WSE:KKH

Stock Analysis Report

K&K Herbal Poland

Executive Summary

K&K Herbal Poland S.A. primarily focuses on the distribution and sale of dietary supplements and cosmetics, medical devices, and veterinary products in Poland.

Rewards

Trading at 79.5% below its fair value

Risk Analysis

Earnings have declined by -67.01% per year over past 5 years

Makes less than USD$1m in revenue (PLN2M)

Does not have a meaningful market cap (PLN1M)

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has K&K Herbal Poland's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.0%

KKH

-2.8%

PL Retail Distributors

-0.09%

PL Market


1 Year Return

18.8%

KKH

11.4%

PL Retail Distributors

-7.7%

PL Market

Return vs Industry: KKH exceeded the Polish Retail Distributors industry which returned 11.4% over the past year.

Return vs Market: KKH exceeded the Polish Market which returned -7.7% over the past year.


Shareholder returns

KKHIndustryMarket
7 Day-5.0%-2.8%-0.09%
30 Day0%-0.8%-2.0%
90 Day2.7%22.5%-1.1%
1 Year18.8%18.8%11.9%11.4%-4.9%-7.7%
3 Year-13.6%-13.6%-22.9%-23.7%-4.4%-11.2%
5 Year-44.1%-44.1%12.9%11.1%3.0%-10.0%

Price Volatility Vs. Market

How volatile is K&K Herbal Poland's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is K&K Herbal Poland 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: KKH (PLN0.19) is trading below our estimate of fair value (PLN0.93)

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


Price To Earnings Ratio

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

PE vs Market: KKH 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 KKH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KKH is good value based on its PB Ratio (1.1x) compared to the PL Retail Distributors industry average (1.2x).


Next Steps

Future Growth

How is K&K Herbal Poland forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

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 K&K Herbal Poland 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 K&K Herbal Poland performed over the past 5 years?

-67.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KKH is currently unprofitable.

Growing Profit Margin: KKH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KKH is unprofitable, and losses have increased over the past 5 years at a rate of -67% per year.

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

Earnings vs Industry: KKH is unprofitable, making it difficult to compare its past year earnings growth to the Retail Distributors industry (-1.9%).


Return on Equity

High ROE: KKH has a negative Return on Equity (-14.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is K&K Herbal Poland's financial position?


Financial Position Analysis

Short Term Liabilities: KKH's short term assets (PLN1.2M) exceed its short term liabilities (PLN141.2K).

Long Term Liabilities: KKH's short term assets (PLN1.2M) exceed its long term liabilities (PLN84.9K).


Debt to Equity History and Analysis

Debt Level: KKH's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: KKH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: KKH's debt is covered by short term assets (assets are 650.9x 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: KKH has been profitable on average in the past, therefore cash runway is not a concern.

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


Next Steps

Dividend

What is K&K Herbal Poland's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate KKH'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 KKH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KKH'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 KKH'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?


CEO

Krzysztof Milaszewski 0

0

Mr. Krzysztof Milaszewski serves as Chairman of The Management Board at K&K Herbal Poland Spólka Akcyjna. 


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

K&K Herbal Poland S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K&K Herbal Poland S.A.
  • Ticker: KKH
  • Exchange: WSE
  • Founded:
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: zł1.407m
  • Shares outstanding: 7.41m
  • Website: https://kkpoland.pl

Location

  • K&K Herbal Poland S.A.
  • ul. Limanowskiego 1A lok. 8
  • Wieliczka
  • 32-020
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KKHWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJul 2012

Biography

K&K Herbal Poland S.A. primarily focuses on the distribution and sale of dietary supplements and cosmetics, medical devices, and veterinary products in Poland. The company provides EnteFace, a face mask cleaner; Enterosgel, a medical device; and contactless thermometer, such as SYNERGICA SG1000. It offers its medical devices under the SYNERGICA brand. The company sells its products through pharmaceutical wholesalers, pharmacies, medical and herbal shops, and other partners, as well as through online stores. K&K Herbal Poland S.A. is based in Wieliczka, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:48
End of Day Share Price2020/02/14 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.