WSE:NWG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.4%

NWG

-0.6%

PL Machinery

0.02%

PL Market


1 Year Return

2.3%

NWG

-20.3%

PL Machinery

-3.3%

PL Market

Return vs Industry: NWG exceeded the Polish Machinery industry which returned -20.3% over the past year.

Return vs Market: NWG exceeded the Polish Market which returned -3.3% over the past year.


Shareholder returns

NWGIndustryMarket
7 Day-4.4%-0.6%0.02%
30 Day-7.9%-4.5%-2.5%
90 Day-3.3%-14.0%-7.4%
1 Year6.8%2.3%-14.5%-20.3%-0.4%-3.3%
3 Year53.2%40.8%-15.1%-25.1%11.3%3.4%
5 Year-1.3%-17.4%-8.0%-19.2%-1.0%-13.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NWG (PLN17.5) is trading below our estimate of fair value (PLN37.3)

Significantly Undervalued: NWG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NWG is poor value based on its PE Ratio (8.5x) compared to the Machinery industry average (8.3x).

PE vs Market: NWG is good value based on its PE Ratio (8.5x) compared to the Polish market (10x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NWG is overvalued based on its PB Ratio (1.7x) 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 2 analysts?

-1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWG's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: NWG's earnings are forecast to decline over the next 3 years (-1.8% per year).

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

Revenue vs Market: NWG's revenue (2.8% per year) is forecast to grow slower than the Polish market (5.9% per year).

High Growth Revenue: NWG's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NWG's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Newag performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NWG's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: NWG's earnings growth over the past year (111.5%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: NWG earnings growth over the past year (111.5%) exceeded the Machinery industry 52.5%.


Return on Equity

High ROE: NWG's Return on Equity (19.5%) is considered low.


Return on Assets

ROA vs Industry: NWG has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: NWG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Newag's financial position?


Financial Position Analysis

Short Term Liabilities: NWG's short term assets (PLN722.2M) exceeds its short term liabilities (PLN537.8M)

Long Term Liabilities: NWG's short term assets (722.2M) exceeds its long term liabilities (244.8M)


Debt to Equity History and Analysis

Debt Level: NWG's debt to equity ratio (63.2%) is considered high

Reducing Debt: NWG's debt to equity ratio has reduced from 83.9% to 63.2% over the past 5 years.

Debt Coverage: NWG's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: NWG's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: NWG's debt is covered by short term assets (assets are 2.410070x debt).


Next Steps

Dividend

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

4.29%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.7%markettop25%7.4%industryaverage7.3%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NWG's dividend (4.29%) is higher than the bottom 25% of dividend payers in the Polish market (2.66%).

High Dividend: NWG's dividend (4.29%) is low compared to the top 25% of dividend payers in the Polish market (7.39%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.6%), 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 (44.6% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

ZbiGniew KonieCzek 0

0yrs

Tenure

zł2,241,000

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, President. Mr. KonieCzek serves as a Membe ...


CEO Compensation Analysis

Compensation vs. Market: ZbiGniew 's total compensation ($USD0.00) is too low to compare against companies of similar size in the Polish market ($USD0.00).

Compensation vs Earnings: ZbiGniew 's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: NWG's management team is considered experienced (4.3 years average tenure).


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

  • Katarzyna Szwarc

    Secretary of the Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: zł62.00k
  • ZbiGniew KonieCzek

    President of Management Board & CEO

    • Tenure: 0yrs
    • Compensation: zł2.24m
  • Bogdan Borek

    Vice President of Management Board and Finance Director

    • Tenure: 4.7yrs
    • Compensation: zł1.44m
  • Maciej Duczynski

    Director of Marketing and Development

    • Tenure: 0yrs
    • Compensation: zł252.00k
  • Czeslawa Piotrowska

    Chief Accountant

    • Tenure: 0yrs
  • Józef Michalik

    Vice President of the Management Board

    • Tenure: 3.7yrs
    • Compensation: zł310.00k

Board Members

  • Zbigniew Jakubas

    Chairman of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: zł73.00k
  • Piotr Kaminski

    Vice President of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: zł62.00k
  • Agnieszka Pyszczek

    Member of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: zł57.00k

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: zł787.500m
  • 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

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 Analysis2019/10/18 21:43
End of Day Share Price2019/10/18 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.