KRUK Spólka Akcyjna (WSE:KRU) - Share price, News & Analysis

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

KRU (PLN239.4) is trading above our estimate of [[fair value]] (PLN221.04)

KRU fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	2/6
Dividends	2/6

KRU Stock Overview

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

Rewards

Price-To-Earnings ratio (5.6x) is below the Polish market (9.8x)

Earnings grew by 199.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 11.5% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 5.43% is not well covered by earnings

KRUK Spólka Akcyjna Competitors

Indos

WSE:INS

zł19.0m

Gielda Papierów Wartosciowych w Warszawie

WSE:GPW

zł1.6b

XTB

WSE:XTB

zł2.4b

Enova International

NYSE:ENVA

US$961.2m

Price History & Performance

Summary of all time highs, changes and price drops for KRUK Spólka Akcyjna
Historical stock prices
Current Share Price	zł245.60
52 Week High	zł393.00
52 Week Low	zł220.60
Beta	1.53
1 Month Change	-10.23%
3 Month Change	-19.74%
1 Year Change	-2.77%
3 Year Change	32.04%
5 Year Change	-19.10%
Change since IPO	488.83%

Recent News & Updates

Apr 28

Does KRUK Spólka Akcyjna (WSE:KRU) Deserve A Spot On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	KRU	PL Consumer Finance	PL Market
7D	5.4%	3.2%	2.9%
1Y	-2.8%	-2.4%	-19.5%

Return vs Industry: KRU underperformed the Polish Consumer Finance industry which returned -2.4% over the past year.

Return vs Market: KRU exceeded the Polish Market which returned -19.5% over the past year.

Price Volatility

Is KRU's price volatile compared to industry and market?
KRU volatility
KRU Average Weekly Movement	6.8%
Consumer Finance Industry Average Movement	5.7%
Market Average Movement	6.3%
10% most volatile stocks in PL Market	11.2%
10% least volatile stocks in PL Market	4.1%

Stable Share Price: KRU is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: KRU's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	3,126	Piotr Krupa	https://www.pl.kruk.eu

KRUK Spólka Akcyjna, together with its subsidiaries, engages in the management of debt for institutional clients in Poland, Romania, Italy, the Czech Republic, Slovakia, Germany, and Spain. It purchases and manages debt portfolios, including consumer, mortgage-backed, and SME/corporate debts; and offers consumer unsecured loans, mortgage loans, SME/corporate 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.

KRUK Spólka Akcyjna Fundamentals Summary

How do KRUK Spólka Akcyjna's earnings and revenue compare to its market cap?
KRU fundamental statistics
Market Cap	zł4.70b
Earnings (TTM)	zł811.34m
Revenue (TTM)	zł1.23b

5.8x

P/E Ratio

3.8x

P/S Ratio

Is KRU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KRU income statement (TTM)
Revenue	zł1.23b
Cost of Revenue	zł419.40m
Gross Profit	zł812.76m
Other Expenses	zł1.42m
Earnings	zł811.34m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Sep 07, 2022

Earnings per share (EPS)	42.42
Gross Margin	65.96%
Net Profit Margin	65.85%
Debt/Equity Ratio	99.2%

How did KRU perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

30%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 KRU?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KRU. This is calculated by dividing KRU's market cap by their current preferred multiple.
What is KRU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł4.70b

KRU 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	5.9x
Enterprise Value/EBITDA	5.9x
PEG Ratio	-0.5x

Price to Earnings Ratio vs Peers

How does KRU's PE Ratio compare to its peers?

KRU PE Ratio vs Peers

The above table shows the PE ratio for KRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.1x
INS Indos	4.5x	n/a	zł19.0m
GPW Gielda Papierów Wartosciowych w Warszawie	9.8x	2.0%	zł1.6b
XTB XTB	6x	n/a	zł2.4b
ENVA Enova International	4.1x	11.3%	US$961.2m
KRU KRUK Spólka Akcyjna	5.6x	-11.5%	zł4.6b

Forward PE

Price-To-Earnings vs Peers: KRU is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (6.1x).

Price to Earnings Ratio vs Industry

How does KRU's PE Ratio compare vs other companies in the European Consumer Finance Industry?

Price-To-Earnings vs Industry: KRU is good value based on its Price-To-Earnings Ratio (5.6x) compared to the European Consumer Finance industry average (10x)

Price to Earnings Ratio vs Fair Ratio

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

KRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.8x
Fair PE Ratio	16.3x

Price-To-Earnings vs Fair Ratio: KRU is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

Share Price vs Fair Value

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

Below Fair Value: KRU (PLN239.4) is trading above our estimate of fair value (PLN221.04)

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

Price to Earnings Growth Ratio

PEG Ratio: KRU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

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

-11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRU's earnings are forecast to decline over the next 3 years (-11.5% per year).

Earnings vs Market: KRU's earnings are forecast to decline over the next 3 years (-11.5% per year).

High Growth Earnings: KRU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KRU's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: KRU's revenue is forecast to decline over the next 3 years (-0.6% 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 (15.1%).

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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

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

13.6%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: KRU's current net profit margins (65.8%) are higher than last year (23.8%).

Past Earnings Growth Analysis

Earnings Trend: KRU's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: KRU's earnings growth over the past year (199.5%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: KRU earnings growth over the past year (199.5%) exceeded the Consumer Finance industry 25%.

Return on Equity

High ROE: KRU's Return on Equity (28.2%) is considered high.

Discover strong past performing companies

Financial Health

How is KRUK Spólka Akcyjna's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KRU's short term assets (PLN440.7M) do not cover its short term liabilities (PLN686.5M).

Long Term Liabilities: KRU's short term assets (PLN440.7M) do not cover its long term liabilities (PLN2.7B).

Debt to Equity History and Analysis

Debt Level: KRU's net debt to equity ratio (87.3%) is considered high.

Reducing Debt: KRU's debt to equity ratio has reduced from 119.2% to 99.2% over the past 5 years.

Debt Coverage: KRU's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KRU's interest payments on its debt are well covered by EBIT (11.5x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

5.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KRU's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Polish market (2.71%).

High Dividend: KRU's dividend (5.43%) is low compared to the top 25% of dividend payers in the Polish market (7.99%).

Stability and Growth of Payments

Stable Dividend: KRU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KRU's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.4%), KRU's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: KRU is paying a dividend but the company has no free cash flows.

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Management

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

12.0yrs

Average management tenure

CEO

Piotr Krupa

19.42yrs

Tenure

zł2,256,290

Compensation

Mr. Piotr Krupa co-founded KRUK Spólka Akcyjna (formerly known as KRUK Spolka Akcyjna) (alternate name KRUK SA) in 2003 and serves as its President of Management Board and Chief Executive Officer. Mr. Krup...

CEO Compensation Analysis

Compensation vs Market: Piotr's total compensation ($USD502.11K) is about average for companies of similar size in the Polish market ($USD512.37K).

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

Leadership Team

Experienced Management: KRU's management team is seasoned and experienced (12 years average tenure).

Board Members

Experienced Board: KRU's board of directors are not considered experienced ( 0.2 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31