- In 5 years, the company should significantly expand its portfolio of stores in countries other than Poland, open up to new markets, and introduce e-commerce and applications of its brands to new countries. Due to the fact that it has five brands, each targeting a different audience, the company has a wide scope for action and further development, as the brands it has are not in competition with each other, but complement each other perfectly.
- Due to the planned growth of mainly the Sinsay brand, whose business model is value-for-money, I forecast a slight reduction in gross profit and net profit margins, while revenue will increase. The company plans further expansion, mainly in the Balkans and Ukraine, where a brand like Sinsay will fit in well, due to its low prices and product quality, as well as its wide assortment.
- I think the price will follow EPS, which should grow at least 13% on average per year. According to this, in 5 years the price should be around 29200 (unless the company does a stock split). Growth should thus reach about 84%.
- High interest rates are taking a toll on Poles' ability to buy. At the end of next year, the first interest rate cuts are planned, which may improve the situation for consumers. The share price probably already takes this scenario into account, but some shareholders may start to get impatient and demand a significant jump in earnings already in the near future, which I would not assume, however.
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