Grupa Azoty Zaklady Azotowe Pulawy SA (ZAP) 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

Grupa Azoty Zaklady Azotowe Pulawy SA

Grupa Azoty SA

Grupa Azoty Zaklady Chemiczne Police SA

Why is Grupa Azoty Zaklady Azotowe Pulawy SA ?

Poor Management Efficiency with a low ROE of 4.50%

The company has been able to generate a Return on Equity (avg) of 4.50% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.50%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -6.44%, its profits have risen by 57.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.44% returns in the last 1 year, the stock has also underperformed Poland WIG in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Grupa Azoty Zaklady Azotowe Pulawy SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grupa Azoty Zaklady Azotowe Pulawy SA

-100.0%

-0.47

30.86%

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)

3.80%

EBIT Growth (5y)

-202.44%

EBIT to Interest (avg)

18.47

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.18

Tax Ratio

36.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

5.34%

ROE (avg)

4.50%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.35

EV to EBIT

-3.20

EV to EBITDA

4.17

EV to Capital Employed

0.23

EV to Sales

0.13

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.34%

ROE (Latest)

-6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 3,005.96 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.82 times

RAW MATERIAL COST(Y)

Fallen by -228.08% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -6.63 %

NET SALES(Q)

Highest at PLN 1,136.7 MM

OPERATING PROFIT(Q)

Highest at PLN 125.05 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11 %

PRE-TAX PROFIT(Q)

Highest at PLN 36.41 MM

NET PROFIT(Q)

Highest at PLN 29.22 MM

EPS(Q)

Highest at PLN 1.43

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Grupa Azoty Zaklady Azotowe Pulawy SA

Operating Cash Flow

Highest at PLN 3,005.96 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)

Inventory Turnover Ratio

Highest at 7.82 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

Net Sales

Highest at PLN 1,136.7 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Operating Profit

Highest at PLN 125.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PLN 36.41 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Pre-Tax Profit

At PLN 36.41 MM has Grown at 142.34%

over average net sales of the previous four periods of PLN -86.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Net Profit

Highest at PLN 29.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

Net Profit

At PLN 29.22 MM has Grown at 139.46%

over average net sales of the previous four periods of PLN -74.07 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

EPS

Highest at PLN 1.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PLN)

Debt-Equity Ratio

Lowest at -6.63 %

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 -228.08% (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 Grupa Azoty Zaklady Azotowe Pulawy SA

Non Operating Income

Highest at PLN 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income