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Orange Sa (Adr) (ORANY)
OTHER OTC:ORANY
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Orange SA
(OTC:ORANY)
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Rating:58Neutral
Price Target:
$17.50
▲(2.64% Upside)
The score is driven primarily by stable (but not strong) financial performance: resilient margins and solid operating cash flow are offset by declining revenue, elevated leverage, and only moderate free-cash-flow conversion. Technicals are supportive with an uptrend and positive MACD, though near-overbought readings temper the outlook. Valuation is the main drag due to a high P/E and modest dividend yield.
Positive Factors
Strategic Partnership
This partnership with Visa enhances Orange's financial services, potentially increasing market reach and revenue in Africa and the Middle East.
Market Expansion
Acquiring full control of MasOrange supports Orange's strategic growth in Spain, enhancing its competitive position and market influence.
Cash Generation
Strong cash generation supports ongoing investments and financial stability, enabling Orange to fund strategic initiatives and debt obligations.
Negative Factors
Revenue Decline
A significant revenue decline indicates challenges in maintaining market share and growth, potentially impacting long-term profitability.
Elevated Leverage
High leverage limits Orange's ability to maneuver financially, posing risks in a capital-intensive industry and affecting future investment capacity.
Free Cash Flow Decline
Declining free cash flow suggests increasing reinvestment needs or operational inefficiencies, which could constrain future growth and financial health.
Orange SA (ORANY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.00B
Dividend Yield0%
Average Volume (3M)23.36K
Price to Earnings (P/E)36.1
Beta (1Y)-0.17
Revenue Growth-4.52%
EPS Growth-49.12%
CountryUS
Employees126,909
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.37
Shares Outstanding2,660,056,600
10 Day Avg. Volume18,340
30 Day Avg. Volume23,355
Financial Highlights & Ratios
PEG Ratio-2.56
Price to Book (P/B)0.82
Price to Sales (P/S)0.60
P/FCF Ratio6.94
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit5.73
Enterprise Value/Ebitda3.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Orange SA Business Overview & Revenue Model
Company DescriptionOrange S.A. operates as a telecommunications operator in France and internationally. It offers mobile services, such as voice, SMS, and data; and fixed broadband and narrowband services, as well as B2B fixed solutions and network services, including voice and data services. The company also sells handsets, broadband equipment, connected devices, and accessories. In addition, it 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, the company offers national and international roaming services; online advertising services; and mobile virtual network operator, network sharing, and mobile financial services, as well as sells equipment to external distributors, brokers, and operators. It markets its products and services under the Orange brand name. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was incorporated in 1991 and is headquartered in Issy-les-Moulineaux, France.
How the Company Makes MoneyOrange SA generates revenue through several key streams. The company earns a substantial portion of its income from subscription services for mobile telephony, including voice, data, and messaging services. Additionally, Orange provides fixed-line services, including broadband internet and digital TV subscriptions. Business services, such as cloud computing, cybersecurity, and IT consulting, also contribute to its revenue. The company benefits from strategic partnerships and investments in emerging markets, enhancing its growth potential and market reach. Roaming fees and equipment sales, such as mobile devices and accessories, further augment its earnings.
Orange SA Earnings Call Summary
Earnings Call Date:Oct 24, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance in Q3 2024, significant growth in the Middle East and Africa, and successful technological execution during the Paris 2024 Olympics. Challenges were noted in the wholesale and business segments due to market conditions. The positive performance in key areas like MEA and France suggests optimistic future prospects.Q3-2024 Updates
Positive Updates
Strong Q3 Financial Performance
Revenues increased by 1.6% year-on-year to EUR 10 billion, with a 2.7% growth in group EBITDAaL to EUR 3.3 billion.
Middle East and Africa Double-Digit Growth
MEA delivered sixth consecutive quarter of double-digit growth at 10.5% with a strong retail service growth of over 11%.
Successful Olympic Games Connectivity
Orange was the sole operator providing full connectivity for the Paris 2024 Olympics, doubling 5G traffic in Paris during the event.
France Revenue Growth
France revenue grew by 1.3%, driven by a 2.8% increase in retail services excluding PSTN, fueled by convergence.
Retail Services and Fiber Expansion
Retail services excluding PSTN grew 2.5%. Over 1 million FTTH net adds in the last 12 months, with strong mobile and broadband net adds.
Negative Updates
Decline in Wholesale Revenues
Wholesale revenues faced a decline of 3.3%, though partially offset by retail service growth.
Challenges in Orange Business Segment
Orange Business revenues decreased by 2.6% due to a decline in voice and complex IT market conditions.
European Revenue Decline
Europe revenues slightly decreased year-on-year due to low-margin activities, although retail services grew by 1.3%.
Company Guidance
In the Q3 2024 earnings call for Orange (ORA.PA), the executives confirmed their full-year guidance, highlighting key metrics from their performance. In France, the company achieved retail growth excluding PSTN at 2.8% in Q3, with expectations to exceed 2.5% growth in H2. The mobile net adds were 83,000, while fixed broadband net adds returned to growth with 6,000 additions, supported by strong fiber momentum, contributing over 1 million FTTH net adds in the past year. Convergent revenues increased by nearly 5%, with an ARPU close to EUR 78. In the Middle East and Africa (MEA), Orange recorded its sixth consecutive quarter of double-digit growth at 10.5%, driven by a significant increase in mobile customers and Orange Money's 21% growth. Group revenues rose by 1.6% year-on-year to EUR 10 billion, with group EBITDAaL growing by 2.7% to EUR 3.3 billion. Despite a 3.3% decline in wholesale, retail services growth at 2.5% sustained the overall revenue increase. The company also maintained its eCapEx target at 14% of sales for Q3, aiming for around 15% for the year.Orange SA Financial Statement Overview
Summary
Orange SA exhibits a strong financial position with consistent revenue growth and improved profitability margins. The company has reduced its debt, enhancing financial stability, and maintains a solid equity base. While cash flow generation remains robust, the recent decline in free cash flow points to potential areas for strategic improvement to sustain long-term growth and shareholder value.Income Statement
Orange SA has demonstrated a steady revenue growth rate with a notable increase from 43,471 million to 44,122 million, translating to a revenue growth rate of approximately 1.5% from 2022 to 2023. The gross profit margin stands strong at about 56.2% for 2023. However, the absence of EBIT and EBITDA figures for 2023 limits a full assessment of operational efficiency. Despite these missing metrics, the company's net profit margin improved from 4.9% in 2022 to 7.4% in 2023, indicating enhanced profitability.Balance Sheet
The balance sheet of Orange SA reflects a stable equity position, with stockholders' equity slightly increasing to 31,824 million. The debt-to-equity ratio has significantly improved to approximately 0.23 in 2023, reflecting reduced leverage risk compared to previous years. The equity ratio remains robust at about 29.1%, indicating a solid equity base relative to total assets. While these improvements suggest stability, the overall asset base has remained relatively static.Cash Flow
Orange SA's cash flow statement shows a healthy operating cash flow of 12,055 million in 2023, though the free cash flow declined to 4,418 million from the previous year's 11,235 million, suggesting increased capital expenditures or changes in working capital. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net earnings. The free cash flow to net income ratio has decreased, highlighting the need for improved free cash generation strategies.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.79B | 40.26B | 42.90B | 39.13B | 42.52B | 48.19B |
| Gross Profit | 7.04B | 23.61B | 22.92B | 22.96B | 24.55B | 9.58B |
| EBITDA | 13.28B | 13.29B | 13.70B | 14.19B | 11.33B | 16.00B |
| Net Income | 1.22B | 2.35B | 2.44B | 2.15B | 9.46M | 5.21B |
Balance Sheet | ||||||
| Total Assets | 101.62B | 111.07B | 125.63B | 120.79B | 126.60B | 135.71B |
| Cash, Cash Equivalents and Short-Term Investments | 10.58B | 12.23B | 9.16B | 11.21B | 12.38B | 13.89B |
| Total Debt | 7.51B | 49.67B | 58.16B | 45.96B | 41.00B | 63.09B |
| Total Liabilities | 69.00B | 79.79B | 92.33B | 88.76B | 72.71B | 97.30B |
| Stockholders Equity | 29.25B | 31.77B | 31.82B | 28.64B | 30.53B | 35.18B |
Cash Flow | ||||||
| Free Cash Flow | 3.42B | 3.77B | 4.57B | 2.58B | 2.94B | 4.73B |
| Operating Cash Flow | 11.08B | 11.03B | 13.03B | 11.81B | 13.28B | 14.47B |
| Investing Cash Flow | -5.28B | -1.58B | -7.57B | -10.98B | -7.06B | -6.34B |
| Financing Cash Flow | -6.47B | -6.20B | -5.91B | -3.51B | -5.72B | -6.17B |
Orange SA Technical Analysis
Positive
17.05
Price Trends
16.22
Positive
16.06
Positive
15.26
Positive
Market Momentum
0.16
Positive
52.84
Neutral
37.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORANY, the sentiment is Positive. The current price of 17.05 is above the 20-day moving average (MA) of 16.53, above the 50-day MA of 16.22, and above the 200-day MA of 15.26, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORANY.
Orange SA Risk Analysis
Orange SA disclosed 35 risk factors in its most recent earnings report. Orange SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orange SA Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.98B | 18.85 | 8.36% | 5.03% | -3.16% | 4.70% | |
75 Outperform | $20.26B | 15.39 | 15.54% | 6.14% | -5.21% | -7.45% | |
68 Neutral | $48.45B | 48.63 | 3.31% | ― | -2.70% | -56.75% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $44.00B | 36.09 | 4.07% | 0.00% | -4.52% | -49.12% | |
58 Neutral | $31.99B | -7.40 | -7.08% | 3.77% | 19.67% | -278.51% | |
45 Neutral | $22.50B | -10.17 | -0.70% | 7.47% | -5.49% | -75.51% |
* Communication Services Sector Average
ORANY
Orange SA
16.60
6.78
68.97%
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VIV
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12.42
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TEF
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3.93
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VOD
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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.