Executive Summary
KGHM Polska Miedz S.A. mines, produces, and sells copper, precious metals, and non-ferrous metals in Poland and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.7% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet with proven track record.
Similar Companies
Share Price & News
How has KGHM Polska Miedz's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KGH is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: KGH's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
KGH
2.1%
PL Metals and Mining
0.2%
PL Market
1 Year Return
54.4%
KGH
60.4%
PL Metals and Mining
30.8%
PL Market
Return vs Industry: KGH underperformed the Polish Metals and Mining industry which returned 60.2% over the past year.
Return vs Market: KGH exceeded the Polish Market which returned 30.8% over the past year.
Shareholder returns
| KGH | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 2.1% | 0.2% |
| 30 Day | 0.6% | 1.2% | 0.3% |
| 90 Day | 0% | 3.1% | 7.9% |
| 1 Year | 55.7%54.4% | 64.5%60.4% | 33.4%30.8% |
| 3 Year | 112.2%110.5% | 57.6%50.8% | 14.4%8.1% |
| 5 Year | 149.5%145.3% | 112.8%97.9% | 31.9%19.5% |
Long-Term Price Volatility Vs. Market
How volatile is KGHM Polska Miedz's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Be Adding KGHM Polska Miedz (WSE:KGH) To Your Watchlist Today?3 weeks ago | Simply Wall St
KGHM Polska Miedz (WSE:KGH) Is Looking To Continue Growing Its Returns On CapitalValuation
Is KGHM Polska Miedz undervalued compared to its fair value and its price relative to the market?
26.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KGH (PLN194.6) is trading below our estimate of fair value (PLN264.1)
Significantly Below Fair Value: KGH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KGH is poor value based on its PE Ratio (15.7x) compared to the Polish Metals and Mining industry average (8.9x).
PE vs Market: KGH is poor value based on its PE Ratio (15.7x) compared to the Polish market (14.5x).
Price to Earnings Growth Ratio
PEG Ratio: KGH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: KGH is overvalued based on its PB Ratio (1.8x) compared to the PL Metals and Mining industry average (1.6x).
Future Growth
How is KGHM Polska Miedz forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KGH's earnings are forecast to decline over the next 3 years (-6.7% per year).
Earnings vs Market: KGH's earnings are forecast to decline over the next 3 years (-6.7% per year).
High Growth Earnings: KGH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: KGH's revenue is expected to decline over the next 3 years (-0.6% per year).
High Growth Revenue: KGH's revenue is forecast to decline over the next 3 years (-0.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KGH's Return on Equity is forecast to be low in 3 years time (15.3%).
Past Performance
How has KGHM Polska Miedz performed over the past 5 years?
64.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KGH has high quality earnings.
Growing Profit Margin: KGH's current net profit margins (9.9%) are higher than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: KGH has become profitable over the past 5 years, growing earnings by 64.9% per year.
Accelerating Growth: KGH's earnings growth over the past year (58.5%) is below its 5-year average (64.9% per year).
Earnings vs Industry: KGH earnings growth over the past year (58.5%) exceeded the Metals and Mining industry 50.9%.
Return on Equity
High ROE: KGH's Return on Equity (11.5%) is considered low.
Financial Health
How is KGHM Polska Miedz's financial position?
Financial Position Analysis
Short Term Liabilities: KGH's short term assets (PLN9.2B) exceed its short term liabilities (PLN9.1B).
Long Term Liabilities: KGH's short term assets (PLN9.2B) do not cover its long term liabilities (PLN13.2B).
Debt to Equity History and Analysis
Debt Level: KGH's debt to equity ratio (28.1%) is considered satisfactory.
Reducing Debt: KGH's debt to equity ratio has reduced from 36% to 28.1% over the past 5 years.
Debt Coverage: KGH's debt is well covered by operating cash flow (93.4%).
Interest Coverage: KGH earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is KGHM Polska Miedz current dividend yield, its reliability and sustainability?
0.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KGH's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.06%).
High Dividend: KGH's dividend (0.77%) is low compared to the top 25% of dividend payers in the Polish market (5.94%).
Stability and Growth of Payments
Stable Dividend: KGH is not paying a notable dividend for the Polish market, therefore no need to check if payments are stable.
Growing Dividend: KGH is not paying a notable dividend for the Polish market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: KGH is not paying a notable dividend for the Polish market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of KGH'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?
2.8yrs
Average management tenure
CEO
Marcin Chludzinski
3yrs
Tenure
zł1,807,000
Compensation
Mr. Marcin Chludzinski serves as Chief Executive Officer and has served as President of the Management Board at KGHM Polska Miedz Spólka Akcyjna since July 6, 2018 and has been its President since 2018. He...
CEO Compensation Analysis
Compensation vs Market: Marcin's total compensation ($USD469.55K) is below average for companies of similar size in the Polish market ($USD3.44M).
Compensation vs Earnings: Marcin's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: KGH's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: KGH's board of directors are considered experienced (4.5 years average tenure).
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
KGHM Polska Miedz S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: KGHM Polska Miedz S.A.
- Ticker: KGH
- Exchange: WSE
- Founded: 1961
- Industry: Copper
- Sector: Materials
- Market Cap: zł38.920b
- Shares outstanding: 200.00m
- Website: https://kghm.com
Number of Employees
Location
- KGHM Polska Miedz S.A.
- 48 M.Sklodowskiej-Curie Street
- Lubin
- 59-301
- Poland
Listings
Biography
KGHM Polska Miedz S.A. mines, produces, and sells copper, precious metals, and non-ferrous metals in Poland and internationally. It offers copper cathodes, wire rods, Cu-Ofe and Cu-Ag wires, and granule pr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 17:02 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.