WSE:PKN

Stock Analysis Report

Polski Koncern Naftowy ORLEN Spólka Akcyjna

Executive Summary

Polski Koncern Naftowy ORLEN Spólka Akcyjna processes, refines, and markets crude oil.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Polski Koncern Naftowy ORLEN Spólka Akcyjna's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

PKN

1.2%

PL Oil and Gas

1.1%

PL Market


1 Year Return

5.9%

PKN

-4.6%

PL Oil and Gas

-3.2%

PL Market

Return vs Industry: PKN exceeded the Polish Oil and Gas industry which returned -4.6% over the past year.

Return vs Market: PKN exceeded the Polish Market which returned -3.2% over the past year.


Shareholder returns

PKNIndustryMarket
7 Day0.3%1.2%1.1%
30 Day8.0%3.7%-2.6%
90 Day4.7%-2.9%-7.7%
1 Year9.9%5.9%-1.3%-4.6%-0.3%-3.2%
3 Year65.0%49.2%44.2%31.8%11.6%3.6%
5 Year187.4%146.0%83.2%58.3%0.2%-11.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Polski Koncern Naftowy ORLEN Spólka Akcyjna undervalued compared to its fair value and its price relative to the market?

10.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PKN (PLN101.1) is trading below our estimate of fair value (PLN113.51)

Significantly Undervalued: PKN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PKN is good value based on its PE Ratio (8.3x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: PKN is good value based on its PE Ratio (8.3x) compared to the Polish market (10x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PKN is overvalued based on its PB Ratio (1.2x) compared to the PL Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Polski Koncern Naftowy ORLEN Spólka Akcyjna forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKN's earnings are forecast to decline over the next 3 years (-3.8% per year).

Earnings vs Market: PKN's earnings are forecast to decline over the next 3 years (-3.8% per year).

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

Revenue vs Market: PKN's revenue (2.2% per year) is forecast to grow slower than the Polish market (5.4% per year).

High Growth Revenue: PKN's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PKN's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Polski Koncern Naftowy ORLEN Spólka Akcyjna performed over the past 5 years?

48.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PKN has become profitable over the past 5 years, growing earnings by 48.6% per year.

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

Earnings vs Industry: PKN had negative earnings growth (-12.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (10%).


Return on Equity

High ROE: PKN's Return on Equity (14.3%) is considered low.


Return on Assets

ROA vs Industry: PKN has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: PKN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Polski Koncern Naftowy ORLEN Spólka Akcyjna's financial position?


Financial Position Analysis

Short Term Liabilities: PKN's short term assets (PLN33.5B) exceeds its short term liabilities (PLN20.1B)

Long Term Liabilities: PKN's short term assets (33.5B) exceeds its long term liabilities (14.0B)


Debt to Equity History and Analysis

Debt Level: PKN's debt to equity ratio (23.5%) is considered satisfactory

Reducing Debt: PKN's debt to equity ratio has reduced from 52.2% to 23.5% over the past 5 years.

Debt Coverage: PKN's debt is well covered by operating cash flow (84.5%).

Interest Coverage: PKN's interest payments on its debt are well covered by EBIT (29.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: PKN's debt is covered by short term assets (assets are 3.888880x debt).


Next Steps

Dividend

What is Polski Koncern Naftowy ORLEN Spólka Akcyjna's current dividend yield, its reliability and sustainability?

3.46%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.6%markettop25%7.4%industryaverage5.9%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PKN's dividend (3.46%) is higher than the bottom 25% of dividend payers in the Polish market (2.64%).

High Dividend: PKN's dividend (3.46%) is low compared to the top 25% of dividend payers in the Polish market (7.41%).

Stable Dividend: PKN's dividend payments have been volatile in the past 10 years.

Growing Dividend: PKN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), PKN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PKN's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

What is the CEO of Polski Koncern Naftowy ORLEN Spólka Akcyjna's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Daniel Obajtek (43yo)

1.7yrs

Tenure

zł1,730,971

Compensation

Mr. Daniel Obajtek has been the President, Chief Executive Officer and Member of Management Board at Polski Koncern Naftowy ORLEN Spólka Akcyjna since February 2018. Previously, Mr. Obajtek served as Presi ...


CEO Compensation Analysis

Compensation vs. Market: Daniel has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Polish market.

Compensation vs Earnings: Insufficient data to compare Daniel's compensation with company performance.


Management Age and Tenure

1.6yrs

Average Tenure

43yo

Average Age

Experienced Management: PKN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

Experienced Board: PKN's board of directors are not considered experienced ( 1.3 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


Management Team

  • Piotr Kearney (50yo)

    Executive Director of Strategy

    • Tenure: 11.8yrs
  • Wieslaw Protasewicz

    Member of the Management Board & CFO

    • Tenure: 2.3yrs
    • Compensation: zł1.71m
  • Zbigniew Leszczynski (42yo)

    Member of the Management Board - Development

    • Tenure: 3.7yrs
    • Compensation: zł1.71m
  • Daniel Obajtek (43yo)

    President

    • Tenure: 1.7yrs
    • Compensation: zł1.73m
  • Józef Wegrecki

    Member of the Management Board - Operations

    • Tenure: 1.6yrs
    • Compensation: zł1.55m
  • Iwona Waksmundzka

    Executive Director of Strategic & Investor Relations

    • Tenure: 0yrs
  • Patrycja Klarecka

    Member of Management Board & Chief Sales Officer

    • Tenure: 1.3yrs
    • Compensation: zł1.31m
  • Anna Wójcik

    Secretary & Member of Supervisory Board

    • Tenure: 1.3yrs
  • Michal Rog

    Member of Management Board

    • Tenure: 1.2yrs
    • Compensation: zł588.00k
  • Armen Artwich

    Member of Management board

    • Tenure: 1.1yrs
    • Compensation: zł1.14m

Board Members

  • Izabela Felczak-Poturnicka

    Chairman of Supervisory Board

    • Tenure: 1.7yrs
  • Malgorzata Niezgoda

    Member of Supervisory Board

    • Tenure: 1.8yrs
  • Jadwiga Lesisz

    Member of Supervisory Board

    • Tenure: 1.7yrs
  • Anna Wójcik

    Secretary & Member of Supervisory Board

    • Tenure: 1.3yrs
  • Andrzej Kapala

    Independent Member of Supervisory Board

    • Tenure: 1.3yrs
  • Barbara Jarzembowska

    Independent Member of Supervisory Board

    • Tenure: 0.3yrs
  • Michal Klimaszewski

    Independent Member of Supervisory Board

    • Tenure: 0.3yrs
  • Anna Sakowicz-Kacz

    Independent Member of Supervisory Board

    • Tenure: 0.3yrs
  • Andrzej Szumanski

    Vice – Chairman of the Supervisory Board

    • Tenure: 0.3yrs

Company Information

Polski Koncern Naftowy ORLEN Spólka Akcyjna's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Polski Koncern Naftowy ORLEN Spólka Akcyjna
  • Ticker: PKN
  • Exchange: WSE
  • Founded: 1999
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: zł43.241b
  • Shares outstanding: 427.71m
  • Website: https://www.orlen.pl

Number of Employees


Location

  • Polski Koncern Naftowy ORLEN Spólka Akcyjna
  • 7 Chemików Street
  • Plock
  • 09-411
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKNWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNNov 1999
0FMNLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNNov 1999
PKY1DB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURNov 1999
PKNWBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Bearer SharesGBPLNNov 1999
PKNSEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary Bearer SharesCZCZKNov 1999

Biography

Polski Koncern Naftowy ORLEN Spólka Akcyjna processes, refines, and markets crude oil. The company operates through Downstream, Retail, and Upstream segments. It offers unleaded petrol, diesel, heating oil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:41
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.