WSE:NEU

Stock Analysis Report

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Executive Summary

NEUCA S.A. engages in the distribution of pharmaceuticals to pharmacies and hospitals in Poland. More Details


Snowflake Analysis

Solid track record average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.3%

NEU

1.0%

PL Healthcare

-3.1%

PL Market


1 Year Return

50.1%

NEU

45.0%

PL Healthcare

-16.3%

PL Market

Return vs Industry: NEU exceeded the Polish Healthcare industry which returned 42.5% over the past year.

Return vs Market: NEU exceeded the Polish Market which returned -15.4% over the past year.


Shareholder returns

NEUIndustryMarket
7 Day1.3%1.0%-3.1%
30 Day5.2%5.1%-4.6%
90 Day4.7%9.4%-10.5%
1 Year52.6%50.1%46.6%45.0%-15.5%-16.3%
3 Year126.7%112.0%94.3%86.3%-26.1%-30.5%
5 Year65.7%50.4%67.5%55.3%-15.6%-24.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEU (PLN529) is trading below our estimate of fair value (PLN655.76)

Significantly Below Fair Value: NEU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NEU is good value based on its PE Ratio (17x) compared to the XE Healthcare industry average (25.8x).

PE vs Market: NEU is poor value based on its PE Ratio (17x) compared to the Polish market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: NEU is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NEU's PB Ratio (3.2x) is in line with the PL Healthcare industry average.


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEU's forecast earnings growth (11.1% per year) is above the savings rate (2.9%).

Earnings vs Market: NEU's earnings (11.1% per year) are forecast to grow slower than the Polish market (14.5% per year).

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

Revenue vs Market: NEU's revenue (7.4% per year) is forecast to grow faster than the Polish market (4.7% per year).

High Growth Revenue: NEU's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEU's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has NEUCA performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEU has high quality earnings.

Growing Profit Margin: NEU's current net profit margins (1.5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: NEU's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: NEU's earnings growth over the past year (16.3%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: NEU earnings growth over the past year (16.3%) exceeded the Healthcare industry -17.2%.


Return on Equity

High ROE: NEU's Return on Equity (18.4%) is considered low.


Next Steps

Financial Health

How is NEUCA's financial position?


Financial Position Analysis

Short Term Liabilities: NEU's short term assets (PLN2.2B) do not cover its short term liabilities (PLN2.3B).

Long Term Liabilities: NEU's short term assets (PLN2.2B) exceed its long term liabilities (PLN253.6M).


Debt to Equity History and Analysis

Debt Level: NEU's debt to equity ratio (41.2%) is considered high.

Reducing Debt: NEU's debt to equity ratio has increased from 37.1% to 41.2% over the past 5 years.

Debt Coverage: NEU's debt is well covered by operating cash flow (21%).

Interest Coverage: NEU's interest payments on its debt are well covered by EBIT (39.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEU's dividend (1.64%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (1.88%).

High Dividend: NEU's dividend (1.64%) is low compared to the top 25% of dividend payers in the Polish market (5.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), NEU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEU's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).


Next Steps

Management

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

9.3yrs

Average board tenure


CEO

Piotr Sucharski

11.75yrs

Tenure

zł1,430,000

Compensation

Mr. Piotr Sucharski serves as General Director at NEUCA S.A. and has been its President of The Board of Directors since January 2009. He served as Financial Director of Neuca Spolka Akcyjna. He worked with ...


CEO Compensation Analysis

Compensation vs Market: Piotr's total compensation ($USD368.08K) is about average for companies of similar size in the Polish market ($USD378.96K).

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


Board Members

NamePositionTenureCompensationOwnership
Kazimierz Herba
Chairman of the Supervisory Boardno datazł539.00k29.1%
PLN 673.4m
Tadeusz Wesolowski
Member of the Supervisory Board11.33yrszł132.00k0.0033%
PLN 77.3k
Wieslawa Herba
Deputy Chairman of the Supervisory Boardno datazł157.00k25.58%
PLN 592.0m
Bozena Sliwa
Member of the Supervisory Board9.33yrszł25.00kno data
Malgorzata Wisniewska
Member of Supervisory Board3yrszł44.00kno data
Jolanta Kloc
Member of Supervisory Boardno datazł43.00kno data

9.3yrs

Average Tenure

Experienced Board: NEU's board of directors are considered experienced (9.3 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

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


Key Information

  • Name: NEUCA S.A.
  • Ticker: NEU
  • Exchange: WSE
  • Founded: 1990
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: zł2.314b
  • Shares outstanding: 4.37m
  • Website: https://neuca.pl

Number of Employees


Location

  • NEUCA S.A.
  • ul. Szosa Bydgoska 35-37
  • Torun
  • 87-100
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEUWSE (Warsaw Stock Exchange)YesCommon StockPLPLNNov 2004
0MJRLSE (London Stock Exchange)YesCommon StockGBPLNNov 2004

Biography

NEUCA S.A. engages in the distribution of pharmaceuticals to pharmacies and hospitals in Poland. It operates through Pharmaceutical Wholesale; Own Brands; and Outpatient Care Clinics, Clinical Trials and T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:13
End of Day Share Price2020/10/20 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.