Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to zł18.10, the stock trades at a trailing P/E ratio of 12.8x. Average trailing P/E is 20x in the IT industry in Poland. Total returns to shareholders of 15% over the past three years. Reported Earnings • Jun 02
First quarter 2026 earnings released First quarter 2026 results: Revenue: zł16.9m (up 12% from 1Q 2025). Net loss: zł1.35m (loss widened 18% from 1Q 2025). Upcoming Dividend • Jun 01
Upcoming dividend of zł1.20 per share Eligible shareholders must have bought the stock before 08 June 2026. Payment date: 03 July 2026. Payout ratio is on the higher end at 81%, and the cash payout ratio is above 100%. Trailing yield: 6.3%. Lower than top quartile of Polish dividend payers (7.1%). Higher than average of industry peers (3.2%). Declared Dividend • May 08
Dividend increased to zł1.20 Dividend of zł1.20 is 380% higher than last year. Ex-date: 8th June 2026 Payment date: 3rd July 2026 Dividend yield will be 6.7%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but not covered by cash flows (128% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 4.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 07
Talex S.A. announces Annual dividend, payable on July 03, 2026 Talex S.A. announced Annual dividend of PLN 1.2000 per share payable on July 03, 2026, ex-date on June 08, 2026 and record date on June 09, 2026. Announcement • May 06
Talex S.A., Annual General Meeting, Jun 02, 2026 Talex S.A., Annual General Meeting, Jun 02, 2026, at 10:00 Central European Standard Time. New Risk • Apr 20
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 128% Dividend yield: 6.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (128% cash payout ratio). Share price has been volatile over the past 3 months (7.3% average weekly change). Market cap is less than US$100m (zł53.7m market cap, or US$15.0m). New Risk • Apr 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (zł56.4m market cap, or US$15.2m). Reported Earnings • Nov 26
Third quarter 2025 earnings released: EPS: zł0.56 (vs zł0.051 in 3Q 2024) Third quarter 2025 results: EPS: zł0.56 (up from zł0.051 in 3Q 2024). Revenue: zł41.3m (up 121% from 3Q 2024). Net income: zł1.68m (up zł1.52m from 3Q 2024). Profit margin: 4.1% (up from 0.8% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Aug 27
Talex S.A. to Report First Half, 2025 Results on Sep 30, 2025 Talex S.A. announced that they will report first half, 2025 results on Sep 30, 2025 Upcoming Dividend • Jun 10
Upcoming dividend of zł0.25 per share Eligible shareholders must have bought the stock before 17 June 2025. Payment date: 03 July 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Polish dividend payers (7.2%). Lower than average of industry peers (2.5%). Reported Earnings • Jun 02
First quarter 2025 earnings released: zł0.38 loss per share (vs zł0.023 profit in 1Q 2024) First quarter 2025 results: zł0.38 loss per share (down from zł0.023 profit in 1Q 2024). Revenue: zł15.2m (down 6.1% from 1Q 2024). Net loss: zł1.15m (down zł1.21m from profit in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Declared Dividend • May 14
Dividend reduced to zł0.25 Dividend of zł0.25 is 72% lower than last year. Ex-date: 17th June 2025 Payment date: 3rd July 2025 Dividend yield will be 1.2%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (52% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 6.7% to shift the payout ratio to a potentially unsustainable range, which is less than the 18% EPS decline seen over the last 5 years. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to zł22.80, the stock trades at a trailing P/E ratio of 77.6x. Average trailing P/E is 16x in the IT industry in Poland. Total returns to shareholders of 42% over the past three years. New Risk • Apr 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.2% Last year net profit margin: 1.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.1% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.4% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Market cap is less than US$100m (zł64.8m market cap, or US$16.9m). New Risk • Apr 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 12% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (100% cash payout ratio). Share price has been volatile over the past 3 months (7.6% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (zł65.4m market cap, or US$17.0m). Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to zł23.80, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 17x in the IT industry in Poland. Total returns to shareholders of 48% over the past three years. Reported Earnings • Nov 26
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: zł18.6m (up 4.1% from 3Q 2023). Net income: zł154.0k (up zł1.28m from 3Q 2023). Profit margin: 0.8% (up from net loss in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 29
Second quarter 2024 earnings released: zł0.21 loss per share (vs zł0.11 loss in 2Q 2023) Second quarter 2024 results: zł0.21 loss per share (further deteriorated from zł0.11 loss in 2Q 2023). Revenue: zł16.7m (down 14% from 2Q 2023). Net loss: zł637.0k (loss widened 100% from 2Q 2023). Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Aug 27
Talex S.A. to Report Q2, 2024 Results on Aug 28, 2024 Talex S.A. announced that they will report Q2, 2024 results on Aug 28, 2024 Upcoming Dividend • Jun 14
Upcoming dividend of zł0.90 per share Eligible shareholders must have bought the stock before 21 June 2024. Payment date: 02 July 2024. The company last paid an ordinary dividend in March 2014. The average dividend yield among industry peers is 2.6%. New Risk • Jun 09
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 61% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Market cap is less than US$100m (zł51.6m market cap, or US$12.9m). Announcement • May 11
Talex S.A., Annual General Meeting, Jun 05, 2024 Talex S.A., Annual General Meeting, Jun 05, 2024. New Risk • Jan 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 61% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Market cap is less than US$100m (zł52.5m market cap, or US$13.0m). Reported Earnings • Nov 26
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: zł17.9m (down 8.0% from 3Q 2022). Net loss: zł1.12m (loss narrowed 32% from 3Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. New Risk • Aug 03
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Polish stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 54% per year over the past 5 years. Minor Risk Market cap is less than US$100m (zł49.5m market cap, or US$12.1m). Announcement • May 27
Talex S.A., Annual General Meeting, Jun 21, 2023 Talex S.A., Annual General Meeting, Jun 21, 2023, at 10:00 Central European Standard Time. Reported Earnings • Dec 02
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: zł19.5m (up 4.8% from 3Q 2021). Net loss: zł1.66m (loss widened 143% from 3Q 2021). Reported Earnings • Oct 03
First half 2022 earnings released: EPS: zł0.42 (vs zł1.20 loss in 1H 2021) First half 2022 results: EPS: zł0.42 (up from zł1.20 loss in 1H 2021). Revenue: zł37.0m (up 2.4% from 1H 2021). Net income: zł1.26m (up zł4.86m from 1H 2021). Profit margin: 3.4% (up from net loss in 1H 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 96 percentage points per year, which is a significant difference in performance. Announcement • May 14
Talex S.A., Annual General Meeting, Jun 07, 2022 Talex S.A., Annual General Meeting, Jun 07, 2022, at 10:00 Central European Standard Time. Location: Poznan at Karpia 27d Poland Poland Agenda: To consider Opening of the Ordinary General Meeting of Shareholders; to consider Election of the Chairman of the Ordinary General Meeting of Shareholders; to consider Confirmation of the proper convening of the Ordinary General Meeting of Shareholders; to consider Appointment of the Credentials Committee; to consider Adoption of the Ordinary General Meeting of Shareholders agenda; to consider Review of the Annual Report and Annual Financial Statement as well as of the Financial; to consider Supervisory Authority Annual report and the Opinion and Report of the Independent Auditor on financial statements for the financial year 2021; to consider Adoption of a resolution on the approval of the Annual Report and Annual Financial Statement for the financial year 2021; to consider Adoption of a resolution on loss coverage for the year 2021; and to transact other matters. Reported Earnings • May 02
Full year 2021 earnings released Full year 2021 results: Revenue: zł73.3m (down 24% from FY 2020). Net loss: zł4.97m (down 237% from profit in FY 2020). Reported Earnings • Oct 01
Second quarter 2021 earnings released The company reported a poor second quarter result with increased losses, weaker revenues and weaker control over costs. Second quarter 2021 results: Revenue: zł17.4m (down 19% from 2Q 2020). Net loss: zł1.03m (loss widened 106% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 17
Upcoming dividend of zł0.70 per share Eligible shareholders must have bought the stock before 23 June 2021. Payment date: 03 November 2021. Trailing yield: 4.1%. Lower than top quartile of Polish dividend payers (5.8%). Higher than average of industry peers (2.7%). Reported Earnings • May 28
First quarter 2021 earnings released: zł0.86 loss per share (vs zł0.10 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: zł18.8m (down 12% from 1Q 2020). Net loss: zł2.57m (down zł2.87m from profit in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment improved over the past week After last week's 34% share price gain to zł18.30, the stock trades at a trailing P/E ratio of 24.6x. Average trailing P/E is 17x in the IT industry in Poland. Total returns to shareholders of 20% over the past three years. Is New 90 Day High Low • Feb 26
New 90-day high: zł13.60 The company is up 17% from its price of zł11.65 on 27 November 2020. The Polish market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 5.0% over the same period. Is New 90 Day High Low • Feb 10
New 90-day high: zł12.35 The company is up 6.0% from its price of zł11.60 on 10 November 2020. The Polish market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is up 1.0% over the same period.