WSE:WTN

Stock Analysis Report

Executive Summary

Wittchen S.A. manufactures and sells leather goods for men, women, and kids.

Rewards

Trading at 91.3% below its fair value

Revenue is forecast to grow 8.39% per year

Earnings grew by 3.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -15.3% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (PLN120M)



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.5%

WTN

1.8%

PL Specialty Retail

5.1%

PL Market


1 Year Return

-62.1%

WTN

-40.4%

PL Specialty Retail

-30.0%

PL Market

Return vs Industry: WTN underperformed the Polish Specialty Retail industry which returned -40.2% over the past year.

Return vs Market: WTN underperformed the Polish Market which returned -30.7% over the past year.


Shareholder returns

WTNIndustryMarket
7 Day-8.5%1.8%5.1%
30 Day-36.7%-24.2%-9.5%
90 Day-51.7%-29.7%-23.4%
1 Year-59.5%-62.1%-39.1%-40.4%-28.0%-30.0%
3 Year-57.2%-63.5%-49.7%-56.0%-28.3%-33.4%
5 Yearn/a-63.2%-70.6%-26.0%-35.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wittchen 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: WTN (PLN6.42) is trading below our estimate of fair value (PLN74.02)

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


Price To Earnings Ratio

PE vs Industry: WTN is good value based on its PE Ratio (3.6x) compared to the Specialty Retail industry average (6.8x).

PE vs Market: WTN is good value based on its PE Ratio (3.6x) compared to the Polish market (9.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WTN is good value based on its PB Ratio (0.8x) compared to the PL Specialty Retail industry average (1x).


Next Steps

Future Growth

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

-15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTN's earnings are forecast to decline over the next 3 years (-15.3% per year).

Earnings vs Market: WTN's earnings are forecast to decline over the next 3 years (-15.3% per year).

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

Revenue vs Market: WTN's revenue (8.4% per year) is forecast to grow faster than the Polish market (5.1% per year).

High Growth Revenue: WTN's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTN's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Wittchen performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTN has high quality earnings.

Growing Profit Margin: WTN's current net profit margins (11.3%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: WTN's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: WTN's earnings growth over the past year (3.3%) is below its 5-year average (4.1% per year).

Earnings vs Industry: WTN earnings growth over the past year (3.3%) exceeded the Specialty Retail industry 2.9%.


Return on Equity

High ROE: WTN's Return on Equity (21.4%) is considered high.


Next Steps

Financial Health

How is Wittchen's financial position?


Financial Position Analysis

Short Term Liabilities: WTN's short term assets (PLN105.3M) exceed its short term liabilities (PLN49.3M).

Long Term Liabilities: WTN's short term assets (PLN105.3M) exceed its long term liabilities (PLN60.2M).


Debt to Equity History and Analysis

Debt Level: WTN's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: WTN's debt to equity ratio has reduced from 104.4% to 10% over the past 5 years.

Debt Coverage: WTN's debt is well covered by operating cash flow (344.5%).

Interest Coverage: WTN's interest payments on its debt are well covered by EBIT (64.8x coverage).


Balance Sheet


Next Steps

Dividend

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

15.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WTN's dividend (15.58%) is higher than the bottom 25% of dividend payers in the Polish market (3.25%).

High Dividend: WTN's dividend (15.58%) is in the top 25% of dividend payers in the Polish market (8.79%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WTN has been paying a dividend for less than 10 years.

Growing Dividend: WTN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.7%), WTN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTN's dividends in 3 years are forecast to be covered by earnings (76.9% payout ratio).


Next Steps

Management

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


CEO

Jêdrzej Wittchen

no data

Tenure

Mr. Jedrzej Rafal Wittchen serves as President of the Management Board at Wittchen Spolka Akcyjna. Mr. Wittchen founded Wittchen Spolka Akcyjna in 1990 and served as its President. Mr. Wittchen is a Co-Fo ...


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

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


Key Information

  • Name: Wittchen S.A.
  • Ticker: WTN
  • Exchange: WSE
  • Founded: 1990
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: zł119.980m
  • Shares outstanding: 18.18m
  • Website: https://www.wittchen.com

Location

  • Wittchen S.A.
  • Gdanska 60 Street
  • Palmiry
  • Nowy Dwór Mazowiecki
  • 05-152
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTNWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNNov 2015
0RCILSE (London Stock Exchange)YesCommon Bearer SharesGBPLNNov 2015

Biography

Wittchen S.A. manufactures and sells leather goods for men, women, and kids. It offers classic, tote, shopper, hobo, evening and clutch, messenger, and laptop bags, as well as backpacks; leather goods, such as wallets, cases, briefcases, business card holders, document holders, and organizers; and luggage products, including suitcases, cosmetic cases, travel bags, waist and wrist bags, and travel accessories. The company also provides clothing products comprising jackets, coats, gilets, ponchos, and furs product; shoes consisting of ballerina shoes, sandals and flip flops, court shoes, stiletto shoes, boots and chelsea boots, knee high boots, cowboy boots, and shoes and moccasins; and accessories, such as belts, gloves, scarves and shawls, perfumes, umbrellas, winter accessories, key chains, ties and bow ties, pocket squares, hats, and toiletry bags. It operates through a network of approximately 100 sales showrooms in Europe, as well as an online store. The company was founded in 1990 and is based in Nowy Dwór Mazowiecki, Poland. Wittchen S.A. is a subsidiary of Simei Investments Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 23:50
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.