OTCPK:BGAO.Y

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 with acceptable track record.


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

-0.5%

OTCPK:BGAO.Y

3.1%

US Telecom

1.2%

US Market


1 Year Return

21.8%

OTCPK:BGAO.Y

8.4%

US Telecom

1.7%

US Market

BGAO.Y outperformed the Telecom industry which returned 8.4% over the past year.

BGAO.Y outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

BGAO.YIndustryMarket
7 Day-0.5%3.1%1.2%
30 Day-3.8%7.5%4.9%
90 Day-3.3%9.8%3.7%
1 Year26.3%21.8%14.1%8.4%3.9%1.7%
3 Year5.4%-4.9%18.1%0.9%47.2%37.7%
5 Year-3.7%-18.5%35.1%4.2%60.0%42.4%

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

No news available

Valuation

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

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Proximus's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Proximus's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Proximus is good value based on earnings compared to the US Telecom industry average.

Proximus is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Proximus is poor value based on expected growth next year.


Price Based on Value of Assets

Proximus is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Proximus's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Proximus's earnings are expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Proximus's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Proximus's earnings growth is positive but not above the United States of America market average.

Proximus's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Proximus is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Proximus's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Proximus's 1-year earnings growth exceeds its 5-year average (0.8% vs -4.3%)

Proximus's earnings growth has exceeded the US Telecom industry average in the past year (0.8% vs -18%).


Return on Equity

Proximus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Proximus used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Proximus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Proximus's financial position?


Financial Position Analysis

Proximus's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Proximus's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Proximus's level of debt (82.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (87.5% vs 82.7% today).

Debt is well covered by operating cash flow (66.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Proximus's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Proximus's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.1x coverage).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Dominique Leroy (55yo)

5.7yrs

Tenure

€940,546

Compensation

Mrs. Dominique Leroy has been the Chief Executive Officer of Proximus PLC (also known as Belgacom SA) since January 21, 2014 and had been its President from January 2014 to 2018. Mrs. Leroy has been an Ind ...


CEO Compensation Analysis

Dominique's remuneration is lower than average for companies of similar size in United States of America.

Dominique's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Proximus management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.0yrs

Average Tenure

63.5yo

Average Age

The tenure for the Proximus board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sandrine Dufour (52yo)

    Chief Financial Officer

    • Tenure: 4.4yrs
  • Nancy Goossens

    Director of Investor Relations

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

    Chief Human Resources Officer

    • Tenure: 3.3yrs
  • Dominique Leroy (55yo)

    CEO & Director

    • Tenure: 5.7yrs
    • Compensation: €940.55k
  • Bart Meersche (61yo)

    Chief Enterprise Market Officer

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

    Chief Technology Officer

    • Tenure: 7.5yrs
  • Alex Lorette

    Head of Telecom Solutions Department

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

    Chief Corporate Affairs Officer

    • Tenure: 5.7yrs
  • Renaud Tilmans (50yo)

    Chief Customer Operations Officer

    • Tenure: 5.3yrs
  • Guillaume Boutin

    Chief Consumer Market Officer

    • Tenure: 2.1yrs

Board Members

  • Agnès Touraine (64yo)

    Independent Director

    • Tenure: 5.3yrs
  • Guy Demuynck (68yo)

    Independent Director

    • Tenure: 12.7yrs
  • Paul Van de Perre (66yo)

    Director

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

    Director

    • Tenure: 24.8yrs
  • Laurent Levaux (63yo)

    Director

    • Tenure: 6yrs
  • Pierre De Muelenaere (61yo)

    Independent Director

    • Tenure: 8.7yrs
  • Dominique Leroy (55yo)

    CEO & Director

    • Tenure: 5.7yrs
    • Compensation: €940.55k
  • Catherine Vandenborre (48yo)

    Independent Director

    • Tenure: 5.3yrs
  • Stefaan De Clerck (67yo)

    Chairman

    • Tenure: 6yrs
  • Isabelle Santens (59yo)

    Director

    • Tenure: 6yrs

Company Information

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


Key Information

  • Name: Proximus PLC
  • Ticker: BGAO.Y
  • Exchange: OTCPK
  • Founded: 1930
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €8.293b
  • Listing Market Cap: €9.184b
  • 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 Analysis2019/09/15 01:25
End of Day Share Price2019/09/11 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.