Orange Polska Sa Debt jumped on 12.8% and Revenue increased on 2.7%
12 Feb 2020 • About Orange Polska Sa (
$OPLD) • By InTwits
Orange Polska Sa reported 2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orange Polska Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.8%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 2,272 PLNm in 2019, 2,282 PLNm in 2018, 1,933 PLNm in 2017, 5,169 PLNm in 2016, 1,998 PLNm in 2015
- The company has potentially unprofitable business model: ROIC is 2.3%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Orange Polska Sa's Revenue increased on 2.7%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 26.0% to 27.7% in 2019. During the last 5 years EBITDA Margin bottomed in 2016 at 11.9% and was growing since that time.
Net Income margin increased slightly on 0.71 pp from 0.090% to 0.80% in 2019. During the last 5 years Net Income margin bottomed in 2016 at -15.1% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 19.9% in 2019. The company's CAPEX/Revenue dropped on 24.9 pp from 44.8% in 2016 to 19.9% in 2019. Average CAPEX/Revenue for the last three years was 19.2%. The company invested a large share of EBITDA (71.8%) to CAPEX.
Return on investment
The company operates at low ROIC (2.3%) and ROE (0.9%). ROIC showed almost no change in 2019. ROE increased slightly on 0.77 pp from 0.098% to 0.86% in 2019. During 2015-2019 ROIC bottomed in 2016 at -8.6% and was growing since that time. During the last 5 years ROE bottomed in 2016 at -15.9% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 2.7x. Net Debt / EBITDA surged on 0.2x from 2.4x to 2.6x in 2019. Debt jumped on 12.8% while cash dropped on 33.9%.
Orange Polska Sa has short term refinancing risk: cash is only 96.2% of short term debt.
Management team
Jean-Francois Fallacher is a the company's CEO. Jean-Francois Fallacher is a founder and has spent 3 years with the company.
Financial and operational results
FY ended 31 Dec 2019
Orange Polska Sa ($OPLD) key annual financial indicators| mln. PLN | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 11,840 | 11,538 | 11,381 | 11,101 | 11,406 | 2.7% |
| EBITDA | 3,443 | 1,371 | 2,801 | 2,889 | 3,164 | 9.5% |
| EBIT | | | | 345 | | |
| Interest expence | | | | 275 | | |
| Tax | | | | 30 | | |
| Net Income | 254 | -1,746 | -60 | 10 | 91 | 810.0% |
Balance Sheet
|
|---|
| Cash | 266 | 262 | 646 | 611 | 404 | -33.9% |
| Accounts Receivable | | | | 2,371 | | |
| Inventory | | | | 240 | | |
| Accounts Payable | | | | 2,469 | | |
| Short Term Debt | 1,318 | 41 | 1,529 | 2,150 | 420 | -80.5% |
| Long Term Debt | 2,930 | 7,153 | 5,553 | 5,381 | 8,072 | 50.0% |
Cash flow
|
|---|
| Capex | 1,998 | 5,169 | 1,933 | 2,282 | 2,272 | -0.4% |
Ratios
|
|---|
| Revenue growth | -3.0% | -2.6% | -1.4% | -2.5% | 2.7% | |
| EBITDA growth | -15.2% | -60.2% | 104.3% | 3.1% | 9.5% | |
|
|---|
| EBITDA Margin | 29.1% | 11.9% | 24.6% | 26.0% | 27.7% | 1.7% |
| EBIT Margin | | | | 3.1% | |
| Net Income Margin | 2.1% | -15.1% | -0.5% | 0.1% | 0.8% | 0.7% |
| CAPEX, % of revenue | 16.9% | 44.8% | 17.0% | 20.6% | 19.9% | -0.6% |
|
|---|
| ROIC | 3.7% | -8.6% | 1.4% | 2.1% | 2.3% | 0.3% |
| ROE | 2.1% | -15.9% | -0.6% | 0.1% | 0.9% | 0.8% |
| Net Debt/EBITDA | 1.2x | 5.1x | 2.3x | 2.4x | 2.6x | 0.2x |
| Interest coverage ratio (ICR) | | | | 1.3x | |
| Interest expence / Average debt | | | | 3.8% | | |
People
|
|---|
| Employees | | | | 13,545 | | |
| Revenue/Employee, th. PLN | | | | 820 | | |
Peers in Fixed Line Telecommunications
Below you can find Orange Polska Sa benchmarking vs. other companies in Fixed Line Telecommunications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Adept Telecom ($ADT) | 5.8% | 30.9% | 19.2% | 34.8% | |
| Verizon Communications Inc ($VZC) | | -4.3% | 0.0% | 3.8% | 0.8% |
| O2 Czech Republic As ($O2CZ) | | 0.9% | 0.3% | 0.9% | 1.7% |
| Kt Corp ($KTCD) | | 2.1% | 2.8% | 0.3% | 3.8% |
| BT Group ($BT.A) | -1.7% | 5.7% | 26.6% | -1.4% | |
| |
|---|
| Median (6 companies) | -0.1% | 0.5% | 0.7% | 0.6% | 1.7% |
|---|
| Orange Polska Sa ($OPLD) | | -2.6% | -1.4% | -2.5% | 2.7% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Kt Corp ($KTCD) | 77.9% | 78.5% | 83.5% | 83.0% | |
| Verizon Communications Inc ($VZC) | 60.1% | 59.2% | 59.1% | 57.6% | 58.5% |
| O2 Czech Republic As ($O2CZ) | | 48.5% | 48.7% | 49.9% | 51.3% |
| Adept Telecom ($ADT) | 37.6% | 40.3% | 42.3% | 49.4% | |
| |
|---|
| Median (4 companies) | 41.5% | 48.5% | 53.9% | 53.8% | 54.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Ooredoo Qsc ($ORDS) | 39.2% | 39.2% | 40.5% | 36.9% | |
| Verizon Communications Inc ($VZC) | 37.3% | 34.1% | 35.2% | 30.3% | 35.7% |
| BT Group ($BT.A) | 33.5% | 32.8% | 28.0% | 29.1% | |
| O2 Czech Republic As ($O2CZ) | 29.9% | 27.3% | 27.8% | 28.0% | 29.1% |
| Adept Telecom ($ADT) | 20.8% | 20.0% | 20.6% | 22.0% | |
| |
|---|
| Median (6 companies) | 29.9% | 30.6% | 31.0% | 28.5% | 32.4% |
|---|
| Orange Polska Sa ($OPLD) | 29.1% | 11.9% | 24.6% | 26.0% | 27.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Ooredoo Qsc ($ORDS) | 26.5% | 17.6% | 11.6% | 15.6% | |
| BT Group ($BT.A) | 13.4% | 12.8% | 13.1% | 14.2% | |
| Verizon Communications Inc ($VZC) | 13.5% | 13.5% | 13.7% | 12.7% | 13.6% |
| Kt Corp ($KTCD) | 14.0% | 12.2% | 10.4% | 9.6% | |
| O2 Czech Republic As ($O2CZ) | 4.5% | 4.0% | 5.1% | 3.9% | 4.1% |
| |
|---|
| Median (6 companies) | 14.0% | 13.5% | 13.1% | 11.2% | 8.8% |
|---|
| Orange Polska Sa ($OPLD) | 16.9% | 44.8% | 17.0% | 20.6% | 19.9% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| O2 Czech Republic As ($O2CZ) | 14.5% | 26.8% | 25.8% | 24.3% | 23.2% |
| BT Group ($BT.A) | 37.5% | 20.7% | 13.9% | 15.4% | |
| Adept Telecom ($ADT) | 14.3% | 16.5% | 14.2% | 14.1% | |
| Verizon Communications Inc ($VZC) | 19.3% | 15.4% | 14.8% | 11.3% | 15.3% |
| Kt Corp ($KTCD) | 5.7% | 6.9% | 6.7% | 6.0% | |
| |
|---|
| Median (11 companies) | 8.2% | 7.8% | 8.3% | 12.7% | 19.2% |
|---|
| Orange Polska Sa ($OPLD) | 3.7% | -8.6% | 1.4% | 2.1% | 2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Verizon Communications Inc ($VZC) | 2.1x | 2.4x | 2.6x | 2.8x | 2.8x |
| Adept Telecom ($ADT) | 0.3x | 1.0x | 2.2x | 2.3x | |
| BT Group ($BT.A) | 1.6x | 2.2x | 1.8x | 2.0x | |
| Ooredoo Qsc ($ORDS) | 2.0x | 2.0x | 1.6x | 1.8x | |
| Kt Corp ($KTCD) | 1.3x | 1.1x | 1.0x | 0.9x | |
| |
|---|
| Median (6 companies) | 1.3x | 1.5x | 1.8x | 1.9x | 2.0x |
|---|
| Orange Polska Sa ($OPLD) | 1.2x | 5.1x | 2.3x | 2.4x | 2.6x |
