New Risk • May 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings are forecast to decline by an average of 5.3% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (zł102.8m market cap, or US$28.2m). Announcement • Mar 31
Izostal S.A., Annual General Meeting, Apr 29, 2026 Izostal S.A., Annual General Meeting, Apr 29, 2026, at 11:00 Central European Standard Time. Declared Dividend • Mar 25
Dividend of zł0.11 announced Shareholders will receive a dividend of zł0.11. Ex-date: 3rd July 2026 Payment date: 17th July 2026 Dividend yield will be 3.4%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (22% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.8% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jan 14
Izostal S.A. to Report Q4, 2025 Results on Mar 27, 2026 Izostal S.A. announced that they will report Q4, 2025 results at 8:30 AM, Central European Standard Time on Mar 27, 2026 Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: zł0.11 (vs zł0.063 in 3Q 2024) Third quarter 2025 results: EPS: zł0.11 (up from zł0.063 in 3Q 2024). Revenue: zł307.6m (up 101% from 3Q 2024). Net income: zł3.41m (up 65% from 3Q 2024). Profit margin: 1.1% (down from 1.4% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to zł3.71, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 16x in the Metals and Mining industry in Poland. Total returns to shareholders of 73% over the past three years. Reported Earnings • Aug 22
Second quarter 2025 earnings released: EPS: zł0.15 (vs zł0.091 in 2Q 2024) Second quarter 2025 results: EPS: zł0.15 (up from zł0.091 in 2Q 2024). Revenue: zł373.4m (up 108% from 2Q 2024). Net income: zł5.02m (up 68% from 2Q 2024). Profit margin: 1.3% (down from 1.7% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 27
Upcoming dividend of zł0.09 per share Eligible shareholders must have bought the stock before 04 July 2025. Payment date: 21 July 2025. Payout ratio is a comfortable 29% but the company is not cash flow positive. Trailing yield: 3.4%. Lower than top quartile of Polish dividend payers (6.9%). Higher than average of industry peers (2.4%). New Risk • May 18
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.1% Last year net profit margin: 1.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings have declined by 6.4% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.1% net profit margin). Market cap is less than US$100m (zł91.0m market cap, or US$23.8m). Reported Earnings • May 18
First quarter 2025 earnings released: EPS: zł0.10 (vs zł0.099 in 1Q 2024) First quarter 2025 results: EPS: zł0.10 (up from zł0.099 in 1Q 2024). Revenue: zł329.7m (up 92% from 1Q 2024). Net income: zł3.25m (flat on 1Q 2024). Profit margin: 1.0% (down from 1.9% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Mar 31
Izostal S.A., Annual General Meeting, Apr 25, 2025 Izostal S.A., Annual General Meeting, Apr 25, 2025. Declared Dividend • Mar 19
Dividend of zł0.09 announced Shareholders will receive a dividend of zł0.09. Ex-date: 4th July 2025 Payment date: 21st July 2025 Dividend yield will be 3.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 68% to shift the payout ratio to a potentially unsustainable range, which is more than the 5.3% EPS decline seen over the last 5 years. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: zł0.061 (vs zł0.095 in 3Q 2023) Third quarter 2024 results: EPS: zł0.061 (down from zł0.095 in 3Q 2023). Revenue: zł152.8m (down 15% from 3Q 2023). Net income: zł2.07m (down 33% from 3Q 2023). Profit margin: 1.4% (down from 1.7% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 25
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: zł179.4m (up 23% from 2Q 2023). Net income: zł2.99m (up 3.9% from 2Q 2023). Profit margin: 1.7% (down from 2.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Upcoming Dividend • Jun 26
Upcoming dividend of zł0.09 per share Eligible shareholders must have bought the stock before 03 July 2024. Payment date: 18 July 2024. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Polish dividend payers (7.7%). Higher than average of industry peers (2.5%). New Risk • Jun 06
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.8x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.8x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (zł95.9m market cap, or US$24.2m). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: zł0.10 (vs zł0.13 in 1Q 2023) First quarter 2024 results: EPS: zł0.10 (down from zł0.13 in 1Q 2023). Revenue: zł172.0m (down 43% from 1Q 2023). Net income: zł3.25m (down 21% from 1Q 2023). Profit margin: 1.9% (up from 1.4% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 9% per year. Reported Earnings • Apr 01
Full year 2023 earnings released: EPS: zł0.36 (vs zł0.69 in FY 2022) Full year 2023 results: EPS: zł0.36 (down from zł0.69 in FY 2022). Revenue: zł751.0m (down 36% from FY 2022). Net income: zł11.9m (down 47% from FY 2022). Profit margin: 1.6% (down from 1.9% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Mar 30
Izostal S.A., Annual General Meeting, Apr 24, 2024 Izostal S.A., Annual General Meeting, Apr 24, 2024, at 11:00 Central European Standard Time. Declared Dividend • Mar 18
Dividend reduced to zł0.09 Dividend of zł0.09 is 25% lower than last year. Ex-date: 3rd July 2024 Payment date: 18th July 2024 Dividend yield will be 3.5%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 69% to shift the payout ratio to a potentially unsustainable range, which is more than the 1.9% EPS decline seen over the last 5 years. Reported Earnings • Nov 22
Third quarter 2023 earnings released: EPS: zł0.096 (vs zł0.26 in 3Q 2022) Third quarter 2023 results: EPS: zł0.096 (down from zł0.26 in 3Q 2022). Revenue: zł180.6m (down 42% from 3Q 2022). Net income: zł3.10m (down 63% from 3Q 2022). Profit margin: 1.7% (down from 2.7% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 3% per year. Reported Earnings • Aug 28
Second quarter 2023 earnings released: EPS: zł0.12 (vs zł0.18 in 2Q 2022) Second quarter 2023 results: EPS: zł0.12 (down from zł0.18 in 2Q 2022). Revenue: zł145.9m (down 55% from 2Q 2022). Net income: zł2.87m (down 52% from 2Q 2022). Profit margin: 2.0% (up from 1.9% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 29
Upcoming dividend of zł0.12 per share at 4.2% yield Eligible shareholders must have bought the stock before 06 July 2023. Payment date: 21 July 2023. Payout ratio is a comfortable 18% but the company is paying out more than the cash it is generating. Trailing yield: 4.2%. Lower than top quartile of Polish dividend payers (7.2%). Higher than average of industry peers (3.2%). Reported Earnings • May 24
First quarter 2023 earnings released: EPS: zł0.13 (vs zł0.13 in 1Q 2022) First quarter 2023 results: EPS: zł0.13. Revenue: zł303.7m (down 11% from 1Q 2022). Net income: zł4.12m (down 1.2% from 1Q 2022). Profit margin: 1.4% (up from 1.2% in 1Q 2022). The increase in margin was driven by lower expenses. Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to zł3.24, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 5x in the Metals and Mining industry in Poland. Total returns to shareholders of 71% over the past three years. Reported Earnings • Nov 19
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: zł310.3m (up 95% from 3Q 2021). Net income: zł8.45m (up 94% from 3Q 2021). Profit margin: 2.7% (in line with 3Q 2021). Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: zł0.18 (vs zł0.17 in 2Q 2021) Second quarter 2022 results: EPS: zł0.18 (up from zł0.17 in 2Q 2021). Revenue: zł321.6m (up 103% from 2Q 2021). Net income: zł5.97m (up 6.2% from 2Q 2021). Profit margin: 1.9% (down from 3.5% 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 11% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 14
Upcoming dividend of zł0.12 per share Eligible shareholders must have bought the stock before 21 July 2022. Payment date: 05 August 2022. Trailing yield: 4.6%. Lower than top quartile of Polish dividend payers (8.5%). Higher than average of industry peers (4.1%). Announcement • Apr 01
Izostal S.A., Annual General Meeting, Apr 27, 2022 Izostal S.A., Annual General Meeting, Apr 27, 2022, at 10:00 Central European Standard Time. Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment improved over the past week After last week's 22% share price gain to zł2.82, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 7x in the Metals and Mining industry in Poland. Total loss to shareholders of 6.8% over the past three years. Upcoming Dividend • Jul 14
Upcoming dividend of zł0.12 per share Eligible shareholders must have bought the stock before 21 July 2021. Payment date: 10 August 2021. Trailing yield: 3.4%. Lower than top quartile of Polish dividend payers (5.7%). Higher than average of industry peers (1.8%). Reported Earnings • Mar 30
Full year 2020 earnings released: EPS zł0.46 (vs zł0.40 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: zł860.1m (up 12% from FY 2019). Net income: zł15.2m (up 17% from FY 2019). Profit margin: 1.8% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 7% 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 • Mar 02
New 90-day high: zł3.40 The company is up 48% from its price of zł2.29 on 02 December 2020. The Polish market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 25% over the same period. Is New 90 Day High Low • Feb 05
New 90-day high: zł3.20 The company is up 54% from its price of zł2.08 on 06 November 2020. The Polish market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 33% over the same period. Is New 90 Day High Low • Jan 11
New 90-day high: zł3.13 The company is up 44% from its price of zł2.17 on 13 October 2020. The Polish market is up 20% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 58% over the same period. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 15% share price gain to zł2.91, the stock is trading at a trailing P/E ratio of 6.4x, up from the previous P/E ratio of 5.6x. This compares to an average P/E of 11x in the Metals and Mining industry in Poland. Total return to shareholders over the past three years is a loss of 40%. Is New 90 Day High Low • Dec 17
New 90-day high: zł2.59 The company is up 17% from its price of zł2.21 on 18 September 2020. The Polish market is up 11% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 30% over the same period. Is New 90 Day High Low • Oct 27
New 90-day low: zł2.01 The company is down 21% from its price of zł2.55 on 29 July 2020. The Polish market is down 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is down 2.0% over the same period. Is New 90 Day High Low • Oct 09
New 90-day low: zł2.11 The company is down 22% from its price of zł2.71 on 10 July 2020. The Polish market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 12% over the same period. Is New 90 Day High Low • Sep 22
New 90-day low: zł2.19 The company is down 14% from its price of zł2.56 on 24 June 2020. The Polish market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 42% over the same period.