WSE:KTY

Stock Analysis Report

Executive Summary

Grupa Kety S.A., through its subsidiaries, manufactures and sells aluminum products in Poland and internationally.

Rewards

Earnings grew by 17.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.1% per year for the next 3 years

Has a high level of debt

Dividend of 6.74% is not well covered by earnings



Snowflake Analysis

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KTY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

KTY

1.8%

PL Metals and Mining

0.7%

PL Market


1 Year Return

2.6%

KTY

-12.4%

PL Metals and Mining

-5.8%

PL Market

Return vs Industry: KTY exceeded the Polish Metals and Mining industry which returned -11.7% over the past year.

Return vs Market: KTY exceeded the Polish Market which returned -4.3% over the past year.


Shareholder returns

KTYIndustryMarket
7 Day-1.4%1.8%0.7%
30 Day3.5%5.6%3.4%
90 Day23.7%23.7%3.6%
1 Year10.8%2.6%-10.2%-12.4%-2.8%-5.8%
3 Year7.6%-13.7%-25.5%-28.7%5.8%-1.9%
5 Year74.4%25.7%2.0%-6.2%7.4%-6.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KTY (PLN355) is trading above our estimate of fair value (PLN322.59)

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


Price To Earnings Ratio

PE vs Industry: KTY is poor value based on its PE Ratio (11.6x) compared to the Metals and Mining industry average (7.3x).

PE vs Market: KTY is poor value based on its PE Ratio (11.5x) compared to the Polish market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: KTY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KTY is overvalued based on its PB Ratio (2.4x) compared to the PL Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Grupa Kety forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KTY's earnings are forecast to decline over the next 3 years (-1.1% per year).

Earnings vs Market: KTY's earnings are forecast to decline over the next 3 years (-1.1% per year).

High Growth Earnings: KTY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KTY's revenue (2.2% per year) is forecast to grow slower than the Polish market (5.1% per year).

High Growth Revenue: KTY's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KTY's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has Grupa Kety performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTY has high quality earnings.

Growing Profit Margin: KTY's current net profit margins (9.1%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: KTY's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: KTY's earnings growth over the past year (17.9%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: KTY earnings growth over the past year (17.9%) exceeded the Metals and Mining industry -42.4%.


Return on Equity

High ROE: KTY's Return on Equity (20.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grupa Kety's financial position?


Financial Position Analysis

Short Term Liabilities: KTY's short term assets (PLN1.2B) exceed its short term liabilities (PLN1.1B).

Long Term Liabilities: KTY's short term assets (PLN1.2B) exceed its long term liabilities (PLN391.7M).


Debt to Equity History and Analysis

Debt Level: KTY's debt to equity ratio (53.5%) is considered high.

Reducing Debt: KTY's debt to equity ratio has increased from 21.6% to 53.5% over the past 5 years.

Debt Coverage: KTY's debt is well covered by operating cash flow (66.5%).

Interest Coverage: KTY's interest payments on its debt are well covered by EBIT (22.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: KTY's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

6.80%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.3%markettop25%7.0%industryaverage6.5%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: KTY's dividend (6.74%) is higher than the bottom 25% of dividend payers in the Polish market (2.4%).

High Dividend: KTY's dividend (6.74%) is low compared to the top 25% of dividend payers in the Polish market (7.05%).


Stability and Growth of Payments

Stable Dividend: KTY's dividend payments have been volatile in the past 10 years.

Growing Dividend: KTY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.1%), KTY's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KTY's dividends in 3 years are not forecast to be well covered by earnings (95.1% payout ratio).


Next Steps

Management

What is the CEO of Grupa Kety's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Dariusz Mañko (51yo)

14.4yrs

Tenure

zł2,410,404

Compensation

Mr. Dariusz Mañko has been the Chief Executive Officer and President of the Management Board at Grupa Kety SA. since August 3, 2005. From 1999 to 2005, Mr. Mañko served as the President of the Management B ...


CEO Compensation Analysis

Compensation vs Market: Dariusz's total compensation ($USD0.00) is below average for companies of similar size in the Polish market ($USD415.82K).

Compensation vs Earnings: Dariusz's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: KTY's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

Experienced Board: KTY's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dariusz Mañko (51yo)

    President of the Management Board & CEO

    • Tenure: 14.4yrs
    • Compensation: zł2.41m
  • Michal Malina

    Head of Investor Relations

    • Compensation: zł297.47k
  • Piotr Wysocki (50yo)

    Member of the Management Board

    • Tenure: 2yrs
  • Tomasz Grela (45yo)

    Member of the Management Board

    • Tenure: 2yrs
  • Zbigniew Paruch

    Chief PR Officer

    • Rafal Warpechowski

      Finance Director & Member of Management Board


      Board Members

      • Szczepan Strublewski

        Chairman of Supervisory Board

        • Tenure: 2.7yrs
        • Compensation: zł130.03k
      • Piotr Stepniak (57yo)

        Independent Member of Supervisory Board

        • Tenure: 2.7yrs
      • Wojciech Wlodarczyk

        Independent Member of Supervisory Board

        • Tenure: 2.7yrs
      • Bartosz Kazimierczuk

        Independent Member of Supervisory Board

        • Tenure: 2.7yrs
      • Pawel Niedziólka

        Vice-Chairman of Supervisory Board

        • Tenure: 2.7yrs
        • Compensation: zł104.02k
      • Piotr Kaczmarek

        Independent Member of Supervisory Board

        • Tenure: 2.7yrs

      Company Information

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


      Key Information

      • Name: Grupa Kety S.A.
      • Ticker: KTY
      • Exchange: WSE
      • Founded: 1953
      • Industry: Aluminum
      • Sector: Materials
      • Market Cap: zł3.369b
      • Shares outstanding: 9.57m
      • Website: https://www.grupakety.com

      Number of Employees


      Location

      • Grupa Kety S.A.
      • ul. Kosciuszki 111
      • Kety
      • 32-650
      • Poland

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      KTYWSE (Warsaw Stock Exchange)YesRegistered SharesPLPLNJan 1996
      0LV3LSE (London Stock Exchange)YesRegistered SharesGBPLNJan 1996

      Biography

      Grupa Kety S.A., through its subsidiaries, manufactures and sells aluminum products in Poland and internationally. It operates through Extruded Products, Aluminum Systems, and Flexible Packaging segments. The company produces aluminum profiles and components. It also designs and produces architectural systems and external aluminum roller shutters; engages in building, assembling, and servicing of aluminum facades; and offers building accessories. In addition, the company provides flexible packaging solutions. Grupa Kety S.A. sells its products under the Grupa Kety, Aluprof, and Alupol Packaging brands. The company was formerly known as Zaklady Metali Lekkich “KETY” and changed its name to Grupa Kety S.A. in 2000. Grupa Kety S.A. was founded in 1953 and is based in Kety, Poland. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 20:37
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      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.