WSE:TOR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Torpol S.A. engages in the construction and modernization of railway infrastructure in Poland. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TOR is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TOR's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

TOR

5.5%

PL Construction

-2.9%

PL Market


1 Year Return

66.4%

TOR

94.7%

PL Construction

18.9%

PL Market

Return vs Industry: TOR underperformed the Polish Construction industry which returned 79.9% over the past year.

Return vs Market: TOR exceeded the Polish Market which returned 11% over the past year.


Shareholder returns

TORIndustryMarket
7 Day-2.8%5.5%-2.9%
30 Day-8.6%9.3%1.2%
90 Day7.5%36.6%6.2%
1 Year77.4%66.4%98.7%94.7%20.0%18.9%
3 Year69.4%53.8%61.3%44.9%-4.1%-9.9%
5 Year42.1%15.8%57.6%33.8%18.8%5.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TOR (PLN12.15) is trading above our estimate of fair value (PLN10.59)

Significantly Below Fair Value: TOR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TOR is good value based on its PE Ratio (8.4x) compared to the PL Construction industry average (8.9x).

PE vs Market: TOR is good value based on its PE Ratio (8.4x) compared to the Polish market (15.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TOR is overvalued based on its PB Ratio (1.2x) compared to the PL Construction industry average (1x).


Next Steps

Future Growth

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

-34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOR's earnings are forecast to decline over the next 3 years (-34.5% per year).

Earnings vs Market: TOR's earnings are forecast to decline over the next 3 years (-34.5% per year).

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

Revenue vs Market: TOR's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: TOR's revenue is forecast to decline over the next 3 years (-7.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOR's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Torpol performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOR has high quality earnings.

Growing Profit Margin: TOR's current net profit margins (2.2%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: TOR's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: TOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TOR had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Construction industry average (34.3%).


Return on Equity

High ROE: TOR's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Torpol's financial position?


Financial Position Analysis

Short Term Liabilities: TOR's short term assets (PLN882.9M) exceed its short term liabilities (PLN757.0M).

Long Term Liabilities: TOR's short term assets (PLN882.9M) exceed its long term liabilities (PLN108.5M).


Debt to Equity History and Analysis

Debt Level: TOR's debt to equity ratio (17.5%) is considered satisfactory.

Reducing Debt: TOR's debt to equity ratio has reduced from 21.9% to 17.5% over the past 5 years.

Debt Coverage: TOR's debt is well covered by operating cash flow (919.2%).

Interest Coverage: TOR's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Next Steps

Dividend

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

7.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOR's dividend (7.41%) is higher than the bottom 25% of dividend payers in the Polish market (1.51%).

High Dividend: TOR's dividend (7.41%) is in the top 25% of dividend payers in the Polish market (4.97%)


Stability and Growth of Payments

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

Growing Dividend: TOR's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.1%), TOR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TOR's dividends in 3 years are not forecast to be well covered by earnings (105.3% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Grzegorz Grabowski

4.92yrs

Tenure

zł540,000

Compensation

Mr. Grzegorz Grabowski has been President of Management Board at Torpol S.A., since March 23, 2016 and served as Acting Chief Financial Officer. Mr. Grabowski served as Sales Director and Member of the Man...


CEO Compensation Analysis

Compensation vs Market: Grzegorz's total compensation ($USD146.31K) is about average for companies of similar size in the Polish market ($USD149.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Grzegorz Grabowski
President of Management Board & CEO4.92yrszł540.00kno data
Tomasz Krupinski
Vice President of Management Board & Commercial Director5.08yrszł420.00kno data
Marcin Zachariasz
VP of Management Board & CFOno datazł420.00kno data
Jadwiga Dyktus
Secretary & Member of the Supervisory Board4.92yrsno datano data
Konrad Tulinski
Vice President of the Management Board & Production Director0.58yrzł7.00kno data
Marta Izdebska
Director of Accounting Departmentno datano datano data

3.0yrs

Average Tenure

Experienced Management: TOR's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jadwiga Dyktus
Secretary & Member of the Supervisory Board4.92yrsno datano data
Monika Domanska
Chairman of the Supervisory Board1.08yrsno datano data
Adam Pawlik
Independent Member of Supervisory Board2.08yrszł33.70kno data
Tomasz Hapunowicz
Independent Member of Supervisory Board4.17yrszł88.80kno data
Konrad Orzelowski
Independent Member of the Supervisory Boardno datazł88.80kno data
Szymon Adamczyk
Independent Member of the Supervisory Board2.08yrszł33.70kno data

2.1yrs

Average Tenure

Experienced Board: TOR's board of directors are not considered experienced ( 2.1 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

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


Key Information

  • Name: Torpol S.A.
  • Ticker: TOR
  • Exchange: WSE
  • Founded: 1991
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: zł287.125m
  • Shares outstanding: 22.97m
  • Website: https://www.torpol.pl

Number of Employees


Location

  • Torpol S.A.
  • ul.Mogilenska 10G
  • Poznan
  • 61-052
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TORWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNSep 2014

Biography

Torpol S.A. engages in the construction and modernization of railway infrastructure in Poland. It constructs overhead catenary systems, power supply systems, train traffic and control systems, and road and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 18:09
End of Day Share Price2021/02/25 00:00
Earnings2020/09/30
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.