Summa Linguae (WSE:SUL) - Share price, News & Analysis

SUL fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

SUL Stock Overview

Summa Linguae S.A. primarily provides data, translation, and managed services in Poland.

Risk Analysis

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (PLN174M)

Summa Linguae Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Summa Linguae
Historical stock prices
Current Share Price	zł19.50
52 Week High	zł23.00
52 Week Low	zł15.00
Beta	0.22
1 Month Change	11.43%
3 Month Change	9.55%
1 Year Change	3.18%
3 Year Change	19.63%
5 Year Change	8.03%
Change since IPO	286.14%

Recent News & Updates

Apr 28

Is Summa Linguae (WSE:SUL) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	SUL	PL Commercial Services	PL Market
7D	0.5%	-2.3%	0.6%
1Y	3.2%	-9.7%	-23.8%

Return vs Industry: SUL exceeded the Polish Commercial Services industry which returned -9.7% over the past year.

Return vs Market: SUL exceeded the Polish Market which returned -23.8% over the past year.

Price Volatility

Is SUL's price volatile compared to industry and market?
SUL volatility
SUL Average Weekly Movement	8.2%
Commercial Services Industry Average Movement	7.3%
Market Average Movement	6.3%
10% most volatile stocks in PL Market	11.3%
10% least volatile stocks in PL Market	4.2%

Stable Share Price: SUL is more volatile than 75% of Polish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SUL's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Polish stocks.

About the Company

Founded	Employees	CEO	Website
2011	232	Krzysztof Zdanowski	https://summalinguae.com

Summa Linguae S.A. primarily provides data, translation, and managed services in Poland. The company offers speech, call center, conversational, text-to-speech, and video and image data collection services; speech data transcription, data labeling, and multilingual media monitoring solutions; and speech recognition, text-to-speech, and usability testing services. It also provides financial, legal, medical, patent, technical, and voiceover translation services; localization testing services; transcreation, verification and proofreading, and multilingual data analysis services; and multimedia localization and translation services.

Summa Linguae Fundamentals Summary

How do Summa Linguae's earnings and revenue compare to its market cap?
SUL fundamental statistics
Market Cap	zł173.85m
Earnings (TTM)	-zł3.61m
Revenue (TTM)	zł99.23m

1.8x

P/S Ratio

-48.1x

P/E Ratio

Is SUL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUL income statement (TTM)
Revenue	zł99.23m
Cost of Revenue	zł47.51m
Gross Profit	zł51.72m
Other Expenses	zł55.33m
Earnings	-zł3.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 15, 2022

Earnings per share (EPS)	-0.41
Gross Margin	52.12%
Net Profit Margin	-3.64%
Debt/Equity Ratio	13.4%

How did SUL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SUL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SUL. This is calculated by dividing SUL's market cap by their current preferred multiple.
What is SUL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł173.85m

SUL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	32.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SUL's PS Ratio compare to its peers?

SUL PS Ratio vs Peers

The above table shows the PS ratio for SUL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.4x

Forward PS

Price-To-Sales vs Peers: SUL is expensive based on its Price-To-Sales Ratio (1.8x) compared to the peer average (1.4x).

Price to Earnings Ratio vs Industry

How does SUL's PE Ratio compare vs other companies in the Polish Commercial Services Industry?

Price-To-Sales vs Industry: SUL is expensive based on its Price-To-Sales Ratio (1.8x) compared to the Polish Commercial Services industry average (0.9x)

Price to Sales Ratio vs Fair Ratio

What is SUL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.8x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SUL's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SUL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUL (PLN19.5) is trading above our estimate of fair value (PLN0.05)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUL's PEG Ratio to determine if it is good value.

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Future Growth

How is Summa Linguae forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.8%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Summa Linguae has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Summa Linguae's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Summa Linguae competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Summa Linguae performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUL is currently unprofitable.

Growing Profit Margin: SUL is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SUL is unprofitable, but has reduced losses over the past 5 years at a rate of 21.3% per year.

Accelerating Growth: Unable to compare SUL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SUL is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (33.1%).

Return on Equity

High ROE: SUL has a negative Return on Equity (-4.84%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Summa Linguae's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SUL's short term assets (PLN32.4M) exceed its short term liabilities (PLN24.2M).

Long Term Liabilities: SUL's short term assets (PLN32.4M) exceed its long term liabilities (PLN7.4M).

Debt to Equity History and Analysis

Debt Level: SUL's net debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: SUL's debt to equity ratio has reduced from 46.8% to 13.4% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SUL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SUL is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 1.6% per year.

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Dividend

What is Summa Linguae current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SUL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SUL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SUL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SUL has not reported any payouts.

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Management

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

1.4yrs

Average management tenure

CEO

Krzysztof Zdanowski (34 yo)

no data

Tenure

Mr. Krzysztof Ignacy Zdanowski serves as the President of the Management Board and Chief Executive Officer at Summa Linguae SA. Mr. Zdanowski is the owner of a consulting company KZ Consulting Group. He se...

Leadership Team

Experienced Management: SUL's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: SUL's board of directors are not considered experienced ( 2.5 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 been diluted in the past year, with total shares outstanding growing by 18%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31