Rocca

WSE:RCA

Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

RCA

WSE

PLN4M

Market Cap

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Last updated 2019/05/24 21:17

Company description

Rocca SA manufactures and sells construction materials for buildings. The last earnings update was 283 days ago. More info.

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RCA Share Price and Events

7 Day Returns

WSE:RCA

-1.2%

PL Basic Materials

-0.4%

PL Market

1 Year Returns

WSE:RCA

-11.4%

PL Basic Materials

-6.5%

PL Market

RCA Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Rocca (RCA)	0%	0%	-	-	26.5%	53.6%
PL Basic Materials	-1.2%	-0.7%	2.2%	-11.4%	0%	-27.9%
PL Market	-0.4%	-7.2%	-7.4%	-6.5%	6.8%	-11.8%

1 Year Return vs Industry and Market

No trading data on RCA.
No trading data on RCA.

Price Volatility

RCA

Industry

5yr Volatility vs Market

Related Companies

Value

Is Rocca undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

It is not possible to calculate the future cash flow value for Rocca. This is due to cash flow or dividend data being unavailable. The share price is PLN0.43.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rocca's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Rocca's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

WSE:RCA PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-06-30) in PLN	PLN0.00
WSE:RCA Share Price **	WSE (2019-03-19) in PLN	PLN0.43
Poland Basic Materials Industry PE Ratio	Median Figure of 5 Publicly-Listed Basic Materials Companies	8.55x
Poland Market PE Ratio	Median Figure of 462 Publicly-Listed Companies	10.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rocca.

WSE:RCA PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= WSE:RCA Share Price ÷ EPS (both in PLN) = 0.43 ÷ 0.00	367.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Rocca is overvalued based on earnings compared to the PL Basic Materials industry average.
Rocca is overvalued based on earnings compared to the Poland market.

Price based on expected Growth

Does Rocca's expected growth come at a high price?

Raw Data

WSE:RCA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	367.84x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	31.4%per year
Europe Basic Materials Industry PEG Ratio	Median Figure of 18 Publicly-Listed Basic Materials Companies	1.56x
Poland Market PEG Ratio	Median Figure of 112 Publicly-Listed Companies	0.93x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to calculate PEG ratio for Rocca, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on Rocca's assets?

Raw Data

WSE:RCA PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-06-30) in PLN	PLN0.13
WSE:RCA Share Price *	WSE (2019-03-19) in PLN	PLN0.43
Poland Basic Materials Industry PB Ratio	Median Figure of 6 Publicly-Listed Basic Materials Companies	0.55x
Poland Market PB Ratio	Median Figure of 689 Publicly-Listed Companies	0.97x

WSE:RCA PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= WSE:RCA Share Price ÷ Book Value per Share (both in PLN) = 0.43 ÷ 0.13	3.29x

* Primary Listing of Rocca.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Rocca is overvalued based on assets compared to the PL Basic Materials industry average.

Value checks

We assess Rocca's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

How is Rocca expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

No analysts cover Rocca, future earnings growth has been estimated based on fundamentals.

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

31.4%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Rocca expected to grow at an attractive rate?

Rocca's earnings growth is expected to exceed the low risk savings rate of 2.9%.

Growth vs Market Checks

Rocca's earnings growth is expected to exceed the Poland market average.
Unable to compare Rocca's revenue growth to the Poland market average as no estimate data is available.

Annual Growth Rates Comparison

Raw Data

WSE:RCA Future Growth Rates Data Sources
Data Point	Source	Value (per year)
WSE:RCA Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	31.4%
Europe Basic Materials Industry Earnings Growth Rate	Market Cap Weighted Average	12.7%
Europe Basic Materials Industry Revenue Growth Rate	Market Cap Weighted Average	3.9%
Poland Market Earnings Growth Rate	Market Cap Weighted Average	10.1%
Poland Market Revenue Growth Rate	Market Cap Weighted Average	5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

WSE:RCA Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (10 months ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All numbers in PLN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

WSE:RCA Past Financials Data
Date (Data in PLN Millions)	Revenue	Cash Flow
2018-06-30	1	0
2018-03-31	0	0
2017-12-31	0	0
2017-09-30	0	0
2017-06-30	0
2017-03-31	0	0
2016-12-31	0	0
2016-09-30	0	0
2016-06-30	0
2016-03-31	0	0
2015-12-31	0	0
2015-09-30	0	0

*GAAP earnings excluding extraordinary items.

High Growth Checks

Rocca's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Rocca is high growth as no revenue estimate data is available.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

WSE:RCA Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (10 months ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All data from Rocca Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WSE:RCA Past Financials Data
Date (Data in PLN Millions)	EPS *
2018-06-30	0.00
2018-03-31	0.01
2017-12-31	0.00
2017-09-30	0.01
2017-06-30	0.01
2017-03-31	0.01
2016-12-31	0.01
2016-09-30	0.01
2016-06-30	0.00
2016-03-31	0.01
2015-12-31	0.01
2015-09-30	0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Unable to establish if Rocca will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Show me more growth companies in the Basic Materials industry

Future performance checks

We assess Rocca's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rocca has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has Rocca performed over the past 5 years?

Rocca's last earnings update was 283 days ago.

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Rocca's growth in the last year to its industry (Basic Materials).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Rocca has delivered over 20% year on year earnings growth in the past 5 years.
Rocca's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Rocca's 1-year earnings growth is negative, it can't be compared to the Europe Basic Materials industry average.

Earnings and Revenue History

Rocca's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Rocca Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WSE:RCA Past Revenue, Cash Flow and Net Income Data
Date (Data in PLN Millions)	Revenue	Net Income *	G+A Expenses
2018-06-30	0.72	0.01	0.32
2018-03-31	0.48	0.09	0.30
2017-12-31	0.48	0.05	0.33
2017-09-30	0.47	0.09	0.34
2017-06-30	0.47	0.07	0.35
2017-03-31	0.49	0.09	0.38
2016-12-31	0.49	0.10	0.36
2016-09-30	0.38	0.15	0.33
2016-06-30	0.26	0.04	0.32
2016-03-31	0.13	0.06	0.26
2015-12-31	0.12	0.12	0.24
2015-09-30	0.32	0.13	0.28
2015-06-30	0.49	-0.04	0.24
2015-03-31	0.63	-0.02	0.12
2014-12-31	0.68	-0.20	0.19
2014-09-30	0.67	-0.28	0.17
2014-06-30	0.69	-0.06	0.23
2014-03-31	0.62	-0.16	0.20
2013-12-31	0.61	-0.16	0.17
2013-09-30	0.63	-0.24	0.08
2013-06-30	0.66	-0.29
2013-03-31	0.70	-0.25
2012-12-31	0.68	-0.36
2012-09-30	0.63	-0.70	0.17
2012-06-30	0.62	-0.88	0.17

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Rocca has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Rocca used its assets less efficiently than the PL Basic Materials industry average last year based on Return on Assets.
Rocca has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).

Past performance checks

We assess Rocca's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rocca has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Rocca's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rocca's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Rocca is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Rocca's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Rocca's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.3x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Rocca Company Filings, last reported 10 months ago.

WSE:RCA Past Debt and Equity Data
Date (Data in PLN Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-06-30	1.35	0.68	0.44
2018-03-31	1.40	0.68	0.38
2017-12-31	1.34	0.68	0.31
2017-09-30	1.40	0.66	0.29
2017-06-30	1.34	0.66	0.26
2017-03-31	1.31	0.66	0.24
2016-12-31	1.29	0.66	0.21
2016-09-30	1.31	0.61	0.19
2016-06-30	1.27	0.61	0.17
2016-03-31	1.26	0.61	0.26
2015-12-31	1.19	0.61	0.19
2015-09-30	1.16	0.59	0.13
2015-06-30	1.18	0.59	0.13
2015-03-31	1.18	0.59	0.13
2014-12-31	1.08	0.59	0.02
2014-09-30	1.03	0.56	0.03
2014-06-30	1.27	0.57	0.03
2014-03-31	1.27	0.57	0.03
2013-12-31	1.28	0.56	0.02
2013-09-30	1.24	0.54	0.02
2013-06-30
2013-03-31
2012-12-31
2012-09-30
2012-06-30

Rocca's level of debt (50.4%) compared to net worth is high (greater than 40%).
Unable to establish if Rocca's debt level has increased without past 5-year debt data.
Debt is well covered by operating cash flow (25.2%, greater than 20% of total debt).
Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).

Financial health checks

We assess Rocca's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

Current annual income from Rocca dividends.

If you bought PLN2,000 of Rocca shares you are expected to receive PLN0 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Unable to evaluate Rocca's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Rocca's dividend against the top 25% market benchmark as the company has not reported any payouts.

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

WSE:RCA Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below
Europe Basic Materials Industry Average Dividend Yield	Market Cap Weighted Average of 22 Stocks	3.2%
Poland Market Average Dividend Yield	Market Cap Weighted Average of 201 Stocks	4.2%
Poland Minimum Threshold Dividend Yield	10th Percentile	1.4%
Poland Bottom 25% Dividend Yield	25th Percentile	2.9%
Poland Top 25% Dividend Yield	75th Percentile	7.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to perform a dividend volatility check as Rocca has not reported any payouts.
Unable to verify if Rocca's dividend has been increasing as the company has not reported any payouts.

Current Payout to shareholders

What portion of Rocca's earnings are paid to the shareholders as a dividend.

Unable to calculate sustainability of dividends as Rocca has not reported any payouts.

Future Payout to shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Income/ dividend checks

We assess Rocca's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Rocca afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Boguslaw Pilat

CEO Bio

Mr. Boguslaw Pilat serves as the Chairman of Management Board at Rocca Spólka Akcyjna.

CEO Compensation

Insufficient data for Boguslaw to compare compensation growth.
Insufficient data for Boguslaw to establish whether their remuneration is reasonable compared to companies of similar size in Poland.

Management Team

Boguslaw Pilat

TITLE

Chairman of Management Board

Board of Directors

Violetta Lesiniewska-Pilat

TITLE

Member of Supervisory Board

Magdalena Mosionek

TITLE

Member of Supervisory Board

Czeslaw Szczepaniak

TITLE

Member of Supervisory Board

Sebastian Lesiniewski

TITLE

Member of Supervisory Board

Krystyna Biernat

TITLE

Member of Supervisory Board

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (PLN)	Value (PLN)

Management checks

We assess Rocca's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are Rocca SA's (WSE:RCA) Interest Costs Too High?

However, an important fact which most ignore is: how financially healthy is the business? … Understanding the company's financial health becomes. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St - 2 months ago – Full article

Does Market Volatility Impact Rocca SA's (WSE:RCA) Share Price?

If you're interested in Rocca SA (WSE:RCA), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St - 3 months ago – Full article

Are Rocca Spólka Akcyjna's (WSE:RCA) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like Rocca Spólka Akcyjna (WSE:RCA), with a market cap of zł4.86m. … However, an important fact which most ignore is: how financially healthy is the business? … I believe these basic checks tell most of the story you need to know.

Simply Wall St - 10 months ago – Full article

What You Must Know About Rocca Spólka Akcyjna's (WSE:RCA) Financial Strength

Rocca Spólka Akcyjna (WSE:RCA) is a small-cap stock with a market capitalization of zł5.17m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St - 11 months ago – Full article

One Thing To Consider Before Buying Rocca Spólka Akcyjna (WSE:RCA)

Rocca Spólka Akcyjna’s beta of 0.98 indicates that the company is less volatile relative to the diversified market portfolio. … RCA’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.