WSE:NWG

Stock Analysis Report

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Executive Summary

Newag S.A. engages in the production and sale of rail vehicles in Poland.


Snowflake Analysis

Outstanding track record with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

NWG

2.0%

PL Machinery

1.6%

PL Market


1 Year Return

43.9%

NWG

-22.3%

PL Machinery

-3.8%

PL Market

Return vs Industry: NWG exceeded the Polish Machinery industry which returned -22.3% over the past year.

Return vs Market: NWG exceeded the Polish Market which returned -3.8% over the past year.


Shareholder returns

NWGIndustryMarket
7 Day3.2%2.0%1.6%
30 Day2.4%-3.2%3.1%
90 Day16.7%9.6%20.8%
1 Year43.9%43.9%-22.2%-22.3%-3.0%-3.8%
3 Year66.7%53.3%-38.6%-46.0%-16.8%-21.8%
5 Year64.3%45.6%-13.7%-22.9%-5.0%-15.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWG (PLN25.9) is trading below our estimate of fair value (PLN32.04)

Significantly Below Fair Value: NWG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWG is poor value based on its PE Ratio (9.3x) compared to the PL Machinery industry average (8.8x).

PE vs Market: NWG is good value based on its PE Ratio (9.3x) compared to the Polish market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: NWG is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: NWG is overvalued based on its PB Ratio (2x) compared to the PL Machinery industry average (0.8x).


Next Steps

Future Growth

How is Newag forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWG's forecast earnings growth (3.4% per year) is above the savings rate (2.9%).

Earnings vs Market: NWG's earnings (3.4% per year) are forecast to grow slower than the Polish market (12.1% per year).

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

Revenue vs Market: NWG's revenue (5% per year) is forecast to grow faster than the Polish market (3.5% per year).

High Growth Revenue: NWG's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWG's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has Newag performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWG has high quality earnings.

Growing Profit Margin: NWG's current net profit margins (12.2%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: NWG's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: NWG's earnings growth over the past year (32.7%) exceeds its 5-year average (21.5% per year).

Earnings vs Industry: NWG earnings growth over the past year (32.7%) exceeded the Machinery industry 10.9%.


Return on Equity

High ROE: NWG's Return on Equity (21.5%) is considered high.


Next Steps

Financial Health

How is Newag's financial position?


Financial Position Analysis

Short Term Liabilities: NWG's short term assets (PLN830.9M) exceed its short term liabilities (PLN554.1M).

Long Term Liabilities: NWG's short term assets (PLN830.9M) exceed its long term liabilities (PLN247.5M).


Debt to Equity History and Analysis

Debt Level: NWG's debt to equity ratio (56.8%) is considered high.

Reducing Debt: NWG's debt to equity ratio has increased from 55.2% to 56.8% over the past 5 years.

Debt Coverage: NWG's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: NWG's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWG's dividend (2.9%) is higher than the bottom 25% of dividend payers in the Polish market (1.69%).

High Dividend: NWG's dividend (2.9%) is low compared to the top 25% of dividend payers in the Polish market (5.94%).


Stability and Growth of Payments

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

Growing Dividend: NWG's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), NWG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWG's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Zbigniew Konieczek

no data

Tenure

zł2,187,000

Compensation

Mr. Zbigniew Konieczek has been the President of the Board at Newag Spólka Akcyjna (Former Name: Newag S.A.) since 2001 and serves as its Chief Executive Officer and President. Mr. Konieczek serves as a Me ...


Leadership Team

NamePositionTenureCompensationOwnership
Zbigniew Konieczek
President of Management Board & CEOno datazł2.19m2.6%
PLN 30.2m
Bogdan Borek
Vice President of Management Board & Finance Director5.5yrszł950.00k1.27%
PLN 14.8m
Józef Michalik
Vice President of the Management Board4.5yrszł919.00kno data
Agnieszka Pyszczek
Secretary of the Supervisory Boardno datazł67.00kno data
Czeslawa Piotrowska
Chief Accountantno datano datano data

4.5yrs

Average Tenure

Experienced Management: NWG's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Agnieszka Pyszczek
Secretary of the Supervisory Boardno datazł67.00kno data
Piotr Palenik
Independent Member of the Supervisory Board2.17yrszł35.00kno data
Katarzyna Szwarc
Chairman of the Supervisory Board2.17yrszł76.00kno data
Piotr Wisniewski
Member of the Supervisory Board2.17yrszł35.00kno data
Piotr Chajderowski
Independent Vice Chairman of the Supervisory Board2.17yrszł38.00kno data

2.2yrs

Average Tenure

Experienced Board: NWG's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Newag S.A.
  • Ticker: NWG
  • Exchange: WSE
  • Founded: 1876
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: zł1.166b
  • Shares outstanding: 45.00m
  • Website: https://www.newag.pl

Location

  • Newag S.A.
  • ul. Wyspianskiego 3
  • Nowy Sacz
  • 33–300
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWGWSE (Warsaw Stock Exchange)YesBearer SharesPLPLNDec 2013
N0GADB (Deutsche Boerse AG)YesBearer SharesDEEURDec 2013
0R6ILSE (London Stock Exchange)YesBearer SharesGBPLNDec 2013

Biography

Newag S.A. engages in the production and sale of rail vehicles in Poland. The company offers electric and diesel multiple units and locomotives, passenger cars, trams, and wagons, as well as rolling stocks ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 03:53
End of Day Share Price2020/08/14 00:00
Earnings2020/03/31
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.