WSE:PRO

Stock Analysis Report

Executive Summary

A.P.N. Promise S.A. provides IT solutions, products, and services to various business entities and individual customers in Poland.

Rewards

Trading at 92.2% below its fair value

Earnings grew by 89.2% over the past year

Risk Analysis

Does not have a meaningful market cap (PLN30M)

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Outstanding track record and undervalued.

Share Price & News

How has A.P.N. Promise's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.9%

PRO

-1.0%

PL IT

1.2%

PL Market


1 Year Return

-9.7%

PRO

37.1%

PL IT

-7.1%

PL Market

Return vs Industry: PRO underperformed the Polish IT industry which returned 37.1% over the past year.

Return vs Market: PRO underperformed the Polish Market which returned -7.1% over the past year.


Shareholder returns

PROIndustryMarket
7 Day4.9%-1.0%1.2%
30 Day29.6%3.4%-3.5%
90 Day49.0%7.2%-2.8%
1 Year6.4%-9.7%39.4%37.1%-4.3%-7.1%
3 Year-31.4%-50.3%38.0%31.6%5.8%-2.0%
5 Year37.4%-8.3%62.1%51.9%3.3%-9.6%

Price Volatility Vs. Market

How volatile is A.P.N. Promise's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A.P.N. Promise 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: PRO (PLN2.98) is trading below our estimate of fair value (PLN38.23)

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


Price To Earnings Ratio

PE vs Industry: PRO is good value based on its PE Ratio (4.7x) compared to the IT industry average (9.4x).

PE vs Market: PRO is good value based on its PE Ratio (4.7x) compared to the Polish market (10.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRO is good value based on its PB Ratio (1x) compared to the PL IT industry average (1.7x).


Next Steps

Future Growth

How is A.P.N. Promise forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.8%

Forecasted Software 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 A.P.N. Promise 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 A.P.N. Promise performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRO has high quality earnings.

Growing Profit Margin: PRO's current net profit margins (1.2%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: PRO's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: PRO's earnings growth over the past year (89.2%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: PRO earnings growth over the past year (89.2%) exceeded the IT industry 22.9%.


Return on Equity

High ROE: PRO's Return on Equity (21.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is A.P.N. Promise's financial position?


Financial Position Analysis

Short Term Liabilities: PRO's short term assets (PLN112.9M) exceed its short term liabilities (PLN101.8M).

Long Term Liabilities: PRO's short term assets (PLN112.9M) exceed its long term liabilities (PLN519.2K).


Debt to Equity History and Analysis

Debt Level: PRO's debt to equity ratio (89.1%) is considered high.

Reducing Debt: PRO's debt to equity ratio has reduced from 264.8% to 89.1% over the past 5 years.

Debt Coverage: PRO's debt is well covered by operating cash flow (28.8%).

Interest Coverage: PRO's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: PRO's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is A.P.N. Promise's current dividend yield, its reliability and sustainability?

6.04%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.6%markettop25%7.2%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PRO's dividend (6.04%) is higher than the bottom 25% of dividend payers in the Polish market (2.58%).

High Dividend: PRO's dividend (6.04%) is low compared to the top 25% of dividend payers in the Polish market (7.22%).


Stability and Growth of Payments

Stable Dividend: PRO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PRO has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), PRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of A.P.N. Promise's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average board tenure


CEO

Piotr Paszczyk 0

11.8yrs

Tenure

0

Mr. Piotr Tomasz Paszczyk has been President of The Management Board at APN Promise Spólka Akcyjna since March 31, 2008. Mr. Paszczyk has been a Member of The Management Board at APN Promise Spólka Akcyjna ...


Board Age and Tenure

5.5yrs

Average Tenure

Experienced Board: PRO's board of directors are considered experienced (5.5 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 10.4%.


Management Team

  • Piotr Paszczyk

    President of the Management Board

    • Tenure: 11.8yrs
  • Monika Zawistowska

    Secretary of the Supervisory Board and Member of the Supervisory Board

    • Tenure: 7.4yrs
  • Pawel Kolakowski

    Member of the Management Board

    • Tenure: 0.5yrs

Board Members

  • Tomasz Lotz

    Vice Chairman of the Supervisory Board

    • Tenure: 0yrs
  • Jacek Rzezniczek

    Chairman of the Supervisory Board

    • Tenure: 8.8yrs
  • Monika Zawistowska

    Secretary of the Supervisory Board and Member of the Supervisory Board

    • Tenure: 7.4yrs
  • Adam Car (39yo)

    Member of the Supervisory Board

    • Tenure: 3.5yrs
  • Marzenna Paszczyk (72yo)

    Member of the Supervisory Board

    • Tenure: 3.4yrs

Company Information

A.P.N. Promise S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A.P.N. Promise S.A.
  • Ticker: PRO
  • Exchange: WSE
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: zł29.754m
  • Shares outstanding: 9.98m
  • Website: https://www.apnpromise.pl

Location

  • A.P.N. Promise S.A.
  • ul. Domaniewska 44a
  • Warsaw
  • 02-672
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PROWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNFeb 2013

Biography

A.P.N. Promise S.A. provides IT solutions, products, and services to various business entities and individual customers in Poland. The company supports for the long-term licensing agreements and optimizati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 21:28
End of Day Share Price2019/12/13 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.