WSE:DNP

Stock Analysis Report

Executive Summary

Dino Polska S.A. operates a chain of supermarkets in Poland.

Rewards

Trading at 15.5% below its fair value

Earnings are forecast to grow 23.42% per year

Earnings grew by 35.2% over the past year

Risk Analysis

High level of non-cash earnings

Has a high level of debt



Snowflake Analysis

Solid track record with high growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.0%

DNP

2.7%

PL Consumer Retailing

-1.0%

PL Market


1 Year Return

56.3%

DNP

0.6%

PL Consumer Retailing

-7.2%

PL Market

Return vs Industry: DNP exceeded the Polish Consumer Retailing industry which returned 42.1% over the past year.

Return vs Market: DNP exceeded the Polish Market which returned -4.3% over the past year.


Shareholder returns

DNPIndustryMarket
7 Day4.0%2.7%-1.0%
30 Day12.4%9.2%1.4%
90 Day12.3%8.5%1.1%
1 Year56.3%56.3%4.6%0.6%-4.4%-7.2%
3 Yearn/a2.7%-7.5%0.8%-6.5%
5 Yearn/a14.5%-3.2%5.2%-8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNP (PLN152.5) is trading below our estimate of fair value (PLN180.4)

Significantly Below Fair Value: DNP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DNP is poor value based on its PE Ratio (39.3x) compared to the Consumer Retailing industry average (16.5x).

PE vs Market: DNP is poor value based on its PE Ratio (39.3x) compared to the Polish market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: DNP is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: DNP is overvalued based on its PB Ratio (10x) compared to the PL Consumer Retailing industry average (2x).


Next Steps

Future Growth

How is Dino Polska forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNP's forecast earnings growth (23.4% per year) is above the savings rate (2%).

Earnings vs Market: DNP's earnings (23.4% per year) are forecast to grow faster than the Polish market (10% per year).

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

Revenue vs Market: DNP's revenue (19.9% per year) is forecast to grow faster than the Polish market (5.1% per year).

High Growth Revenue: DNP's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNP's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

How has Dino Polska performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNP has a high level of non-cash earnings.

Growing Profit Margin: DNP's current net profit margins (5.3%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: DNP's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: DNP's earnings growth over the past year (35.2%) exceeds its 5-year average (29.3% per year).

Earnings vs Industry: DNP earnings growth over the past year (35.2%) exceeded the Consumer Retailing industry 0.5%.


Return on Equity

High ROE: DNP's Return on Equity (25.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dino Polska's financial position?


Financial Position Analysis

Short Term Liabilities: DNP's short term assets (PLN758.0M) do not cover its short term liabilities (PLN1.3B).

Long Term Liabilities: DNP's short term assets (PLN758.0M) do not cover its long term liabilities (PLN998.3M).


Debt to Equity History and Analysis

Debt Level: DNP's debt to equity ratio (66.9%) is considered high.

Reducing Debt: Insufficient data to determine if DNP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DNP's debt is well covered by operating cash flow (59.7%).

Interest Coverage: DNP's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: DNP's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

0.29%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.8%industryaverage3.5%forecastin3Years0.3%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DNP'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 Dino Polska's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average board tenure


CEO

Szymon Piduch (47yo)

0yrs

Tenure

zł952,900

Compensation

Mr. Szymon Piduch serves as Chief Executive Officer and President of The Management Board at Dino Polska S.A. 


CEO Compensation Analysis

Compensation vs Market: Szymon's total compensation ($USD251.21K) is about average for companies of similar size in the Polish market ($USD251.21K).

Compensation vs Earnings: Szymon's compensation has increased by more than 20% in the past year.


Board Age and Tenure

10.0yrs

Average Tenure

48yo

Average Age

Experienced Board: DNP's board of directors are seasoned and experienced ( 10 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

  • Szymon Piduch (47yo)

    CEO & President of the Management Board

    • Compensation: zł952.90k
  • Michal Krauze (36yo)

    VP of the Management Board & CFO

    • Compensation: zł403.70k
  • Michal Muskala

    Investment & Maintenance Director and Member of the Management Board

    • Tenure: 0.4yrs

Board Members

  • Piotr Nowjalis (44yo)

    Member of the Supervisory Board

    • Tenure: 5yrs
  • Slawomir Jakszuk (55yo)

    Member of the Supervisory Board

    • Tenure: 5yrs
  • Tomasz Biernacki (45yo)

    Chairman of the Supervisory Board

    • Tenure: 10yrs
  • Eryk Bajer (50yo)

    Member of the Supervisory Board

    • Tenure: 10yrs
  • Maciej Polanowski (48yo)

    Member of the Supervisory Board

    • Tenure: 10yrs

Company Information

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


Key Information

  • Name: Dino Polska S.A.
  • Ticker: DNP
  • Exchange: WSE
  • Founded:
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: zł15.863b
  • Shares outstanding: 98.04m
  • Website: https://grupadino.pl

Number of Employees


Location

  • Dino Polska S.A.
  • ul. Ostrowska 122
  • Krotoszyn
  • 63-700
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNPWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNApr 2017
0TCPLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNApr 2017
DNOP.YOTCPK (Pink Sheets LLC)UNSPNSORD ADSUSUSDDec 2019

Biography

Dino Polska S.A. operates a chain of supermarkets in Poland. It offers food products, household chemicals, cosmetics, vegetables, fruits, meats, and sausages. As of December 31, 2018, the company operated 977 stores in western Poland. Dino Polska S.A. is based in Krotoszyn, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 22:37
End of Day Share Price2020/01/24 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.