New Risk • May 06
New major risk - Revenue and earnings growth Earnings have declined by 0.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 0.5% per year over the past 5 years. Market cap is less than US$10m (Ft1.04b market cap, or US$3.43m). Minor Risk Profit margins are more than 30% lower than last year (0.6% net profit margin). Board Change • Mar 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Director Gyorgy Mohai was the last director to join the board, commencing their role in 2025. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to Ft350, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 14x in the Commercial Services industry in Europe. Total loss to shareholders of 42% over the past three years. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to Ft350, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 14x in the Commercial Services industry in Europe. Total loss to shareholders of 36% over the past three years. Reported Earnings • Dec 14
Third quarter 2025 earnings released: EPS: Ft0.88 (vs Ft6.07 in 3Q 2024) Third quarter 2025 results: EPS: Ft0.88 (down from Ft6.07 in 3Q 2024). Revenue: Ft773.4m (down 14% from 3Q 2024). Net income: Ft2.09m (down 87% from 3Q 2024). Profit margin: 0.3% (down from 1.8% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 9% per year. Reported Earnings • Sep 26
First half 2025 earnings released: EPS: Ft10.00 (vs Ft15.04 in 1H 2024) First half 2025 results: EPS: Ft10.00 (down from Ft15.04 in 1H 2024). Revenue: Ft1.67b (down 3.5% from 1H 2024). Net income: Ft25.0m (down 31% from 1H 2024). Profit margin: 1.5% (down from 2.1% in 1H 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Board Change • Aug 27
No independent directors There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. 2 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). Chairwoman of Supervisory Board Aniko Molnarne Boros is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of experienced directors. Buy Or Sell Opportunity • Apr 07
Now 31% undervalued after recent price drop Over the last 90 days, the stock has fallen 22% to Ft320. The fair value is estimated to be Ft461, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last year. Earnings per share has grown by 79%. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to Ft440, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 15x in the Commercial Services industry in Europe. Total loss to shareholders of 47% over the past three years. New Risk • Jan 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (Ft981.1m market cap, or US$2.47m). Minor Risks Latest financial reports are more than 6 months old (reported March 2024 fiscal period end). Share price has been volatile over the past 3 months (7.8% average weekly change). New Risk • Jun 07
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (78% accrual ratio). Market cap is less than US$10m (Ft1.08b market cap, or US$3.02m). Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Share price has been volatile over the past 3 months (7.3% average weekly change). Profit margins are more than 30% lower than last year (1.9% net profit margin). New Risk • May 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hungarian stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (78% accrual ratio). Market cap is less than US$10m (Ft1.05b market cap, or US$2.90m). Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Profit margins are more than 30% lower than last year (1.9% net profit margin). Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to Ft484, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 17x in the Commercial Services industry in Europe. Total loss to shareholders of 65% over the past three years. Reported Earnings • Nov 23
Third quarter 2023 earnings released: EPS: Ft12.60 (vs Ft12.98 in 3Q 2022) Third quarter 2023 results: EPS: Ft12.60. Revenue: Ft884.9m (up 26% from 3Q 2022). Net income: Ft32.1m (flat on 3Q 2022). Profit margin: 3.6% (down from 4.5% in 3Q 2022). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to Ft350, the stock trades at a trailing P/E ratio of 14.9x. Average trailing P/E is 17x in the Commercial Services industry in Europe. Total loss to shareholders of 78% over the past three years. New Risk • Nov 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Hungarian stocks, typically moving 9.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.6% average weekly change). High level of non-cash earnings (78% accrual ratio). Market cap is less than US$10m (Ft902.6m market cap, or US$2.55m). Minor Risk Profit margins are more than 30% lower than last year (2.1% net profit margin). New Risk • Sep 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 71% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (71% accrual ratio). Market cap is less than US$10m (Ft966.4m market cap, or US$2.69m). Minor Risks Share price has been volatile over the past 3 months (9.1% average weekly change). Profit margins are more than 30% lower than last year (2.1% net profit margin). New Risk • Jun 09
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.9% Last year net profit margin: 4.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Market cap is less than US$10m (Ft1.23b market cap, or US$3.58m). Minor Risk Profit margins are more than 30% lower than last year (1.9% net profit margin). Reported Earnings • Jun 08
First quarter 2023 earnings released: EPS: Ft1.00 (vs Ft11.00 in 1Q 2022) First quarter 2023 results: EPS: Ft1.00 (down from Ft11.00 in 1Q 2022). Revenue: Ft684.9m (up 16% from 1Q 2022). Net loss: Ft1.98m (down 107% from profit in 1Q 2022). Board Change • Jun 02
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Director Zoltán Hajdu was the last director to join the board, commencing their role in 2023. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to Ft550, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 15x in the Commercial Services industry in Europe. Total loss to shareholders of 56% over the past three years. Board Change • Apr 06
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Director Zoltán Hajdu was the last director to join the board, commencing their role in 2023. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Jan 24
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). Supervisory Board Member Molnarne Aniko was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Jan 09
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). Supervisory Board Member Molnarne Aniko was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment deteriorated over the past week After last week's 19% share price decline to Ft430, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 14x in the Commercial Services industry in Europe. Total loss to shareholders of 51% over the past three years. Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improved over the past week After last week's 20% share price gain to Ft625, the stock trades at a trailing P/E ratio of 31.6x. Average trailing P/E is 14x in the Commercial Services industry in Europe. Total loss to shareholders of 31% over the past three years. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). Supervisory Board Member Molnarne Aniko was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment deteriorated over the past week After last week's 18% share price decline to Ft400, the stock trades at a trailing P/E ratio of 20.2x. Average trailing P/E is 13x in the Commercial Services industry in Europe. Total loss to shareholders of 46% over the past three years. Board Change • Oct 21
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). Supervisory Board Member Molnarne Aniko was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to Ft420, the stock trades at a trailing P/E ratio of 21.3x. Average trailing P/E is 15x in the Commercial Services industry in Europe. Total loss to shareholders of 41% over the past three years. Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment deteriorated over the past week After last week's 17% share price decline to Ft500, the stock trades at a trailing P/E ratio of 25.3x. Average trailing P/E is 15x in the Commercial Services industry in Europe. Total loss to shareholders of 56% over the past three years. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment deteriorated over the past week After last week's 19% share price decline to Ft600, the stock trades at a trailing P/E ratio of 30.4x. Average trailing P/E is 16x in the Commercial Services industry in Europe. Total loss to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment deteriorated over the past week After last week's 17% share price decline to Ft650, the stock trades at a trailing P/E ratio of 32.9x. Average trailing P/E is 16x in the Commercial Services industry in Europe. Total loss to shareholders of 32% over the past three years. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 3 non-independent directors. Supervisory Board Member Molnarne Aniko was the last director to join the board, commencing their role in 2019. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 17% share price decline to Ft710, the stock trades at a trailing P/E ratio of 35.9x. Average trailing P/E is 17x in the Commercial Services industry in Europe. Total returns to shareholders of 450% over the past three years. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improved over the past week After last week's 17% share price gain to Ft978, the stock trades at a trailing P/E ratio of 49.5x. Average trailing P/E is 21x in the Commercial Services industry in Europe. Total returns to shareholders of 758% over the past three years. Is New 90 Day High Low • Mar 08
New 90-day low: Ft1,100 The company is down 17% from its price of Ft1,320 on 08 December 2020. The Hungarian market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is up 6.0% over the same period. Is New 90 Day High Low • Nov 16
New 90-day low: Ft1,260 The company is down 90% from its price of Ft12,050 on 18 August 2020. The Hungarian market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is up 6.0% over the same period. Is New 90 Day High Low • Oct 15
New 90-day low: Ft10,600 The company is down 10.0% from its price of Ft11,800 on 17 July 2020. The Hungarian market is down 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is up 3.0% over the same period.