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.

Risks

  • Newag is covered by less than 3 analysts.

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

-1.1%

WSE:NWG

-2.4%

PL Machinery

-2.6%

PL Market


1 Year Return

2.3%

WSE:NWG

-18.4%

PL Machinery

-8.2%

PL Market

NWG outperformed the Machinery industry which returned -18.6% over the past year.

NWG outperformed the Market in Poland which returned -8.5% over the past year.


Share holder returns

NWGIndustryMarket
7 Day-1.1%-2.4%-2.6%
30 Day0%-5.4%-9.0%
90 Day13.2%-7.3%-5.3%
1 Year6.7%2.3%-12.8%-18.4%-5.3%-8.2%
3 Year49.4%32.4%1.1%-10.7%7.7%-0.3%
5 Year29.2%5.8%0.8%-12.0%-1.8%-14.4%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Newag's share price is below the future cash flow value, and at a moderate discount (> 20%).

Newag's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Newag is overvalued based on earnings compared to the PL Machinery industry average.

Newag is good value based on earnings compared to the Poland market.


Price Based on Expected Growth

Newag earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Newag is overvalued based on assets compared to the PL Machinery industry average.


Next Steps

Future Growth

How is Newag expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Newag's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

Newag's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Newag's revenue growth is positive but not above the Poland market average.

Newag's earnings are expected to decrease over the next 1-3 years, this is below the Poland market average.

Newag's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Newag is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Newag performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Newag's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Newag's 1-year earnings growth exceeds its 5-year average (447.8% vs -4.5%)

Newag's earnings growth has exceeded the PL Machinery industry average in the past year (447.8% vs 56.1%).


Return on Equity

Newag has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Newag used its assets more efficiently than the PL Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Newag has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Newag's financial position?


Financial Position Analysis

Newag is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Newag's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Newag's level of debt (60.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (105.4% vs 60.2% today).

Debt is not well covered by operating cash flow (2.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

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

2.86%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Newag's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.88%).

Newag's dividend is below the markets top 25% of dividend payers in Poland (7.39%).

Newag has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Newag only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

ZbiGniew KonieCzek

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

ZbiGniew 's remuneration is higher than average for companies of similar size in Poland.

ZbiGniew 's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

The tenure for the Newag management team is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Katarzyna Szwarc

    Secretary of the Supervisory Board

    • Tenure: 4.2yrs
    • Compensation: PLN62.00k
  • ZbiGniew KonieCzek

    President of Management Board & CEO

    • Compensation: PLN2.24m
  • Bogdan Borek

    Vice President of Management Board and Finance Director

    • Tenure: 4.5yrs
    • Compensation: PLN1.44m
  • Maciej Duczynski

    Director of Marketing and Development

    • Compensation: PLN252.00k
  • Czeslawa Piotrowska

    Chief Accountant

  • Józef Michalik

    Vice President of the Management Board

    • Tenure: 3.5yrs
    • Compensation: PLN310.00k

Board Members

  • Zbigniew Jakubas

    Chairman of the Supervisory Board

    • Compensation: PLN73.00k
  • Piotr Kaminski

    Vice President of the Supervisory Board

    • Compensation: PLN62.00k
  • Agnieszka Pyszczek

    Member of the Supervisory Board

    • Compensation: PLN57.00k

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: zł810.000m
  • Shares outstanding: 45.00m
  • Website: Click here

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 Analysis2019/08/16 21:45
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
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.