WSE:ZAP

Stock Analysis Report

Zaklady Azotowe Pulawy

Executive Summary

Zaklady Azotowe Pulawy SA manufactures and sells mineral and nitrogen fertilizers worldwide.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

How has Zaklady Azotowe Pulawy's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

ZAP

-2.0%

PL Chemicals

-1.8%

PL Market


1 Year Return

20.4%

ZAP

-8.0%

PL Chemicals

-3.3%

PL Market

Return vs Industry: ZAP exceeded the Polish Chemicals industry which returned -8% over the past year.

Return vs Market: ZAP exceeded the Polish Market which returned -3.3% over the past year.


Shareholder returns

ZAPIndustryMarket
7 Day-1.9%-2.0%-1.8%
30 Day-2.2%-3.4%-1.0%
90 Day1.8%-8.0%1.9%
1 Year22.4%20.4%-5.0%-8.0%-0.2%-3.3%
3 Year-42.1%-48.0%-34.2%-40.5%12.4%4.1%
5 Year-21.5%-35.5%-25.4%-34.7%0.9%-11.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zaklady Azotowe Pulawy undervalued compared to its fair value and its price relative to the market?

7.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZAP (PLN91) is trading above our estimate of fair value (PLN78.38)

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


Price To Earnings Ratio

PE vs Industry: ZAP is good value based on its PE Ratio (7.9x) compared to the Chemicals industry average (11.3x).

PE vs Market: ZAP is good value based on its PE Ratio (7.9x) compared to the Polish market (10.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

-7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAP's earnings are forecast to decline over the next 3 years (-7% per year).

Earnings vs Market: ZAP's earnings are forecast to decline over the next 3 years (-7% per year).

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

Revenue vs Market: ZAP's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: ZAP's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Zaklady Azotowe Pulawy performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAP has high quality earnings.

Growing Profit Margin: ZAP's current net profit margins (5.8%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: ZAP's earnings have declined by -12.3% per year over the past 5 years.

Accelerating Growth: ZAP's earnings growth over the past year (33.1%) exceeds its 5-year average (-12.3% per year).

Earnings vs Industry: ZAP earnings growth over the past year (33.1%) underperformed the Chemicals industry 33.1%.


Return on Equity

High ROE: ZAP's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zaklady Azotowe Pulawy's financial position?


Financial Position Analysis

Short Term Liabilities: ZAP's short term assets (PLN1.7B) exceeds its short term liabilities (PLN840.0M)

Long Term Liabilities: ZAP's short term assets (PLN1.7B) exceeds its long term liabilities (532.0M)


Debt to Equity History and Analysis

Debt Level: ZAP's debt to equity ratio (2.4%) is considered satisfactory.

Reducing Debt: ZAP's debt to equity ratio has increased from 0.06% to 2.4% over the past 5 years.

Debt Coverage: ZAP's debt is well covered by operating cash flow (621.7%).

Interest Coverage: ZAP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: ZAP's debt is covered by short term assets (assets are 21.3x debt).


Next Steps

Dividend

What is Zaklady Azotowe Pulawy's current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.7%markettop25%7.4%industryaverage5.8%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: ZAP's dividend (1.93%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.68%).

High Dividend: ZAP's dividend (1.93%) is low compared to the top 25% of dividend payers in the Polish market (7.36%).


Stability and Growth of Payments

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

Growing Dividend: ZAP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), ZAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZAP's dividends in 3 years are forecast to be well covered by earnings (38% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Jacek Janiszek 0

2.8yrs

Tenure

zł1,113,000

Compensation

Mr. Jacek Janiszek has been President of the Management Board at Zaklady Azotowe Pulawy S.A. since March 9, 2017 and has been its Chief Executive Officer since January 2017. Mr. Janiszek has been Vice Pres ...


CEO Compensation Analysis

Compensation vs Market: Jacek's total compensation ($USD286.53K) is above average for companies of similar size in the Polish market ($USD0.00).

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


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: ZAP's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

Experienced Board: ZAP's board of directors are not considered experienced ( 2.8 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

  • Krzysztof Homenda (56yo)

    Vice-President of Management Board

    • Tenure: 3.4yrs
    • Compensation: zł710.00k
  • Jacek Wójtowicz

    Secretary & Member of the Supervisory Board

    • Tenure: 15.9yrs
  • Zenon Pokojski

    Vice-President of the Management Board

    • Tenure: 0yrs
    • Compensation: zł611.00k
  • Marian Rybak

    Member of Management Board

    • Tenure: 11.8yrs
    • Compensation: zł1.26m
  • Jacek Janiszek

    President of the Management Board & CEO

    • Tenure: 2.8yrs
    • Compensation: zł1.11m
  • Andrzej Skwarek

    Member of Management Board

    • Tenure: 3.5yrs
    • Compensation: zł652.00k
  • Izabela Swiderek

    Vice-President of Management Board

    • Tenure: 2.4yrs
    • Compensation: zł708.00k
  • Pawel Owczarski

    Vice-President of Management Board

    • Tenure: 2.4yrs
    • Compensation: zł302.00k

Board Members

  • Jerzy Koziara

    Deputy Chairman of the Supervisory Board

    • Tenure: 6.5yrs
    • Compensation: zł18.00k
  • Andrzej Skolmowski

    Member of the Supervisory Board

    • Tenure: 6.3yrs
    • Compensation: zł17.00k
  • Wiktor Cwynar

    Member of Supervisory Board

    • Tenure: 2.4yrs
  • Jacek Wójtowicz

    Secretary & Member of the Supervisory Board

    • Tenure: 15.9yrs
  • Jacek Niescior

    Chairman of the Supervisory Board

    • Tenure: 2.8yrs
  • Krzysztof Bednarz

    Member of Supervisory Board

    • Tenure: 2.4yrs
    • Compensation: zł247.00k
  • Grzegorz Mandziarz

    Member of Supervisory Board

    • Tenure: 2.4yrs
  • Maciej Marzec

    Member of Supervisory Board

    • Tenure: 2.4yrs
  • Leszek Lewicki

    Member of Supervisory Board

    • Tenure: 2.8yrs
  • Ignacy Chwesiuk

    Member of Supervisory Board

    • Tenure: 0yrs

Company Information

Zaklady Azotowe Pulawy S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zaklady Azotowe Pulawy S.A.
  • Ticker: ZAP
  • Exchange: WSE
  • Founded: 1961
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: zł1.739b
  • Shares outstanding: 19.12m
  • Website: https://www.pulawy.com

Number of Employees


Location

  • Zaklady Azotowe Pulawy S.A.
  • Al. Tysiaclecia Panstwa Polskiego 13
  • Pulawy
  • 24-110
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZAPWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNNov 2005
0OIILSE (London Stock Exchange)YesCommon Bearer SharesGBPLNNov 2005

Biography

Zaklady Azotowe Pulawy SA manufactures and sells mineral and nitrogen fertilizers worldwide. The company’s fertilizers include ammonium nitrate under the PULAN name: urea under the PULREA name; ammonium su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 20:38
End of Day Share Price2019/11/21 00:00
Earnings2019/06/30
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.