WSE:CMR

Stock Analysis Report

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Executive Summary

Comarch S.A. designs, implements, and integrates IT solutions worldwide.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

CMR

2.9%

PL IT

5.0%

PL Market


1 Year Return

4.1%

CMR

43.8%

PL IT

-19.3%

PL Market

Return vs Industry: CMR underperformed the Polish IT industry which returned 44.2% over the past year.

Return vs Market: CMR exceeded the Polish Market which returned -19.4% over the past year.


Shareholder returns

CMRIndustryMarket
7 Day-0.5%2.9%5.0%
30 Day-2.4%13.5%4.5%
90 Day7.4%19.7%-3.1%
1 Year5.0%4.1%46.2%43.8%-17.4%-19.3%
3 Year-7.6%-9.8%36.6%30.0%-22.9%-28.2%
5 Year54.4%50.7%81.7%69.4%-19.1%-28.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMR (PLN202) is trading above our estimate of fair value (PLN120.81)

Significantly Below Fair Value: CMR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMR is poor value based on its PE Ratio (14.7x) compared to the IT industry average (9x).

PE vs Market: CMR is poor value based on its PE Ratio (14.7x) compared to the Polish market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: CMR is poor value based on its PEG Ratio (46.1x)


Price to Book Ratio

PB vs Industry: CMR is good value based on its PB Ratio (1.7x) compared to the PL IT industry average (2x).


Next Steps

Future Growth

How is Comarch forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMR's forecast earnings growth (0.3% per year) is below the savings rate (2.9%).

Earnings vs Market: CMR's earnings (0.3% per year) are forecast to grow slower than the Polish market (11.6% per year).

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

Revenue vs Market: CMR's revenue (5.5% per year) is forecast to grow faster than the Polish market (2.3% per year).

High Growth Revenue: CMR's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMR's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Comarch performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMR has high quality earnings.

Growing Profit Margin: CMR's current net profit margins (7.6%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: CMR's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: CMR's earnings growth over the past year (155.2%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: CMR earnings growth over the past year (155.2%) exceeded the IT industry 34.6%.


Return on Equity

High ROE: CMR's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Comarch's financial position?


Financial Position Analysis

Short Term Liabilities: CMR's short term assets (PLN1.1B) exceed its short term liabilities (PLN653.2M).

Long Term Liabilities: CMR's short term assets (PLN1.1B) exceed its long term liabilities (PLN268.7M).


Debt to Equity History and Analysis

Debt Level: CMR's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: CMR's debt to equity ratio has reduced from 19.1% to 19.1% over the past 5 years.

Debt Coverage: CMR's debt is well covered by operating cash flow (79.9%).

Interest Coverage: CMR's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CMR's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.31%).

High Dividend: CMR's dividend (0.74%) is low compared to the top 25% of dividend payers in the Polish market (6.86%).


Stability and Growth of Payments

Stable Dividend: CMR is not paying a notable dividend for the Polish market, therefore no need to check if payments are stable.

Growing Dividend: CMR is not paying a notable dividend for the Polish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CMR is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CMR'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?

12.9yrs

Average management tenure


CEO

Janusz Filipiak (67yo)

22.33yrs

Tenure

zł12,354,297

Compensation

Prof. Janusz Filipiak is the Founder of Comarch Spólka Akcyjna and has been its Chief Executive Officer since 1998. Prof. Filipiak serves as the President of Management Board at Comarch Spólka Akcyjna. He  ...


CEO Compensation Analysis

Compensation vs Market: Janusz's total compensation ($USD3.09M) is above average for companies of similar size in the Polish market ($USD353.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Janusz Filipiak
Founder22.33yrszł12.35m24.55% PLN407.4m
Pawel Prokop
VP of the Mgmt Board & Director of the Public Administration Business Divisionno datazł423.34k0.37% PLN6.2m
Zbigniew Rymarczyk
VP of the Management Board & Director of ERP Divisionno datazł2.67m0.41% PLN6.8m
Marcin Warwas
VP of the Management Board & Director of the Services Division12.92yrszł2.84m0.13% PLN2.2m
Konrad Taraski
VP of the Management Board & CFOno datazł1.02m0.13% PLN2.2m
Andrzej Przewilikowski
VP of Management Board & Director of Financial Services Division4.83yrszł474.90kno data
Maria Smolinska
Head of Accountantno datano datano data
Piotr Pitosa
Director of Medicine Divisionno datazł1.38mno data
Katarzyna Kolbuc
Investor Relations Officerno datano datano data
Aleksandra Zaniewska
Investor Relations Officerno datano datano data

12.9yrs

Average Tenure

Experienced Management: CMR's management team is seasoned and experienced (12.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Elzbieta Filipiak
Member of Supervisory Boardno datazł1.27m10.4% PLN172.6m
Danuta Drobniak
Independent Member of Supervisory Boardno datazł60.00kno data
Anna Pruska
Member of Supervisory Board6.92yrszł79.28kno data
Tadeusz Wludyka
Member of Board of Supervisors1.33yrszł15.00kno data
Lukasz Kalinowski
Member of Supervisory Board1.33yrsno datano data
Joanna Krasodomska
Member of Supervisory Board1.33yrsno datano data
Andrzej Pach
Member of Supervisory Board1.33yrsno datano data

1.3yrs

Average Tenure

Experienced Board: CMR's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Comarch S.A.
  • Ticker: CMR
  • Exchange: WSE
  • Founded: 1993
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: zł1.659b
  • Shares outstanding: 8.13m
  • Website: https://www.comarch.com

Number of Employees


Location

  • Comarch S.A.
  • Al. Jana Pawla II 39a
  • Kraków
  • 31-864
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMRWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNMay 1999
0O6MLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNMay 1999

Biography

Comarch S.A. designs, implements, and integrates IT solutions worldwide. The company Telecommunications sector offers solutions in the areas of Internet of Things (IoT) Ecosystem, which includes IoT connectivity and solution management, analytics platform and billing system; real time data control and presentation, and digital sales and customer care; enterprise billing, charging, and revenue management, B2B digital platform, and sales and ordering solutions; network provisioning, real time OSS-SDN/NFV orchestration, self-organizing network, and service and resource orchestration; inventory management, network planning and design, auto-discovery and reconciliation, configuration management, and network consolidation; and BSS/OSS and cloud transformation and project delivery services. Its Finance, Banking and Insurance sector provides corporate banking, wealth management, digital insurance, anti-money laundering, identity and access management, transaction protection, and ERP solutions. In addition, its Public sector offers ERGO for collecting, maintaining, and managing information about roadway assets; EZD that supports electronic and paper flow of documents; e-Office, a platform for online public services; ERP class integrated IT system; smart parking; security platform; and eRecording and video terminal solutions. Further, the company’s Services sector provides loyalty programs, marketing campaign management, employee motivation management, electronic data interchange and business information, document management, sales process management support systems, and mobile applications. It also provides solutions for IT systems for hospitals; software products for health record management in medical facilities; short series manufacturing and mobility solutions, certification tools, embedded systems, and outsourcing systems; artificial intelligence management; and advertising services. Comarch S.A. was founded in 1993 and is headquartered in Kraków, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 20:58
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.