ScoreWhy is Vercom SA ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 23.39%
- Healthy long term growth as Net Sales has grown by an annual rate of 29.62% and Operating profit at 36.28%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.81
2
With a growth in Net Profit of 20.35%, the company declared Very Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at PLN 132.36 MM
- ROCE(HY) Highest at 24.27%
- INTEREST COVERAGE RATIO(Q) Highest at 4,108.91
3
With ROE of 21.11%, it has a very expensive valuation with a 6.22 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 3.88%, its profits have risen by 11% ; the PEG ratio of the company is 2.7
4
Underperformed the market in the last 1 year
- The stock has generated a return of 3.88% in the last 1 year, much lower than market (Poland WIG) returns of 43.29%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Vercom SA should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Vercom SA for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Vercom SA
3.88%
-0.15
37.10%
Poland WIG
43.29%
2.67
16.21%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
29.62%
EBIT Growth (5y)
36.28%
EBIT to Interest (avg)
13.74
Debt to EBITDA (avg)
0.37
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
0.93
Tax Ratio
16.62%
Dividend Payout Ratio
67.15%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.72%
ROE (avg)
25.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
6.22
EV to EBIT
22.85
EV to EBITDA
20.25
EV to Capital Employed
6.55
EV to Sales
5.57
PEG Ratio
2.68
Dividend Yield
NA
ROCE (Latest)
28.67%
ROE (Latest)
21.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PLN 132.36 MM
ROCE(HY)
Highest at 24.27%
INTEREST COVERAGE RATIO(Q)
Highest at 4,108.91
RAW MATERIAL COST(Y)
Fallen by -1.27% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 11.3 times
NET SALES(Q)
Highest at PLN 132.92 MM
OPERATING PROFIT(Q)
Highest at PLN 37.35 MM
PRE-TAX PROFIT(Q)
Highest at PLN 32.32 MM
NET PROFIT(Q)
Highest at PLN 27.16 MM
EPS(Q)
Highest at PLN 1.23
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Vercom SA
Operating Cash Flow
Highest at PLN 132.36 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (PLN MM)
Interest Coverage Ratio
Highest at 4,108.91
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at PLN 132.92 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (PLN MM)
Operating Profit
Highest at PLN 37.35 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (PLN MM)
Pre-Tax Profit
Highest at PLN 32.32 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (PLN MM)
Net Profit
Highest at PLN 27.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (PLN MM)
EPS
Highest at PLN 1.23
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (PLN)
Debtors Turnover Ratio
Highest at 11.3 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.27% (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
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