WSE:EGS

Stock Analysis Report

Executive Summary

Ergis S.A. manufactures and sells plastic packing products in Poland and internationally.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

EGS

3.8%

PL Chemicals

1.9%

PL Market


1 Year Return

-8.2%

EGS

2.0%

PL Chemicals

0.2%

PL Market

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

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


Shareholder returns

EGSIndustryMarket
7 Day-4.6%3.8%1.9%
30 Day30.8%-1.8%0.5%
90 Day13.8%-17.8%-5.7%
1 Year-5.1%-8.2%4.2%2.0%3.3%0.2%
3 Year-37.5%-44.6%-35.3%-40.9%12.3%4.3%
5 Year-18.4%-32.5%-24.3%-33.0%0.2%-12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGS (PLN3.14) is trading above our estimate of fair value (PLN1.78)

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


Price To Earnings Ratio

PE vs Industry: EGS is poor value based on its PE Ratio (14.4x) compared to the Chemicals industry average (13.5x).

PE vs Market: EGS is poor value based on its PE Ratio (14.4x) compared to the Polish market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: EGS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: EGS is good value based on its PB Ratio (0.6x) compared to the PL Chemicals industry average (0.8x).


Next Steps

Future Growth

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

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGS's forecast earnings growth (16.9% per year) is above the savings rate (2.9%).

Earnings vs Market: EGS's earnings (16.9% per year) are forecast to grow faster than the Polish market (10.6% per year).

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

Revenue vs Market: EGS's revenue (5.5% per year) is forecast to grow slower than the Polish market (5.8% per year).

High Growth Revenue: EGS's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EGS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ergis performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EGS's earnings have declined by -0.2% per year over the past 5 years.

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

Earnings vs Industry: EGS had negative earnings growth (-48.6%) over the past year, making it difficult to compare to the Chemicals industry average (-1.9%).


Return on Equity

High ROE: EGS's Return on Equity (3.8%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Ergis's financial position?


Financial Position Analysis

Short Term Liabilities: EGS's short term assets (PLN238.6M) exceeds its short term liabilities (PLN208.9M)

Long Term Liabilities: EGS's short term assets (238.6M) exceeds its long term liabilities (88.9M)


Debt to Equity History and Analysis

Debt Level: EGS's debt to equity ratio (69.3%) is considered high

Reducing Debt: EGS's debt to equity ratio has reduced from 70.6% to 69.3% over the past 5 years.

Debt Coverage: EGS's debt is well covered by operating cash flow (31.2%).

Interest Coverage: EGS's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: EGS's debt is covered by short term assets (assets are 1.592960x debt).


Next Steps

Dividend

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

3.18%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.7%markettop25%7.2%industryaverage5.5%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EGS's dividend (3.18%) is higher than the bottom 25% of dividend payers in the Polish market (2.73%).

High Dividend: EGS's dividend (3.18%) is low compared to the top 25% of dividend payers in the Polish market (7.24%).

Stable Dividend: EGS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EGS has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.9%), EGS's dividend payments are 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 Ergis's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average board tenure


CEO

Tadeusz Nowicki (61yo)

12.8yrs

Tenure

0

Mr. Tadeusz Nowicki has been President of Management Board at Erigs S.A. since January 22, 2007 and serves as its Member of the Management Board. Mr. Nowicki has been Chief Executive Officer of ERG-W?brze? ...


Board Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: EGS'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

  • Tadeusz Nowicki (61yo)

    President of the Management of Board

    • Tenure: 12.8yrs
  • Pawel Kaczorowski (49yo)

    Secretary & Member of the Supervisory Board

    • Tenure: 0yrs
  • Marek Kaplucha

    Vice-President of the Management Board

    • Tenure: 0yrs

Board Members

  • Marek Górski (53yo)

    Chairman of the Supervisor Board

    • Tenure: 5.3yrs
  • Maciej Stanczuk (58yo)

    Independent Member of the Supervisory Board

    • Tenure: 5.3yrs
  • Maciej Grelowski (69yo)

    Vice-Chairman of the Supervisory Board

    • Tenure: 5.3yrs
  • Waldemar Maj (63yo)

    Independent Member of the Supervisory Board

    • Tenure: 5.3yrs
  • Pawel Kaczorowski (49yo)

    Secretary & Member of the Supervisory Board

    • Tenure: 0yrs
  • Katarzyna Górska-Bednarska

    Member of Supervisory Board

    • Tenure: 5.3yrs
  • Tadeusz Iwanowski

    Independent Member of The Supervisory Board

    • Tenure: 5.3yrs

Company Information

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


Key Information

  • Name: Ergis S.A.
  • Ticker: EGS
  • Exchange: WSE
  • Founded:
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: zł118.660m
  • Shares outstanding: 37.79m
  • Website: https://ergis.eu

Number of Employees


Location

  • Ergis S.A.
  • ul. Tamka 16
  • Warsaw
  • 00-349
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGSWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJun 2006

Biography

Ergis S.A. manufactures and sells plastic packing products in Poland and internationally. The company offers packaging for food products, such as films, PVC and PET-based barrier laminates, printed multila ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:45
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.