WSE:KGH

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KGHM Polska Miedz

Market Cap

zł38.9b

Last Updated

2021/07/31 17:02 UTC

Data Sources

Company Financials +

Executive Summary

KGHM Polska Miedz S.A. mines, produces, and sells copper, precious metals, and non-ferrous metals in Poland and internationally. More Details


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

KGHIndustryMarket
7 Day2.3%2.1%0.2%
30 Day0.6%1.2%0.3%
90 Day0%3.1%7.9%
1 Year55.7%54.4%64.5%60.4%33.4%30.8%
3 Year112.2%110.5%57.6%50.8%14.4%8.1%
5 Year149.5%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

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 17:02
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.