Why is City Service SE ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -7.59% and Operating profit at 8.41% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 12.76% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -7.59% and Operating profit at 8.41% over the last 5 years
3
Flat results in Mar 25
- INTEREST COVERAGE RATIO(Q) Lowest at 513.2
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.98%
- INTEREST(Q) Highest at PLN 2.1 MM
4
With ROE of 28.78%, it has a very expensive valuation with a 1.53 Price to Book Value
- Over the past year, while the stock has generated a return of 3.48%, its profits have fallen by -7.9%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 3.48% in the last 1 year, much lower than market (Poland WIG) returns of 37.76%
How much should you hold?
- Overall Portfolio exposure to City Service SE should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is City Service SE for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
City Service SE
3.48%
0.31
42.80%
Poland WIG
39.24%
1.84
20.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-7.59%
EBIT Growth (5y)
8.41%
EBIT to Interest (avg)
2.32
Debt to EBITDA (avg)
1.44
Net Debt to Equity (avg)
0.77
Sales to Capital Employed (avg)
2.27
Tax Ratio
4.74%
Dividend Payout Ratio
83.27%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.69%
ROE (avg)
12.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
1.53
EV to EBIT
5.66
EV to EBITDA
4.76
EV to Capital Employed
1.30
EV to Sales
0.56
PEG Ratio
NA
Dividend Yield
3.08%
ROCE (Latest)
22.88%
ROE (Latest)
28.78%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
Bearish
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -13.9% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 120.97%
-9What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 513.2
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.98%
INTEREST(Q)
Highest at PLN 2.1 MM
Here's what is working for City Service SE
Inventory Turnover Ratio
Highest at 120.97%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -13.9% (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 City Service SE
Interest
At PLN 2.1 MM has Grown at 37.8%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
Interest Coverage Ratio
Lowest at 513.2
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at PLN 2.1 MM
in the last five periods and Increased by 37.8% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
Debtors Turnover Ratio
Lowest at 2.98%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






