Orange SA (ORAN) is the incumbent telecom operator in France. The company operates fixed and wireless businesses in France, where it is the market leader ahead of Iliad, Bouygues, and SFR.

Orange

Orange also has fixed and wireless (convergent) operations in Spain, Poland, Belgium, Luxembourg, and Central Europe (Romania, Slovakia, Moldova). Around 15% of revenue comes from emerging African markets, where the company only operates wireless networks, and 20% comes from the enterprise segment, which serves companies with more than 50 employees in France and internationally.

The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013.

Orange S.A. is headquartered in Issy-les-Moulineaux, France.

Three key data points gauge Orange SA, or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

ORAN Price

Over the past year, Orange SA share price increased about 5.2% from $10.74 to $11.30 as of Friday’s market close.

If ORAN stock trades in the range of $9.00 to $18.00 this next year, its recent $11.30 share price might rise to $12.20 by next year. Of course, ORAN price could drop about the same $0.90 amount, or more.

My upside estimate of $0.90 is $0.03 above the median of 1year target prices set by two analysts tracking the stock for brokers.

ORAN Dividend

Orange SA’s most recent $0.43  semi-annual dividend, paid June 22, to shareholders of record June 1st, equates to $0.74 annually and throws a yield of 6.55% as of Friday’s closing price.

ORAN Returns

Adding the $0.74 anticipated annual dividend to ORAN’s estimated $0.90 price upside, reveals a $1.64 potential gross gain per share for the coming year.

At Friday’s $11.30 closing price, a little under $1000 would buy 88 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.

Subtract that maybe $0.11 brokerage cost from my estimated $1.64 gross gain per share makes a net gain amounting to $1.53 X 88 shares = $134.64 for a 13.4% net gain.

This may be the time to pounce on Orange SA. But beware, its dividend is variable and its price has been falling, and is now priced $1.72 below the stock’s most recent high of $13.08 posted back on April 27th.

The foregoing article is based on past history of Orange SA. The only accurate measure of future performance is from active investment in the company.

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