LSE:0FMO

Stock Analysis Report

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna

Executive Summary

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna provides commercial banking services to resident and non-resident retail, corporate, and other customers in Poland and Ukraine.

Rewards

Trading at 24.1% below its fair value

Earnings are forecast to grow 6.49% per year

Earnings have grown 8.3% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0FMO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

0FMO

0.6%

GB Banks

0.5%

GB Market


1 Year Return

-9.9%

0FMO

-5.9%

GB Banks

6.6%

GB Market

Return vs Industry: 0FMO underperformed the UK Banks industry which returned -6.5% over the past year.

Return vs Market: 0FMO underperformed the UK Market which returned 6.1% over the past year.


Shareholder returns

0FMOIndustryMarket
7 Day1.2%0.6%0.5%
30 Day2.5%-1.9%-2.4%
90 Day-6.7%0.08%4.0%
1 Year-7.0%-9.9%0.1%-5.9%12.2%6.6%
3 Year9.3%4.4%-7.3%-18.9%17.8%2.9%
5 Year14.7%9.6%0.4%-18.7%35.7%4.6%

Price Volatility Vs. Market

How volatile is Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0FMO (PLN35.9) is trading below our estimate of fair value (PLN47.3)

Significantly Below Fair Value: 0FMO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0FMO is poor value based on its PE Ratio (11x) compared to the Banks industry average (10.5x).

PE vs Market: 0FMO is good value based on its PE Ratio (11x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0FMO is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 0FMO is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0FMO's forecast earnings growth (6.5% per year) is above the savings rate (0.5%).

Earnings vs Market: 0FMO's earnings (6.5% per year) are forecast to grow slower than the UK market (12.2% per year).

High Growth Earnings: 0FMO's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0FMO's revenue (9.3% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: 0FMO's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0FMO's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0FMO has a high level of non-cash earnings.

Growing Profit Margin: 0FMO's current net profit margins (31.2%) are lower than last year (31.3%).


Past Earnings Growth Analysis

Earnings Trend: 0FMO's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: 0FMO's earnings growth over the past year (7.8%) is below its 5-year average (8.3% per year).

Earnings vs Industry: 0FMO earnings growth over the past year (7.8%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: 0FMO's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0FMO has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0FMO's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: 0FMO's level of assets compared to its equity is low.

Allowance for Bad Loans: 0FMO has a low allowance for bad loans.

Low Risk Liabilities: 0FMO's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0FMO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0FMO's loans are broadly funded by customer deposits.

Level of Bad Loans: 0FMO has a high level of bad loans (4.08%)


Next Steps

Dividend

What is Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's current dividend yield, its reliability and sustainability?

3.74%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.8%markettop25%5.1%industryaverage6.2%forecastin3Years6.2%

Current dividend yield vs market & industry

Notable Dividend: 0FMO's dividend (3.74%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: 0FMO's dividend (3.74%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

Stable Dividend: 0FMO's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0FMO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), 0FMO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0FMO's dividends in 3 years are forecast to be covered by earnings (56% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Zbigniew Jagiello (55yo)

10.4yrs

Tenure

zł2,482,000

Compensation

Zbigniew Jagiello has served as the President of Powszechna Kasa Oszczednosci Bank Polski SA (“PKO Bank Polski”) Management Board since October 2009. He served as Chairman of Supervisory Board of Nordea Ba ...


CEO Compensation Analysis

Compensation vs Market: Zbigniew's total compensation ($USD631.17K) is below average for companies of similar size in the UK market ($USD4.70M).

Compensation vs Earnings: Zbigniew's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zbigniew Jagiello
President of the Management Board10.4yrszł2.48m0.00088% PLN391.1k
Jakub Papierski
Vice President of Management Board0yrszł2.04m0.00024% PLN106.7k
Piotr Mazur
VP of Management Board & Chief Risk Officer7.1yrszł2.10m0.00036% PLN160.0k
Mieczyslaw Król
Vice President of the Management Board3.7yrszł1.70m0.00040% PLN177.8k
Maks Kraczkowski
Vice President of the Management Board3.6yrszł1.69mno data
Jan Rosciszewski
VP of the Management Board & Acting Head of Retail Banking Area3.6yrszł1.66mno data
Adam Marciniak
Vice President of Management Board2.3yrszł1.03mno data
Rafal Kozlowski
Vice President of Management Board2.1yrszł913.00kno data
Rafal Antczak
Vice-President of the Management Board2.7yrszł1.10mno data
Zbigniew Hajlasz
Secretary of the Supervisory Board3.7yrsno datano data

3.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 0FMO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zbigniew Hajlasz
Secretary of the Supervisory Board3.7yrsno datano data
Andrzej Kisielewicz
Independent Member of the Supervisory Board4yrsno datano data
Miroslaw Barszcz
Independent Member of the Supervisory Board4yrsno datano data
Elzbieta Maczynska - Ziemacka
Independent Member of the Supervisory Board6.7yrsno datano data
Wojciech Jasinski
Member of the Supervisory Board4yrsno datano data
Piotr Sadownik
Independent Chairman of the Supervisory Board4yrsno datano data
Adam Budnikowski
Independent Member of the Supervisory Board4yrsno datano data
Grazyna Ciurzynska
Independent Vice-Chair of the Supervisory Board3.7yrsno datano data
Mariusz Andrzejewski
Independent Member of the Supervisory Board2.7yrsno datano data
Krzysztof Michalski
Member of the Supervisory Board0.4yrsno datano data

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 0FMO's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna
  • Ticker: 0FMO
  • Exchange: LSE
  • Founded: 1919
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: zł44.438b
  • Shares outstanding: 1.25b
  • Website: https://www.pkobp.pl

Number of Employees


Location

  • Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna
  • Pulawska 15 Street
  • Warsaw
  • 02-515
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSZK.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDNov 2004
PKOWSE (Warsaw Stock Exchange)YesBearer SharesPLPLNNov 2004
0FMOLSE (London Stock Exchange)YesBearer SharesGBPLNNov 2004
P9ODB (Deutsche Boerse AG)YesBearer SharesDEEURNov 2004
PKOSEP (The Stock Exchange Prague Co. Ltd.)YesBearer SharesCZCZKNov 2004
PSZK.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009

Biography

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna provides commercial banking services to resident and non-resident retail, corporate, and other customers in Poland and Ukraine. Its Retail segment accepts current accounts, savings accounts, and term deposits; and offers consumer and mortgage loans, as well as business loans to small and medium-sized enterprises, developers, cooperatives, and property managers. It also provides private banking services, investment and insurance products, credit and debit cards, and electronic banking services. The company’s Corporate and Investment segment offers current accounts, term deposits, depositary services, currency and derivative products, and corporate loans, and leasing and factoring services. This segment is also involved in financing large investment projects; the issuance of non-treasury securities; and the provision of investing and brokerage services, interbank transactions, derivative instruments, and debt securities, as well as in real estate development and management activities. The company also provides investment and pension fund, transfer agency, IT professionals outsourcing, fleet management, and debt collection services; bonds; private third party liability, immovable property, investment products, life, and health insurance services; insurance against loss of income and assistance services; warrantees and guarantees; checks and bills trading services; and currency and securities market services. In addition, it engages in building installations and finishing construction works; hotel business; intermediary activity in real estate; and fund investment activities. The company operates through 1,179 branches, including 11 regional divisions and 8 retail banking offices; and 32 regional corporate centers in 7 corporate macro regions, and a branch in the Federal Republic of Germany. Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna was founded in 1919 and is headquartered in Warsaw, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:26
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.