1.42%
6.14%
-20.59%
-17.79%
-37.46%
-70.06%
-79.16%
AI Spotlight on PROX
Company Description
Proximus PLC provides digital services and communication solutions in Belgium and internationally.It operates through Domestic, International Carrier Services, and TeleSign segments.The company offers fixed and mobile telephony, internet, and television services to residential customers and small businesses; telecommunication, ICT infrastructure, multi-cloud, digital finance, cybersecurity, business applications, and managed and training services to medium and large companies, and public administrations; and ICT services to residential, business, and telecom wholesale markets.
It also provides managed and platform, integrating networking, cloud, cybersecurity, and data and artificial intelligence services.In addition, the company offers international delivery authentication and digital identity services to internet brands, digital champions, and cloud native businesses.It offers its products and services under Proximus, Scarlet, Mobile Vikings, Tango, Telindus, and Telindus Netherlands brands.
The company was formerly known as Belgacom SA and changed its name to Proximus PLC in June 2015.Proximus PLC was founded in 1930 and is headquartered in Brussels, Belgium.
Market Data
| Last Price | 5.36 |
| Change Percentage | 1.42% |
| Open | 5.3 |
| Previous Close | 5.29 |
| Market Cap ( Millions) | 1729 |
| Volume | 660705 |
| Year High | 8.77 |
| Year Low | 4.76 |
| M A 50 | 5.32 |
| M A 200 | 6.58 |
Financial Ratios
| FCF Yield | 11.28% |
| Dividend Yield | 22.39% |
| ROE | 13.46% |
| Debt / Equity | 144.82% |
| Net Debt / EBIDTA | 246.54% |
| Price To Book | 0.48 |
| Price Earnings Ratio | 3.74 |
| Price To FCF | 8.87 |
| Price To sales | 0.28 |
| EV / EBITDA | 3.33 |
News
- Oct -26 - Proximus SA (BGAOF) Q3 2024 Earnings Call Highlights: Strong Fiber Expansion and Positive ...
- Sep -10 - Infosys and Proximus renew partnership to enhance digital security
- Jul -16 - Proximus and Colt trial new API proof of concept
- Apr -23 - Proximus SA's Dividend Analysis
- Jul -27 - Proximus taps advisers to sell 300 mln euro data center unit - sources
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Domestic
Expected Growth : 2 %
What the company do ?
Proximus PLC's Domestic segment offers fixed and mobile telecommunications services to residential and professional customers in Belgium.
Why we expect these perspectives ?
Proximus PLC's domestic segment growth is driven by increasing demand for high-speed internet and TV services, coupled with a growing adoption of converged fixed-mobile services. Additionally, investments in fiber network expansion and 5G rollout are expected to support future growth.
Segment n°2 -> BICS
Expected Growth : 3 %
What the company do ?
BICS (Belgian International Carrier Services) is a wholesale carrier service from Proximus PLC, offering international voice, data, and IP services to operators and carriers.
Why we expect these perspectives ?
Proximus PLC's BICS segment growth is driven by increasing demand for international wholesale services, expansion into new markets, and strategic partnerships. Additionally, the growing need for high-quality, low-latency connectivity solutions and the adoption of 5G and IoT technologies are contributing to the segment's 3% growth.
Segment n°3 -> Telesign
Expected Growth : 4 %
What the company do ?
Telesign from Proximus PLC is a digital identity and communications platform providing fraud prevention, authentication, and messaging solutions.
Why we expect these perspectives ?
Telesign's 4x growth is driven by increasing demand for digital identity verification, fueled by rising online transactions and growing concerns over fraud. Proximus PLC's strategic investment has enabled Telesign to expand its product offerings, enhance customer experience, and strengthen its market position, thereby accelerating growth.
Segment n°4 -> Eliminations
Expected Growth : 0 %
What the company do ?
Eliminations from Proximus PLC refer to the removal of duplicate or redundant transactions between Proximus and its subsidiaries, ensuring accurate financial reporting.
Why we expect these perspectives ?
Proximus PLC's stagnant growth is attributed to intense competition in the Belgian telecom market, limited pricing power, and high capital expenditures for 5G network upgrades. Additionally, declining voice and SMS revenues, coupled with modest growth in fixed-line and ICT services, contribute to the elimination of growth.
Proximus Plc Products
| Product Range | What is it ? |
|---|---|
| Fiber Internet | High-speed internet connectivity for homes and businesses |
| Mobile Postpaid | Mobile phone plans with data, voice, and text allowances |
| TV | Digital television services with access to various channels and on-demand content |
| Fixed Telephony | Landline phone services for homes and businesses |
| ICT Solutions | Customized IT solutions for businesses, including cybersecurity and cloud services |
| Data and Connectivity | Secure and reliable data connectivity solutions for businesses |
| Cybersecurity | Comprehensive cybersecurity solutions to protect against threats and attacks |
| Cloud Services | Scalable and flexible cloud infrastructure solutions for businesses |
Proximus PLC's Porter Forces
Threat Of Substitutes
Proximus PLC operates in a highly competitive market, and customers have various alternatives to choose from. However, the company's strong brand reputation and wide range of services help to mitigate the threat of substitutes.
Bargaining Power Of Customers
Proximus PLC's customers have a high bargaining power due to the availability of alternative service providers. The company needs to focus on customer retention and satisfaction to maintain its market share.
Bargaining Power Of Suppliers
Proximus PLC has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with its suppliers also help to mitigate any potential risks.
Threat Of New Entrants
The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants and allows Proximus PLC to maintain its market position.
Intensity Of Rivalry
The telecommunications industry is highly competitive, with several players competing for market share. Proximus PLC needs to focus on differentiating its services and improving its operational efficiency to maintain its competitive edge.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 54.84% |
| Debt Cost | 3.95% |
| Equity Weight | 45.16% |
| Equity Cost | 5.27% |
| WACC | 4.54% |
| Leverage | 121.42% |
Proximus PLC : Quality Control
Proximus PLC passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| TKA.VI | Telekom Austria AG, together with its subsidiaries, provides fixed-line and mobile communications solutions to individuals, commercial and non-commercial organizations, and other national and international carriers. The company offers fixed-line services, … |
| TEL2-B.ST | Tele2 AB (publ), a telecom operator, provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed … |
| TEL.OL | Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company's mobile communication … |
| FNTN.DE | freenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. It provides a portfolio of services and products primarily in the areas of … |
| KPN.AS | Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Freenet
A-Score
1-Year Total Return ->
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Tele2
A-Score
1-Year Total Return ->
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Telekom Austria
A-Score
1-Year Total Return ->
4
KPN
A-Score
1-Year Total Return ->
5
Telenor
A-Score
1-Year Total Return ->
6
