WSE:DEL

Stock Analysis Report

Executive Summary

Delko S.A. engages in the wholesale distribution of household chemicals, cosmetics, and personal hygiene products in Poland.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

DEL

-6.1%

PL Retail Distributors

-1.5%

PL Market


1 Year Return

20.0%

DEL

-35.2%

PL Retail Distributors

-33.0%

PL Market

Return vs Industry: DEL exceeded the Polish Retail Distributors industry which returned -35.2% over the past year.

Return vs Market: DEL exceeded the Polish Market which returned -33% over the past year.


Shareholder returns

DELIndustryMarket
7 Day-4.3%-6.1%-1.5%
30 Day-3.2%-31.0%-19.6%
90 Day-19.6%-32.1%-27.9%
1 Year26.4%20.0%-34.9%-35.2%-31.0%-33.0%
3 Year-10.2%-21.5%-54.3%-54.8%-32.5%-37.3%
5 Year69.1%38.9%-38.4%-39.4%-29.2%-38.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DEL (PLN9) is trading below our estimate of fair value (PLN32.31)

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


Price To Earnings Ratio

PE vs Industry: DEL is good value based on its PE Ratio (3.7x) compared to the Retail Distributors industry average (6.8x).

PE vs Market: DEL is good value based on its PE Ratio (3.7x) compared to the Polish market (9.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DEL is good value based on its PB Ratio (0.6x) compared to the PL Retail Distributors industry average (1x).


Next Steps

Future Growth

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

-4.9%

Forecasted Retail 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 Delko 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.


Next Steps

Past Performance

How has Delko performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEL has high quality earnings.

Growing Profit Margin: DEL's current net profit margins (2%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: DEL's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: DEL's earnings growth over the past year (28.4%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: DEL earnings growth over the past year (28.4%) underperformed the Retail Distributors industry 28.4%.


Return on Equity

High ROE: DEL's Return on Equity (16.3%) is considered low.


Next Steps

Financial Health

How is Delko's financial position?


Financial Position Analysis

Short Term Liabilities: DEL's short term assets (PLN151.7M) exceed its short term liabilities (PLN131.0M).

Long Term Liabilities: DEL's short term assets (PLN151.7M) exceed its long term liabilities (PLN31.0M).


Debt to Equity History and Analysis

Debt Level: DEL's debt to equity ratio (80.8%) is considered high.

Reducing Debt: DEL's debt to equity ratio has reduced from 85% to 80.8% over the past 5 years.

Debt Coverage: DEL's debt is well covered by operating cash flow (33.5%).

Interest Coverage: DEL's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: DEL's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DEL's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Polish market (3.25%).

High Dividend: DEL's dividend (4.44%) is low compared to the top 25% of dividend payers in the Polish market (8.79%).


Stability and Growth of Payments

Stable Dividend: DEL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DEL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.7%), DEL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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


CEO

Dariusz Kawecki

7.92s

Tenure

Mr. Dariusz Kawecki has been the President of Management Board at Delko S.A. since April 24, 2012. Mr. Kawecki served as the Chairman of Management Board at Delko S.A. from 2000 to 2002 and also served as  ...


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

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


Key Information

  • Name: Delko S.A.
  • Ticker: DEL
  • Exchange: WSE
  • Founded: 1995
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: zł53.820m
  • Shares outstanding: 5.98m
  • Website: https://www.delko.pl

Location

  • Delko S.A.
  • Gostynska 51
  • Srem
  • 63-100
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DELWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNDec 2009
0MMSLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNDec 2009

Biography

Delko S.A. engages in the wholesale distribution of household chemicals, cosmetics, and personal hygiene products in Poland. It markets its products through distributors and wholesalers. The company was founded in 1995 and is headquartered in Srem, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 22:26
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
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.