Polenergia SA (PEP) 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

Zespol Elektrocieplowni Wroclawskich Kogeneracja SA

ONE SA

G-Energy SA

Energa SA

ENEA SA

TAURON Polska Energia SA

EC BEDZIN SA

PGE Polska Grupa Energetyczna SA

Polenergia SA

ZE PAK SA

Why is Polenergia SA ?

Poor Management Efficiency with a low ROCE of 10.08%

The company has been able to generate a Return on Capital Employed (avg) of 10.08% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.29 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.29 times
The company has been able to generate a Return on Equity (avg) of 8.92% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.08%

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at PLN 220.47 MM
NET PROFIT(9M) At PLN 68.65 MM has Grown at -45.5%
INTEREST(9M) At PLN 175.9 MM has Grown at 58.3%

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 -4.44%, its profits have fallen by -62.9%

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 Power)

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

Is Polenergia SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Polenergia SA

-4.76%

-0.59

31.91%

Poland WIG

37.09%

2.22

16.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.75%

EBIT Growth (5y)

15.09%

EBIT to Interest (avg)

3.69

Debt to EBITDA (avg)

1.45

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.73

Tax Ratio

97.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.43%

ROE (avg)

8.92%

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

1.06

EV to EBIT

22.28

EV to EBITDA

13.72

EV to Capital Employed

1.05

EV to Sales

1.65

PEG Ratio

Dividend Yield

ROCE (Latest)

4.69%

ROE (Latest)

1.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

11What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 115.96 times

RAW MATERIAL COST(Y)

Fallen by -3.6% (YoY

PRE-TAX PROFIT(Q)

At PLN 52.21 MM has Grown at 89.63%

NET PROFIT(Q)

Highest at PLN 61.51 MM

EPS(Q)

Highest at PLN 0.78

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 220.47 MM

NET PROFIT(9M)

At PLN 68.65 MM has Grown at -45.5%

INTEREST(9M)

At PLN 175.9 MM has Grown at 58.3%

ROCE(HY)

Lowest at -2.45%

NET SALES(Q)

At PLN 924.88 MM has Fallen at -12.45%

Here's what is working for Polenergia SA

Net Profit

At PLN 61.51 MM has Grown at 313.02%

over average net sales of the previous four periods of PLN 14.89 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PLN MM)

Inventory Turnover Ratio

Highest at 115.96 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

Pre-Tax Profit

At PLN 52.21 MM has Grown at 89.63%

over average net sales of the previous four periods of PLN 27.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Net Profit

Highest at PLN 61.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

EPS

Highest at PLN 0.78

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PLN)

Inventory Turnover Ratio

Highest at 115.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.6% (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 Polenergia SA

Operating Cash Flow

Lowest at PLN 220.47 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 175.9 MM has Grown at 58.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Net Sales

At PLN 924.88 MM has Fallen at -12.45%

over average net sales of the previous four periods of PLN 1,056.44 MM

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)