Asseco Poland SA (ACP) 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 Poland SA ?

The company is Net-Debt Free

Positive results in Mar 26

NET PROFIT(Q) Highest at PLN 226.33 MM
RAW MATERIAL COST(Y) Fallen by -8.54% (YoY)
CASH AND EQV(HY) Highest at PLN 14,564.6 MM

With ROE of 18.60%, it has a very attractive valuation with a 1.78 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.33%, its profits have risen by 24.8% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Even though the market (Poland WIG) has generated returns of 29.57% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.33% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Asseco Poland 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 Poland SA for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Asseco Poland SA

-100.0%

27.55

44.21%

Poland WIG

29.57%

1.72

17.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.96%

EBIT Growth (5y)

7.92%

EBIT to Interest (avg)

10.41

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.86

Tax Ratio

21.89%

Dividend Payout Ratio

81.71%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

25,526.49%

ROE (avg)

22,001.59%

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

1.78

EV to EBIT

5.10

EV to EBITDA

3.63

EV to Capital Employed

2.70

EV to Sales

0.55

PEG Ratio

0.39

Dividend Yield

7.80%

ROCE (Latest)

52.92%

ROE (Latest)

18.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

9What is working for the Company

NET PROFIT(Q)

Highest at PLN 226.33 MM

RAW MATERIAL COST(Y)

Fallen by -8.54% (YoY

CASH AND EQV(HY)

Highest at PLN 14,564.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at -45.94 %

OPERATING PROFIT(Q)

Highest at PLN 704 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16 %

PRE-TAX PROFIT(Q)

Highest at PLN 503 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 2,124.4 MM

INTEREST(Q)

At PLN 54.5 MM has Grown at 31.33%

INVENTORY TURNOVER RATIO(HY)

Lowest at 36.59 times

Here's what is working for Asseco Poland SA

Net Profit

Highest at PLN 226.33 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PLN MM)

Operating Profit

Highest at PLN 704 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 16 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PLN 503 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Cash and Eqv

Highest at PLN 14,564.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -45.94 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.54% (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

Here's what is not working for Asseco Poland SA

Operating Cash Flow

Lowest at PLN 2,124.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Interest

At PLN 54.5 MM has Grown at 31.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Inventory Turnover Ratio

Lowest at 36.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio