Orange SA (ORANN) AI Stock Analysis

Orange SA

(BMV:ORANN)

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Positive Factors

Resilient Cash GenerationStrong operating and free cash flow provide Orange with internally generated funding for network investment, debt service and customer initiatives. This recurring cash-generation capacity is a durable strength for a capital-intensive telecom business, although the recent free-cash-flow decline merits monitoring.

Negative Factors

High Leverage and Lower EquityHigh debt combined with a materially smaller equity base reduces financial flexibility even though Orange generates substantial cash. This structure can constrain discretionary investment, increase sensitivity to weaker earnings, and leave less room to absorb operating setbacks or pursue strategic opportunities.

Orange SA Business Overview & Revenue Model

Company Description

Orange S.A. operates as a major telecommunications provider, serving customers in France and worldwide. The company delivers a broad spectrum of services, including essential mobile communication features like voice calls, text messages, and data acc...

Orange SA Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|Next Earnings Date:Oct 24, 2018

Earnings Call SentimentPositive

The call was strongly positive overall. Orange reported broad-based revenue, EBITDAaL and operating cash flow growth, raised full-year EBITDAaL guidance to above 4.5%, and highlighted strong commercial momentum, particularly in Africa and the Middle East, France and Europe 6. The main challenges were the decline in Orange Business revenue, continued negative service revenue in Spain, French ARPU pressure, macroeconomic and political uncertainty, limited initial Skylo adoption and a temporary mobile network outage.

Positive Updates

Strong Q3 Group Performance and Raised Guidance

Q3 revenue grew 3.6% to EUR 12.2 billion, EBITDAaL increased 4.6%, and operating cash flow grew 10.3%. Revenue increased across all geographies, and full-year EBITDAaL growth guidance was upgraded to above 4.5%.

Negative Updates

Orange Business Revenue Decline

Orange Business revenue declined 2.5% in Q3, reflecting an IT market still affected by the macroeconomic environment. Management said the complex market environment was weighing on the EBITDAaL improvement trend and that the environment was putting pressure on prices for customers.

Company Guidance

Orange upgraded its full year EBITDAaL growth guidance to above 4.5%, while eCapEx to sales is expected to be around 15%; France is expected to deliver stable plus EBITDAaL growth for 2026, including H2 stable plus EBITDAaL, Spain is expected to deliver low single-digit EBITDAaL growth in H2, Africa and Middle East is expected to achieve double-digit EBITDAaL growth for the full year, and Europe 6 is expected to deliver mid-single-digit EBITDAaL growth for the full year. Orange also reiterated its 2026-2028 guidance of an EBITDAaL CAGR of plus 3%, with the signing of the SFR transaction planned by the end of this year, 2026 and closing by the end of 2027.

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

2 New Risks

1.Holders of our ADSs may be subject to limitations on the transfer of such ADSs and the withdrawal of the underlying Shares.Q4, 2021

2.A high concentration of Orange's critical suppliers and global supply tensions for a large number of products represent a risk for the Group's activities.Q4, 2021

Orange SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

MX:ORANN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMX	76Outperform	$75.08B	15.06	22.21%	2.42%	15.97%	39.45%
TIMB	73Outperform	$8.43B	10.65	17.54%	7.85%	13.99%	29.93%
VZ	67Neutral	$185.39B	11.41	15.73%	6.29%	1.38%	-16.44%
T	63Neutral	$144.23B	11.57	11.95%	5.18%	3.51%	-39.83%
VOD	63Neutral	$36.94B	-72.26	-0.79%	3.38%	16.69%	87.12%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

MX:ORANN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AMX	America Movil S.a.b. De C.v.	24.48	2.41	10.90%
T	At&t Inc	21.41	-2.00	-8.56%
TIMB	Tim S.A.	17.68	-3.64	-17.06%
VZ	Verizon Communications	44.73	7.72	20.87%
VOD	Vodafone Group Plc	15.88	4.93	44.98%

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.

Orange SA AI Stock Analysis