WSE:MGT

Stock Analysis Report

Executive Summary

Mangata Holding S.A. operates in the industrial sector in Poland.

Rewards

Trading at 81.5% below its fair value

Earnings have grown 13.6% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -7.4% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

MGT

2.5%

PL Machinery

0.8%

PL Market


1 Year Return

23.3%

MGT

-11.2%

PL Machinery

-5.7%

PL Market

Return vs Industry: MGT exceeded the Polish Machinery industry which returned -11.4% over the past year.

Return vs Market: MGT exceeded the Polish Market which returned -4.3% over the past year.


Shareholder returns

MGTIndustryMarket
7 Day1.4%2.5%0.8%
30 Day7.2%11.7%3.6%
90 Day4.2%4.8%3.6%
1 Year30.9%23.3%-4.6%-11.2%-2.8%-5.7%
3 Year-12.0%-28.8%-11.4%-21.6%5.8%-1.9%
5 Year41.2%14.2%-4.5%-16.3%7.4%-6.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGT (PLN73) is trading below our estimate of fair value (PLN394.24)

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


Price To Earnings Ratio

PE vs Industry: MGT is poor value based on its PE Ratio (8.7x) compared to the Machinery industry average (8.5x).

PE vs Market: MGT is good value based on its PE Ratio (8.7x) compared to the Polish market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: MGT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGT is overvalued based on its PB Ratio (1.2x) compared to the PL Machinery industry average (0.9x).


Next Steps

Future Growth

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

-7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGT's earnings are forecast to decline over the next 3 years (-7.4% per year).

Earnings vs Market: MGT's earnings are forecast to decline over the next 3 years (-7.4% per year).

High Growth Earnings: MGT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGT's revenue (4.3% per year) is forecast to grow slower than the Polish market (5.1% per year).

High Growth Revenue: MGT's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGT's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Mangata Holding performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGT has high quality earnings.

Growing Profit Margin: MGT's current net profit margins (8%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: MGT's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: MGT's earnings growth over the past year (13%) is below its 5-year average (13.6% per year).

Earnings vs Industry: MGT earnings growth over the past year (13%) underperformed the Machinery industry 24.5%.


Return on Equity

High ROE: MGT's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mangata Holding's financial position?


Financial Position Analysis

Short Term Liabilities: MGT's short term assets (PLN266.2M) exceed its short term liabilities (PLN187.9M).

Long Term Liabilities: MGT's short term assets (PLN266.2M) exceed its long term liabilities (PLN140.5M).


Debt to Equity History and Analysis

Debt Level: MGT's debt to equity ratio (33.2%) is considered satisfactory.

Reducing Debt: MGT's debt to equity ratio has increased from 11.3% to 33.2% over the past 5 years.

Debt Coverage: MGT's debt is well covered by operating cash flow (78.5%).

Interest Coverage: MGT's interest payments on its debt are well covered by EBIT (22.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: MGT's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

6.08%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.3%markettop25%7.0%industryaverage8.9%forecastin3Years6.1%

Current dividend yield vs market & industry

Notable Dividend: MGT's dividend (6.16%) is higher than the bottom 25% of dividend payers in the Polish market (2.4%).

High Dividend: MGT's dividend (6.16%) is low compared to the top 25% of dividend payers in the Polish market (7.05%).


Stability and Growth of Payments

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

Growing Dividend: MGT's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.4%), MGT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGT's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).


Next Steps

Management

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


CEO

Leszek Jurasz 0

18.7yrs

Tenure

0

Mr. Leszek Jurasz has been the President of Management Board and General Director of Mangata Holding S.A. since May 2001 and 2001 respectively. Mr. Jurasz serves as the Chairman of Supervisory Board at Tec ...


CEO Compensation Analysis

Compensation vs Market: Leszek's total compensation ($USD0.00) is below average for companies of similar size in the Polish market ($USD171.75K).

Compensation vs Earnings: Leszek's compensation has been consistent with company performance over the past year.


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

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


Management Team

  • Kazimierz Przelomski

    Vice President of the Management Board & Financial Director

    • Jan Jurczyk

      Secretary of the Supervisory Board & Member of the Supervisory Board

      • Compensation: zł128.00k
    • Leszek Jurasz

      President of Management Board & General Director

      • Tenure: 18.7yrs

    Board Members

    • Michal Zawisza

      Deputy Chairman of the Supervisory Board

      • Tenure: 0.2yrs
      • Compensation: zł205.00k
    • Zygmunt Mrozek

      Member of the Supervisory Board

      • Tenure: 19yrs
      • Compensation: zł97.00k
    • Tomasz Jurczyk

      Vice Chairman of the Supervisory Board

      • Compensation: zł205.00k
    • Jan Jurczyk

      Secretary of the Supervisory Board & Member of the Supervisory Board

      • Compensation: zł128.00k
    • Zbigniew Rogóz

      Member of Supervisory Board

      • Compensation: zł103.00k
    • Marcin Kniec

      Member of Supervisory Board

      Company Information

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


      Key Information

      • Name: Mangata Holding S.A.
      • Ticker: MGT
      • Exchange: WSE
      • Founded: 1946
      • Industry: Industrial Machinery
      • Sector: Capital Goods
      • Market Cap: zł494.087m
      • Shares outstanding: 6.68m
      • Website: https://mangata.com.pl

      Location

      • Mangata Holding S.A.
      • Cechowa 6/8
      • Bielsko-Biala
      • 43-300
      • Poland

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      MGTWSE (Warsaw Stock Exchange)YesCommon SharesPLPLNApr 2005
      0N0SLSE (London Stock Exchange)YesCommon SharesGBPLNApr 2005

      Biography

      Mangata Holding S.A. operates in the industrial sector in Poland. It offers forgings for automotive, mining, construction, energy, and agriculture industries; exhaust systems and metal components for use in automotive, construction, agriculture, and forestry industries; and car parts, mechanical parts, and servo drive parts, as well as parts for construction and agricultural machinery, hydraulic units, and high pressure hydraulic pumps. The company also provides stop, bellow, check, butterfly, ball, and gate valves, as well as strainers, backflow preventers, rubber expansion joints, and castings for heating plants and systems, air conditioning and ventilation, water and sewage plants, and shipbuilding applications; and bolts, nuts, washers, and rivets that are used in construction, railway, engineering, mining, and automotive industries. In addition, it offers engineering services for the implementation of the research and development of industrial valves and regulation systems. Mangata Holding S.A. also exports its products to approximately 70 countries. The company was formerly known as ZETKAMA Spólka Akcyjna and changed its name to Mangata Holding S.A. in September 2016. Mangata Holding S.A. was founded in 1946 and is based in Bielsko-Biala, Poland. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 20:48
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      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.