WSE:TLX

Stock Analysis Report

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Executive Summary

Talex S.A. provides IT services and solutions in Poland.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TLX

2.8%

PL IT

4.7%

PL Market


1 Year Return

-13.6%

TLX

48.4%

PL IT

-16.2%

PL Market

Return vs Industry: TLX underperformed the Polish IT industry which returned 48% over the past year.

Return vs Market: TLX exceeded the Polish Market which returned -16.4% over the past year.


Shareholder returns

TLXIndustryMarket
7 Day0%2.8%4.7%
30 Day20.9%14.9%11.8%
90 Day9.7%21.9%0.8%
1 Year-5.6%-13.6%51.0%48.4%-14.1%-16.2%
3 Year-21.8%-33.3%43.6%36.6%-19.9%-25.4%
5 Year-14.5%-34.4%88.8%76.3%-15.8%-26.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLX (PLN13) is trading below our estimate of fair value (PLN16.81)

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


Price To Earnings Ratio

PE vs Industry: TLX is poor value based on its PE Ratio (16.2x) compared to the IT industry average (9.2x).

PE vs Market: TLX is poor value based on its PE Ratio (16.2x) compared to the Polish market (11.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TLX is good value based on its PB Ratio (0.7x) compared to the PL IT industry average (2x).


Next Steps

Future Growth

How is Talex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.0%

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 Talex 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 Talex performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLX has a large one-off gain of PLN490.0K impacting its December 31 2019 financial results.

Growing Profit Margin: TLX's current net profit margins (2.7%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: TLX's earnings have declined by -8.6% per year over the past 5 years.

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

Earnings vs Industry: TLX had negative earnings growth (-63.4%) over the past year, making it difficult to compare to the IT industry average (34.6%).


Return on Equity

High ROE: TLX's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Talex's financial position?


Financial Position Analysis

Short Term Liabilities: TLX's short term assets (PLN19.8M) exceed its short term liabilities (PLN19.0M).

Long Term Liabilities: TLX's short term assets (PLN19.8M) exceed its long term liabilities (PLN9.7M).


Debt to Equity History and Analysis

Debt Level: TLX's debt to equity ratio (15.2%) is considered satisfactory.

Reducing Debt: TLX's debt to equity ratio has increased from 10.9% to 15.2% over the past 5 years.

Debt Coverage: TLX's debt is well covered by operating cash flow (107%).

Interest Coverage: TLX earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TLX's dividend (4.62%) is higher than the bottom 25% of dividend payers in the Polish market (2.1%).

High Dividend: TLX's dividend (4.62%) is low compared to the top 25% of dividend payers in the Polish market (6.61%).


Stability and Growth of Payments

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

Growing Dividend: TLX's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.9%), TLX's dividend payments are 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

How experienced are the management team and are they aligned to shareholders interests?

22.4yrs

Average management tenure


CEO

Janusz Gocalek 

22.42yrs

Tenure

Mr. Janusz Gocalek  has been the President and Member of the Management Board at Talex Spolka Akcyjna since 1998. In the years 1979 to 1990, Mr. Gocalek  worked in the Institute of Building Technologies an ...


Leadership Team

NamePositionTenureCompensationOwnership
Janusz Gocalek 
President of the Management Board22.42yrsno data25.29% PLN9.9m
Andrzej Rózga
Vice President of the Management Board22.42yrsno data25.29% PLN9.9m
Jacek Klauziski
Vice President of the Management Board22.42yrsno data25.29% PLN9.9m
Rafal Szalek
Member of the Management Board13.42yrsno data0.030% PLN11.6k
Radoslaw Wesolowski
Director of the Department of Financial Sector Support & Member of the Management Board10.25yrsno datano data
Dorota Wójcik
Chief Accountantno datano datano data

22.4yrs

Average Tenure

Experienced Management: TLX's management team is seasoned and experienced (22.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bogna Pilarczyk
Chairman of the Supervisory Board8.25yrsno datano data
Andrzej Kurc
Member of the Supervisory Board8.25yrsno data0.034% PLN13.2k
Jacek Nowak
Member of the Supervisory Board7yrsno datano data
Malgorzata Poprawska
Member of the Supervisory Board2.08yrsno datano data
Witold Holubowicz
Member of the Supervisory Board2.08yrsno datano data

7.0yrs

Average Tenure

Experienced Board: TLX's board of directors are considered experienced (7 years average tenure).


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

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


Key Information

  • Name: Talex S.A.
  • Ticker: TLX
  • Exchange: WSE
  • Founded:
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: zł39.001m
  • Shares outstanding: 3.00m
  • Website: https://www.talex.pl

Number of Employees


Location

  • Talex S.A.
  • ul Karpia 27D
  • Poznan
  • 61-619
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLXWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNDec 2000
0ODYLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNDec 2000

Biography

Talex S.A. provides IT services and solutions in Poland. The company primarily focuses on integration of ICT systems, IT outsourcing, and software development activities. It offers ICT integration solutions, including analyses and consultation, project design and management, development and introduction of integration procedures, system configuration and tuning, and staff training programs for Intel/RISC, UNIX, i5/OS, Windows, and Linux platforms. The company’s integration services also include consolidation and visualization, and backup and recovery services, as well as information security solutions, such as preventing unauthorized intrusions into ICT networks or developing private virtual networks. It also 1provides network integration services, including DWDM, IP telephony, structural cabling, network monitoring, etc. In addition, it offers IT infrastructure management services, such as supply and installation of hardware and software, individual configuration and expansion, relocation, maintenance, preparation for recycling, and storage services, as well as technical support services, such as help and service desk. Further, the company offers data center services, which include collocation, hosting, and cloud computing services; disaster recovery services; and business continuity plans. Additionally, it offers custom-made software; and develops modules extending the existing applications, tuning the applications to the specific needs of customers, or developing codes used in integration processes. The company serves financial institutions, state-owned enterprises, and industrial companies. Talex S.A. is headquartered in Poznan, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 21:03
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
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.