WSE:CIE

Stock Analysis Report

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Executive Summary

Ciech S.A. manufactures and sells various chemical products in Poland, other European Union countries, other European countries, Africa, Asia, and internationally. More Details


Snowflake Analysis

Acceptable track record with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

CIE

-3.3%

PL Chemicals

-0.6%

PL Market


1 Year Return

-15.1%

CIE

-9.9%

PL Chemicals

-17.5%

PL Market

Return vs Industry: CIE underperformed the Polish Chemicals industry which returned -9.2% over the past year.

Return vs Market: CIE exceeded the Polish Market which returned -16.6% over the past year.


Shareholder returns

CIEIndustryMarket
7 Day5.8%-3.3%-0.6%
30 Day-5.7%-2.6%-1.8%
90 Day-14.3%-18.6%-10.2%
1 Year-15.1%-15.1%-6.4%-9.9%-16.8%-17.5%
3 Year-48.5%-54.9%-44.5%-49.9%-26.0%-30.4%
5 Year-55.8%-63.2%-49.5%-56.0%-16.0%-25.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CIE (PLN27.25) is trading above our estimate of fair value (PLN26.92)

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


Price To Earnings Ratio

PE vs Industry: CIE is poor value based on its PE Ratio (21.2x) compared to the PL Chemicals industry average (15.8x).

PE vs Market: CIE is poor value based on its PE Ratio (21.2x) compared to the Polish market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: CIE is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CIE is good value based on its PB Ratio (0.7x) compared to the PL Chemicals industry average (0.9x).


Next Steps

Future Growth

How is Ciech forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIE's forecast earnings growth (25.5% per year) is above the savings rate (2.9%).

Earnings vs Market: CIE's earnings (25.5% per year) are forecast to grow faster than the Polish market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CIE's revenue (3.3% per year) is forecast to grow slower than the Polish market (4.8% per year).

High Growth Revenue: CIE's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIE's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Ciech performed over the past 5 years?

-27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIE has a large one-off loss of PLN41.7M impacting its June 30 2020 financial results.

Growing Profit Margin: CIE's current net profit margins (2.1%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: CIE's earnings have declined by 27.1% per year over the past 5 years.

Accelerating Growth: CIE's earnings growth over the past year (191.7%) exceeds its 5-year average (-27.1% per year).

Earnings vs Industry: CIE earnings growth over the past year (191.7%) exceeded the Chemicals industry 27.3%.


Return on Equity

High ROE: CIE's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Ciech's financial position?


Financial Position Analysis

Short Term Liabilities: CIE's short term assets (PLN1.6B) exceed its short term liabilities (PLN1.3B).

Long Term Liabilities: CIE's short term assets (PLN1.6B) do not cover its long term liabilities (PLN2.1B).


Debt to Equity History and Analysis

Debt Level: CIE's debt to equity ratio (110.6%) is considered high.

Reducing Debt: CIE's debt to equity ratio has increased from 109% to 110.6% over the past 5 years.

Debt Coverage: CIE's debt is well covered by operating cash flow (33.6%).

Interest Coverage: CIE's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.34%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CIE'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 CIE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CIE'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?

2.1yrs

Average management tenure


CEO

Dawid Jakubowicz

2.08yrs

Tenure

Mr. Dawid Jakubowicz serves as a Board Member at Kulczyk Investments S.A. He has been President of Management Board at CIECH S.A. December 5, 2018. He served as Member of the Supervisory Board of CIECH S.A ...


Leadership Team

NamePositionTenureCompensationOwnership
Dawid Jakubowicz
President of the Management Board2.08yrsno data0.011%
PLN 155.7k
Miroslaw Skowron
Member of the Management Board2.08yrsno data0.0037%
PLN 52.6k
Jaroslaw Romanowski
Member of Management Board0.50yrno datano data
Katarzyna Rybacka
Chief Accountantno datano datano data

2.1yrs

Average Tenure

Experienced Management: CIE's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Piotr Augustyniak
Member of the Supervisory Board6.25yrsno datano data
Martin Laudenbach
Member of the Supervisory Board0.42yrno datano data
Sebastian Kulczyk
Chairman of the Supervisory Board5yrszł38.00kno data
Artur Olech
Member of the Supervisory Board6.25yrsno datano data
Marek Kosnik
Deputy Chairman of the Supervisory Board0.42yrno datano data
Lukasz Redziniak
Member of the Supervisory Board0.75yrno datano data

2.9yrs

Average Tenure

55yo

Average Age

Experienced Board: CIE's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Ciech S.A.
  • Ticker: CIE
  • Exchange: WSE
  • Founded: 1945
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: zł1.436b
  • Shares outstanding: 52.70m
  • Website: https://www.ciechgroup.com

Number of Employees


Location

  • Ciech S.A.
  • ul. Wspólna 62
  • Warsaw
  • 00-684
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIEWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNFeb 2005
0LS7LSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNFeb 2005
CHXDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURFeb 2005

Biography

Ciech S.A. manufactures and sells various chemical products in Poland, other European Union countries, other European countries, Africa, Asia, and internationally. It operates through four segments: Soda, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:59
End of Day Share Price2020/10/21 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.