WSE:PKO

Stock Analysis Report

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna

Executive Summary

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna provides banking services in Poland, Ukraine, Sweden, the Czech Republic, Ireland, and Germany.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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: PKO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

PKO

3.1%

PL Banks

5.6%

PL Market


1 Year Return

-42.7%

PKO

-46.6%

PL Banks

-29.7%

PL Market

Return vs Industry: PKO exceeded the Polish Banks industry which returned -46.6% over the past year.

Return vs Market: PKO underperformed the Polish Market which returned -29.7% over the past year.


Shareholder returns

PKOIndustryMarket
7 Day3.8%3.1%5.6%
30 Day-14.8%-18.6%-0.6%
90 Day-34.7%-38.9%-24.2%
1 Year-40.8%-42.7%-44.9%-46.6%-27.6%-29.7%
3 Year-25.7%-29.0%-39.8%-44.0%-28.9%-33.9%
5 Year-34.1%-37.0%-47.8%-54.6%-27.5%-36.6%

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

Valuation

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

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PKO (PLN22.68) is trading below our estimate of fair value (PLN32.64)

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


Price To Earnings Ratio

PE vs Industry: PKO is good value based on its PE Ratio (7x) compared to the Banks industry average (7.8x).

PE vs Market: PKO is good value based on its PE Ratio (7x) compared to the Polish market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: PKO is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PKO is overvalued based on its PB Ratio (0.7x) compared to the PL 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?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKO's forecast earnings growth (5.7% per year) is above the savings rate (2%).

Earnings vs Market: PKO's earnings (5.7% per year) are forecast to grow slower than the Polish market (14.3% per year).

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

Revenue vs Market: PKO's revenue (7.9% per year) is forecast to grow faster than the Polish market (4.5% per year).

High Growth Revenue: PKO's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PKO's Return on Equity is forecast to be low in 3 years time (9.9%).


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: PKO has a high level of non-cash earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: PKO earnings growth over the past year (7.8%) exceeded the Banks industry -7.4%.


Return on Equity

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


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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: PKO 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?

5.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PKO's dividend (5.86%) is higher than the bottom 25% of dividend payers in the Polish market (3.23%).

High Dividend: PKO's dividend (5.86%) is low compared to the top 25% of dividend payers in the Polish market (8.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: PKO's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Zbigniew Jagiello (55yo)

10.58s

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 ($USD595.42K) is about average for companies of similar size in the Polish market ($USD595.42K).

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 Board10.58yrszł2.48m0.00088% PLN249.5k
Jakub Papierski
Vice President of Management Boardno datazł2.04m0.00024% PLN68.0k
Piotr Mazur
VP of Management Board & Chief Risk Officer7.25yrszł2.10m0.00036% PLN102.1k
Mieczyslaw Król
Vice President of the Management Board3.83yrszł1.70m0.00040% PLN113.4k
Maks Kraczkowski
Vice President of the Management Board3.75yrszł1.69mno data
Jan Rosciszewski
VP of the Management Board & Acting Head of Retail Banking Area3.75yrszł1.66mno data
Adam Marciniak
Vice President of Management Board2.5yrszł1.03mno data
Rafal Kozlowski
Vice President of Management Board2.25yrszł913.00kno data
Rafal Antczak
Vice-President of the Management Board2.83yrszł1.10mno data
Zbigniew Hajlasz
Secretary of the Supervisory Board3.83yrsno datano data

3.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PKO's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zbigniew Hajlasz
Secretary of the Supervisory Board3.83yrsno datano data
Andrzej Kisielewicz
Independent Member of the Supervisory Board4.17yrsno datano data
Miroslaw Barszcz
Independent Member of the Supervisory Board4.17yrsno datano data
Elzbieta Maczynska - Ziemacka
Independent Member of the Supervisory Board6.83yrsno datano data
Wojciech Jasinski
Member of the Supervisory Board4.17yrsno datano data
Piotr Sadownik
Independent Chairman of the Supervisory Board4.17yrsno datano data
Adam Budnikowski
Independent Member of the Supervisory Board4.17yrsno datano data
Grazyna Ciurzynska
Independent Vice-Chair of the Supervisory Board3.83yrsno datano data
Mariusz Andrzejewski
Independent Member of the Supervisory Board2.83yrsno datano data
Krzysztof Michalski
Member of the Supervisory Board0.58yrno datano data

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: PKO's board of directors are considered experienced (4.2 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: PKO
  • Exchange: WSE
  • Founded: 1919
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: zł28.350b
  • Shares outstanding: 1.25b
  • Website: https://www.pkobp.pl

Number of Employees


Location

  • Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna
  • ul. Pulawska 15
  • 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
P9OBRSE (Berne Stock Exchange)YesBearer SharesCHCHFNov 2004
PSZK.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009

Biography

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna provides banking services in Poland, Ukraine, Sweden, the Czech Republic, Ireland, and Germany. Its Retail segment offers current and savings accounts, term deposits, private and electronic banking services, investment and insurance products, credit and debit cards, and consumer and mortgage loans, as well as business loans to firms and enterprises, developers, cooperatives, and property managers. The company’s Corporate and Investment segment provides current accounts, term deposits, currency products and derivatives, leasing and factoring, and safekeeping of securities services. This segment is also involved in financing large investment projects; the issuance of non-treasury securities; and provision of investing and brokerage services, interbank transactions, derivatives and debt securities transactions, as well as in real estate development and management activities. The company also offers investment and pension fund management; transfer agent; life, other personal, and property insurance; financial; leasing and lending; and IT outsourcing and business support services, as well as fleet management and debt collection services. Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna was founded in 1919 and is based in Warsaw, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 00:42
End of Day Share Price2020/04/09 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.