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Orient Telecoms Plc (GB:ORNT)
LSE:ORNT
UK Market

Orient Telecoms Plc (ORNT) AI Stock Analysis

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GB

Orient Telecoms Plc

(LSE:ORNT)

Rating:60Neutral
Price Target:
Orient Telecoms Plc's overall score reflects a stable financial foundation with effective cost management and low leverage, crucial strengths in the current environment. However, declining revenues and profitability, coupled with negative technical indicators, highlight significant challenges. While valuation is reasonable, the absence of a dividend yield and bearish technical trends weigh on the overall assessment.

Orient Telecoms Plc (ORNT) vs. iShares MSCI United Kingdom ETF (EWC)

Orient Telecoms Plc Business Overview & Revenue Model

Company DescriptionOrient Telecoms Plc provides managed telecommunications services in the United Kingdom and Malaysia. The company offers broadband, dedicated internet access, wireless, IP Transit, IPLC, leased line, SD-WAN, satellite, private area network, and voice and VOIP solutions; application and security products, such as firewall, antivirus, endpoint security, MS 365, and SIEM services; web and email hosting, and cloud storage and security services; and water drone, smart street light, and hyper health services. It also provides FlexiMate, an adaptive connectivity solution; OfficeMate, an IT ecosystem solution; SecureMate, a cyber-security solution; and SonicMate, a big data solution. In addition, the company offers high-speed data services to data centers. It serves financial, government, telecommunications, medical, hospitality, and e-commerce industries, as well as education institutions and MNCs. The company was incorporated in 2016 and is headquartered in Kuala Lumpur, Malaysia.
How the Company Makes MoneyOrient Telecoms Plc generates revenue through multiple streams, primarily from subscription fees for its internet and mobile communication services. The company offers various plans and packages tailored to different customer needs, which include data, voice, and SMS services. In addition to consumer subscriptions, Orient Telecoms earns revenue from enterprise solutions, offering tailored communication and networking services to businesses, including cloud services, managed IT solutions, and data center services. Strategic partnerships with other tech companies and telecom providers may also contribute to its revenues by expanding service offerings and customer reach.

Orient Telecoms Plc Financial Statement Overview

Summary
Orient Telecoms Plc demonstrates strengths in its gross profit margins and low leverage, indicating effective cost management and financial stability. However, declining revenues and net profit margins are notable concerns. The company's ability to generate cash flow has improved but remains inconsistent. Overall, while the financial health is stable, there are significant areas that require attention to enhance profitability and cash efficiency.
Income Statement
65
Positive
Orient Telecoms Plc's income statement showcases a mixed performance. The gross profit margin is robust at 89.3%, indicating effective cost management. However, the net profit margin has declined from 8.7% in 2023 to 7.0% in 2024, reflecting reduced profitability. Revenue has decreased by 18.7% from 2023 to 2024, raising concerns about growth sustainability. EBIT and EBITDA margins are also lower, at 12.2% and 33.8%, respectively, down from the previous year. Despite strong gross margins, declining net income and revenues are significant weaknesses.
Balance Sheet
78
Positive
The balance sheet of Orient Telecoms Plc displays financial stability with a debt-to-equity ratio of 0.09, indicating low leverage. The equity ratio is strong at 77.9%, reflecting a substantial equity base relative to total assets. Return on equity (ROE) stands at 4.9%, highlighting moderate efficiency in generating returns from shareholders' equity. The company's overall low debt levels and strong equity position are key strengths, though the moderate ROE suggests room for improved profitability.
Cash Flow
52
Neutral
Cash flow analysis reveals mixed results. Free cash flow has improved significantly from negative in 2023 to positive in 2024, indicating better cash generation. However, the operating cash flow to net income ratio of 3.3 suggests that the company is not highly efficient in converting net income into cash flow. Despite improvements in free cash flow, there remain inconsistencies in cash generation, representing potential risks.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue376.56K463.42K611.54K807.13K600.60K
Gross Profit336.29K416.24K476.39K530.71K413.19K
EBITDA127.21K152.35K142.35K192.34K89.03K
Net Income26.43K40.32K34.72K83.57K-22.51K
Balance Sheet
Total Assets694.67K804.17K887.33K917.59K650.55K
Cash, Cash Equivalents and Short-Term Investments336.38K329.79K466.62K391.78K350.69K
Total Debt50.26K204.39K294.78K223.73K73.83K
Total Liabilities153.80K263.51K390.60K462.55K251.30K
Stockholders Equity540.88K540.66K496.74K455.04K399.25K
Cash Flow
Free Cash Flow87.59K-30.43K179.98K163.90K-79.04K
Operating Cash Flow87.59K-30.43K179.98K163.90K-79.04K
Investing Cash Flow0.000.000.000.000.00
Financing Cash Flow-81.00K-106.40K-108.53K-100.64K-101.28K

Orient Telecoms Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
£1.05B15.4619.42%1.69%11.06%31.61%
GBVOD
69
Neutral
£19.50B8.78-7.22%4.11%-0.59%-489.50%
66
Neutral
£18.89B17.898.29%2.49%-0.75%-58.92%
60
Neutral
£400.00K15.38
55
Neutral
AU$3.56B17.18-1.37%3.16%4.07%-17.03%
GBBBB
£9.59M-9.16%
$1.76B52.04
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ORNT
Orient Telecoms Plc
4.00
-6.00
-60.00%
GB:BT.A
BT Group plc
195.40
64.76
49.57%
GB:GAMA
Gamma Communications
1,136.00
-275.01
-19.49%
GB:BBB
Bigblu Broadband plc
22.00
-12.50
-36.23%
GB:VOD
Vodafone
79.24
12.82
19.30%
HTWSF
Helios Towers
1.66
0.02
1.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 22, 2025