PlayWay SA (PLW) 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.

Shoper SA

Asseco Business Solutions SA

CD Projekt SA

PlayWay SA

Asseco Poland SA

TEXT SA

11 Bit Studios SA

CI Games SA

PCF Group SA

Allegro.eu SA

Why is PlayWay SA ?

High Management Efficiency with a high ROE of 44.06%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 61.18

Negative results in Sep 25

INTEREST(HY) At PLN 5.89 MM has Grown at 112.64%
RAW MATERIAL COST(Y) Grown by 48.05% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -55.57 %

With ROE of 55.77%, it has a fair valuation with a 5.60 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 -11.55%, its profits have risen by 16.5% ; the PEG ratio of the company is 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.55% 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 hold?

Overall Portfolio exposure to PlayWay 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 PlayWay SA for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PlayWay SA

-11.55%

-1.09

24.56%

Poland WIG

27.62%

1.38

19.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.69%

EBIT Growth (5y)

6.27%

EBIT to Interest (avg)

61.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

0.75

Tax Ratio

10.90%

Dividend Payout Ratio

86.62%

Pledged Shares

Institutional Holding

ROCE (avg)

95.01%

ROE (avg)

44.06%

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

5.60

EV to EBIT

8.01

EV to EBITDA

7.94

EV to Capital Employed

621.57

EV to Sales

5.09

PEG Ratio

0.61

Dividend Yield

8.16%

ROCE (Latest)

7756.00%

ROE (Latest)

55.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 143.04 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.1 times

-21What is not working for the Company

INTEREST(HY)

At PLN 5.89 MM has Grown at 112.64%

RAW MATERIAL COST(Y)

Grown by 48.05% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -55.57 %

OPERATING PROFIT(Q)

Lowest at PLN 25.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 34.26 %

PRE-TAX PROFIT(Q)

Lowest at PLN 26.97 MM

NET PROFIT(Q)

Lowest at PLN 11.81 MM

EPS(Q)

Lowest at PLN 1.79

Here's what is working for PlayWay SA

Operating Cash Flow

Highest at PLN 143.04 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 1.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for PlayWay SA

Interest

At PLN 5.89 MM has Grown at 112.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Net Profit

At PLN 11.81 MM has Fallen at -68.62%

over average net sales of the previous four periods of PLN 37.63 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Operating Profit

Lowest at PLN 25.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at 34.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PLN 26.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Pre-Tax Profit

At PLN 26.97 MM has Fallen at -48.25%

over average net sales of the previous four periods of PLN 52.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

Lowest at PLN 11.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

EPS

Lowest at PLN 1.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)

Debt-Equity Ratio

Highest at -55.57 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 48.05% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales