WSE:ATC

Stock Analysis Report

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Executive Summary

Arctic Paper S.A., together with its subsidiaries, produces and sells paper for printing houses, paper distributors, book and magazine publishing houses, and the advertising industries in Germany, France, the United Kingdom, Scandinavia, Poland, other Western Europe, Central and Eastern Europe, and internationally. More Details

Rewards

Trading at 65.1% below our estimate of its fair value

Earnings grew by 245.2% over the past year

Risk Analysis

No risks detected for ATC from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ATC is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ATC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

ATC

4.6%

PL Forestry

-3.0%

PL Market


1 Year Return

68.3%

ATC

59.1%

PL Forestry

-0.3%

PL Market

Return vs Industry: ATC exceeded the Polish Forestry industry which returned 59.3% over the past year.

Return vs Market: ATC exceeded the Polish Market which returned -0.4% over the past year.


Shareholder returns

ATCIndustryMarket
7 Day5.8%4.6%-3.0%
30 Day27.8%23.5%2.7%
90 Day76.0%61.2%16.8%
1 Year68.3%68.3%59.6%59.1%0.7%-0.3%
3 Year75.0%67.5%58.0%52.3%-13.3%-18.5%
5 Year82.1%74.2%58.5%52.3%26.2%11.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATC (PLN6.9) is trading below our estimate of fair value (PLN19.77)

Significantly Below Fair Value: ATC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATC is good value based on its PE Ratio (4x) compared to the PL Forestry industry average (9.2x).

PE vs Market: ATC is good value based on its PE Ratio (4x) compared to the Polish market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ATC's PB Ratio (0.7x) is in line with the PL Forestry industry average.


Next Steps

Future Growth

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

12.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arctic Paper has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Arctic Paper performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATC has high quality earnings.

Growing Profit Margin: ATC's current net profit margins (4.2%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: ATC's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: ATC's earnings growth over the past year (245.2%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: ATC earnings growth over the past year (245.2%) exceeded the Forestry industry -4.8%.


Return on Equity

High ROE: ATC's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Arctic Paper's financial position?


Financial Position Analysis

Short Term Liabilities: ATC's short term assets (PLN991.7M) exceed its short term liabilities (PLN641.3M).

Long Term Liabilities: ATC's short term assets (PLN991.7M) exceed its long term liabilities (PLN504.9M).


Debt to Equity History and Analysis

Debt Level: ATC's debt to equity ratio (35%) is considered satisfactory.

Reducing Debt: ATC's debt to equity ratio has reduced from 53.4% to 35% over the past 5 years.

Debt Coverage: ATC's debt is well covered by operating cash flow (89%).

Interest Coverage: ATC's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Arctic Paper current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ATC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ATC is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATC's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

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

4.3yrs

Average board tenure


CEO

Michal Jarczynski

1.92yrs

Tenure

zł660,000

Compensation

Mr. Michal Piotr Jarczynski has been the President of the Management Board, Member of the Management Board and Chief Executive Officer at Arctic Paper S.A., since February 1, 2019. Mr. Jarczynski served as...


CEO Compensation Analysis

Compensation vs Market: Michal's total compensation ($USD175.86K) is about average for companies of similar size in the Polish market ($USD153.72K).

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


Board Members

NamePositionTenureCompensationOwnership
Mariusz Grendowicz
Independent Member of Supervisory Board8.58yrszł180.00kno data
Per Lundeen
Chairman of Supervisory Board4.33yrszł300.00k0.050%
PLN 239.9k
Roger Mattsson
Deputy Chairman of Supervisory4.33yrszł210.00kno data
Thomas Onstad
Member of Supervisory Board12.25yrszł150.00k8.98%
PLN 42.9m
Dorota Raben
Independent Member of Supervisory Board1.67yrszł84.88kno data

4.3yrs

Average Tenure

57yo

Average Age

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

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


Key Information

  • Name: Arctic Paper S.A.
  • Ticker: ATC
  • Exchange: WSE
  • Founded: 1983
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: zł478.086m
  • Shares outstanding: 69.29m
  • Website: https://www.arcticpaper.com

Number of Employees


Location

  • Arctic Paper S.A.
  • ul. Fabryczna 1
  • Kostrzyn
  • 66470
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATCWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNOct 2009
0OIULSE (London Stock Exchange)YesOrdinary SharesGBPLNOct 2009
ARPOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKOct 2009

Biography

Arctic Paper S.A., together with its subsidiaries, produces and sells paper for printing houses, paper distributors, book and magazine publishing houses, and the advertising industries in Germany, France, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 18:06
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.