Buy Or Sell Opportunity • May 20
Now 21% undervalued Over the last 90 days, the stock has risen 9.8% to zł220. The fair value is estimated to be zł278, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 33%. Revenue is forecast to decline by 8.4% in 2 years. Earnings are forecast to grow by 2.7% in the next 2 years. New Risk • May 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.0% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Risk Earnings are forecast to decline by an average of 1.0% per year for the foreseeable future. Minor Risks High level of debt (58% net debt to equity). Dividend is not well covered by cash flows (221% cash payout ratio). Aankondiging • May 07
CEZ, a. s. to Report Q1, 2026 Results on May 14, 2026 CEZ, a. s. announced that they will report Q1, 2026 results at 7:00 AM, Central European Standard Time on May 14, 2026 Aankondiging • Apr 29
CEZ, a. s., Annual General Meeting, Jun 01, 2026 CEZ, a. s., Annual General Meeting, Jun 01, 2026. Reported Earnings • Apr 28
Full year 2025 earnings released: EPS: Kč52.36 (vs Kč54.33 in FY 2024) Full year 2025 results: EPS: Kč52.36 (down from Kč54.33 in FY 2024). Revenue: Kč330.7b (down 2.9% from FY 2024). Net income: Kč28.1b (down 3.6% from FY 2024). Profit margin: 8.5% (in line with FY 2024). Revenue is expected to decline by 2.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 3.6%. Over the last 3 years on average, earnings per share has fallen by 45% 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. Reported Earnings • Mar 15
Full year 2025 earnings released: EPS: Kč52.36 (vs Kč55.76 in FY 2024) Full year 2025 results: EPS: Kč52.36 (down from Kč55.76 in FY 2024). Revenue: Kč330.7b (down 2.9% from FY 2024). Net income: Kč28.1b (down 6.1% from FY 2024). Profit margin: 8.5% (down from 8.8% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 3.8%. Over the last 3 years on average, earnings per share has fallen by 45% 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 • Jan 21
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to zł199, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Electric Utilities industry in Europe. Total returns to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at zł293 per share. Buy Or Sell Opportunity • Jan 08
Now 20% undervalued Over the last 90 days, the stock has risen 1.8% to zł231. The fair value is estimated to be zł289, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years. Earnings per share has declined by 44%. Revenue is forecast to decline by 13% in 2 years. Earnings are forecast to grow by 8.1% in the next 2 years. Reported Earnings • Nov 12
Third quarter 2025 earnings released: EPS: Kč10.30 (vs Kč4.40 in 3Q 2024) Third quarter 2025 results: EPS: Kč10.30 (up from Kč4.40 in 3Q 2024). Revenue: Kč72.9b (down 12% from 3Q 2024). Net income: Kč5.51b (up 135% from 3Q 2024). Profit margin: 7.6% (up from 2.8% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is expected to decline by 5.8% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.8%. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Aug 13
Now 20% undervalued Over the last 90 days, the stock has risen 4.9% to zł215. The fair value is estimated to be zł269, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has declined by 49%. Revenue is forecast to decline by 15% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Reported Earnings • Aug 10
Second quarter 2025 earnings released: EPS: Kč7.40 (vs Kč14.03 in 2Q 2024) Second quarter 2025 results: EPS: Kč7.40 (down from Kč14.03 in 2Q 2024). Revenue: Kč74.2b (up 3.4% from 2Q 2024). Net income: Kč3.99b (down 47% from 2Q 2024). Profit margin: 5.4% (down from 11% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 5.2% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.9%. 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 2% per year, which means it is well ahead of earnings. New Risk • Aug 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Risk Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risks High level of debt (68% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Aankondiging • Jun 25
CEZ, a. s. announces Annual dividend, payable on August 01, 2025 CEZ, a. s. announced Annual dividend of CZK 47.0000 per share payable on August 01, 2025, ex-date on June 26, 2025 and record date on June 27, 2025. Buy Or Sell Opportunity • Jun 24
Now 20% undervalued Over the last 90 days, the stock has risen 12% to zł208. The fair value is estimated to be zł260, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 22%. Revenue is forecast to decline by 14% in 2 years. Earnings are forecast to grow by 30% in the next 2 years. Aankondiging • May 23
CEZ, a. s., Annual General Meeting, Jun 23, 2025 CEZ, a. s., Annual General Meeting, Jun 23, 2025, at 09:00 Central European Standard Time. Buy Or Sell Opportunity • May 20
Now 22% undervalued Over the last 90 days, the stock has risen 21% to zł203. The fair value is estimated to be zł260, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 22%. Revenue is forecast to decline by 15% in 2 years. Earnings are forecast to grow by 25% in the next 2 years. Reported Earnings • May 02
Full year 2024 earnings released: EPS: Kč55.76 (vs Kč55.00 in FY 2023) Full year 2024 results: EPS: Kč55.76 (up from Kč55.00 in FY 2023). Revenue: Kč340.5b (up 1.1% from FY 2023). Net income: Kč29.9b (up 1.4% from FY 2023). Profit margin: 8.8% (in line with FY 2023). Revenue is expected to decline by 4.2% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.1%. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Aankondiging • Apr 18
Veolia Environnement SA (ENXTPA:VIE) completed the acquisition of an additional 15% stake in Veolia Energie CR, a.s. from CEZ, a. s. (SEP:CEZ). Veolia Environnement SA (ENXTPA:VIE) concluded an agreement to acquire an additional 15% stake in Veolia Energie CR, a.s. from CEZ, a. s. (SEP:CEZ) on February 4, 2025. The settlement of the transaction is subject to assessment by the Ministry of Industry and Trade of the Czech Republic and is expected in April or May this year.
Veolia Environnement SA (ENXTPA:VIE) completed the acquisition of an additional 15% stake in Veolia Energie CR, a.s. from CEZ, a. s. (SEP:CEZ) on April 17, 2025. The transaction has approved by the Ministry of Industry and Trade of the Czech Republic. Reported Earnings • Mar 13
Full year 2024 earnings released: EPS: Kč55.80 (vs Kč55.00 in FY 2023) Full year 2024 results: EPS: Kč55.80 (up from Kč55.00 in FY 2023). Revenue: Kč344.7b (up 2.4% from FY 2023). Net income: Kč29.9b (up 1.4% from FY 2023). Profit margin: 8.7% (down from 8.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 4.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 3.0%. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Aankondiging • Feb 18
CEZ, a. s. (SEP:CEZ) acquired Kabelová Televize Cz s.r.o. for approximately CZK 180 million. CEZ, a. s. (SEP:CEZ) acquired Kabelová Televize Cz s.r.o. for approximately CZK 180 million on May 31, 2022. A cash consideration of CZK 176 million will be paid by CEZ, a. s. As part of consideration, CZK 176 million is paid towards common equity of Kabelová Televize Cz s.r.o.
CEZ, a. s. (SEP:CEZ) completed the acquisition of Kabelová Televize Cz s.r.o. for approximately CZK 180 million on May 31, 2022. Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: Kč4.40 (vs Kč14.00 in 3Q 2023) Third quarter 2024 results: EPS: Kč4.40 (down from Kč14.00 in 3Q 2023). Revenue: Kč82.4b (up 7.4% from 3Q 2023). Net income: Kč2.34b (down 69% from 3Q 2023). Profit margin: 2.8% (down from 9.8% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 5.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.2%. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Aankondiging • Oct 08
CEZ, a. s. (SEP:CEZ) acquired unknown minority stake in Rolls-Royce SMR Ltd. CEZ, a. s. (SEP:CEZ) acquired unknown minority stake in Rolls-Royce SMR Ltd on October 7, 2024.
CEZ, a. s. (SEP:CEZ) completed the acquisition of unknown minority stake in Rolls-Royce SMR Ltd on October 7, 2024. Aankondiging • Aug 29
CEZ, a. s. (SEP:CEZ) completed the acquisition of 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. CEZ, a. s. (SEP:CEZ) agreed to acquire 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. for €846.5 million on March 20, 2024.The purchase price will be financed with a bridge loan underwritten by a syndicate of commercial banks, with a subsequent refinancing facilitated via the bond market. A loan agreement of €840 million has been signed by CEZ with seven banks including Barclays Bank; CaixaBank, Polish Branch; Citibank, London Branch; Commerzbank Aktiengesellschaft, Intesa Sanpaolo IMI-CIB, Komercni banka, and SMBC Bank EU. The completion of the transaction is subject to approvals by the European Commission and the Czech Ministry of Industry and Trade. The transaction is expected to reach financial close in Q3 2024. Morgan Stanley Australia Securities Limited acted as financial advisor to Macquarie Asset Management Inc. Jan Skuhravy of Allen & Overy acted as legal advisor to Macquarie Asset Management. Roman Janecek, Jiri Kindl, and Pavel Grim of Skils acted as legal advisor to CEZ.
CEZ, a. s. (SEP:CEZ) completed the acquisition of 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. on August 29, 2024. The transaction has already been approved by the Czech Ministry of Industry and Trade and the European Commission. New Risk • Aug 11
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 47% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 98% Cash payout ratio: 116% Minor Risks High level of debt (47% net debt to equity). Profit margins are more than 30% lower than last year (8.6% net profit margin). Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: Kč14.10 (vs Kč21.31 in 2Q 2023) Second quarter 2024 results: EPS: Kč14.10 (down from Kč21.31 in 2Q 2023). Revenue: Kč74.3b (down 2.0% from 2Q 2023). Net income: Kč7.56b (down 34% from 2Q 2023). Profit margin: 10% (down from 15% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 3.0% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 1.2%. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jul 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 1.3% to zł150. The fair value is estimated to be zł125, 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 54%. For the next 3 years, revenue is forecast to decline by 2.9% per annum. Earnings are forecast to grow by 0.9% per annum over the same time period. Aankondiging • May 26
CEZ, a. s., Annual General Meeting, Jun 24, 2024 CEZ, a. s., Annual General Meeting, Jun 24, 2024, at 09:00 Central European Standard Time. New Risk • May 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 48% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Cash payout ratio: 145% Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. Minor Risks High level of debt (48% net debt to equity). Profit margins are more than 30% lower than last year (9.8% net profit margin). Reported Earnings • May 15
First quarter 2024 earnings released: EPS: Kč25.20 (vs Kč20.10 in 1Q 2023) First quarter 2024 results: EPS: Kč25.20 (up from Kč20.10 in 1Q 2023). Revenue: Kč87.4b (down 3.9% from 1Q 2023). Net income: Kč13.5b (up 26% from 1Q 2023). Profit margin: 16% (up from 12% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to decline by 3.4% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Apr 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to zł144. The fair value is estimated to be zł182, however this is not to be taken as a buy 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 70%. For the next 3 years, revenue is forecast to decline by 3.1% per annum. Earnings are also forecast to decline by 1.3% per annum over the same time period. Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: Kč55.00 (vs Kč151 in FY 2022) Full year 2023 results: EPS: Kč55.00 (down from Kč151 in FY 2022). Revenue: Kč336.8b (up 18% from FY 2022). Net income: Kč29.5b (down 64% from FY 2022). Profit margin: 8.8% (down from 28% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to decline by 4.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Aankondiging • Mar 21
CEZ, a. s. (SEP:CEZ) agreed to acquire 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. for an enterprise value of €4 billion. CEZ, a. s. (SEP:CEZ) agreed to acquire 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. for an enterprise value of €4 billion on March 20, 2024. The transaction is expected to reach financial close in Q3 2024. Buy Or Sell Opportunity • Jan 24
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to zł158. The fair value is estimated to be zł203, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 82%. For the next 3 years, revenue is forecast to grow by 0.2% per annum. Earnings are forecast to decline by 6.6% per annum over the same time period. Reported Earnings • Nov 10
Third quarter 2023 earnings released: EPS: Kč14.00 (vs Kč34.80 in 3Q 2022) Third quarter 2023 results: EPS: Kč14.00 (down from Kč34.80 in 3Q 2022). Revenue: Kč76.8b (down 4.0% from 3Q 2022). Net income: Kč7.53b (down 60% from 3Q 2022). Profit margin: 9.8% (down from 23% in 3Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 4.1% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Aankondiging • Oct 25
CEZ, a. s. to Report Q3, 2023 Results on Nov 09, 2023 CEZ, a. s. announced that they will report Q3, 2023 results at 7:00 AM, Central European Standard Time on Nov 09, 2023 Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: Kč21.30 (vs Kč12.90 in 2Q 2022) Second quarter 2023 results: EPS: Kč21.30 (up from Kč12.90 in 2Q 2022). Revenue: Kč76.3b (up 40% from 2Q 2022). Net income: Kč11.5b (up 66% from 2Q 2022). Profit margin: 15% (up from 13% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 3.9% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Aankondiging • Aug 03
CEZ, a. s. to Report Q2, 2023 Results on Aug 10, 2023 CEZ, a. s. announced that they will report Q2, 2023 results at 7:00 AM, Central European Standard Time on Aug 10, 2023 Upcoming Dividend • Jun 22
Upcoming dividend of Kč117 per share at 11% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 01 August 2023. Payout ratio is on the higher end at 97%, and the cash payout ratio is above 100%. Trailing yield: 11%. Within top quartile of Polish dividend payers (7.4%). Higher than average of industry peers (4.9%). Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to zł196, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Electric Utilities industry in Europe. Total returns to shareholders of 205% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at zł205 per share. Reported Earnings • May 12
First quarter 2023 earnings released: EPS: Kč20.10 (vs Kč49.83 in 1Q 2022) First quarter 2023 results: EPS: Kč20.10 (down from Kč49.83 in 1Q 2022). Revenue: Kč93.4b (up 25% from 1Q 2022). Net income: Kč10.8b (down 60% from 1Q 2022). Profit margin: 12% (down from 36% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 3.2% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Aankondiging • May 12
CEZ, a. s., Annual General Meeting, Jun 26, 2023 CEZ, a. s., Annual General Meeting, Jun 26, 2023. Aankondiging • May 10
CEZ, a. s. to Report Q1, 2023 Results on May 11, 2023 CEZ, a. s. announced that they will report Q1, 2023 results at 7:00 AM, Central European Standard Time on May 11, 2023 Reported Earnings • Mar 24
Full year 2022 earnings released: EPS: Kč151 (vs Kč18.26 in FY 2021) Full year 2022 results: EPS: Kč151 (up from Kč18.26 in FY 2021). Revenue: Kč285.5b (up 27% from FY 2021). Net income: Kč80.8b (up Kč71.0b from FY 2021). Profit margin: 28% (up from 4.4% in FY 2021). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 3.7% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jan 30
Now 21% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be zł227, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 0.4% per annum. Earnings is also forecast to decline by 21% per annum over the same time period. Board Change • Nov 16
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. 7 non-independent directors. Vice Chairman of Supervisory Board Roman Binder was the last director to join the board, commencing their role in 2022. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 11
Third quarter 2022 earnings released: EPS: Kč34.80 (vs Kč9.60 in 3Q 2021) Third quarter 2022 results: EPS: Kč34.80 (up from Kč9.60 in 3Q 2021). Revenue: Kč80.5b (up 72% from 3Q 2021). Net income: Kč18.7b (up 265% from 3Q 2021). Profit margin: 23% (up from 11% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to zł156, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Electric Utilities industry in Europe. Total returns to shareholders of 122% over the past three years. Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment deteriorated over the past week After last week's 18% share price decline to zł182, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Electric Utilities industry in Europe. Total returns to shareholders of 153% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at zł342 per share. Upcoming Dividend • Jun 24
Upcoming dividend of Kč51.00 per share Eligible shareholders must have bought the stock before 01 July 2022. Payment date: 01 August 2022. Payout ratio is on the higher end at 84%, however this is supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Polish dividend payers (8.4%). Lower than average of industry peers (4.5%). Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 16% share price gain to zł220, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 14x in the Electric Utilities industry in Europe. Total returns to shareholders of 209% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at zł341 per share. Reported Earnings • May 11
First quarter 2022 earnings released: EPS: Kč49.80 (vs Kč15.70 in 1Q 2021) First quarter 2022 results: EPS: Kč49.80 (up from Kč15.70 in 1Q 2021). Revenue: Kč71.0b (up 22% from 1Q 2021). Net income: Kč26.7b (up 218% from 1Q 2021). Profit margin: 38% (up from 14% in 1Q 2021). Over the next year, revenue is forecast to grow 16% while the industry in Poland is not expected to grow. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. 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. 8 non-independent directors. Director Jan Kalina was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 15
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: Kč18.30 (up from Kč10.16 in FY 2020). Revenue: Kč227.8b (up 8.7% from FY 2020). Net income: Kč9.79b (up 80% from FY 2020). Profit margin: 4.3% (up from 2.6% in FY 2020). Revenue exceeded analyst estimates by 7.6%. Over the next year, revenue is forecast to grow 5.3%, compared to a 4.9% growth forecast for the industry in Poland. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Reported Earnings • Nov 10
Third quarter 2021 earnings released: EPS Kč9.60 (vs Kč2.20 loss in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: Kč47.7b (down 1.4% from 3Q 2020). Net income: Kč5.13b (up Kč6.30b from 3Q 2020). Profit margin: 11% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Reported Earnings • Aug 11
Second quarter 2021 earnings released: Kč13.00 loss per share (vs Kč1.20 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings and control over costs, although revenues were flat. Second quarter 2021 results: Revenue: Kč48.5b (flat on 2Q 2020). Net loss: Kč6.97b (down Kč7.60b from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 24
Upcoming dividend of Kč52.00 per share Eligible shareholders must have bought the stock before 01 July 2021. Payment date: 02 August 2021. Trailing yield: 5.4%. Lower than top quartile of Polish dividend payers (5.8%). Higher than average of industry peers (3.8%). Reported Earnings • May 12
First quarter 2021 earnings released: EPS Kč15.70 (vs Kč25.44 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: Kč59.1b (up 5.3% from 1Q 2020). Net income: Kč8.40b (down 39% from 1Q 2020). Profit margin: 14% (down from 25% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Mar 18
Full year 2020 earnings released: EPS Kč10.16 (vs Kč26.85 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: Kč209.6b (up 3.8% from FY 2019). Net income: Kč5.44b (down 62% from FY 2019). Profit margin: 2.6% (down from 7.1% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 12
New 90-day high: zł95.40 The company is up 21% from its price of zł78.70 on 11 December 2020. The Polish market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is zł165 per share. Is New 90 Day High Low • Jan 07
New 90-day high: zł90.20 The company is up 24% from its price of zł73.00 on 09 October 2020. The Polish market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is zł126 per share. Is New 90 Day High Low • Dec 17
New 90-day high: zł83.60 The company is up 11% from its price of zł75.20 on 18 September 2020. The Polish market is also up 11% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Electric Utilities industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is zł132 per share. Analyst Estimate Surprise Post Earnings • Nov 13
Revenue misses expectations Revenue missed analyst estimates by 2.7%. Over the next year, revenue is forecast to grow 4.0% compared to a 2.1% decline forecast for the Electric Utilities industry in Poland. Reported Earnings • Nov 13
Third quarter 2020 earnings released: Kč2.20 loss per share The company reported a soft third quarter result with weaker earnings and control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: Kč48.4b (up 2.6% from 3Q 2019). Net loss: Kč1.18b (down Kč1.26b from profit in 3Q 2019). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has remained flat. Is New 90 Day High Low • Nov 12
New 90-day high: zł80.70 The company is up 2.0% from its price of zł79.50 on 14 August 2020. The Polish market is down 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is down 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is zł129 per share. Reported Earnings • Nov 11
Third quarter 2020 earnings released: Kč2.20 loss per share The company reported a soft third quarter result with weaker earnings and control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: Kč49.3b (up 4.5% from 3Q 2019). Net loss: Kč1.18b (down Kč1.26b from profit in 3Q 2019). Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 1% per year. Analyst Estimate Surprise Post Earnings • Nov 11
Revenue misses expectations Revenue missed analyst estimates by 2.7%. Over the next year, revenue is forecast to grow 4.0% compared to a 1.3% decline forecast for the Electric Utilities industry in Poland. Is New 90 Day High Low • Oct 12
New 90-day low: zł72.10 The company is down 9.0% from its price of zł79.30 on 14 July 2020. The Polish market is down 4.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electric Utilities industry, which is down 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is zł143 per share. Is New 90 Day High Low • Sep 23
New 90-day low: zł73.20 The company is down 11% from its price of zł82.30 on 25 June 2020. The Polish market is down 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electric Utilities industry, which is down 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is zł143 per share. 
