New Risk • May 21
New major risk - Revenue and earnings growth Earnings have declined by 0.1% 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 0.1% per year over the past 5 years. Revenue is less than US$1m (RON2.3m revenue, or US$506k). Market cap is less than US$10m (RON30.0m market cap, or US$6.65m). Reported Earnings • May 21
First quarter 2026 earnings released: EPS: RON0.003 (vs RON0.001 in 1Q 2025) First quarter 2026 results: EPS: RON0.003 (up from RON0.001 in 1Q 2025). Revenue: RON975.0k (up 103% from 1Q 2025). Net income: RON254.4k (up 188% from 1Q 2025). Profit margin: 26% (up from 18% in 1Q 2025). The increase in margin was driven by higher revenue. 공시 • May 17
S.C. Mecanica Codlea S.A. to Report Q1, 2026 Results on May 15, 2026 S.C. Mecanica Codlea S.A. announced that they will report Q1, 2026 results on May 15, 2026 New Risk • Mar 31
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: 23% Last year net profit margin: 34% 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 Revenue is less than US$1m (RON2.1m revenue, or US$468k). Market cap is less than US$10m (RON29.8m market cap, or US$6.71m). Minor Risk Profit margins are more than 30% lower than last year (23% net profit margin). 공시 • Mar 24
S.C. Mecanica Codlea S.A. announces Annual dividend, payable on September 11, 2026 S.C. Mecanica Codlea S.A. announced Annual dividend of RON 0.0059 per share payable on September 11, 2026, ex-date on September 10, 2026 and record date on September 11, 2026. 공시 • Mar 21
S.C. Mecanica Codlea S.A., Annual General Meeting, Apr 22, 2026 S.C. Mecanica Codlea S.A., Annual General Meeting, Apr 22, 2026. Reported Earnings • Nov 06
Third quarter 2025 earnings released: EPS: RON0.002 (vs RON0.003 in 3Q 2024) Third quarter 2025 results: EPS: RON0.002 (down from RON0.003 in 3Q 2024). Revenue: RON1.13m (up 65% from 3Q 2024). Net income: RON149.6k (down 30% from 3Q 2024). Profit margin: 13% (down from 31% in 3Q 2024). Buy Or Sell Opportunity • Aug 28
Now 44% overvalued after recent price rise Over the last 90 days, the stock has risen 96% to RON0.54. The fair value is estimated to be RON0.38, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 39%. Reported Earnings • Aug 14
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: RON1.01m (up 50% from 2Q 2024). Net income: RON233.5k (up 171% from 2Q 2024). Profit margin: 23% (up from 13% in 2Q 2024). Upcoming Dividend • Jun 06
Upcoming dividend of RON0.018 per share Eligible shareholders must have bought the stock before 13 June 2025. Payment date: 27 June 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.5%. Lower than top quartile of Romanian dividend payers (6.6%). Lower than average of industry peers (4.2%). Board Change • May 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. No experienced directors. 3 highly experienced directors. No independent directors (3 non-independent directors). Member of the Board of Directors Radus Mircea was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • May 11
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 94% Cash payout ratio: 98% Dividend yield: 3.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 94% Cash payout ratio: 98% Revenue is less than US$1m (RON2.5m revenue, or US$560k). Market cap is less than US$10m (RON24.2m market cap, or US$5.32m). Reported Earnings • Apr 30
Full year 2024 earnings released Full year 2024 results: Revenue: RON3.61m (up 71% from FY 2023). Net income: RON860.2k (down 14% from FY 2023). Profit margin: 24% (down from 47% in FY 2023). The decrease in margin was driven by higher expenses. Declared Dividend • Mar 25
Dividend of RON0.018 announced Shareholders will receive a dividend of RON0.018. Ex-date: 13th June 2025 Payment date: 27th June 2025 Dividend yield will be 5.5%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (83% earnings payout ratio) but not covered by cash flows (175% cash payout ratio). The dividend has increased by an average of 122% per year over the past 2 years and payments have been stable during that time. Earnings per share has grown by 17% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 05
Third quarter 2024 earnings released: EPS: RON0.003 (vs RON0.005 in 3Q 2023) Third quarter 2024 results: EPS: RON0.003 (down from RON0.005 in 3Q 2023). Revenue: RON1.20m (up 95% from 3Q 2023). Net income: RON214.9k (down 43% from 3Q 2023). Profit margin: 18% (down from 61% in 3Q 2023). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jun 06
Upcoming dividend of RON0.013 per share Eligible shareholders must have bought the stock before 13 June 2024. Payment date: 27 June 2024. Payout ratio is on the higher end at 95%, however this is supported by cash flows. Trailing yield: 7.6%. Within top quartile of Romanian dividend payers (7.0%). Higher than average of industry peers (3.2%). New Risk • May 29
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 Revenue is less than US$1m (RON1.8m revenue, or US$398k). Market cap is less than US$10m (RON13.9m market cap, or US$3.02m). Minor Risk Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Reported Earnings • May 20
First quarter 2024 earnings released First quarter 2024 results: Revenue: RON1.31m (up 253% from 1Q 2023). Net income: RON603.0k (up 400% from 1Q 2023). Profit margin: 46% (up from 33% in 1Q 2023). The increase in margin was driven by higher revenue. Board Change • May 08
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. No experienced directors. 3 highly experienced directors. No independent directors (3 non-independent directors). Member of the Board of Directors Radus Mircea was the last director to join the board, commencing their role in 2015. 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 • Apr 22
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. No experienced directors. 3 highly experienced directors. No independent directors (3 non-independent directors). Member of the Board of Directors Radus Mircea was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment.