WSE:ZWC

Stock Analysis Report

Executive Summary

Grupa Zywiec S.A. produces and sells beers in Poland.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

ZWC

-1.3%

PL Beverage

2.1%

PL Market


1 Year Return

4.3%

ZWC

18.5%

PL Beverage

-2.7%

PL Market

Return vs Industry: ZWC underperformed the Polish Beverage industry which returned 18.5% over the past year.

Return vs Market: ZWC exceeded the Polish Market which returned -2.7% over the past year.


Shareholder returns

ZWCIndustryMarket
7 Day0.8%-1.3%2.1%
30 Day2.1%-2.7%-1.6%
90 Day-2.4%-1.4%-6.9%
1 Year10.8%4.3%20.9%18.5%0.2%-2.7%
3 Year30.9%9.2%11.4%4.3%12.1%4.1%
5 Year71.2%23.2%52.4%36.4%-0.5%-12.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ZWC (PLN488) is trading above our estimate of fair value (PLN386.07)

Significantly Undervalued: ZWC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZWC is good value based on its PE Ratio (16.8x) compared to the Beverage industry average (22.6x).

PE vs Market: ZWC is poor value based on its PE Ratio (16.8x) compared to the Polish market (10.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZWC is overvalued based on its PB Ratio (50x) compared to the XE Beverage industry average (1.8x).


Next Steps

Future Growth

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

-60.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZWC's earnings are forecast to decline over the next 3 years (-60.9% per year).

Earnings vs Market: ZWC's earnings are forecast to decline over the next 3 years (-60.9% per year).

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

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

High Growth Revenue: Insufficient data to determine if ZWC'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 ZWC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Grupa Zywiec performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ZWC's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: ZWC's earnings growth over the past year (20.3%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: ZWC earnings growth over the past year (20.3%) exceeded the Beverage industry 3.3%.


Return on Equity

High ROE: Whilst ZWC's Return on Equity (296.95%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

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


Return on Capital Employed

ROCE Improving: ZWC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Grupa Zywiec's financial position?


Financial Position Analysis

Short Term Liabilities: ZWC's short term assets (PLN1.3B) do not cover its short term liabilities (PLN2.1B)

Long Term Liabilities: ZWC's short term assets (1.3B) exceeds its long term liabilities (795.5M)


Debt to Equity History and Analysis

Debt Level: ZWC's debt to equity ratio (1306.4%) is considered high

Reducing Debt: ZWC's debt to equity ratio has increased from 457.9% to 1306.4% over the past 5 years.

Debt Coverage: ZWC's debt is well covered by operating cash flow (31%).

Interest Coverage: ZWC's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: ZWC's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

6.15%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.6%markettop25%7.2%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ZWC's dividend (6.15%) is higher than the bottom 25% of dividend payers in the Polish market (2.65%).

High Dividend: ZWC's dividend (6.15%) is low compared to the top 25% of dividend payers in the Polish market (7.19%).

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

Growing Dividend: ZWC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.5%), ZWC's dividend payments are not 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 Grupa Zywiec's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Grupa Zywiec has no CEO, or we have no data on them.


Management Age and Tenure

4.2yrs

Average Tenure

Experienced Management: ZWC's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

72yo

Average Age

Experienced Board: ZWC's board of directors are considered experienced (4.3 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

  • Michael McKeown

    Member of the Management Board

    • Tenure: 0yrs
    • Compensation: zł1.28m
  • Malgorzata Lubelska

    Member of the Management Board

    • Tenure: 7.8yrs
    • Compensation: zł1.33m
  • Piotr Nowakowski

    Financial Director and Member of Management Board

    • Tenure: 0yrs
    • Compensation: zł1.04m
  • Luca Giordano

    Production Director and Member of Management Board

    • Tenure: 4.3yrs
    • Compensation: zł1.98m
  • Marcin Celejowski

    Sales Director and Member of Management Board

    • Tenure: 4.1yrs
    • Compensation: zł1.03m
  • Andrzej Borczyk

    Human Resources Director and Member of the Management Board

    • Tenure: 3.3yrs
    • Compensation: zł425.00k

Board Members

  • David Hazelwood (73yo)

    Member of Supervisory Board

    • Tenure: 0yrs
    • Compensation: zł108.00k
  • Krzysztof Loth

    Member of Supervisory Board

    • Tenure: 0yrs
    • Compensation: zł108.00k
  • Lodewijk Herman Lockefeer

    Member of Supervisory Board

    • Tenure: 4.3yrs
  • Stefan Orlowski (53yo)

    Chairman of the Supervisory Board

    • Tenure: 4.3yrs
  • Allan Myers (72yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 0yrs
  • Krzysztof Jasek

    Member of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: zł374.00k
  • John Higgins

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Alle Ypma

    Member of Supervisory Board

    • Tenure: 5yrs
    • Compensation: zł108.00k

Company Information

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


Key Information

  • Name: Grupa Zywiec S.A.
  • Ticker: ZWC
  • Exchange: WSE
  • Founded: 1856
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: zł5.012b
  • Shares outstanding: 10.27m
  • Website: https://www.grupazywiec.pl

Number of Employees


Location

  • Grupa Zywiec S.A.
  • ul. Konstruktorska 13
  • Entrance E
  • Warsaw
  • 02-673
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZWCWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNDec 1992

Biography

Grupa Zywiec S.A. produces and sells beers in Poland. It also offers other alcoholic beverages and soft drinks. The company serves customers under the Heineken, Zyweic, Desperados, Warka, EB, Delicacy, Tat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:35
End of Day Share Price2019/10/17 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.