WSE:WWL

Stock Analysis Report

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Executive Summary

Wawel S.A. produces and sells cocoa, chocolate, and confectionary products. More Details

Rewards

Earnings are forecast to grow 6.28% per year

Pays a reliable dividend of 5.7%

Risk Analysis

No risks detected for WWL from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WWL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

WWL

3.0%

PL Food

-0.1%

PL Market


1 Year Return

-17.8%

WWL

0.06%

PL Food

-17.2%

PL Market

Return vs Industry: WWL underperformed the Polish Food industry which returned 0.1% over the past year.

Return vs Market: WWL matched the Polish Market which returned -17.2% over the past year.


Shareholder returns

WWLIndustryMarket
7 Day-1.5%3.0%-0.1%
30 Day-3.3%4.0%-2.4%
90 Day-8.7%-0.09%-10.5%
1 Year-13.7%-17.8%3.2%0.06%-16.5%-17.2%
3 Year-39.2%-45.9%-20.5%-26.5%-27.6%-31.9%
5 Year-43.5%-51.6%-10.8%-21.5%-15.3%-24.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WWL (PLN526) is trading above our estimate of fair value (PLN472.11)

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


Price To Earnings Ratio

PE vs Industry: WWL is poor value based on its PE Ratio (14.9x) compared to the PL Food industry average (12.7x).

PE vs Market: WWL is poor value based on its PE Ratio (14.9x) compared to the Polish market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: WWL is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: WWL is overvalued based on its PB Ratio (1.2x) compared to the PL Food industry average (0.7x).


Next Steps

Future Growth

How is Wawel forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWL's forecast earnings growth (6.3% per year) is above the savings rate (2.9%).

Earnings vs Market: WWL's earnings (6.3% per year) are forecast to grow slower than the Polish market (14.5% per year).

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

Revenue vs Market: WWL's revenue (3.1% per year) is forecast to grow slower than the Polish market (7.9% per year).

High Growth Revenue: WWL's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WWL's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Wawel performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWL has high quality earnings.

Growing Profit Margin: WWL's current net profit margins (10%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: WWL's earnings have declined by 9.1% per year over the past 5 years.

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

Earnings vs Industry: WWL had negative earnings growth (-19%) over the past year, making it difficult to compare to the Food industry average (-29.4%).


Return on Equity

High ROE: WWL's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Wawel's financial position?


Financial Position Analysis

Short Term Liabilities: WWL's short term assets (PLN333.5M) exceed its short term liabilities (PLN57.7M).

Long Term Liabilities: WWL's short term assets (PLN333.5M) exceed its long term liabilities (PLN11.7M).


Debt to Equity History and Analysis

Debt Level: WWL is debt free.

Reducing Debt: WWL has not had any debt for past 5 years.

Debt Coverage: WWL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WWL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Wawel current dividend yield, its reliability and sustainability?

5.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WWL's dividend (5.7%) is higher than the bottom 25% of dividend payers in the Polish market (1.88%).

High Dividend: WWL's dividend (5.7%) is low compared to the top 25% of dividend payers in the Polish market (5.87%).


Stability and Growth of Payments

Stable Dividend: WWL's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.8%), WWL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WWL's dividends in 3 years are forecast to be covered by earnings (77.9% payout ratio).


Next Steps

Management

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

6.5yrs

Average board tenure


CEO

Dariusz Orlowski

no data

Tenure

Mr. Dariusz Orlowski serves as the President of the Management Board and Member of the Management Board at Wawel Spolka Akcyjna(Wawel S.A. (formerly known as ZPC Wawel SA)).


Board Members

NamePositionTenureCompensationOwnership
Pawel Balaga
Secretary of Supervisory Board & Member of Supervisory Boardno datazł165.00k0.11%
PLN 862.6k
Eugeniusz Malek
Vice Chairman of Supervisory Boardno datazł192.00k0.00013%
PLN 1.0k
Nicole Opferkuch
Chairwoman of the Supervisory Board1.67yrszł203.00kno data
Christoph Kohnlein
Independent Member of Supervisory Board11.33yrszł137.00kno data
Pawel Brukszo
Independent Member of Supervisory Board11.33yrszł137.00kno data
Laura Opferkuch
Member of the Supervisory Boardno datazł137.00kno data
Max Schaeuble
Member of Supervisory Board1.33yrszł70.00kno data

6.5yrs

Average Tenure

Experienced Board: WWL's board of directors are considered experienced (6.5 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

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


Key Information

  • Name: Wawel S.A.
  • Ticker: WWL
  • Exchange: WSE
  • Founded: 1898
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: zł788.871m
  • Shares outstanding: 1.50m
  • Website: https://www.wawel.com.pl

Number of Employees


Location

  • Wawel S.A.
  • ul. Wladyslawa Warnenczyka 14
  • Kraków
  • 30-520
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WWLWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNApr 1998
0LZGLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNApr 1998

Biography

Wawel S.A. produces and sells cocoa, chocolate, and confectionary products. The company offers a range of chocolates, as well as bars, chocos and fruities, fresh and fruity jellies, candies in chocolate, t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 21:50
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.