WSE:NET

Stock Analysis Report

Executive Summary

Netia S.A. provides telecommunication services.

Rewards

Trading at 18.7% below its fair value

Earnings are forecast to grow 18.53% per year

Risk Analysis

No risks detected for NET from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

NET

4.0%

PL Telecom

-0.2%

PL Market


1 Year Return

-12.0%

NET

27.8%

PL Telecom

-7.6%

PL Market

Return vs Industry: NET underperformed the Polish Telecom industry which returned 27.1% over the past year.

Return vs Market: NET underperformed the Polish Market which returned -8.4% over the past year.


Shareholder returns

NETIndustryMarket
7 Day-0.2%4.0%-0.2%
30 Day-1.8%-1.4%-1.0%
90 Day-2.2%10.8%0.5%
1 Year-12.0%-12.0%28.0%27.8%-4.8%-7.6%
3 Year2.9%-5.6%45.0%40.9%-7.2%-13.8%
5 Year-2.2%-25.4%-12.6%-23.2%2.0%-10.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NET (PLN4.38) is trading below our estimate of fair value (PLN5.39)

Significantly Below Fair Value: NET is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NET is good value based on its PE Ratio (24.9x) compared to the Telecom industry average (25.6x).

PE vs Market: NET is poor value based on its PE Ratio (24.9x) compared to the Polish market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: NET is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NET is good value based on its PB Ratio (0.8x) compared to the PL Telecom industry average (1.1x).


Next Steps

Future Growth

How is Netia forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NET's forecast earnings growth (18.5% per year) is above the savings rate (2%).

Earnings vs Market: NET's earnings (18.5% per year) are forecast to grow faster than the Polish market (11.4% per year).

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

Revenue vs Market: NET's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: NET's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NET's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Netia performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NET has high quality earnings.

Growing Profit Margin: NET's current net profit margins (4.5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: NET's earnings have declined by -21.5% per year over the past 5 years.

Accelerating Growth: NET's earnings growth over the past year (32.3%) exceeds its 5-year average (-21.5% per year).

Earnings vs Industry: NET earnings growth over the past year (32.3%) underperformed the Telecom industry 104.3%.


Return on Equity

High ROE: NET's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Netia's financial position?


Financial Position Analysis

Short Term Liabilities: NET's short term assets (PLN256.0M) do not cover its short term liabilities (PLN311.1M).

Long Term Liabilities: NET's short term assets (PLN256.0M) do not cover its long term liabilities (PLN466.2M).


Debt to Equity History and Analysis

Debt Level: NET's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: NET's debt to equity ratio has reduced from 17.8% to 14.1% over the past 5 years.

Debt Coverage: NET's debt is well covered by operating cash flow (156.1%).

Interest Coverage: NET's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: NET's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

2.28%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NET's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NET's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.2yrs

Average management tenure


CEO

Andrzej Abramczuk 0

1.5yrs

Tenure

Mr. Andrzej Abramczuk has been Chief Operating Officer, Director of Strategy and Operations and Member of the Management Board at Netia S.A. since December 13, 2017. He serves as CEO at Netia S.A. since Au ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrzej Abramczuk
CEO, COO1.5yrsno datano data
Krzysztof Adaszewski
Member of the Management Board & CFO2.2yrsno datano data
Tomasz Dakowski
Head of B2C Unit & Member of Management Board0yrsno datano data
Aster Papazyan
Member of the Management Board & Head of B2B Unit0yrsno datano data
Grzegorz Bartler
Member of Management Board & CTO0yrsno datano data
Katarzyna Szwarc
Head of Legal Affairs0yrsno datano data
Pawel Zytecki
Business Development & IT Director0yrsno datano data
Konrad Kobylecki
2.4yrsno datano data

2.2yrs

Average Tenure

Experienced Management: NET's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zbigniew Jakubas
Chairman of Supervisory Board5.8yrsno datano data
Grzegorz Zambrzycki
Supervisory Board Vice Chairman0yrsno datano data
Miroslaw Godlewski
Member of Supervisory Board5.4yrsno datano data
Adam Biedrzycki
Member of Supervisory Board4.7yrsno datano data
Wojciech Pytel
Member of Supervisory Board2.1yrsno datano data
Maciej Szwarc
Member of Supervisory Board2.4yrsno datano data
Tomasz Szelag
Member of Supervisory Board0.7yrsno datano data

3.5yrs

Average Tenure

Experienced Board: NET's board of directors are considered experienced (3.5 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

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


Key Information

  • Name: Netia S.A.
  • Ticker: NET
  • Exchange: WSE
  • Founded: 1990
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: zł1.466b
  • Shares outstanding: 335.58m
  • Website: https://www.netia.pl

Number of Employees


Location

  • Netia S.A.
  • ul. Poleczki 13
  • Warsaw
  • 02-822
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETWSE (Warsaw Stock Exchange)YesCommon Shares With 1 Vote Per SharePLPLNJul 2000
0LWULSE (London Stock Exchange)YesCommon Shares With 1 Vote Per ShareGBPLNJul 2000

Biography

Netia S.A. provides telecommunication services. The company offers voice call, data transmission, broadband Internet access, pay digital television, and multimedia entertainment services. It serves private users, companies and institutions. The company was formerly known as Netia Holdings S.A. and changed its name to Netia S.A. in 2003. Netia S.A. was founded in 1990 and is based in Warsaw, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:56
End of Day Share Price2020/02/20 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.