ratio has increased from 108.7% to 109.5% over the past 5 years.

Debt Coverage: ORA's debt is well covered by operating cash flow (27.3%).

Interest Coverage: ORA's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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

7.29%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ORA's dividend (7.74%) is higher than the bottom 25% of dividend payers in the French market (1.56%).

High Dividend: ORA's dividend (7.74%) is in the top 25% of dividend payers in the French market (5.42%)


Stability and Growth of Payments

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: With its reasonable payout ratio (65.4%), ORA's dividend 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 (59.7% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Stéphane Richard (59 yo)

9.58yrs

Tenure

€1,889,383

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 ($USD2.22M) is below average for companies of similar size in the French market ($USD4.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stéphane Richard
Chairman & CEO9.58yrs€1.89m0.0012%
€ 301.0k
Ramon Fernandez
Executive Director of Finance6.08yrs€1.04m0.000060%
€ 15.3k
Gervais Gilles Pellissier
Executive Director of Human Resources & Group Transformation0.083yr€1.03m0.0013%
€ 334.1k
Michaël Trabbia
Chief Technology & Innovation Officer0.083yrno datano data
Patrice De Diesbach
Senior VP & Head of Investor Relationsno datano datano data
Brigitte Bourgoin
Group Chief Compliance Officerno datano datano data
Béatrice Mandine
Executive Director of Communications7.42yrsno datano data
Patrick Roussel
Executive Vice President for Consumer Sales7yrsno datano data
Xavier Pichon
Chief Executive Officer of Orange Belgium0.083yrno datano data
Mari-Noëlle Jégo-Laveissière
Chief Executive Officer of European Region0.083yrno datano data
Fabienne Dulac
Deputy CEO & CEO of Orange France6.17yrsno datano data
Jean-Marc Vignolles
Chief Operations Officer of MEA Region and Head of Orange Espagne13.75yrsno datano data

6.1yrs

Average Tenure

53yo

Average Age

Experienced Management: ORA's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stéphane Richard
Chairman & CEO9.58yrs€1.89m0.0012%
€ 301.0k
Nicolas Dufourcq
Non-Independent Director7.42yrs€22.00kno data
Bernard Ramanantsoa
Independent Director4.33yrs€70.00k0.000040%
€ 10.2k
Helle Kristoffersen
Independent Director9.33yrs€36.00k0.000070%
€ 17.9k
Jean-Michel Severino
Independent Director9.33yrs€46.00k0.000040%
€ 10.2k
Alexandre Bompard
Independent Director3.83yrs€32.00k0.000040%
€ 10.2k
Christel Heydemann
Independent Director3.25yrs€50.00k0.000040%
€ 10.2k
Anne Lange
Non-Independent Director5.42yrs€54.00kno data
Sébastien Crozier
Employee Representative Director2.83yrs€261.31k0.00014%
€ 35.7k
Fabrice Jolys
Employee Representative Director2.83yrs€93.24k0%
€ 0
René Ollier
Employee Representative Director2.83yrs€75.31kno data
Helene Dantoine
Non- Independent Director1.58yrs€37.97kno data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Board: ORA's board of directors are considered experienced (4.1 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 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: €25.506b
  • Shares outstanding: 2.66b
  • 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
ORANNYSE (New York Stock Exchange)ADR EACH REPR 1 ORD EUR4USUSDOct 1997
FNCT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 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
ORABIT (Borsa Italiana)YesOrdinary SharesITEUROct 1997
FTEXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1997
FTE1DB (Deutsche Boerse AG)ADR EACH REPR 1 ORD EUR4DEEUROct 1997
FTE1XTRA (XETRA Trading Platform)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 Analysis2020/10/29 21:34
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
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.