WSE:CCC

Stock Analysis Report

Executive Summary

CCC S.A. engages in the manufacture, wholesale, and retail of footwear for men, women, and children in Poland, Central and Eastern Europe, Western Europe, and internationally.

Rewards

Trading at 61.7% below its fair value

Earnings are forecast to grow 42.3% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (0.2%) are lower than last year (7.5%)



Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CCC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

CCC

0.8%

PL Luxury

1.2%

PL Market


1 Year Return

-43.6%

CCC

-6.6%

PL Luxury

-7.1%

PL Market

Return vs Industry: CCC underperformed the Polish Luxury industry which returned -6.6% over the past year.

Return vs Market: CCC underperformed the Polish Market which returned -7.1% over the past year.


Shareholder returns

CCCIndustryMarket
7 Day-0.8%0.8%1.2%
30 Day-2.2%2.7%-3.5%
90 Day-19.5%1.9%-2.8%
1 Year-43.4%-43.6%-6.0%-6.6%-4.3%-7.1%
3 Year-41.8%-43.2%12.9%10.7%5.8%-2.0%
5 Year-16.9%-21.1%9.6%5.6%3.3%-9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCC (PLN112) is trading below our estimate of fair value (PLN292.46)

Significantly Below Fair Value: CCC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CCC is poor value based on its PE Ratio (518.5x) compared to the Luxury industry average (11.9x).

PE vs Market: CCC is poor value based on its PE Ratio (518.5x) compared to the Polish market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: CCC is poor value based on its PEG Ratio (12.3x)


Price to Book Ratio

PB vs Industry: CCC is overvalued based on its PB Ratio (5.3x) compared to the PL Luxury industry average (0.9x).


Next Steps

Future Growth

How is CCC forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCC's forecast earnings growth (42.3% per year) is above the savings rate (2%).

Earnings vs Market: CCC's earnings (42.3% per year) are forecast to grow faster than the Polish market (10.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CCC's revenue (12.4% per year) is forecast to grow faster than the Polish market (5.6% per year).

High Growth Revenue: CCC's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCC's Return on Equity is forecast to be high in 3 years time (23.9%)


Next Steps

Past Performance

How has CCC performed over the past 5 years?

-19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCC has a large one-off gain of PLN5.8M impacting its September 30 2019 financial results.

Growing Profit Margin: CCC's current net profit margins (0.2%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: CCC's earnings have declined by -19.9% per year over the past 5 years.

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

Earnings vs Industry: CCC had negative earnings growth (-97.2%) over the past year, making it difficult to compare to the Luxury industry average (-27.4%).


Return on Equity

High ROE: CCC's Return on Equity (-1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CCC's financial position?


Financial Position Analysis

Short Term Liabilities: CCC's short term assets (PLN3.0B) do not cover its short term liabilities (PLN3.5B).

Long Term Liabilities: CCC's short term assets (PLN3.0B) exceed its long term liabilities (PLN2.9B).


Debt to Equity History and Analysis

Debt Level: CCC's debt to equity ratio (161%) is considered high.

Reducing Debt: CCC's debt to equity ratio has increased from 74.6% to 161% over the past 5 years.

Debt Coverage: CCC's debt is well covered by operating cash flow (67.4%).

Interest Coverage: CCC's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

0.43%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.6%markettop25%7.2%industryaverage0.7%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: CCC's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.58%).

High Dividend: CCC's dividend (0.43%) is low compared to the top 25% of dividend payers in the Polish market (7.22%).


Stability and Growth of Payments

Stable Dividend: CCC is not paying a notable dividend for the Polish market, therefore no need to check if payments are stable.

Growing Dividend: CCC is not paying a notable dividend for the Polish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CCC is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCC's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Marcin Czyczerski 0

0.7yrs

Tenure

zł1,230,000

Compensation

Mr. Marcin Czyczerski has been the President of the Management Board at CCC S.A. since April 2019. Mr. Czyczerski has been Chief Financial Officer and Member of Management Board at CCC S.A. since January 1 ...


CEO Compensation Analysis

Compensation vs Market: Marcin's total compensation ($USD320.28K) is about average for companies of similar size in the Polish market ($USD365.50K).

Compensation vs Earnings: Marcin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

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


Board Age and Tenure

0.7yrs

Average Tenure

Experienced Board: CCC's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


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

  • Mariusz Gnych

    Vice-President of Management Board

    • Tenure: 15.5yrs
    • Compensation: zł1.18m
  • Edyta Banas

    Chief Accountant

    • Tenure: 0yrs
  • Karol Póltorak

    Vice-President of Management Board

    • Tenure: 3yrs
    • Compensation: zł1.16m
  • Marcin Czyczerski

    President of the Management Board & CFO

    • Tenure: 0.7yrs
    • Compensation: zł1.23m

Board Members

  • Dariusz Mitek

    Chairman of the Supervisory Board

    • Tenure: 0.7yrs
    • Compensation: zł840.00k
  • Wieslaw Oles

    Deputy Chairman of the Supervisory Board

    • Tenure: 0yrs
  • Zofia Dzik (49yo)

    Member of the Supervisory Board

    • Tenure: 0.5yrs
  • Waldemar Jurkiewicz

    Member of Supervisory Board

    • Tenure: 3.5yrs
  • Filip Gorczyca

    Member of Supervisory Board

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: CCC S.A.
  • Ticker: CCC
  • Exchange: WSE
  • Founded: 1996
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: zł4.607b
  • Shares outstanding: 41.17m
  • Website: https://www.ccc.eu

Number of Employees


Location

  • CCC S.A.
  • ul. Strefowa 6
  • Polkowice
  • 59-101
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCCWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNDec 2004
0LS5LSE (London Stock Exchange)YesCommon Bearer SharesGBPLNDec 2004

Biography

CCC S.A. engages in the manufacture, wholesale, and retail of footwear for men, women, and children in Poland, Central and Eastern Europe, Western Europe, and internationally. It operates in two segments,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 20:32
End of Day Share Price2019/12/13 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.