French stock report - Orange

FRA

Orange decreases July 24, 2017 17:30 CEST

NEWS BITES - EUROPE

Orange (FR:ORA), France's largest Fixed line telecommunications company by market cap, has decreased 4.0c (0.3%) from its last trading session of July 21 to close at EUR14.19. Compared with the CAC 40 Index which rose 1.9 points (0.04%) in the day, the relative price change was -0.3%. The volume was 0.8 times the average daily trading volume of 6.5 million shares.

ORANGE ISSUED 4 NEW PATENTS IN THE WEEK OF JULY 18, 2017

Orange (ORA) has been issued 4 new patents by the US Patent and Trademark Office. For details see Section 7

SECTION 1

ORANGE BEARISH SIGNALS

1.1 Fundamentals:

+ Net profit margin has averaged 4.1% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

+ As per the Du Pont analysis, Return on Equity is less than stellar at 4.4%. This is computed as net profit margin of 2.5% times asset turnover [sales/assets] of 0.44 times leverage factor [total assets/shareholders' equity] of 3.1. Also, this has deteriorated from 9.1% last year.

Du Pont AnalysisROEProfit MarginAsset TurnoverEquity Multiplier
Current Year4.42.50.443.1
Previous Year9.16.20.453.0

+ Profit growth and EBITDA growth have shown signs of deterioration in recent years. [Year ended, all figures in %]

YearRevenue GrowthEPS Growth
Dec 161.913
Dec 151.9196.8

1.2 Overvaluation [compared with sector average]:

+ Return on Equity 4.4% [10.7%].

+ Return on Assets 1.1% [3.4%].

1.3 Technicals:

+ The price decreased 1.3% in the last week and 1.5% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 14.24 minus the 26-day EMA of 14.4 is negative 0.15 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.

1.4 Low Performance Indicators:

DescriptionValueRank In Market
EPS Growth %13In Bottom Quartile
Return on Assets [ROA] %1.1In Bottom Quartile
% Prem to Vol Wtd Price0.04In Bottom 3%

SECTION 2

ORANGE BULLISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 4.2%, divided by average yield of dividend yielding stocks in the CAC 40 Index of 0.8% is 549.4%. This suggests the stock is undervalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.4. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ Brandirectory have estimated Orange brand value at EUR14 billion (US$16.3 billion). The Brand Value represents an impressive 31.5% of the estimated Enterprise Value of EUR44.6 billion (US$51.9 billion).

2.2 Undervaluation [compared with sector average]:

+ Price/Sales of 0.9 [1.1]. We estimate Orange stock is trading at a current year Price/Sales of 0.9 and a forward year Price/Sales of 0.9.

+ Price/Earnings/Growth of 0.9 [1.5].

+ Dividend yield of 4.2% [3.2%].

2.3 Technicals:

+ In the last three months the stock has hit a new 52-week high thrice.

2.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverEUR70.5 million (US$82.1 million)In Top 2%
Earnings Yield %7.3In Top Quartile
Total Debt to Equity0.1In Top Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 4,970,000 shares worth EUR70.5 million (US$82.1 million) traded today. In the past week, volume was 0.8 times average and the shares were down 1.3%.

+ Orange is at a discount of 10.2% to its 12-month high of EUR15.80 on May 23. It is also at a premium of 10.5% to the 12-month low of EUR12.85 on September 16, 2016.

+ The present value of EUR1,000 (PV1000) invested one year ago in Orange is EUR1,038, comprising a capital loss of EUR4 and dividend reinvested of EUR42.

PV10001-week1-month1-year
ORA.FR9879851,038
CAC 40 Index9799871,170

+ The present value of EUR1,000 (PV1000) invested ten years ago in Orange is EUR1,004, including a capital loss of EUR266 and dividend reinvested of EUR270.

+ 10 years Multiplier in EUR = 1.004x

Jul 24, 2017: EUR 1 equals USD 1.16

3.2 Moving Annual Return

ORAClose (EUR)Dividends (EUR)Capital Gain / (Loss) %% YieldAnnual Return %
July 2414.190.6(0.4)4.23.8
1 Yr ago14.250.2(5.8)1.3(4.5)
2 Yrs ago15.130.637.65.543.0

3.3 Beta:

+ Beta: the Beta of Orange stock is 0.7. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 62.6% (or a turnover period of 1 year 7 months). This average length of ownership of the stock at 0.9 times the average holding period of 1 year 9 months for stocks in the CAC 40 Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.

SECTION 4

RANKING

4.1 Global Rank [out of 47,592 stocks] and Rank in the Europe Region [out of 8,351 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)43.9B29285
Total Assets (US$)110.4B450113
Revenue (US$)48.6B20572
Net Profit (US$)3.4B26854
Return on Equity %4.421,4833,715
Net Profit Margin %2.522,0813,591
Price/Earnings13.77,1091,504
Yield %4.25,479936
PV$1000 (1Year) US$*1,09619,6924,051
US$* Change (1Year) %4.121,9084,303

* 1 year ago EUR 1 = USD 1.1

Jul 24, 2017: EUR 1 equals USD 1.16

4.2 Independent Ratings

Orange was ranked 86 in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2015; a deterioration over a year from rank 73 in 2014.

It is the 110th largest by revenue in the FT Global 500.

It was ranked 124 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 63.1% in Water productivity, 60.8% in Carbon productivity and 40.4% in Energy productivity.

It is the 169th largest by revenue in the Forbes Global 2000.

It is placed 428/525 in BSS News Bites' ranking of French performers in the past year, a percentile ranking of 19.

SECTION 5

ORANGE FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)48.647.646.8
Pretax (USD)--3.4B
Net (USD B)3.43.11.4
EPS (EUR)1.040.920.31

5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ Net profit up 10.7% from EUR2.7b ($US2.9b) to EUR2.9b ($US3.1b)

+ EPS up 13% from EUR0.92 ($US1.0) to EUR1.04 ($US1.1).

+ Total non-current assets to Total Assets up from 78% to 80.1%.

+ Total current assets to Total Assets up from 15.7% to 19.9%.

Unfavourable Changes:

+ Total Liabilities to Operating Cash Flow of 7.0 compares unfavourably with the Joseph Piotroski benchmark of <4. This ratio has deteriorated by 15.1% from the previous year's ratio of 6.1.

+ Net tangible assets per share deterioration 7.5% from EUR-3.88 (-$US4.2) to EUR-4.17 (-$US4.4).

Note:

+ Total revenue steady at EUR41.7b ($US43.9b).

+ Total revenue to total assets steady at 0.4.

+ Sales and marketing expenses to Sales up from 48.4% to 49.1%.

+ Total liabilities to Total assets steady at 0.7.

+ Current ratio steady at 0.7.

+ Intangibles to Total Assets down from 45.3% to 44.1%.

+ Fixed Assets to Total Assets down from 27.5% to 27.4%.

+ Current Debtors to Total Assets down from 6.3% to 6.2%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (c)
24 Jul 201760
24 Jul 201620
24 Jul 201560
24 Jul 201480
24 Jul 201378

SECTION 6

ORANGE PROFILE

6.1 Activities

Orange is the French leader of telecommunications company. Net sales break down by activity as follows: - telecommunication services for individuals (84.5%): mobile telephone services (81.6% of sales; 132.6 million clients in 2009; Orange name in France, the United Kingdom and Caribbean, FTP Espana in Spain and PTK Centertel in Poland), fixed telephone services and Internet access (15.5%). The remaining sales (2.9%) concerns services intended for telecommunication operators; - telecommunication services to businesses (15.5%): fixed telephone services (41.9% of sales), network services (28.7%), integration and information management for communication applications (18.1%), and other (11.3%). Net sales break down geographically as follows: France (44%), the United Kingdom (9.5%), Spain (7.2%), Poland (7.1%), Europe (16.7%) and other (15.5%).

6.2 Top Management

The chief executive officer and chairman is Stephane Richard.

6.3 Issued Capital

Based on 2,660,056,599 issued shares the market capitalisation is EUR37.7 billion (US$43.9 billion).

SECTION 7

ORANGE PATENTS

Issued July 18, 2017

Managing application failures in a system of domestic appliances [9,709,981]

A method of managing a system provides a minimum service in the system. The system includes a set of pieces of equipment including data-gathering equipment and/or equipment that is to be controlled, the pieces of equipment being connected to a management module via respective first communications links. The management module is suitable for determining a control command as a function of data received from at least one piece of data-gathering equipment via a first communications link and for transmitting the control command to at least one piece of equipment that is to be controlled. The method is adapted to detect an absence of application signaling activity from the management module over a predetermined time period and to trigger a minimum service by sending an alert message to at least one piece of equipment of the system.

Method of transmitting frames, and corresponding stations and computer program [9,712,223]

A frame transmission method is provided for use in a multiuser MIMO system having a transmitter with a plurality of antennas and receivers that are respectively associated with users. The method includes: constructing a sounding frame in which a first portion has at least one symbol for synchronizing destination receivers and a second portion has at least as many pre-coded pilot symbols as there are destination receivers; transmitting the sounding frame in a broadcast mode for its first portion and in a directional mode for its second portion to each of the destination receivers; and constructing a respective data frame for sending to each of the destination receivers by taking account of feedback information coming from the destination receivers and, for each destination receiver, coding interference between destination receivers.

Technique for communication in a communications network with routing by name [9,712,602]

A method and routing device are provided for aggregating of requests relating to a data segment of a stream into another request and for storing data segments belonging to different streams in a queue prior to the device routing them to client entities that have requested them. The method includes: determining a credit associated with a stream, the credit varying based on a number of requests transmitted by client entities and relating to data segments belonging to the stream; and, on receiving a data segment in response to the other request, and when memory space available in the queue does not enable the received data segment to be stored: selecting a stream having at least one data segment stored in the queue and for which the associated credit is the smallest; and deleting from the queue a data segment belonging to the selected stream.

Processing of cellular radio data implemented by a SIM card, particularly for security purposes [9,712,997]

Processing of cellular radio data, in particular by a SIM card of a terminal in a mobility situation, said SIM card receiving a current cell identifier and comparing the current identifier with an identifier previously stored in memory, in order to generate a notification intended for a remote server when there is a difference between the current identifier and an identifier previously stored in memory. More particularly, the SIM card stores in memory a list of current identifiers of respective cells in which the terminal is successively located, and the sending of a notification to the server occurs only if the current identifier is absent from this list.

To view more details on these Patents, click here

SECTION 8

STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

December 22 2016: Orange signs the renewal of its syndicated credit facility with 24 banks

December 02 2016: Orange sponsors the Women's Forum 2016

October 25 2016: Orange: 3rd quarter 2016 financial information

August 04 2016: Orange: total number of shares and voting rights at July 31, 2016

July 28 2016: Orange : Publication of Orange's first half 2016 financial report

Contact: +33 (0)1 44 44 22 22

Physical Address: 78 rue Olivier de Serres 75505 Paris Cedex 15 France

State/Province/Country: France

Country of Incorporation: France

Exchange: Euronext - Paris

ISIN: FR0000133308

FR:ORA; EPA:ORA; PA:ORA; FP:ORA; ORAN.PA

PermID: 4295867447

Orange, Orange Sa, Ormat Technologies Inc

Source: www.BuySellSignals.com