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
Flat results in Mar 26
- INTEREST(Q) At PLN 1.03 MM has Grown at 13.52%
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 5.85%, 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 5.85% in the last 1 year, much lower than market (Poland WIG) returns of 37.02%
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
8.03%
-0.11
37.51%
Poland WIG
37.09%
2.22
16.70%
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
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PLN 125.62 MM
RAW MATERIAL COST(Y)
Fallen by -7.52% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -4.99 %
-4What is not working for the Company
INTEREST(Q)
At PLN 1.03 MM has Grown at 13.52%
Here's what is working for Vercom SA
Operating Cash Flow
Highest at PLN 125.62 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)
Debt-Equity Ratio
Lowest at -4.99 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -7.52% (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 Vercom SA
Interest
At PLN 1.03 MM has Grown at 13.52%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PLN MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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