ORANGE SA (ORA) AI Stock Analysis

• Market Cap: €35.06B
• Dividend Yield: 5.69%
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.11
• Revenue Growth: -5.05%
• EPS Growth: -49.01%
• Country: FR
• Employees: 126,909
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -0.07
• Shares Outstanding: 2,660,056,600
• 10 Day Avg. Volume: 3,323,543
• 30 Day Avg. Volume: 4,476,166
• PEG Ratio: -3.09
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 7.35
• 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: €15.23
• Price Target Upside: 15.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: €14.50 ▲(9.68% Upside)

Orange SA's overall stock score is driven by solid financial performance, particularly in profitability and cash flow generation. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The attractive dividend yield partially offsets these risks, providing a stable income for investors.

ORANGE SA Business Overview & Revenue Model

Company Description

Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; Spain and Other European Countries; The Africa and Middle East; Enterprise; International Carriers & Shared Services; and Mobile Financial Services segments. The company offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as fixed network business solutions, including voice and data; and convergence packages. It also sells mobile handsets, mobile terminals, broadband equipment, connected devices, and accessories. In addition, the company 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, it offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors and brokers. Orange S.A. markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was founded in 1990 and is headquartered in Issy-les-Moulineaux, France.

How the Company Makes Money

ORANGE SA generates revenue primarily through its telecommunications services, which include mobile subscription fees, fixed-line connectivity, and broadband internet services. The company has a diverse revenue model that encompasses both consumer and enterprise segments. Key revenue streams include monthly subscription fees from mobile and internet services, pay-per-use charges, and value-added services such as data packages, entertainment subscriptions, and mobile payments. Additionally, Orange has formed significant partnerships and collaborations with various technology firms and content providers, which enhance its service offerings and drive additional revenue through bundled services and co-branded products. The company also monetizes its investments in digital services, including cloud computing and cybersecurity solutions, catering to the growing demand from businesses for digital transformation.

ORANGE SA Financial Statement Overview

Summary

Orange SA demonstrates solid profitability and cash flow generation, with stable margins and efficient cash conversion. However, concerns arise from declining revenue and high debt levels.

Income Statement

Orange SA's income statement shows a stable performance with a gross profit margin of 39.6% and a net profit margin of 5.8% for 2024. The EBIT margin stands at 12.7% and EBITDA margin at 32.2%, indicating healthy operational profitability. However, revenue declined by 8.7% from 2023 to 2024, a concern for revenue growth sustainability.

Balance Sheet

The balance sheet reflects a balanced financial structure with a debt-to-equity ratio of 1.34, indicating moderate leverage. The return on equity (ROE) is 7.4%, showing reasonable returns for shareholders. The equity ratio of 30.6% suggests a stable asset base, but high total debt levels could pose risks if not managed effectively.

Cash Flow

Orange SA's cash flow analysis indicates solid cash generation with an operating cash flow to net income ratio of 4.34. There is a free cash flow to net income ratio of 1.48, reflecting strong cash conversion. However, free cash flow declined by 17.5% from 2023 to 2024, which could impact future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.27B	40.26B	44.12B	43.47B	42.52B	42.27B
Gross Profit	10.51B	15.96B	16.68B	16.76B	15.56B	16.98B
EBITDA	11.75B	12.96B	13.12B	12.98B	11.64B	12.89B
Net Income	1.13B	2.35B	2.44B	2.15B	233.00M	4.82B
Balance Sheet
Total Assets	101.62B	103.87B	110.05B	113.17B	111.32B	110.92B
Cash, Cash Equivalents and Short-Term Investments	10.58B	12.21B	8.32B	10.50B	10.89B	11.35B
Total Debt	7.51B	42.67B	8.57B	53.11B	52.07B	51.56B
Total Liabilities	69.00B	68.71B	74.95B	83.17B	81.46B	79.52B
Stockholders Equity	29.42B	31.77B	31.82B	26.83B	26.84B	28.75B
Cash Flow
Free Cash Flow	3.15B	3.48B	4.22B	2.46B	2.49B	4.15B
Operating Cash Flow	10.19B	10.20B	12.05B	11.23B	11.24B	12.70B
Investing Cash Flow	-4.86B	-1.46B	-7.01B	-10.45B	-5.97B	-5.56B
Financing Cash Flow	-5.94B	-5.73B	-5.46B	-3.34B	-4.84B	-5.41B

ORANGE SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ORA, the sentiment is Negative. The current price of 13.22 is below the 20-day moving average (MA) of 13.63, below the 50-day MA of 13.83, and above the 200-day MA of 12.17, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ORA.

ORANGE SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUB	73 Outperform	€20.79B	12.18	17.51%	4.35%	9.88%	16.84%
TEP	72 Outperform	€3.80B	7.81	11.73%	6.55%	9.08%	-22.55%
TFI	71 Outperform	€1.79B	9.53	9.58%	7.18%	-0.32%	0.64%
ORA	65 Neutral	€35.06B	31.39	4.23%	5.69%	-5.05%	-49.01%
VIV	60 Neutral	€3.02B	7.98	2.26%	1.31%	―	―
SESG	58 Neutral	€2.73B	244.29	-2.14%	7.57%	-0.99%	93.75%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%