Asseco Business Solutions SA (ABS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Huuuge, Inc.

Asseco Poland SA

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Why is Asseco Business Solutions SA ?

High Management Efficiency with a high ROE of 24.16%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 63.34

Poor long term growth as Operating profit has grown by an annual rate 11.41% of over the last 5 years

With a growth in Net Profit of 51.4%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at PLN 199.21 MM
INVENTORY TURNOVER RATIO(HY) Highest at 1,757.82 times
INTEREST COVERAGE RATIO(Q) Highest at 18,175.87

With ROE of 33.47%, it has a fair valuation with a 6.30 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.72%, its profits have risen by 23.2% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (Poland WIG) has generated returns of 29.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.72% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Asseco Business Solutions SA should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Asseco Business Solutions SA for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Asseco Business Solutions SA

-6.14%

1.50

26.52%

Poland WIG

29.57%

1.74

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.64%

EBIT Growth (5y)

11.41%

EBIT to Interest (avg)

63.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.09

Tax Ratio

6.49%

Dividend Payout Ratio

93.02%

Pledged Shares

Institutional Holding

ROCE (avg)

31.53%

ROE (avg)

24.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.30

EV to EBIT

16.89

EV to EBITDA

13.37

EV to Capital Employed

7.39

EV to Sales

5.39

PEG Ratio

0.81

Dividend Yield

4.53%

ROCE (Latest)

43.77%

ROE (Latest)

33.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 199.21 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1,757.82 times

INTEREST COVERAGE RATIO(Q)

Highest at 18,175.87

RAW MATERIAL COST(Y)

Fallen by -13.96% (YoY

NET PROFIT(9M)

Higher at PLN 125.09 MM

CASH AND EQV(HY)

Highest at PLN 165.9 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.87 %

OPERATING PROFIT MARGIN(Q)

Highest at 43.93 %

-2What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Asseco Business Solutions SA

Operating Cash Flow

Highest at PLN 199.21 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Interest Coverage Ratio

Highest at 18,175.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 1,757.82 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit Margin

Highest at 43.93 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at PLN 165.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -9.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Profit

Higher at PLN 125.09 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (PLN MM)

Raw Material Cost

Fallen by -13.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at PLN 11.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PLN MM)