Orient Telecoms Plc (ORNT) AI Stock Analysis

• Market Cap: £400.00K
• Dividend Yield: N/A
• Average Volume (3M): 500.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: -42.62%
• EPS Growth: -1023.08%
• Country: UK
• Employees: 9
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.02
• Shares Outstanding: 10,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 500
• PEG Ratio: <0.01
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 3.70
• P/FCF Ratio: 3.21
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• 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.

Positive Factors

Low Leverage

Orient Telecoms Plc's low leverage provides financial stability, reducing risk and enhancing its ability to invest in growth opportunities without the burden of high debt costs.

Gross Profit Margin

A strong gross profit margin reflects effective cost management, allowing the company to maintain profitability even in challenging market conditions, supporting long-term financial health.

Improved Free Cash Flow

The improvement in free cash flow indicates enhanced cash generation capabilities, providing the company with more resources for reinvestment, debt reduction, or shareholder returns.

Negative Factors

Declining Revenue

The decline in revenue raises concerns about the company's ability to sustain growth, potentially impacting its market position and long-term profitability if not addressed.

Declining Net Profit Margin

A declining net profit margin suggests reduced profitability, which could hinder the company's ability to invest in new opportunities and maintain competitive advantages over time.

Inconsistent Cash Generation

Inconsistent cash generation can pose risks to financial stability, limiting the company's ability to fund operations and growth initiatives, potentially affecting its long-term strategic goals.

Orient Telecoms Plc Business Overview & Revenue Model

Company Description

Orient 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 Money

Orient 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.07K	216.07K	376.56K	463.42K	611.54K	807.13K
Gross Profit	168.18K	168.18K	336.29K	416.24K	476.39K	530.71K
EBITDA	-213.66K	-210.78K	127.21K	152.35K	142.35K	192.34K
Net Income	-240.22K	-240.22K	26.43K	40.32K	34.72K	83.57K
Balance Sheet
Total Assets	773.76K	773.76K	694.67K	804.17K	887.33K	917.59K
Cash, Cash Equivalents and Short-Term Investments	565.15K	565.15K	336.38K	329.79K	466.62K	391.78K
Total Debt	34.42K	34.42K	50.26K	204.39K	294.78K	223.73K
Total Liabilities	468.95K	468.95K	153.80K	263.51K	390.60K	462.55K
Stockholders Equity	304.81K	304.81K	540.88K	540.66K	496.74K	455.04K
Cash Flow
Free Cash Flow	249.16K	249.16K	87.59K	-30.43K	179.98K	163.90K
Operating Cash Flow	251.69K	251.69K	87.59K	-30.43K	179.98K	163.90K
Investing Cash Flow	-2.53K	-2.53K	0.00	0.00	0.00	0.00
Financing Cash Flow	-20.39K	-20.39K	-81.00K	-106.40K	-108.53K	-100.64K

Orient Telecoms Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BT.A	66 Neutral	£17.24B	18.15	7.56%	4.61%	-2.53%	24.52%
GAMA	65 Neutral	£892.22M	13.76	18.64%	2.17%	11.95%	20.69%
HTWS	62 Neutral	$1.66B	25.52	―	―	4.95%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ORNT	60 Neutral	£400.00K	―	-56.81%	―	-42.62%	-1023.08%
VOD	58 Neutral	£20.68B	-6.14	-7.57%	3.93%	16.15%	-279.78%
BBB	37 Underperform	£8.28M	-2.69	―	―	―	―