Despite shrinking by zł26m in the past week, Kredyt Inkaso (WSE:KRI) shareholders are still up 80% over 1 year

By
Simply Wall St
Published
January 18, 2022
WSE:KRI
Source: Shutterstock

The Kredyt Inkaso S.A. (WSE:KRI) share price has had a bad week, falling 10%. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 80% in that time.

Since the long term performance has been good but there's been a recent pullback of 10%, let's check if the fundamentals match the share price.

Check out our latest analysis for Kredyt Inkaso

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Kredyt Inkaso grew its earnings per share, moving from a loss to a profit.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

We think that the revenue growth of 55% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
WSE:KRI Earnings and Revenue Growth January 18th 2022

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Kredyt Inkaso's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Kredyt Inkaso shareholders have received a total shareholder return of 80% over one year. Notably the five-year annualised TSR loss of 4% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Kredyt Inkaso better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Kredyt Inkaso you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on PL exchanges.

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