Reported Earnings • Oct 02
Second quarter 2024 earnings released: zł0.008 loss per share (vs zł0.048 loss in 2Q 2023) Second quarter 2024 results: zł0.008 loss per share (improved from zł0.048 loss in 2Q 2023). Revenue: zł159.8m (up 12% from 2Q 2023). Net loss: zł473.0k (loss narrowed 83% from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Sep 19
Cee Integra Partners Spolka Akcyjna proposed to acquire remaining 4.56% stake in Ferrum S.A. (WSE:FER) for PLN 11.6 million. Cee Integra Partners Spolka Akcyjna proposed to acquire remaining 4.56% stake in Ferrum S.A. (WSE:FER) for PLN 11.6 million on September 18, 2024. A cash consideration valued at PLN 4.4 per share will be paid by Cee Integra Partners Spolka Akcyjna. As part of consideration, an undisclosed value is paid towards common equity of Ferrum S.A.
The start date of the compulsory buyout is September 18, 2024 and the buyout date is October 1, 2024. Reported Earnings • May 29
First quarter 2024 earnings released: zł0.025 loss per share (vs zł0.041 profit in 1Q 2023) First quarter 2024 results: zł0.025 loss per share (down from zł0.041 profit in 1Q 2023). Revenue: zł196.8m (up 18% from 1Q 2023). Net loss: zł1.44m (down 161% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • May 25
Ferrum S.A., Annual General Meeting, Jun 20, 2024 Ferrum S.A., Annual General Meeting, Jun 20, 2024. Reported Earnings • Apr 30
Full year 2023 earnings released: zł0.006 loss per share (vs zł0.17 profit in FY 2022) Full year 2023 results: zł0.006 loss per share (down from zł0.17 profit in FY 2022). Revenue: zł629.0m (down 29% from FY 2022). Net loss: zł346.0k (down 103% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • Apr 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.1x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.8% average weekly change). Market cap is less than US$100m (zł283.8m market cap, or US$72.2m). Reported Earnings • Dec 01
Third quarter 2023 earnings released: EPS: zł0.037 (vs zł0.013 in 3Q 2022) Third quarter 2023 results: EPS: zł0.037 (up from zł0.013 in 3Q 2022). Revenue: zł177.7m (down 13% from 3Q 2022). Net income: zł2.14m (up 183% from 3Q 2022). Profit margin: 1.2% (up from 0.4% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Dec 01
Third quarter 2023 earnings released: EPS: zł0.037 (vs zł0.013 in 3Q 2022) Third quarter 2023 results: EPS: zł0.037 (up from zł0.013 in 3Q 2022). Revenue: zł177.7m (down 13% from 3Q 2022). Net income: zł2.14m (up 183% from 3Q 2022). Profit margin: 1.2% (up from 0.4% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. New Risk • Oct 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 119% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (zł205.0m market cap, or US$46.9m). Announcement • May 27
Ferrum S.A., Annual General Meeting, Jun 22, 2023 Ferrum S.A., Annual General Meeting, Jun 22, 2023, at 10:00 Central European Standard Time. Reported Earnings • Dec 01
Third quarter 2022 earnings released: EPS: zł0.013 (vs zł0.051 in 3Q 2021) Third quarter 2022 results: EPS: zł0.013 (down from zł0.051 in 3Q 2021). Revenue: zł203.6m (up 60% from 3Q 2021). Net income: zł756.0k (down 74% from 3Q 2021). Profit margin: 0.4% (down from 2.3% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Buying Opportunity • Oct 25
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 10%. The fair value is estimated to be zł4.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Oct 03
Second quarter 2022 earnings released: EPS: zł0.043 (vs zł0.13 in 2Q 2021) Second quarter 2022 results: EPS: zł0.043 (down from zł0.13 in 2Q 2021). Revenue: zł189.7m (up 18% from 2Q 2021). Net income: zł2.51m (down 67% from 2Q 2021). Profit margin: 1.3% (down from 4.7% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Jun 25
Ferrum S.A., Annual General Meeting, Jul 14, 2022 Ferrum S.A., Annual General Meeting, Jul 14, 2022, at 11:00 Central European Standard Time. Announcement • May 31
Ferrum S.A., Annual General Meeting, Jun 23, 2022 Ferrum S.A., Annual General Meeting, Jun 23, 2022, at 10:00 Central European Standard Time. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improved over the past week After last week's 16% share price gain to zł4.08, the stock trades at a trailing P/E ratio of 31.3x. Average trailing P/E is 7x in the Metals and Mining industry in Poland. Total loss to shareholders of 1.7% over the past three years. Reported Earnings • Dec 02
Third quarter 2021 earnings: Revenues and EPS in line with analyst expectations Third quarter 2021 results: EPS: zł0.051 (up from zł0.06 loss in 3Q 2020). Revenue: zł127.4m (up 4.8% from 3Q 2020). Net income: zł2.93m (up zł6.39m from 3Q 2020). Profit margin: 2.3% (up from net loss in 3Q 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 01
Second quarter 2021 earnings released: EPS zł0.13 (vs zł0.042 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: zł160.4m (up 10.0% from 2Q 2020). Net income: zł7.51m (up 205% from 2Q 2020). Profit margin: 4.7% (up from 1.7% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 04
First quarter 2021 earnings released: EPS zł0.039 (vs zł0.047 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: zł183.3m (up 30% from 1Q 2020). Net income: zł2.25m (up zł4.98m from 1Q 2020). Profit margin: 1.2% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • May 05
Full year 2020 earnings released: zł0.15 loss per share (vs zł0.13 loss in FY 2019) The company reported a mediocre full year result with increased losses, although control over costs was stable and revenues improved. Full year 2020 results: Revenue: zł551.4m (up 23% from FY 2019). Net loss: zł8.88m (loss widened 20% from FY 2019). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 19
New 90-day high: zł4.00 The company is up 10.0% from its price of zł3.62 on 20 November 2020. The Polish market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 39% over the same period. Is New 90 Day High Low • Dec 30
New 90-day high: zł3.94 The company is up 6.0% from its price of zł3.70 on 01 October 2020. The Polish market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 44% over the same period. Is New 90 Day High Low • Dec 03
New 90-day low: zł3.20 The company is down 17% from its price of zł3.86 on 04 September 2020. The Polish market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 18% over the same period. Reported Earnings • Dec 03
Third quarter 2020 earnings released: zł0.06 loss per share The company reported a poor third quarter result with weaker earnings, revenues and control over expenses. Third quarter 2020 results: Revenue: zł121.6m (down 7.0% from 3Q 2019). Net loss: zł3.46m (down 305% from profit in 3Q 2019). Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Oct 15
New 90-day low: zł3.50 The company is down 16% from its price of zł4.18 on 17 July 2020. The Polish market is down 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 13% over the same period. Reported Earnings • Oct 04
First half earnings released Over the last 12 months the company has reported total losses of zł7.88m, with losses narrowing by 1.5% from the prior year. Total revenue was zł505.7m over the last 12 months, up 20% from the prior year.