ORANGE SA (ORA) AI Stock Analysis

• Market Cap: €33.70B
• Dividend Yield: 5.68%
• Average Volume (3M): 5.84M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.20
• Revenue Growth: -8.75%
• EPS Growth: 3.76%
• Country: FR
• Employees: 126,909
• Sector: Communication Services
• Sector Strength: 86
• Industry: Telecommunications Services
• EPS (TTM): 0.29
• Shares Outstanding: 2,660,056,600
• 10 Day Avg. Volume: 4,705,882
• 30 Day Avg. Volume: 5,843,187
• PEG Ratio: -1.44
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €13.47
• Price Target Upside: 6.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: €14.50 ▲(14.90%Upside)

The overall stock score is driven by strong technical indicators and a solid financial performance, though tempered by a fair valuation and the absence of recent corporate events or earnings call insights.

ORANGE SA Business Overview & Revenue Model

Company Description

Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; Spain and Other European Countries; The Africa and Middle East; Enterprise; International Carriers & Shared Services; and Mobile Financial Services segments. The company offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as fixed network business solutions, including voice and data; and convergence packages. It also sells mobile handsets, mobile terminals, broadband equipment, connected devices, and accessories. In addition, the company provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, it offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors and brokers. Orange S.A. markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was founded in 1990 and is headquartered in Issy-les-Moulineaux, France.

How the Company Makes Money

Orange S.A. generates revenue through multiple streams predominantly centered around its telecommunications services. The primary revenue source comes from providing mobile and fixed-line telecommunications services, which include voice, data, and internet services to individual and corporate customers. Subscription fees, data usage charges, and equipment sales contribute significantly to this segment. Additionally, Orange earns from its business services division, which offers IT and integration services, cloud computing solutions, and cybersecurity services. The company also benefits from strategic partnerships and investments in digital services and financial technology, including mobile banking and payment solutions, primarily in Africa. Wholesale services, providing network access to other operators, further augment its revenue. Orange's focus on innovation and expansion in emerging markets also plays a crucial role in driving its financial performance.

ORANGE SA Financial Statement Overview

Summary

Orange SA demonstrates solid profitability and cash flow generation, supported by stable margins and efficient cash conversion. The balance sheet shows moderate leverage, but high debt levels warrant attention. While operational efficiency is commendable, the decline in revenue and free cash flow growth are areas of concern and should be monitored closely for future performance sustainability.

Income Statement

Orange SA's income statement shows a stable performance with a gross profit margin of 39.6% and a net profit margin of 5.8% for 2024. The EBIT margin stands at 12.7% and EBITDA margin at 32.2%, indicating healthy operational profitability. However, revenue declined by 8.7% from 2023 to 2024, a concern for revenue growth sustainability.

Balance Sheet

The balance sheet reflects a balanced financial structure with a debt-to-equity ratio of 1.34, indicating moderate leverage. The return on equity (ROE) is 7.4%, showing reasonable returns for shareholders. The equity ratio of 30.6% suggests a stable asset base, but high total debt levels could pose risks if not managed effectively.

Cash Flow

Orange SA's cash flow analysis indicates solid cash generation with an operating cash flow to net income ratio of 4.34. There is a free cash flow to net income ratio of 1.48, reflecting strong cash conversion. However, free cash flow declined by 17.5% from 2023 to 2024, which could impact future financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
40.26B	44.12B	43.47B	42.52B	42.27B
	Gross Profit
15.96B	16.68B	16.76B	15.56B	16.98B
	EBIT
5.12B	4.97B	4.80B	2.52B	5.52B
	EBITDA
12.96B	13.12B	12.98B	11.64B	12.89B
	Net Income Common Stockholders
2.35B	2.44B	2.15B	233.00M	4.82B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.21B	8.32B	10.50B	10.89B	11.35B
	Total Assets
103.87B	110.05B	113.17B	111.32B	110.92B
	Total Debt
42.67B	8.57B	53.11B	52.07B	51.56B
	Net Debt
33.90B	2.95B	47.10B	43.45B	43.42B
	Total Liabilities
68.71B	74.95B	83.17B	81.46B	79.52B
	Stockholders Equity
31.77B	31.82B	26.83B	26.84B	28.75B
Cash Flow		Free Cash Flow
3.48B	4.22B	2.46B	2.49B	4.15B
	Operating Cash Flow
10.20B	12.05B	11.23B	11.24B	12.70B
	Investing Cash Flow
-1.46B	-7.01B	-10.45B	-5.97B	-5.56B
	Financing Cash Flow
-5.73B	-5.46B	-3.34B	-4.84B	-5.41B

ORANGE SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ORA, the sentiment is Positive. The current price of 12.62 is above the 20-day moving average (MA) of 12.61, above the 50-day MA of 12.21, and above the 200-day MA of 10.48, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 5.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ORA.

ORANGE SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORA	76 Outperform	€33.70B	15.51	7.98%	5.68%	-8.75%	3.76%
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
0FQI		€23.86B	14.37	15.92%	3.57%	―	―
0J6X		€5.46B	10.41	11.90%	4.61%	―	―
0NQT		€1.79B	9.42	9.43%	7.05%	―	―
0IIF		€2.88B	7.61	2.26%	1.39%	―	―
SES		€2.06B	204.08	0.00%	8.55%	―	―