WSE:WTN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

WTN

-0.03%

PL Specialty Retail

1.1%

PL Market


1 Year Return

-8.6%

WTN

-2.3%

PL Specialty Retail

-2.5%

PL Market

Return vs Industry: WTN underperformed the Polish Specialty Retail industry which returned -2.3% over the past year.

Return vs Market: WTN underperformed the Polish Market which returned -2.5% over the past year.


Shareholder returns

WTNIndustryMarket
7 Day2.2%-0.03%1.1%
30 Day-4.8%-0.5%-0.5%
90 Day-9.5%-13.2%-6.7%
1 Year-2.3%-8.6%0.8%-2.3%0.5%-2.5%
3 Year-17.0%-29.2%-19.1%-28.7%11.1%3.1%
5 Yearn/a-40.7%-53.5%-0.5%-12.6%

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?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WTN (PLN13.8) is trading below our estimate of fair value (PLN18.17)

Significantly Below Fair Value: WTN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WTN is good value based on its PE Ratio (8.6x) compared to the Specialty Retail industry average (8.6x).

PE vs Market: WTN is good value based on its PE Ratio (8.6x) compared to the Polish market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: WTN is poor value based on its PEG Ratio (6.8x)


Price to Book Ratio

PB vs Industry: WTN is overvalued based on its PB Ratio (2x) compared to the PL Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Wittchen forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTN's forecast earnings growth (1.3% per year) is below the savings rate (2.9%).

Earnings vs Market: WTN's earnings (1.3% per year) are forecast to grow slower than the Polish market (10.7% per year).

High Growth Earnings: WTN's earnings are forecast to grow, but not significantly.

Revenue vs Market: WTN's revenue (11.3% per year) is forecast to grow faster than the Polish market (5.8% per year).

High Growth Revenue: WTN's revenue (11.3% 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 (18.9%).


Next Steps

Past Performance

How has Wittchen performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WTN's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: WTN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WTN had negative earnings growth (-0.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (-18.9%).


Return on Equity

High ROE: WTN's Return on Equity (23.6%) is considered high.


Return on Assets

ROA vs Industry: WTN has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: WTN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Wittchen's financial position?


Financial Position Analysis

Short Term Liabilities: WTN's short term assets (PLN110.8M) exceeds its short term liabilities (PLN40.1M)

Long Term Liabilities: WTN's short term assets (110.8M) exceeds its long term liabilities (101.6M)


Debt to Equity History and Analysis

Debt Level: WTN's debt to equity ratio (43.9%) is considered high

Reducing Debt: WTN's debt to equity ratio has reduced from 155.1% to 43.9% over the past 5 years.

Debt Coverage: WTN's debt is well covered by operating cash flow (78.7%).

Interest Coverage: WTN's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: WTN's debt is covered by short term assets (assets are 2.058250x debt).


Next Steps

Dividend

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

7.25%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%2.7%markettop25%7.4%industryaverage3.3%forecastin3Years7.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WTN's dividend (7.25%) is higher than the bottom 25% of dividend payers in the Polish market (2.67%).

High Dividend: WTN's dividend (7.25%) is low compared to the top 25% of dividend payers in the Polish market (7.37%).

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 (62.6%), 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 (54.6% payout ratio).


Next Steps

Management

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


CEO

Jêdrzej Wittchen 0

0yrs

Tenure

0

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 ...


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


Management Team

  • Jêdrzej Wittchen

    President of the Management Board

    • Tenure: 0yrs
  • Monika Wittchen

    Vice President of the Management Board

    • Tenure: 0yrs
  • Iwona Czapran

    Head of Public Relations

    • Tenure: 0yrs

Board Members

  • Pawel Marcinkiewicz

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Józef Mirecki

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Barbara Mirecka

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Monika Dziedzic

    Member of the Supervisory Board

    • Tenure: 0yrs

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: zł250.867m
  • 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

Biography

Wittchen S.A. manufactures and sells luxurious leather goods for men, women, and kids. It offers classic, tote, messenger, shopper, laptop, evening and clutch, and laptop bags, as well as backpacks; leathe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:31
End of Day Share Price2019/10/21 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.