WSE:WLT

Stock Analysis Report

Executive Summary

Wielton S.A. manufactures and sells semi-trailers, trailers, and car bodies in Europe, Asia, and Africa.

Rewards

PE ratio (5.9x) is below the Polish market (11.6x)

Earnings are forecast to grow 7.54% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (2.7%) are lower than last year (4.8%)



Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

15.5%

WLT

2.8%

PL Machinery

-0.8%

PL Market


1 Year Return

-23.8%

WLT

-10.2%

PL Machinery

-5.8%

PL Market

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

Return vs Market: WLT underperformed the Polish Market which returned -4.3% over the past year.


Shareholder returns

WLTIndustryMarket
7 Day15.5%2.8%-0.8%
30 Day28.9%12.2%2.8%
90 Day1.8%3.7%1.2%
1 Year-20.9%-23.8%-3.5%-10.2%-2.9%-5.8%
3 Year-38.9%-43.0%-12.7%-22.8%4.1%-3.5%
5 Year81.8%61.4%-4.0%-15.9%6.4%-7.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WLT (PLN6.44) is trading above our estimate of fair value (PLN3.4)

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


Price To Earnings Ratio

PE vs Industry: WLT is good value based on its PE Ratio (5.9x) compared to the Machinery industry average (8.5x).

PE vs Market: WLT is good value based on its PE Ratio (5.9x) compared to the Polish market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: WLT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: WLT is overvalued based on its PB Ratio (1x) compared to the PL Machinery industry average (0.9x).


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLT's forecast earnings growth (7.5% per year) is above the savings rate (2%).

Earnings vs Market: WLT's earnings (7.5% per year) are forecast to grow slower than the Polish market (10% per year).

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

Revenue vs Market: WLT's revenue (2.6% per year) is forecast to grow slower than the Polish market (5.1% per year).

High Growth Revenue: WLT's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WLT's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Wielton performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLT has high quality earnings.

Growing Profit Margin: WLT's current net profit margins (2.7%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: WLT's earnings have grown significantly by 21.8% per year over the past 5 years.

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

Earnings vs Industry: WLT had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Machinery industry average (24.5%).


Return on Equity

High ROE: WLT's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wielton's financial position?


Financial Position Analysis

Short Term Liabilities: WLT's short term assets (PLN808.1M) exceed its short term liabilities (PLN643.1M).

Long Term Liabilities: WLT's short term assets (PLN808.1M) exceed its long term liabilities (PLN395.7M).


Debt to Equity History and Analysis

Debt Level: WLT's debt to equity ratio (107.1%) is considered high.

Reducing Debt: WLT's debt to equity ratio has increased from 41.8% to 107.1% over the past 5 years.

Debt Coverage: WLT's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: WLT's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: WLT's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.3%markettop25%6.8%industryaverage8.9%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: WLT's dividend (5.12%) is higher than the bottom 25% of dividend payers in the Polish market (2.4%).

High Dividend: WLT's dividend (5.12%) is low compared to the top 25% of dividend payers in the Polish market (7.05%).


Stability and Growth of Payments

Stable Dividend: WLT's dividend payments have been volatile in the past 10 years.

Growing Dividend: WLT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.2%), WLT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WLT's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

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

11.7yrs

Average board tenure


CEO

Mariusz Golec 0

0yrs

Tenure

zł1,855,000

Compensation

Mr. Mariusz Golec, M.Sc. Eng., serves as President of the Management Board at Wielton S.A. Mr. Golec served as Vice President of the Management Board at WIELTON Spólka Akcyjna since November 22, 2002. Mr.  ...


CEO Compensation Analysis

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

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


Board Age and Tenure

11.7yrs

Average Tenure

Experienced Board: WLT's board of directors are seasoned and experienced ( 11.7 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

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


Management Team

  • Krzysztof Pólgrabia

    Secretary of Supervisory Board & Member of Supervisory Board

    • Tenure: 14.3yrs
    • Compensation: zł76.00k
  • Wlodzimierz Maslowski

    Vice President of the Management Board

    • Tenure: 4.6yrs
    • Compensation: zł1.51m
  • Mariusz Golec

    President of the Management Board

    • Compensation: zł1.86m
  • Tomasz Sniatala

    Vice President of Management Board

    • Compensation: zł1.34m
  • Aneta Piekarek

    Chief Accountant


    Board Members

    • Waldemar Frackowiak (66yo)

      Independent Member of the Supervisory Board

      • Tenure: 4.6yrs
      • Compensation: zł76.00k
    • Pawel Szataniak

      Chairman of Supervisory Board

      • Tenure: 9.8yrs
      • Compensation: zł76.00k
    • Mariusz Szataniak

      Member of Supervisory Board

      • Tenure: 13.6yrs
      • Compensation: zł76.00k
    • Ryszard Prozner

      Vice Chairman of Supervisory Board

      • Tenure: 9.8yrs
      • Compensation: zł76.00k
    • Krzysztof Pólgrabia

      Secretary of Supervisory Board & Member of Supervisory Board

      • Tenure: 14.3yrs
      • Compensation: zł76.00k
    • Piotr Kaminski

      Independent Member of Supervisory Board

      • Tenure: 13.6yrs
      • Compensation: zł76.00k
    • Krzysztof Tylkowski

      Member of Supervisory Board

      • Tenure: 13.6yrs
      • Compensation: zł76.00k
    • Tadeusz Uhl

      Independent Member of the Supervisory Board

      • Tenure: 4.6yrs
      • Compensation: zł76.00k

    Company Information

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


    Key Information

    • Name: Wielton S.A.
    • Ticker: WLT
    • Exchange: WSE
    • Founded: 1991
    • Industry: Construction Machinery and Heavy Trucks
    • Sector: Capital Goods
    • Market Cap: zł447.983m
    • Shares outstanding: 60.38m
    • Website: https://www.wielton.com.pl

    Location

    • Wielton S.A.
    • ul. Rymarkiewicza 6
    • Wielun
    • 98-300
    • Poland

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    WLTWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNFeb 2008
    0LZLLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNFeb 2008
    2W1BST (Boerse-Stuttgart)YesCommon Bearer SharesDEEURFeb 2008

    Biography

    Wielton S.A. manufactures and sells semi-trailers, trailers, and car bodies in Europe, Asia, and Africa. The company offers container, tipper, closed box, and curtain semi-trailers; dump trucks; rigid bodies and tipper trailers; low loader trailers and semi-trailers; high volume combinations; and trailers for roller containers. It also provides dolly trolleys, half-pipes, bale platforms, tandem trailers, and 2-axle trailers. The company serves transportation, construction, production, and agriculture, and distribution companies. Wielton S.A. was founded in 1991 and is headquartered in Wielun, Poland. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 21:37
    End of Day Share Price2020/01/21 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.