WSE:KRU

Stock Analysis Report

Executive Summary

KRUK Spólka Akcyjna, together with its subsidiaries, engages in the management of debt for institutional clients in Poland, Romania, Italy, the Czech Republic, Germany, and Spain.


Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has KRUK Spólka Akcyjna's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

31.9%

KRU

28.3%

PL Consumer Finance

5.6%

PL Market


1 Year Return

-48.1%

KRU

-47.4%

PL Consumer Finance

-29.7%

PL Market

Return vs Industry: KRU matched the Polish Consumer Finance industry which returned -47.4% over the past year.

Return vs Market: KRU underperformed the Polish Market which returned -29.7% over the past year.


Shareholder returns

KRUIndustryMarket
7 Day31.9%28.3%5.6%
30 Day-23.3%-32.7%-0.6%
90 Day-50.4%-50.4%-24.2%
1 Year-46.6%-48.1%-45.9%-47.4%-27.6%-29.7%
3 Year-64.6%-66.5%-64.7%-66.6%-28.9%-33.9%
5 Year-38.6%-43.1%-39.6%-43.9%-27.5%-36.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is KRUK Spólka Akcyjna undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KRU (PLN84.4) is trading below our estimate of fair value (PLN119.34)

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


Price To Earnings Ratio

PE vs Industry: KRU is poor value based on its PE Ratio (5.8x) compared to the Consumer Finance industry average (5.7x).

PE vs Market: KRU is good value based on its PE Ratio (5.8x) compared to the Polish market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: KRU is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: KRU is overvalued based on its PB Ratio (0.8x) compared to the PL Consumer Finance industry average (0.8x).


Next Steps

Future Growth

How is KRUK Spólka Akcyjna forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRU's forecast earnings growth (8% per year) is above the savings rate (2%).

Earnings vs Market: KRU's earnings (8% per year) are forecast to grow slower than the Polish market (14.3% per year).

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

Revenue vs Market: KRU's revenue (6% per year) is forecast to grow faster than the Polish market (4.5% per year).

High Growth Revenue: KRU's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KRU's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has KRUK Spólka Akcyjna performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRU has high quality earnings.

Growing Profit Margin: KRU's current net profit margins (22.1%) are lower than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: KRU's earnings have grown by 12.6% per year over the past 5 years.

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

Earnings vs Industry: KRU had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (18.5%).


Return on Equity

High ROE: KRU's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is KRUK Spólka Akcyjna's financial position?


Financial Position Analysis

Short Term Liabilities: KRU's short term assets (PLN211.5M) do not cover its short term liabilities (PLN398.7M).

Long Term Liabilities: KRU's short term assets (PLN211.5M) do not cover its long term liabilities (PLN2.5B).


Debt to Equity History and Analysis

Debt Level: KRU's debt to equity ratio (135%) is considered high.

Reducing Debt: KRU's debt to equity ratio has reduced from 141.3% to 135% over the past 5 years.

Debt Coverage: KRU's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: KRU's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is KRUK Spólka Akcyjna's current dividend yield, its reliability and sustainability?

5.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KRU's dividend (5.92%) is higher than the bottom 25% of dividend payers in the Polish market (3.23%).

High Dividend: KRU's dividend (5.92%) is low compared to the top 25% of dividend payers in the Polish market (8.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KRU has been paying a dividend for less than 10 years.

Growing Dividend: KRU's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.2%), KRU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KRU's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

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

12.8yrs

Average management tenure


CEO

Piotr Krupa

no data

Tenure

zł2,406,280

Compensation

Mr. Piotr Krupa co-founded KRUK Spolka Akcyjna (alternate name KRUK SA) in 2003 and serves as its President of Management Board and Chief Executive Officer. Mr. Krupa started his professional career in 199 ...


CEO Compensation Analysis

Compensation vs Market: Piotr's total compensation ($USD578.82K) is above average for companies of similar size in the Polish market ($USD391.49K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Piotr Krupa
President of the Management Board & CEOno datazł2.41m9.94% PLN159.2m
Michal Zasepa
CFO & Member of the Management Board9.83yrszł836.15k0.13% PLN2.1m
Iwona Slomska
Member of the Management Board11.25yrszł773.20k0.16% PLN2.5m
Agnieszka Kulton
Member of the Management Board14.25yrszł774.28k0.24% PLN3.8m
Urszula Okarma
Member of the Management Board14.25yrszł773.20k0.56% PLN9.0m
Damian Babka
Investor Relations & Business Development Managerno datano datano data

12.8yrs

Average Tenure

Experienced Management: KRU's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arkadiusz Jastrzebski
Member of Supervisory Board7.08yrsno datano data
Piotr Stepniak
Chairman of the Supervisory Boardno datano datano data
Katarzyna Beuch
Member of Supervisory Board7yrsno datano data
Krzysztof Kawalec
Member of Supervisory Boardno datano datano data
Robert Konski
Member of Supervisory Board7.08yrsno datano data
Józef Wancer
Member of Supervisory Boardno datano datano data
Tomasz Bieske
Member of Supervisory Board6.67yrsno data0.0064% PLN103.1k

7.0yrs

Average Tenure

55yo

Average Age

Experienced Board: KRU's board of directors are considered experienced (7 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KRUK Spólka Akcyjna's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KRUK Spólka Akcyjna
  • Ticker: KRU
  • Exchange: WSE
  • Founded: 1998
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: zł1.601b
  • Shares outstanding: 18.97m
  • Website: https://www.pl.kruk.eu/

Number of Employees


Location

  • KRUK Spólka Akcyjna
  • ul. Wolowska 8
  • Wroclaw
  • 51-116
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRUWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNMay 2011
0Q3YLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNMay 2011
KRKK.FOTCPK (Pink Sheets LLC)YesOrdinary Bearer SharesUSUSDMay 2011

Biography

KRUK Spólka Akcyjna, together with its subsidiaries, engages in the management of debt for institutional clients in Poland, Romania, Italy, the Czech Republic, Germany, and Spain. It purchases and manages debt portfolios, including consumer, mortgage, and corporate debts; and offers consumer loans and credit management services. The company manages the receivables of banks, loan brokers, insurers, leasing companies, landline and mobile telecommunications operators, cable TV operators, digital TV operators, and FMCG companies. It is also involved in the provision of Novum loan services, detective services, and financial and agency services and support for small and medium-sized enterprises; collection, processing, and provision of credit information on natural persons and businesses; and management of securitized debt, as well as acts as a special-purpose securitization vehicle, which invests in debt or debt-backed assets. In addition, the company engages in the buying, selling, renting, and operating of real estate properties. KRUK Spólka Akcyjna was founded in 1998 and is headquartered in Wroclaw, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 05:06
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.