WSE:HRS

Stock Analysis Report

Executive Summary

Herkules S.A. engages in the hoisting equipment rental and oversize load shipping activities in Poland.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.9%

HRS

0.5%

PL Trade Distributors

1.5%

PL Market


1 Year Return

-55.4%

HRS

-13.2%

PL Trade Distributors

-3.1%

PL Market

Return vs Industry: HRS underperformed the Polish Trade Distributors industry which returned -13.2% over the past year.

Return vs Market: HRS underperformed the Polish Market which returned -3.1% over the past year.


Share holder returns

HRSIndustryMarket
7 Day-5.9%0.5%1.5%
30 Day-15.9%2.3%-2.1%
90 Day-38.3%-5.1%-7.7%
1 Year-55.4%-55.4%-9.9%-13.2%-0.2%-3.1%
3 Year-68.9%-70.7%-34.5%-39.1%12.0%4.0%
5 Year-52.0%-57.6%-11.7%-19.9%0.2%-11.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Herkules undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HRS (PLN1.11) is trading below our estimate of fair value (PLN1.72)

Significantly Undervalued: HRS is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: HRS is poor value based on its PE Ratio (17.6x) compared to the Trade Distributors industry average (8.7x).

PE vs Market: HRS is poor value based on its PE Ratio (17.6x) compared to the Polish market (10x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: HRS is good value based on its PB Ratio (0.2x) compared to the PL Trade Distributors industry average (0.5x).


Next Steps

Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HRS's forecast earnings growth (24.1% per year) is above the savings rate (2.9%).

Earnings vs Market: HRS's earnings (24.1% per year) are forecast to grow faster than the Polish market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if HRS's revenue is forecast to grow faster than the Polish market.

High Growth Revenue: Insufficient data to determine if HRS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if HRS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Herkules performed over the past 5 years?

-20.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HRS's earnings have declined by -20.6% per year over the past 5 years.

Accelerating Growth: HRS's earnings growth over the past year (123.3%) exceeds its 5-year average (-20.6% per year).

Earnings vs Industry: HRS earnings growth over the past year (123.3%) exceeded the Trade Distributors industry 12.4%.


Return on Equity

High ROE: HRS's Return on Equity (1.3%) is considered low.


Return on Assets

ROA vs Industry: HRS's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: HRS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Herkules's financial position?


Financial Position Analysis

Short Term Liabilities: HRS's short term assets (PLN72.5M) do not cover its short term liabilities (PLN76.7M)

Long Term Liabilities: HRS's short term assets (72.5M) do not cover its long term liabilities (108.3M)


Debt to Equity History and Analysis

Debt Level: HRS's debt to equity ratio (8.7%) is considered satisfactory

Reducing Debt: HRS's debt to equity ratio has reduced from 30.1% to 8.7% over the past 5 years.

Debt Coverage: HRS's debt is well covered by operating cash flow (91.2%).

Interest Coverage: HRS's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: HRS has a high level of physical assets or inventory.

Debt Coverage by Assets: HRS's debt is covered by short term assets (assets are 4.444320x debt).


Next Steps

Dividend

What is Herkules's current dividend yield, its reliability and sustainability?

6.31%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%2.6%markettop25%7.3%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HRS's dividend (6.31%) is higher than the bottom 25% of dividend payers in the Polish market (2.64%).

High Dividend: HRS's dividend (6.31%) is low compared to the top 25% of dividend payers in the Polish market (7.33%).

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

Growing Dividend: HRS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.3%), HRS's dividend payments are not 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

What is the CEO of Herkules's salary, the management and board of directors tenure and is there insider trading?


CEO

Grzegorz Zólcik 0

0yrs

Tenure

0

Mr. Grzegorz Piotr Zólcik serves as President of the Management Board at Herkules S.A. since 2010. Mr. Zólcik served as President of the Management Board at CDRL Spólka Akcyjna. Mr. Zólcik has been Vice Pr ...


Insider Trading

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


Ownership Breakdown


Management Team

  • Tomasz Kwiecinski

    Vice President of the Management Board

    • Tenure: 0yrs
  • Grzegorz Zólcik

    President of the Management Board

    • Tenure: 0yrs
  • Krzysztof Olenski

    Member of Management Board

    • Tenure: 0yrs

Board Members

  • Jacek Tucharz

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Konrad Miterski

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Adam Purwin

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Piotr Kwasniewski

    Chairman of the Supervisory Board

    • Tenure: 0yrs
  • Piotr Cizkowicz

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Blazej Dowgielski

    Member of the Supervisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Herkules S.A.
  • Ticker: HRS
  • Exchange: WSE
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: zł34.938m
  • Shares outstanding: 31.48m
  • Website: https://www.herkules-polska.pl

Location

  • Herkules S.A.
  • ul. Annopol 5
  • Warsaw
  • 03-236
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRSWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNMar 2010

Biography

Herkules S.A. engages in the hoisting equipment rental and oversize load shipping activities in Poland. The company rents tower, field, self-propelled, and tracked cranes, as well as offers professional en ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:14
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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