Fabryka Farb i Lakierów Sniezka (WSE:SKA) - Share price, News & Analysis

SKA fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	4/6

SKA Stock Overview

Fabryka Farb i Lakierów Sniezka SA engages in the production and sale of paints, varnishes, solvents, adhesives, putties, and anti-corrosion products.

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year

Fabryka Farb i Lakierów Sniezka Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fabryka Farb i Lakierów Sniezka
Historical stock prices
Current Share Price	zł69.80
52 Week High	zł86.80
52 Week Low	zł67.20
Beta	0.45
1 Month Change	-8.64%
3 Month Change	-12.31%
1 Year Change	-19.40%
3 Year Change	-22.01%
5 Year Change	2.50%
Change since IPO	145.78%

Shareholder Returns

	SKA	PL Chemicals	PL Market
7D	-3.9%	-2.3%	0.6%
1Y	-19.4%	-4.8%	-23.8%

Return vs Industry: SKA underperformed the Polish Chemicals industry which returned -5.9% over the past year.

Return vs Market: SKA exceeded the Polish Market which returned -24.3% over the past year.

Price Volatility

Is SKA's price volatile compared to industry and market?
SKA volatility
SKA Average Weekly Movement	4.4%
Chemicals Industry Average Movement	5.5%
Market Average Movement	6.3%
10% most volatile stocks in PL Market	11.3%
10% least volatile stocks in PL Market	4.2%

Stable Share Price: SKA is less volatile than 75% of Polish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SKA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	1,302	Piotr Mikrut	https://www.sniezka.pl

Fabryka Farb i Lakierów Sniezka SA engages in the production and sale of paints, varnishes, solvents, adhesives, putties, and anti-corrosion products. The company primarily provides its products under the Magnat, Sniezka, Vidaron, Rafil, and Foveo-Tech brands. It also wholesales and retails in building materials; offers road transport services; and provides trademark management services.

Fabryka Farb i Lakierów Sniezka Fundamentals Summary

How do Fabryka Farb i Lakierów Sniezka's earnings and revenue compare to its market cap?
SKA fundamental statistics
Market Cap	zł915.62m
Earnings (TTM)	zł54.48m
Revenue (TTM)	zł802.13m

16.8x

P/E Ratio

1.1x

P/S Ratio

Is SKA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKA income statement (TTM)
Revenue	zł802.13m
Cost of Revenue	zł10.56m
Gross Profit	zł791.57m
Other Expenses	zł737.10m
Earnings	zł54.48m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Sep 13, 2022

Earnings per share (EPS)	4.15
Gross Margin	98.68%
Net Profit Margin	6.79%
Debt/Equity Ratio	103.1%

How did SKA perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

58%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SKA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SKA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SKA. This is calculated by dividing SKA's market cap by their current preferred multiple.
What is SKA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł915.62m

SKA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	12.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SKA's PE Ratio compare to its peers?

SKA PE Ratio vs Peers

The above table shows the PE ratio for SKA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.8x

Forward PE

Price-To-Earnings vs Peers: SKA is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (11.8x).

Price to Earnings Ratio vs Industry

How does SKA's PE Ratio compare vs other companies in the Chemicals Industry?

Price-To-Earnings vs Industry: SKA is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the Polish Chemicals industry average (9.2x)

Price to Earnings Ratio vs Fair Ratio

What is SKA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SKA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SKA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SKA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKA (PLN69.8) is trading above our estimate of fair value (PLN47)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SKA's PEG Ratio to determine if it is good value.

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Future Growth

How is Fabryka Farb i Lakierów Sniezka forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.9%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Fabryka Farb i Lakierów Sniezka has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Fabryka Farb i Lakierów Sniezka's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Fabryka Farb i Lakierów Sniezka competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Fabryka Farb i Lakierów Sniezka performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SKA has high quality earnings.

Growing Profit Margin: SKA's current net profit margins (6.8%) are lower than last year (9.6%).

Past Earnings Growth Analysis

Earnings Trend: SKA's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: SKA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SKA had negative earnings growth (-32%) over the past year, making it difficult to compare to the Chemicals industry average (27.7%).

Return on Equity

High ROE: SKA's Return on Equity (17.1%) is considered low.

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Financial Health

How is Fabryka Farb i Lakierów Sniezka's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SKA's short term assets (PLN325.0M) exceed its short term liabilities (PLN258.6M).

Long Term Liabilities: SKA's short term assets (PLN325.0M) exceed its long term liabilities (PLN307.4M).

Debt to Equity History and Analysis

Debt Level: SKA's net debt to equity ratio (99.9%) is considered high.

Reducing Debt: SKA's debt to equity ratio has increased from 42.5% to 103.1% over the past 5 years.

Debt Coverage: SKA's debt is well covered by operating cash flow (22.5%).

Interest Coverage: SKA's interest payments on its debt are well covered by EBIT (25.3x coverage).

Balance Sheet

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Dividend

What is Fabryka Farb i Lakierów Sniezka current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SKA's dividend (3.58%) is higher than the bottom 25% of dividend payers in the Polish market (2.77%).

High Dividend: SKA's dividend (3.58%) is low compared to the top 25% of dividend payers in the Polish market (8.38%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.9%), SKA's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.8%), SKA's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

18.3yrs

Average management tenure

CEO

Piotr Mikrut

18.25yrs

Tenure

zł1,480,500

Compensation

Mr. Piotr Mikrut has been the President of Managing Board at Fabryka Farb i Lakierów SNIEZKA Spolka Akcyjna (Formerly Sniezka Paints and Varnishes Plant S.A.) since March 31, 2004 and also serves as its Me...

Leadership Team

Experienced Management: SKA's management team is seasoned and experienced (18.3 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 been diluted in the past year, with total shares outstanding growing by 4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31