Reported Earnings • Jun 19
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: zł71.6m (up 52% from 2Q 2023). Net loss: zł1.30m (down 154% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to zł76.40, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 16x in the IT industry in Poland. Total returns to shareholders of 102% over the past three years. 공시 • Mar 06
Sescom S.A., Annual General Meeting, Mar 29, 2024 Sescom S.A., Annual General Meeting, Mar 29, 2024, at 09:00 Central European Standard Time. Reported Earnings • Mar 03
First quarter 2024 earnings released: EPS: zł0.59 (vs zł0.45 in 1Q 2023) First quarter 2024 results: EPS: zł0.59 (up from zł0.45 in 1Q 2023). Revenue: zł69.2m (up 48% from 1Q 2023). Net income: zł1.21m (up 30% from 1Q 2023). Profit margin: 1.7% (down from 2.0% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to zł60.00, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 14x in the IT industry in Poland. Total returns to shareholders of 64% over the past three years. New Risk • Feb 06
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 34% 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 Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 23% per year over the past 5 years. High level of non-cash earnings (34% accrual ratio). Minor Risk Market cap is less than US$100m (zł119.9m market cap, or US$29.6m). Reported Earnings • Aug 31
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: zł58.5m (up 62% from 3Q 2022). Net loss: zł1.15m (loss widened 4.8% from 3Q 2022). New Risk • Aug 23
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 Polish stocks, typically moving 10% 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 (10% average weekly change). Earnings have declined by 48% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (zł98.4m market cap, or US$23.9m). New Risk • Jul 04
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 Polish stocks, typically moving 7.8% 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 Risk Earnings have declined by 43% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.8% average weekly change). Market cap is less than US$100m (zł82.0m market cap, or US$20.2m). Reported Earnings • Mar 07
First quarter 2023 earnings released First quarter 2023 results: Revenue: zł46.7m (up 13% from 1Q 2022). Net income: zł931.0k (up 21% from 1Q 2022). Profit margin: 2.0% (up from 1.9% in 1Q 2022). The increase in margin was driven by higher revenue. Reported Earnings • Feb 04
Full year 2022 earnings released Full year 2022 results: Revenue: zł158.9k (down 100% from FY 2021). Net loss: zł3.1k (down 100% from profit in FY 2021). Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Jun 25
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: (down 100% from 2Q 2021). Net income: (up zł153.6k from 2Q 2021). Profit margin: (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has remained flat, which means it is well ahead of earnings. 공시 • Jun 17
Sescom S.A. to Report First Half, 2022 Results on Jun 23, 2022 Sescom S.A. announced that they will report first half, 2022 results on Jun 23, 2022 Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improved over the past week After last week's 16% share price gain to zł34.80, the stock trades at a trailing P/E ratio of 41.4x. Average trailing P/E is 20x in the IT industry in Poland. Total returns to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improved over the past week After last week's 18% share price gain to zł37.40, the stock trades at a trailing P/E ratio of 44.5x. Average trailing P/E is 16x in the IT industry in Poland. Total returns to shareholders of 8.0% over the past three years. 공시 • Mar 07
Sescom S.A., Annual General Meeting, Mar 30, 2022 Sescom S.A., Annual General Meeting, Mar 30, 2022, at 13:00 Central European Standard Time. Reported Earnings • Mar 06
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: zł0.37 (down from zł0.86 in 1Q 2021). Revenue: zł41.2m (up 13% from 1Q 2021). Net income: zł768.3k (down 56% from 1Q 2021). Profit margin: 1.9% (down from 4.9% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to zł40.00, the stock trades at a trailing P/E ratio of 30.1x. Average trailing P/E is 15x in the IT industry in Poland. Total returns to shareholders of 35% over the past three years. Reported Earnings • Feb 02
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: zł134.4m (down 1.0% from FY 2020). Net income: zł2.72m (down 46% from FY 2020). Profit margin: 2.0% (down from 3.7% in FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment deteriorated over the past week After last week's 23% share price decline to zł42.00, the stock trades at a trailing P/E ratio of 24.6x. Average trailing P/E is 16x in the IT industry in Poland. Total returns to shareholders of 70% over the past three years. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 23% share price gain to zł62.50, the stock trades at a trailing P/E ratio of 36.7x. Average trailing P/E is 14x in the IT industry in Poland. Total returns to shareholders of 124% over the past three years. Reported Earnings • Sep 02
Third quarter 2021 earnings released The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: zł30.7m (up 15% from 3Q 2020). Net income: zł1.21m (down 7.8% from 3Q 2020). Profit margin: 3.9% (down from 4.9% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment improved over the past week After last week's 22% share price gain to zł60.00, the stock trades at a trailing P/E ratio of 32.8x. Average trailing P/E is 16x in the IT industry in Poland. Total returns to shareholders of 112% over the past three years. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improved over the past week After last week's 22% share price gain to zł49.40, the stock trades at a trailing P/E ratio of 27x. Average trailing P/E is 17x in the IT industry in Poland. Total returns to shareholders of 138% over the past three years. Reported Earnings • Jul 06
Second quarter 2021 earnings released The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: zł28.9m (down 17% from 2Q 2020). Net loss: zł153.6k (down 130% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. 공시 • Mar 06
Sescom S.A., Annual General Meeting, Mar 30, 2021 Sescom S.A., Annual General Meeting, Mar 30, 2021. Reported Earnings • Mar 03
First quarter 2021 earnings released The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: zł36.3m (down 17% from 1Q 2020). Net income: zł1.77m (down 34% from 1Q 2020). Profit margin: 4.9% (down from 6.1% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 04
Full year 2020 earnings released The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: zł135.8m (up 3.2% from FY 2019). Net income: zł5.08m (down 6.1% from FY 2019). Profit margin: 3.7% (down from 4.1% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 17% share price gain to zł35.00, the stock is trading at a trailing P/E ratio of 15.5x, up from the previous P/E ratio of 13.3x. This compares to an average P/E of 14x in the IT industry in Poland. Total return to shareholders over the past three years is a loss of 10%. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improved over the past week After last week's 28% share price gain to zł36.00, the stock is trading at a trailing P/E ratio of 15.9x, up from the previous P/E ratio of 12.5x. This compares to an average P/E of 13x in the IT industry in Poland. Total return to shareholders over the past three years is a loss of 7.7%. Is New 90 Day High Low • Jan 09
New 90-day high: zł30.00 The company is up 2.0% from its price of zł29.40 on 09 October 2020. The Polish market is up 20% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 4.0% over the same period. Valuation Update With 7 Day Price Move • Nov 18
Market bids up stock over the past week After last week's 24% share price gain to zł27.60, the stock is trading at a trailing P/E ratio of 12.2x, up from the previous P/E ratio of 9.8x. This compares to an average P/E of 15x in the IT industry in Poland. Total return to shareholders over the past three years is a loss of 29%. Valuation Update With 7 Day Price Move • Nov 11
Market pulls back on stock over the past week After last week's 15% share price decline to zł22.20, the stock is trading at a trailing P/E ratio of 9.8x, down from the previous P/E ratio of 11.6x. This compares to an average P/E of 14x in the IT industry in Poland. Total return to shareholders over the past three years is a loss of 43%. Valuation Update With 7 Day Price Move • Oct 13
Market pulls back on stock over the past week After last week's 19% share price decline to zł25.60, the stock is trading at a trailing P/E ratio of 11.3x, down from the previous P/E ratio of 14x. This compares to an average P/E of 14x in the IT industry in Poland. Total return to shareholders over the past three years is a loss of 34%. Is New 90 Day High Low • Sep 30
New 90-day high: zł30.00 The company is up 50% from its price of zł20.00 on 02 July 2020. The Polish market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 5.0% over the same period.