ORAN - Orange S.A. - Why The Company Is Still Attractive Here

2024-04-24 16:42:56 ET

Summary

• Orange S.A. has seen declining ratios of CapEx/sales, unlike other telcos, leading to a resurgence in the company's performance.
• The company offers stability and high dividends, with an average yield of over 7.5% and positive returns on investment.
• Orange's recent move to create a new brand in Spain, MasOrange, has positioned it as the #1 Spanish telco with strong customer coverage and significant cash flow.

Dear readers/followers,

In this article, I'm going to be revisiting Orange S.A. ( ORAN ), a telco stock in which I have a fairly sizeable investment. In the context of European telcos, it's interesting because it front-loaded much of its major investments, which has enabled it to see declining ratios of CapEx/sales when other telcos are still ratcheting up to 16-17% on an annual basis - though some of the Scandinavian ones have also been able to cut down their CapEx, and as a result of this and other positive results, we're now seeing a bit of a resurgence for the companies I invest with in the space.

I like telecommunication stocks for the income they provide, the stability of their cash flows - unless they also have content within their operations - and the necessity for their operations in today's world. They may not make you rich - but they will keep you wealthy through very high dividends. ...

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