WSE:CIE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet 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


Market Performance


7 Day Return

-1.2%

CIE

3.8%

PL Chemicals

1.9%

PL Market


1 Year Return

-22.1%

CIE

2.0%

PL Chemicals

0.2%

PL Market

Return vs Industry: CIE underperformed the Polish Chemicals industry which returned 2% over the past year.

Return vs Market: CIE underperformed the Polish Market which returned 0.2% over the past year.


Shareholder returns

CIEIndustryMarket
7 Day-1.2%3.8%1.9%
30 Day-8.9%-1.8%0.5%
90 Day-22.2%-17.8%-5.7%
1 Year-22.1%-22.1%4.2%2.0%3.3%0.2%
3 Year-41.7%-48.9%-35.3%-40.9%12.3%4.3%
5 Year-5.0%-21.1%-24.3%-33.0%0.2%-12.0%

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?

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIE (PLN32.1) is trading below our estimate of fair value (PLN50.15)

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


Price To Earnings Ratio

PE vs Industry: CIE is poor value based on its PE Ratio (81.7x) compared to the Chemicals industry average (13.5x).

PE vs Market: CIE is poor value based on its PE Ratio (81.7x) compared to the Polish market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: CIE is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: CIE is overvalued based on its PB Ratio (0.9x) compared to the PL Chemicals industry average (0.8x).


Next Steps

Future Growth

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

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIE's forecast earnings growth (29.1% per year) is above the savings rate (2.9%).

Earnings vs Market: CIE's earnings (29.1% per year) are forecast to grow faster than the Polish market (10.6% 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 (5.8% 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 (12.9%).


Next Steps

Past Performance

How has Ciech performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CIE's earnings have grown by 2.9% per year over the past 5 years.

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

Earnings vs Industry: CIE had negative earnings growth (-94.8%) over the past year, making it difficult to compare to the Chemicals industry average (-1.9%).


Return on Equity

High ROE: CIE's Return on Equity (1%) is considered low.


Return on Assets

ROA vs Industry: CIE's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Ciech's financial position?


Financial Position Analysis

Short Term Liabilities: CIE's short term assets (PLN1.3B) exceeds its short term liabilities (PLN922.0M)

Long Term Liabilities: CIE's short term assets (1.3B) do not cover its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: CIE's debt to equity ratio (86.6%) is considered high

Reducing Debt: CIE's debt to equity ratio has reduced from 134.3% to 86.6% over the past 5 years.

Debt Coverage: CIE's debt is well covered by operating cash flow (20.4%).

Interest Coverage: CIE's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: CIE's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

4.00%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.7%markettop25%7.2%industryaverage5.5%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Ciech's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Dawid Jakubowicz 0

1.1yrs

Tenure

0

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 ...


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: CIE's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

Experienced Board: CIE's board of directors are considered experienced (5.3 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

  • Artur Osuchowski

    Member of the Management Board

    • Tenure: 11.5yrs
  • Katarzyna Rybacka

    Chief Accountant

    • Tenure: 0yrs
  • Dawid Jakubowicz

    President of the Management Board

    • Tenure: 1.1yrs
  • Miroslaw Skowron

    Member of the Management Board

    • Tenure: 1.1yrs

Board Members

  • Piotr Augustyniak (54yo)

    Member of the Supervisory Board

    • Tenure: 5.3yrs
  • Mariusz Nowak

    Member of the Supervisory Board

    • Tenure: 5.3yrs
  • Sebastian Kulczyk

    Chairman of the Supervisory Board

    • Tenure: 4yrs
    • Compensation: zł38.00k
  • Tomasz Mikolajczak

    Deputy Chairman of the Supervisory Board

    • Tenure: 5.3yrs
  • Artur Olech

    Member of the Supervisory Board

    • Tenure: 5.3yrs
  • Marek Kosnik

    Member of the Supervisory Board

    • Tenure: 0.8yrs

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: zł1.692b
  • 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., a chemical company, manufactures and sells various chemical products in Poland, other European Union countries, other European countries, Africa, Asia, and internationally. It operates through  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:48
End of Day Share Price2019/10/23 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.