WSE:STL

Stock Analysis Report

Executive Summary

Stelmet S.A. produces and distributes wooden garden architecture in Great Britain, France, Germany, and internationally.

Rewards

Trading at 24.7% below its fair value

Risk Analysis

Earnings have declined by -66.11% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (PLN220M)



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

STL

0.3%

PL Forestry

0.7%

PL Market


1 Year Return

-16.7%

STL

-12.0%

PL Forestry

-7.1%

PL Market

Return vs Industry: STL underperformed the Polish Forestry industry which returned -12.6% over the past year.

Return vs Market: STL underperformed the Polish Market which returned -7.7% over the past year.


Shareholder returns

STLIndustryMarket
7 Day-1.3%0.3%0.7%
30 Day1.4%2.0%-1.7%
90 Day-9.6%1.5%-0.2%
1 Year-16.7%-16.7%-12.0%-12.0%-4.3%-7.1%
3 Year-75.0%-75.0%-34.3%-36.7%-4.3%-11.1%
5 Yearn/a-5.5%-12.7%2.7%-10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STL (PLN7.5) is trading below our estimate of fair value (PLN9.96)

Significantly Below Fair Value: STL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STL is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: STL is unprofitable, so we can't compare its PE Ratio to the Polish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STL is good value based on its PB Ratio (0.5x) compared to the PL Forestry industry average (0.7x).


Next Steps

Future Growth

How is Stelmet forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

2.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if STL's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if STL's earnings are forecast to grow faster than the Polish market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STL's revenue (2.7% per year) is forecast to grow slower than the Polish market (6.2% per year).

High Growth Revenue: STL's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Stelmet performed over the past 5 years?

-66.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STL is currently unprofitable.

Growing Profit Margin: STL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STL is unprofitable, and losses have increased over the past 5 years at a rate of -66.1% per year.

Accelerating Growth: Unable to compare STL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STL is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-40.2%).


Return on Equity

High ROE: STL has a negative Return on Equity (-0.75%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stelmet's financial position?


Financial Position Analysis

Short Term Liabilities: STL's short term assets (PLN288.8M) exceed its short term liabilities (PLN139.3M).

Long Term Liabilities: STL's short term assets (PLN288.8M) exceed its long term liabilities (PLN172.4M).


Debt to Equity History and Analysis

Debt Level: STL's debt to equity ratio (42.3%) is considered high.

Reducing Debt: STL's debt to equity ratio has reduced from 48.6% to 42.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: STL's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: STL has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: STL has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

2.53%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.6%industryaverage4.2%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate STL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate STL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STL'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?

zł2m

CEO Compensation


CEO

Stanislaw Bienkowski 0

zł1,505,000

Compensation

Mr. Stanislaw Bienkowski serves as the President of the Management Board at Stelmet S.A. Mr. Bienkowski founded Stelmet company (which works as a Joint Stock Company since 2006) in 1985 and serves as its L ...


CEO Compensation Analysis

Compensation vs Market: Stanislaw's total compensation ($USD382.72K) is above average for companies of similar size in the Polish market ($USD157.18K).

Compensation vs Earnings: Stanislaw's compensation has been consistent with company performance over the past year.


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

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


Key Information

  • Name: Stelmet S.A.
  • Ticker: STL
  • Exchange: WSE
  • Founded: 1985
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: zł220.232m
  • Shares outstanding: 29.36m
  • Website: https://www.stelmet.com

Location

  • Stelmet S.A.
  • ul. Gorzowska 20
  • Zielona Góra
  • 65-127
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STLWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNOct 2016
0RKALSE (London Stock Exchange)YesOrdinary SharesGBPLNOct 2016

Biography

Stelmet S.A. produces and distributes wooden garden architecture in Great Britain, France, Germany, and internationally. Its products include stakes, palisades, rollbots, platforms, terrace boards, fences, grids, boards, pergolas, flowerbeds, tool sheds, and gazebos. The company manufactures products made of pine and spruce wood, which are designed for fencing, equipping and decorating gardens, allotments, terraces, balconies, and parks, as well as for use in recreational spaces. It also offers products that use in their structure arcs, which are made of glued laminated timber. Stelmet S.A. was founded in 1985 and is based in Zielona Góra, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:35
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.