There has been very little movement in Orange's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary
● Overall, the company has poor fundamentals for a medium to long-term investment strategy.
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The company appears to be poorly valued given its net asset value.
● The company has a low valuation given the cash flows generated by its activity.
● The company is one of the best yield companies with high dividend expectations.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company is in debt and has limited leeway for investment
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● Over the past twelve months, analysts' opinions have been revised negatively.
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Orange is the French leader of telecommunications company. Net sales (including intragroup) break down by activity as follows:
- telecommunication services for individuals (76.9%): mobile telephone services (253 million clients at the end of 2024; Orange brand name in France, the United Kingdom and Caribbean, FTP Espana in Spain and PTK Centertel in Poland), fixed telephone services and Internet access (38.3 million clients). The group also offers services for telecommunication operators. Net sales break down by country between France (54.6%), Europe (21.8%), Africa and Middle East (23.6%);
- telecommunication services to businesses (18.4%): Internet access services, mobile telephone, voice and data transmission services and integration and information management for communication applications;
- telecommunication services to international telecommunication operators (3%);
- other (1.7%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
