WSE:PPS

Stock Analysis Report

Executive Summary

Pepees S.A. engages in potatoes processing business in Poland and internationally.

Snowflake

Fundamentals

Solid track record and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

PPS

-1.0%

PL Food

1.1%

PL Market


1 Year Return

26.6%

PPS

-15.4%

PL Food

-3.2%

PL Market

Return vs Industry: PPS exceeded the Polish Food industry which returned -15.4% over the past year.

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


Shareholder returns

PPSIndustryMarket
7 Day-3.6%-1.0%1.1%
30 Day-11.5%-3.7%-2.6%
90 Day-7.4%-14.9%-7.7%
1 Year36.2%26.6%-13.0%-15.4%-0.3%-3.2%
3 Year100.4%86.2%-21.4%-27.2%11.6%3.6%
5 Year168.3%149.2%33.3%17.0%0.2%-11.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PPS (PLN1.62) is trading below our estimate of fair value (PLN24.22)

Significantly Undervalued: PPS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PPS is good value based on its PE Ratio (4.8x) compared to the Food industry average (8.4x).

PE vs Market: PPS is good value based on its PE Ratio (4.8x) compared to the Polish market (10x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PPS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PPS is overvalued based on its PB Ratio (0.9x) compared to the PL Food industry average (0.7x).


Next Steps

Future Growth

How is Pepees forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPS's earnings are forecast to decline over the next 3 years (-11.6% per year).

Earnings vs Market: PPS's earnings are forecast to decline over the next 3 years (-11.6% per year).

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

Revenue vs Market: Insufficient data to determine if PPS's revenue is forecast to grow faster than the Polish market.

High Growth Revenue: Insufficient data to determine if PPS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PPS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pepees performed over the past 5 years?

38.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PPS's earnings have grown significantly by 38.6% per year over the past 5 years.

Accelerating Growth: PPS's earnings growth over the past year (151.5%) exceeds its 5-year average (38.6% per year).

Earnings vs Industry: PPS earnings growth over the past year (151.5%) exceeded the Food industry 30.1%.


Return on Equity

High ROE: PPS's Return on Equity (19%) is considered low.


Return on Assets

ROA vs Industry: PPS has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Pepees's financial position?


Financial Position Analysis

Short Term Liabilities: PPS's short term assets (PLN116.9M) exceeds its short term liabilities (PLN81.7M)

Long Term Liabilities: PPS's short term assets (116.9M) exceeds its long term liabilities (57.2M)


Debt to Equity History and Analysis

Debt Level: PPS's debt to equity ratio (40.7%) is considered high

Reducing Debt: PPS's debt to equity ratio has increased from 13.9% to 40.7% over the past 5 years.

Debt Coverage: PPS's debt is well covered by operating cash flow (69.7%).

Interest Coverage: PPS's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: PPS's debt is covered by short term assets (assets are 1.665780x debt).


Next Steps

Dividend

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

7.41%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%2.6%markettop25%7.4%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PPS's dividend (7.41%) is higher than the bottom 25% of dividend payers in the Polish market (2.64%).

High Dividend: PPS's dividend (7.41%) is in the top 25% of dividend payers in the Polish market (7.41%)

Stable Dividend: Too early to tell whether PPS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PPS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.8%), PPS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Pepees's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average board tenure


CEO

Wojciech Faszczewski 0

0yrs

Tenure

0

Mr. Wojciech Faszczewski serves as the President of the Management Board at Pepees S.A. 


Board Age and Tenure

4.4yrs

Average Tenure

Experienced Board: PPS's board of directors are considered experienced (4.4 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


Management Team

  • Krzysztof Homenda (56yo)

    Chief Financial Officer and Member of Management Board

    • Tenure: 0yrs
    • Compensation: zł452.30k
  • Wojciech Faszczewski

    President of the Management Board

    • Tenure: 0yrs
  • Krzysztof Stankowski

    Secretary of the Supervisory Board

    • Tenure: 0yrs
  • Wieslawa Zaluska

    Chief Accountant

    • Tenure: 0yrs

Board Members

  • Tomasz Rogala

    Member of the Board

    • Tenure: 0yrs
  • Piotr Taracha

    Vice Chairman of Supervisory Board

    • Tenure: 0yrs
  • Maciej Kalinski

    Chairman of the Supervisory Board

    • Tenure: 4.4yrs
  • Piotr Luniewski

    Member of the Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: zł57.20k
  • Robert Malinowski

    Member of the Supervisory Board

    • Tenure: 4.4yrs
  • Agata Czerniakowska

    Member of Supervisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Pepees S.A.
  • Ticker: PPS
  • Exchange: WSE
  • Founded: 2001
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: zł153.900m
  • Shares outstanding: 95.00m
  • Website: https://www.pepees.pl

Location

  • Pepees S.A.
  • ul. Poznanska 121
  • Lomza
  • 18-402
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPSWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJun 1997

Biography

Pepees S.A. engages in potatoes processing business in Poland and internationally. It offers potato starch, a substance used in the meat, food concentrates, baking, textile, paper, chemical, and cosmetic a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:51
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.