French stock alert

FRA

CLOSING UPDATE: Orange decreases further 0.4%, led Fixed line telecommunications sector lower 18 October 2017 18:11 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's French market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Orange, France's largest fixed line telecommunications company by market capitalisation, has decreased 0.5% to trade at EUR13.80 vs. the Fixed line telecommunications sector which weakened 11.6 points (or 0.4%) to 3,180.8. Representing a weighting of about 75.9% of the sector, the stock accounted for the loss. Trading volume was 88% of average at the end of the day. Compared with the CAC 40 Index which rose 22.4 points (or 0.4%) in the day, this represented a relative price change of -0.9%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.05 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price decreased 0.9% in the last week and 1.5% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Return on Equity 4.4% [10.7%]

+ Return on Assets 1.1% [3.4%]

Other Bearish Signals include:

+ 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%. Also, this has deteriorated from 9.1% last year.

Note

Orange today is at a discount of 12.7% to the 12-month high of EUR15.80 on 23 May, 2017. It is at a premium of 5.4% to the 12-month low of EUR13.09 on 05 Dec, 2016.

Bullish Signals:

Tobin's Q Ratio 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.

The Brand Value represents an impressive 31.9% of the estimated Enterprise Value of EUR43.6 billion (US$51.3 billion).

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings/Growth of 0.92 [1.5]

Price/Sales of 0.9 [1.1]

Dividend yield of 4.3% [3.3%]

Year-on-Year Earnings Growth of 13% [9.3%]

TODAY'S ALERT

Afternoon Alert: Orange decreases 0.1%, leads Fixed line telecommunications sector lower

18 October 2017 14:10 CEST

Orange (FR:ORA) has decreased 0.1% to trade at EUR13.85 vs. the Fixed line telecommunications sector which weakened 3.0 points (or 0.09%) to 3,189.4. Representing a weighting of about 76.0% of the sector, the stock accounted for the loss. Trading volume was 91% of average so far today.

Orange (FR:ORA; EPA:ORA; PA:ORA; FP:ORA)

ISIN: FR0000133308

PermID: 4295867447

Source: www.BuySellSignals.com