WSE:ASE

Stock Analysis Report

Asseco South Eastern Europe

Executive Summary

Asseco South Eastern Europe S.A., together with its subsidiaries, sells its own and third-party software in Poland, South Eastern Europe, and Turkey.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Asseco South Eastern Europe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

ASE

-0.6%

PL IT

-3.6%

PL Market


1 Year Return

87.5%

ASE

38.4%

PL IT

-9.0%

PL Market

Return vs Industry: ASE exceeded the Polish IT industry which returned 41.9% over the past year.

Return vs Market: ASE exceeded the Polish Market which returned -4.3% over the past year.


Shareholder returns

ASEIndustryMarket
7 Day-2.4%-0.6%-3.6%
30 Day-3.2%5.8%-1.3%
90 Day16.5%15.3%-2.3%
1 Year93.7%87.5%40.8%38.4%-6.2%-9.0%
3 Year151.6%123.3%35.3%29.0%-0.9%-8.0%
5 Year257.4%190.2%68.5%58.0%2.7%-10.0%

Price Volatility Vs. Market

How volatile is Asseco South Eastern Europe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Asseco South Eastern Europe undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASE (PLN24) is trading below our estimate of fair value (PLN31.69)

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


Price To Earnings Ratio

PE vs Industry: ASE is poor value based on its PE Ratio (15.4x) compared to the IT industry average (7.3x).

PE vs Market: ASE is poor value based on its PE Ratio (15.4x) compared to the Polish market (11.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ASE is good value based on its PB Ratio (1.5x) compared to the PL IT industry average (1.6x).


Next Steps

Future Growth

How is Asseco South Eastern Europe forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ASE's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if ASE's earnings are forecast to grow faster than the Polish market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASE's revenue (6.4% per year) is forecast to grow faster than the Polish market (5.1% per year).

High Growth Revenue: ASE's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASE's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Asseco South Eastern Europe performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASE has high quality earnings.

Growing Profit Margin: ASE's current net profit margins (9.8%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: ASE's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: ASE's earnings growth over the past year (28.8%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: ASE earnings growth over the past year (28.8%) underperformed the IT industry 29%.


Return on Equity

High ROE: ASE's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Asseco South Eastern Europe's financial position?


Financial Position Analysis

Short Term Liabilities: ASE's short term assets (PLN417.1M) exceed its short term liabilities (PLN277.6M).

Long Term Liabilities: ASE's short term assets (PLN417.1M) exceed its long term liabilities (PLN139.7M).


Debt to Equity History and Analysis

Debt Level: ASE's debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: ASE's debt to equity ratio has increased from 6.2% to 12.7% over the past 5 years.

Debt Coverage: ASE's debt is well covered by operating cash flow (115.2%).

Interest Coverage: ASE's interest payments on its debt are well covered by EBIT (266.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASE's debt is covered by short term assets (assets are 4.1x debt).


Next Steps

Dividend

What is Asseco South Eastern Europe's current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.3%markettop25%6.9%industryaverage1.6%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: ASE's dividend (2.17%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.4%).

High Dividend: ASE's dividend (2.17%) is low compared to the top 25% of dividend payers in the Polish market (7.05%).


Stability and Growth of Payments

Stable Dividend: ASE's dividend payments have been volatile in the past 10 years.

Growing Dividend: ASE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.3%), ASE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASE's dividends in 3 years are forecast to be well covered by earnings (41% payout ratio).


Next Steps

Management

What is the CEO of Asseco South Eastern Europe's salary, the management and board of directors tenure and is there insider trading?

11.5yrs

Average management tenure


CEO

Piotr Jelenski 0

12.5yrs

Tenure

zł2,377,000

Compensation

Mr. Piotr Jelenski serves as Chief Executive Officer of Asseco SEE Teknoloji A.S. Mr. Jelenski serves as President of the Management Board at Asseco South Eastern Europe S.A. since July 2007. Mr. Jelenski  ...


CEO Compensation Analysis

Compensation vs Market: Piotr's total compensation ($USD625.21K) is above average for companies of similar size in the Polish market ($USD456.72K).

Compensation vs Earnings: Piotr's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.5yrs

Average Tenure

Experienced Management: ASE's management team is seasoned and experienced (11.5 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

Experienced Board: ASE's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Piotr Jelenski

    President of the Management Board

    • Tenure: 12.5yrs
    • Compensation: zł2.38m
  • Miljan Mališ

    Member of the Management Board

    • Tenure: 11.5yrs
    • Compensation: zł677.00k
  • Torben Falholt

    Chief Executive Officer of Asseco Denmark A/S

    • Marcin Rulnicki (43yo)

      CFO & Member of the Management Board

      • Compensation: zł737.00k
    • Kostadin Slavkoski

      Member of Management Board

      • Tenure: 0.3yrs

    Board Members

    • Jacek Duch (72yo)

      Member of Supervisory Board

      • Tenure: 9.8yrs
      • Compensation: zł62.00k
    • Adam Góral

      Vice Chairman of Supervisory Board

      • Tenure: 2.7yrs
      • Compensation: zł30.00k
    • Jozef Klein

      Chairman of Supervisory Board

      • Tenure: 2.7yrs
      • Compensation: zł21.00k
    • Artur Kucharski (51yo)

      Member of Supervisory Board

      • Tenure: 3.8yrs
      • Compensation: zł92.00k
    • Adam Pawlowicz

      Member of Supervisory Board

      • Tenure: 2.3yrs
      • Compensation: zł61.00k

    Company Information

    Asseco South Eastern Europe S.A.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Asseco South Eastern Europe S.A.
    • Ticker: ASE
    • Exchange: WSE
    • Founded: 2007
    • Industry: IT Consulting and Other Services
    • Sector: Software
    • Market Cap: zł1.245b
    • Shares outstanding: 51.89m
    • Website: https://www.asseco.com/see

    Number of Employees


    Location

    • Asseco South Eastern Europe S.A.
    • Branickiego 13
    • Warsaw
    • 02-972
    • Poland

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ASEWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNOct 2009
    0MMPLSE (London Stock Exchange)YesOrdinary SharesGBPLNOct 2009

    Biography

    Asseco South Eastern Europe S.A., together with its subsidiaries, sells its own and third-party software in Poland, South Eastern Europe, and Turkey. The company offers banking software solutions and services, including omni-channel solutions; and integrated core banking systems based on the Oracle and Microsoft platforms, as well as authentication security solutions, reporting systems for regulatory compliance and managerial information, and risk management systems. It also provides payment industry solutions for financial and non-financial institutions supporting card and card-less transactions, including e-commerce related solutions, m-payments, and processing, as well as ATM and POS related services. In addition, the company offers system integration solutions and services for financial, industry, and public administration sectors, including the development of IT infrastructure, implementations and support, business processes continuity, operations automation, and customized software development. The company was founded in 2007 and is headquartered in Warsaw, Poland. Asseco South Eastern Europe S.A. is a subsidiary of Asseco Poland S.A. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 21:52
    End of Day Share Price2020/01/27 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.