New Risk • Jun 25
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: 5.1% Last year net profit margin: 7.7% 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: Minor Risks Dividend is not well covered by earnings (106% payout ratio). Profit margins are more than 30% lower than last year (5.1% net profit margin). Market cap is less than US$100m (zł197.4m market cap, or US$52.3m). Upcoming Dividend • Jun 17
Upcoming dividend of zł0.70 per share Eligible shareholders must have bought the stock before 24 June 2026. Payment date: 24 July 2026. Payout ratio is a comfortable 60% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of Polish dividend payers (7.1%). Higher than average of industry peers (3.2%). Declared Dividend • May 06
Dividend increased to zł0.70 Dividend of zł0.70 is 7.7% higher than last year. Ex-date: 24th June 2026 Payment date: 24th July 2026 Dividend yield will be 4.7%, which is lower than the industry average of 5.1%. Sustainability & Growth Dividend is covered by both earnings (60% earnings payout ratio) and cash flows (50% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 2.4% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 05
Sonel S.A., Annual General Meeting, May 29, 2026 Sonel S.A., Annual General Meeting, May 29, 2026, at 10:00 Central European Standard Time. Reported Earnings • Dec 02
Third quarter 2025 earnings released: zł0.10 loss per share (vs zł0.29 profit in 3Q 2024) Third quarter 2025 results: zł0.10 loss per share (down from zł0.29 profit in 3Q 2024). Revenue: zł40.0m (down 35% from 3Q 2024). Net loss: zł1.38m (down 134% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Sep 28
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: zł59.8m (up 28% from 2Q 2024). Net income: zł2.01m (up 65% from 2Q 2024). Profit margin: 3.4% (up from 2.6% in 2Q 2024). The increase in margin was driven by higher revenue. Announcement • Aug 25
Sonel S.A. to Report First Half, 2025 Results on Sep 26, 2025 Sonel S.A. announced that they will report first half, 2025 results on Sep 26, 2025 Buy Or Sell Opportunity • Jul 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 3.3% to zł17.05. The fair value is estimated to be zł14.12, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 12%. Upcoming Dividend • Jun 20
Upcoming dividend of zł0.65 per share Eligible shareholders must have bought the stock before 26 June 2025. Payment date: 25 July 2025. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of Polish dividend payers (7.3%). Lower than average of industry peers (5.1%). Reported Earnings • May 28
First quarter 2025 earnings released: EPS: zł0.30 (vs zł0.32 in 1Q 2024) First quarter 2025 results: EPS: zł0.30 (down from zł0.32 in 1Q 2024). Revenue: zł66.9m (up 33% from 1Q 2024). Net income: zł4.20m (down 5.5% from 1Q 2024). Profit margin: 6.3% (down from 8.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 08
Sonel S.A., Annual General Meeting, Jun 02, 2025 Sonel S.A., Annual General Meeting, Jun 02, 2025. Reported Earnings • Nov 29
Third quarter 2024 earnings released: EPS: zł0.29 (vs zł0.19 in 3Q 2023) Third quarter 2024 results: EPS: zł0.29 (up from zł0.19 in 3Q 2023). Revenue: zł61.2m (up 26% from 3Q 2023). Net income: zł4.08m (up 55% from 3Q 2023). Profit margin: 6.7% (up from 5.4% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 14% per year. Reported Earnings • Sep 27
Second quarter 2024 earnings released: EPS: zł0.085 (vs zł0.16 in 2Q 2023) Second quarter 2024 results: EPS: zł0.085 (down from zł0.16 in 2Q 2023). Revenue: zł46.6m (down 3.9% from 2Q 2023). Net income: zł1.22m (down 47% from 2Q 2023). Profit margin: 2.6% (down from 4.7% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 14% per year. Upcoming Dividend • Jul 17
Upcoming dividend of zł0.70 per share Eligible shareholders must have bought the stock before 24 July 2024. Payment date: 20 August 2024. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Polish dividend payers (7.5%). Lower than average of industry peers (4.8%). Announcement • May 23
Sonel S.A., Annual General Meeting, Jun 20, 2024 Sonel S.A., Annual General Meeting, Jun 20, 2024. Valuation Update With 7 Day Price Move • May 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to zł17.75, the stock trades at a trailing P/E ratio of 19x. Average trailing P/E is 10x in the Electronic industry in Poland. Total returns to shareholders of 69% over the past three years. Reported Earnings • Sep 29
Second quarter 2023 earnings released: EPS: zł0.17 (vs zł0.25 in 2Q 2022) Second quarter 2023 results: EPS: zł0.17 (down from zł0.25 in 2Q 2022). Revenue: zł48.5m (up 12% from 2Q 2022). Net income: zł2.28m (down 34% from 2Q 2022). Profit margin: 4.7% (down from 8.0% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 7% per year. Upcoming Dividend • Jun 06
Upcoming dividend of zł0.60 per share at 5.1% yield Eligible shareholders must have bought the stock before 13 June 2023. Payment date: 03 July 2023. Payout ratio is a comfortable 45% but the company is paying out more than the cash it is generating. Trailing yield: 5.1%. Lower than top quartile of Polish dividend payers (7.4%). Lower than average of industry peers (6.4%). Announcement • May 09
Sonel S.A., Annual General Meeting, May 29, 2023 Sonel S.A., Annual General Meeting, May 29, 2023, at 10:00 Central European Standard Time. Reported Earnings • Nov 30
Third quarter 2022 earnings released: EPS: zł0.25 (vs zł0.22 in 3Q 2021) Third quarter 2022 results: EPS: zł0.25 (up from zł0.22 in 3Q 2021). Revenue: zł39.4m (up 1.5% from 3Q 2021). Net income: zł3.54m (up 13% from 3Q 2021). Profit margin: 9.0% (up from 8.1% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 5% per year. Reported Earnings • Sep 30
Second quarter 2022 earnings released: EPS: zł0.25 (vs zł0.096 in 2Q 2021) Second quarter 2022 results: EPS: zł0.25 (up from zł0.096 in 2Q 2021). Revenue: zł43.2m (up 36% from 2Q 2021). Net income: zł3.45m (up 157% from 2Q 2021). Profit margin: 8.0% (up from 4.2% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Jul 15
Upcoming dividend of zł0.50 per share Eligible shareholders must have bought the stock before 22 July 2022. Payment date: 05 August 2022. Payout ratio is a comfortable 53% but the company is paying out more than the cash it is generating. Trailing yield: 5.2%. Lower than top quartile of Polish dividend payers (8.5%). Lower than average of industry peers (8.3%). Reported Earnings • Jun 01
First quarter 2022 earnings released: EPS: zł0.23 (vs zł0.35 in 1Q 2021) First quarter 2022 results: EPS: zł0.23 (down from zł0.35 in 1Q 2021). Revenue: zł46.4m (up 78% from 1Q 2021). Net income: zł3.28m (down 32% from 1Q 2021). Profit margin: 7.1% (down from 19% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • May 31
Sonel S.A., Annual General Meeting, Jun 30, 2022 Sonel S.A., Annual General Meeting, Jun 30, 2022, at 10:00 Central European Standard Time. Reported Earnings • Nov 28
Third quarter 2021 earnings: Revenues and EPS in line with analyst expectations Third quarter 2021 results: EPS: zł0.22 (up from zł0.18 in 3Q 2020). Revenue: zł38.9m (up 53% from 3Q 2020). Net income: zł3.15m (up 28% from 3Q 2020). Profit margin: 8.1% (down from 9.7% in 3Q 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 17% per year. Reported Earnings • Sep 30
Second quarter 2021 earnings released: EPS zł0.095 (vs zł0.29 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: zł31.9m (up 6.8% from 2Q 2020). Net income: zł1.34m (down 67% from 2Q 2020). Profit margin: 4.2% (down from 13% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment deteriorated over the past week After last week's 15% share price decline to zł11.30, the stock trades at a trailing P/E ratio of 11.7x. Average trailing P/E is 8x in the Electronic industry in Poland. Total returns to shareholders of 117% over the past three years. Upcoming Dividend • Jun 04
Upcoming dividend of zł1.00 per share Eligible shareholders must have bought the stock before 11 June 2021. Payment date: 13 July 2021. Trailing yield: 7.8%. Within top quartile of Polish dividend payers (6.0%). Higher than average of industry peers (7.0%). Valuation Update With 7 Day Price Move • May 10
Investor sentiment improved over the past week After last week's 16% share price gain to zł12.80, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 9x in the Electronic industry in Poland. Total returns to shareholders of 124% over the past three years. Reported Earnings • Apr 26
Full year 2020 earnings released: EPS zł0.96 (vs zł0.68 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: zł116.1m (up 6.5% from FY 2019). Net income: zł13.4m (up 42% from FY 2019). Profit margin: 12% (up from 8.7% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improved over the past week After last week's 16% share price gain to zł11.10, the stock trades at a trailing P/E ratio of 11.5x. Average trailing P/E is 8x in the Electronic industry in Poland. Total returns to shareholders of 89% over the past three years. Is New 90 Day High Low • Jan 26
New 90-day high: zł10.40 The company is up 16% from its price of zł9.00 on 28 October 2020. The Polish market is up 17% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Electronic industry, which is also up 16% over the same period. Is New 90 Day High Low • Nov 24
New 90-day high: zł9.90 The company is up 5.0% from its price of zł9.45 on 25 August 2020. The Polish market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 2.0% over the same period. Reported Earnings • Sep 22
First half earnings released Over the last 12 months the company has reported total profits of zł13.9m, up 51% from the prior year. Total revenue was zł119.7m over the last 12 months, up 16% from the prior year.