WSE:PLY

Stock Analysis Report

Play Communications

Executive Summary

Play Communications S.A. provides mobile telecommunications services in Poland.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.5%

PLY

0%

PL Wireless Telecom

0%

PL Market


1 Year Return

25.5%

PLY

0%

PL Wireless Telecom

0%

PL Market

Return vs Industry: PLY exceeded the Polish Wireless Telecom industry which returned -17.4% over the past year.

Return vs Market: PLY exceeded the Polish Market which returned -33.3% over the past year.


Shareholder returns

PLYIndustryMarket
7 Day2.5%0%0%
30 Day-6.6%0%0%
90 Day-11.6%0%0%
1 Year33.2%25.5%0%0%0%0%
3 Yearn/a0%0%0%0%
5 Yearn/a0%0%0%0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLY (PLN29.86) is trading below our estimate of fair value (PLN43.09)

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


Price To Earnings Ratio

PE vs Industry: PLY is good value based on its PE Ratio (8.8x) compared to the Wireless Telecom industry average (28.1x).

PE vs Market: PLY is good value based on its PE Ratio (8.8x) compared to the Polish market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: PLY is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: PLY is overvalued based on its PB Ratio (23.6x) compared to the XE Wireless Telecom industry average (2.2x).


Next Steps

Future Growth

How is Play Communications forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLY's forecast earnings growth (3.4% per year) is above the savings rate (2%).

Earnings vs Market: PLY's earnings (3.4% per year) are forecast to grow slower than the Polish market (11.8% per year).

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

Revenue vs Market: PLY's revenue (1.5% per year) is forecast to grow slower than the Polish market (4.5% per year).

High Growth Revenue: PLY's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLY's Return on Equity is forecast to be very high in 3 years time (52.8%).


Next Steps

Past Performance

How has Play Communications performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLY has high quality earnings.

Growing Profit Margin: PLY's current net profit margins (12.3%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: PLY's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: PLY's earnings growth over the past year (16.4%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: PLY earnings growth over the past year (16.4%) exceeded the Wireless Telecom industry 4.8%.


Return on Equity

High ROE: Whilst PLY's Return on Equity (269.53%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Play Communications's financial position?


Financial Position Analysis

Short Term Liabilities: PLY's short term assets (PLN2.7B) exceed its short term liabilities (PLN1.8B).

Long Term Liabilities: PLY's short term assets (PLN2.7B) do not cover its long term liabilities (PLN6.8B).


Debt to Equity History and Analysis

Debt Level: PLY's debt to equity ratio (1828%) is considered high.

Reducing Debt: PLY's debt to equity ratio has reduced from 5186% to 1828% over the past 5 years.

Debt Coverage: PLY's debt is well covered by operating cash flow (37.9%).

Interest Coverage: PLY's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


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Dividend

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

4.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PLY's dividend (4.86%) is higher than the bottom 25% of dividend payers in the Polish market (3.21%).

High Dividend: PLY's dividend (4.86%) is low compared to the top 25% of dividend payers in the Polish market (8.96%).


Stability and Growth of Payments

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

Growing Dividend: PLY has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.5%), PLY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PLY's dividends in 3 years are forecast to be covered by earnings (52.4% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Jean-Marc Harion (61yo)

1.75s

Tenure

Mr. Jean-Marc Harion has been the Chief Executive Officer and President of the Management Board at Play Communications S.A., since July 1, 2018. He served as Chief Executive Officer at Orange Egypt for Tel ...


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Marc Harion
President of the Management Board & CEO1.75yrsno datano data
Holger Puchert
CFO & Member of Management Board3.08yrsno datano data
Michal Ziolkowski
CTO & Member of the Management Board1.42yrsno datano data
Wojciech Danieluk
Chief Information & Transformation Officerno datano datano data
Tomasz Pozniak
Investor Relations Directorno datano datano data
Mikkel Noesgaard
Chief Marketing Officer1.25yrsno datano data
Michal Wawrzynowicz
Chief Commercial Officerno datano datano data
Piotr Kuriata
Chief Business Development & Regulatory Officerno datano datano data
Jørgen Bang-Jensen
Senior Advisor1.67yrsno datano data
Jacek Nieweglowski
1.25yrsno datano data

1.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: PLY's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrzej Olechowski
Independent Director2.83yrsno datano data
Ioannis Karagiannis
Chairman of the Boardno datano datano data
Patrick Tillieux
Director2.83yrsno datano data
Graham McInroy
Deputy Chairman of the Boardno datano datano data
Andrzej Klesyk
Independent Director2.83yrsno datano data
Vassilios Billis
Director2.83yrsno datano data
Serdar Çetin
Director2.83yrsno datano data
Rouben Bourlas
Director1.75yrsno datano data
Dominik Libicki
Independent Non Executive Director0.50yrno datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: PLY's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Play Communications S.A.
  • Ticker: PLY
  • Exchange: WSE
  • Founded: 2005
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: zł7.591b
  • Shares outstanding: 254.23m
  • Website: https://www.playcommunications.com

Number of Employees


Location

  • Play Communications S.A.
  • 4/6, rue du Fort Bourbon
  • Luxembourg
  • 1249
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLYWSE (Warsaw Stock Exchange)YesShare CapitalPLPLNJul 2017
1P1DB (Deutsche Boerse AG)YesShare CapitalDEEURJul 2017
0RU1LSE (London Stock Exchange)YesShare CapitalGBPLNJul 2017

Biography

Play Communications S.A. provides mobile telecommunications services in Poland. The company offers mobile voice, messaging, data, and TV and video streaming services to consumers and businesses, which primarily include small office/home office subscribers and small/medium enterprises on a contract and prepaid basis under the Play brand; and value added services, as well as sells handsets and other devices under the PLAY brand. As of December 31, 2019, it had 15.3 million mobile subscribers; and operated 764 dedicated Play branded stores. The company was formerly known as Play Holdings 2 S.à r.l. and changed its name to Play Communications S.A. in June 2017. Play Communications S.A. was founded in 2005 and is based in Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 00:36
End of Day Share Price2020/04/06 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.