Buy Or Sell Opportunity • Oct 20
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.9% to zł19.90. The fair value is estimated to be zł25.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 14%. Buy Or Sell Opportunity • Sep 15
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to zł19.50. The fair value is estimated to be zł25.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 14%. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: zł0.54 (vs zł0.74 in 2Q 2024) Second quarter 2025 results: EPS: zł0.54 (down from zł0.74 in 2Q 2024). Revenue: zł25.8m (up 4.4% from 2Q 2024). Net income: zł5.52m (down 28% from 2Q 2024). Profit margin: 21% (down from 31% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • May 09
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 53% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (53% accrual ratio). Minor Risks Dividend is not well covered by cash flows (117% cash payout ratio). Market cap is less than US$100m (zł239.0m market cap, or US$63.4m). Reported Earnings • May 09
First quarter 2025 earnings released First quarter 2025 results: Revenue: zł26.6m (up 8.7% from 1Q 2024). Net income: zł8.08m (up 4.2% from 1Q 2024). Profit margin: 30% (down from 32% in 1Q 2024). The decrease in margin was driven by higher expenses. New Risk • Mar 24
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 93% Dividend yield: 10% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (93% cash payout ratio). Market cap is less than US$100m (zł237.0m market cap, or US$61.2m). Reported Earnings • Aug 08
Second quarter 2024 earnings released: EPS: zł0.74 (vs zł0.52 in 2Q 2023) Second quarter 2024 results: EPS: zł0.74 (up from zł0.52 in 2Q 2023). Revenue: zł24.7m (up 33% from 2Q 2023). Net income: zł7.68m (up 43% from 2Q 2023). Profit margin: 31% (up from 29% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. New Risk • Jul 17
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 91% Cash payout ratio: 100% Dividend yield: 10% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Cash payout ratio: 100% High level of non-cash earnings (33% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.9% average weekly change). Market cap is less than US$100m (zł246.3m market cap, or US$62.7m). Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to zł24.70, the stock trades at a trailing P/E ratio of 9.4x. Average trailing P/E is 19x in the Entertainment industry in Poland. Total returns to shareholders of 22% over the past three years. Reported Earnings • May 09
First quarter 2024 earnings released First quarter 2024 results: Revenue: zł24.5m (up 25% from 1Q 2023). Net income: zł7.75m (up 40% from 1Q 2023). Profit margin: 32% (up from 28% in 1Q 2023). The increase in margin was driven by higher revenue. Upcoming Dividend • May 03
Upcoming dividend of zł2.40 per share Eligible shareholders must have bought the stock before 10 May 2024. Payment date: 16 May 2024. Payout ratio is a comfortable 72% and the cash payout ratio is 80%. Trailing yield: 5.8%. Lower than top quartile of Polish dividend payers (7.9%). Higher than average of industry peers (2.4%). New Risk • Apr 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (109% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.8% average weekly change). Market cap is less than US$100m (zł266.9m market cap, or US$66.1m). Announcement • Apr 16
CDA S.A., Annual General Meeting, May 08, 2024 CDA S.A., Annual General Meeting, May 08, 2024, at 11:00 Central European Standard Time. Reported Earnings • Mar 14
Full year 2023 earnings released Full year 2023 results: Revenue: zł8.48b (up zł8.41b from FY 2022). Net income: zł2.48b (up zł2.47b from FY 2022). Profit margin: 29% (up from 27% in FY 2022). The increase in margin was driven by higher revenue. Buy Or Sell Opportunity • Feb 13
Now 24% undervalued Over the last 90 days, the stock has risen 16% to zł20.00. The fair value is estimated to be zł26.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 9.6%. Buying Opportunity • Jan 12
Now 21% undervalued Over the last 90 days, the stock is up 20%. The fair value is estimated to be zł24.32, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 9.6%. New Risk • Oct 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 49% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (154% cash payout ratio). Shareholders have been diluted in the past year (49% increase in shares outstanding). Market cap is less than US$100m (zł241.8m market cap, or US$55.4m). Buying Opportunity • Aug 18
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 5.0%. The fair value is estimated to be zł21.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.6% over the last 3 years. Earnings per share has grown by 11%. Reported Earnings • Aug 13
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: zł18.6m (up 11% from 2Q 2022). Net income: zł5.36m (up 18% from 2Q 2022). Profit margin: 29% (up from 27% in 2Q 2022). The increase in margin was driven by higher revenue. Upcoming Dividend • Jun 22
Upcoming dividend of zł1.55 per share at 8.2% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 05 July 2023. Payout ratio is on the higher end at 79%, and the cash payout ratio is above 100%. Trailing yield: 8.2%. Within top quartile of Polish dividend payers (7.4%). Higher than average of industry peers (1.8%). Reported Earnings • Mar 19
Full year 2022 earnings released Full year 2022 results: Revenue: zł71.5m (up 4.2% from FY 2021). Net income: zł19.5m (up 2.6% from FY 2021). Profit margin: 27% (in line with FY 2021). Buying Opportunity • Dec 15
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.3%. The fair value is estimated to be zł22.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 24%. Upcoming Dividend • Jun 21
Upcoming dividend of zł1.85 per share Eligible shareholders must have bought the stock before 28 June 2022. Payment date: 18 July 2022. Payout ratio is on the higher end at 98%, and the cash payout ratio is above 100%. Trailing yield: 9.5%. Within top quartile of Polish dividend payers (8.3%). Higher than average of industry peers (2.6%). Reported Earnings • May 16
First quarter 2022 earnings released First quarter 2022 results: Revenue: zł17.5m (flat on 1Q 2021). Net income: zł5.01m (up 5.8% from 1Q 2021). Profit margin: 29% (up from 27% in 1Q 2021). Buying Opportunity • Feb 24
Now 32% undervalued after recent price drop Over the last 90 days, the stock is down 15%. The fair value is estimated to be zł24.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% per annum over the last 3 years. Earnings per share has grown by 47% per annum over the last 3 years. Buying Opportunity • Jan 24
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 5.9%. The fair value is estimated to be zł25.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% per annum over the last 3 years. Earnings per share has grown by 47% per annum over the last 3 years. Reported Earnings • Nov 11
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: zł16.8m (up 15% from 3Q 2020). Net income: zł4.70m (up 39% from 3Q 2020). Profit margin: 28% (up from 23% in 3Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • Aug 10
Second quarter 2021 earnings released The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: zł16.6m (up 6.6% from 2Q 2020). Net income: zł4.62m (up 5.7% from 2Q 2020). Profit margin: 28% (in line with 2Q 2020). Reported Earnings • May 09
First quarter 2021 earnings released: EPS zł0.47 (vs zł0.36 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: zł17.4m (up 31% from 1Q 2020). Net income: zł4.74m (up 29% from 1Q 2020). Profit margin: 27% (in line with 1Q 2020). Upcoming Dividend • Apr 14
Upcoming dividend of zł1.80 per share Eligible shareholders must have bought the stock before 20 April 2021. Payment date: 28 April 2021. Trailing yield: 2.3%. Lower than top quartile of Polish dividend payers (5.1%). Higher than average of industry peers (1.3%). Announcement • Mar 11
CDA S.A., Annual General Meeting, Apr 07, 2021 CDA S.A., Annual General Meeting, Apr 07, 2021, at 09:30 Central European Standard Time. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment improved over the past week After last week's 18% share price gain to zł30.60, the stock is trading at a trailing P/E ratio of 19.1x, up from the previous P/E ratio of 16.2x. This compares to an average P/E of 39x in the Entertainment industry in Poland. Total returns to shareholders over the past year are 115%. Reported Earnings • Mar 03
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: zł60.5m (up 41% from FY 2019). Net income: zł16.3m (up 77% from FY 2019). Profit margin: 27% (up from 22% in FY 2019). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Mar 02
New 90-day low: zł26.00 The company is down 4.0% from its price of zł27.00 on 02 December 2020. The Polish market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Entertainment industry, which is down 30% over the same period. Valuation Update With 7 Day Price Move • Oct 21
Market bids up stock over the past week After last week's 17% share price gain to zł29.50, the stock is trading at a trailing P/E ratio of 21.3x, up from the previous P/E ratio of 18.2x. This compares to an average P/E of 34x in the Entertainment industry in Poland. Total returns to shareholders over the past year are 180%. Valuation Update With 7 Day Price Move • Oct 19
Market bids up stock over the past week After last week's 16% share price gain to zł29.50, the stock is trading at a trailing P/E ratio of 21.3x, up from the previous P/E ratio of 18.3x. This compares to an average P/E of 34x in the Entertainment industry in Poland. Total returns to shareholders over the past year are 179%. Is New 90 Day High Low • Sep 28
New 90-day low: zł24.95 The company is down 17% from its price of zł29.95 on 30 June 2020. The Polish market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is flat over the same period.