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Market Cap

zł656.4m

Last Updated

2021/05/07 17:34 UTC

Data Sources

Company Financials

Executive Summary

FERRO S.A. manufactures and sells sanitary and installation fittings, and heating installation elements in Central and Eastern Europe. More Details

Rewards

Trading at 46.5% below our estimate of its fair value

Earnings have grown 15.6% per year over the past 5 years

Risk Analysis

No risks detected for FRO from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has FERRO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FRO is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.2%

FRO

-3.4%

PL Building

1.2%

PL Market


1 Year Return

110.4%

FRO

102.7%

PL Building

42.2%

PL Market

Return vs Industry: FRO exceeded the Polish Building industry which returned 107.9% over the past year.

Return vs Market: FRO exceeded the Polish Market which returned 41.3% over the past year.


Shareholder returns

FROIndustryMarket
7 Day-6.2%-3.4%1.2%
30 Day8.2%1.2%3.0%
90 Day13.1%13.6%6.2%
1 Year114.9%110.4%106.2%102.7%43.8%42.2%
3 Year117.4%91.8%50.4%41.6%4.5%-1.6%
5 Year259.3%175.5%54.5%42.8%30.7%16.2%

Long-Term Price Volatility Vs. Market

How volatile is FERRO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FERRO undervalued compared to its fair value and its price relative to the market?

46.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRO (PLN30.3) is trading below our estimate of fair value (PLN56.61)

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


Price To Earnings Ratio

PE vs Industry: FRO is poor value based on its PE Ratio (11.6x) compared to the PL Building industry average (10.8x).

PE vs Market: FRO is good value based on its PE Ratio (11.6x) compared to the Polish market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FRO is overvalued based on its PB Ratio (2.2x) compared to the PL Building industry average (1.8x).


Future Growth

How is FERRO forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as FERRO has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has FERRO performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRO has high quality earnings.

Growing Profit Margin: FRO's current net profit margins (11.1%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: FRO's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: FRO's earnings growth over the past year (30.6%) exceeds its 5-year average (15.6% per year).

Earnings vs Industry: FRO earnings growth over the past year (30.6%) underperformed the Building industry 63.9%.


Return on Equity

High ROE: FRO's Return on Equity (18.9%) is considered low.


Financial Health

How is FERRO's financial position?


Financial Position Analysis

Short Term Liabilities: FRO's short term assets (PLN332.7M) exceed its short term liabilities (PLN205.2M).

Long Term Liabilities: FRO's short term assets (PLN332.7M) exceed its long term liabilities (PLN39.2M).


Debt to Equity History and Analysis

Debt Level: FRO's debt to equity ratio (37.7%) is considered satisfactory.

Reducing Debt: FRO's debt to equity ratio has reduced from 48.4% to 37.7% over the past 5 years.

Debt Coverage: FRO's debt is well covered by operating cash flow (60.6%).

Interest Coverage: FRO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is FERRO current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FRO's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (1.46%).

High Dividend: FRO's dividend (1.32%) is low compared to the top 25% of dividend payers in the Polish market (5.25%).


Stability and Growth of Payments

Stable Dividend: FRO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FRO's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), FRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.4yrs

Average board tenure


CEO

Wojciech Gatkiewicz

2.33yrs

Tenure

zł432,000

Compensation

Mr. Wojciech Gatkiewicz has been Chairman of the Management Board at FERRO S.A. since 2019. He serves as Chief Sales Officer and Member of Management Board at PCF GmbH. Mr. Gatkiewicz served as the Chief ...


Board Members

Experienced Board: FRO's board of directors are considered experienced (4.4 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

FERRO S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FERRO S.A.
  • Ticker: FRO
  • Exchange: WSE
  • Founded: NaN
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: zł656.398m
  • Shares outstanding: 21.24m
  • Website: https://www.ferrocompany.com

Number of Employees


Location

  • FERRO S.A.
  • ul. Przemyslowa 7
  • Skawina
  • 32-050
  • Poland

Listings


Biography

FERRO S.A. manufactures and sells sanitary and installation fittings, and heating installation elements in Central and Eastern Europe. It offers mixers, showers, sinks, accessories, bathroom accessories, s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 17:34
End of Day Share Price2021/05/07 00:00
Earnings2020/09/30
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.