WSE:PLY

Stock Analysis Report

Play Communications

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.4%

WSE:PLY

0%

PL Wireless Telecom

-2.6%

PL Market


1 Year Return

58.8%

WSE:PLY

0%

PL Wireless Telecom

-8.1%

PL Market

PLY outperformed the Wireless Telecom industry which returned -12.8% over the past year.

PLY outperformed the Market in Poland which returned -8.2% over the past year.


Share holder returns

PLYIndustryMarket
7 Day3.4%0%-2.6%
30 Day-3.0%0%-9.8%
90 Day23.4%0%-4.9%
1 Year68.7%58.8%0%0%-5.3%-8.1%
3 Yearn/a0%0%7.8%-0.1%
5 Yearn/a0%0%-1.8%-14.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Play Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

Play Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Play Communications is good value based on earnings compared to the Europe Wireless Telecom industry average.

Play Communications is good value based on earnings compared to the Poland market.


Price Based on Expected Growth

Play Communications is poor value based on expected growth next year.


Price Based on Value of Assets

Play Communications is overvalued based on assets compared to the Europe Wireless Telecom industry average.


Next Steps

Future Growth

How is Play Communications expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Play Communications's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Play Communications's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Play Communications's revenue growth is positive but not above the Poland market average.

Play Communications's earnings growth is positive but not above the Poland market average.

Play Communications's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Play Communications is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Play Communications performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Play Communications's year on year earnings growth rate has been positive over the past 5 years.

Play Communications's 1-year earnings growth exceeds its 5-year average (54.4% vs 7.2%)

Play Communications's earnings growth has exceeded the Europe Wireless Telecom industry average in the past year (54.4% vs 33%).


Return on Equity

Whilst Play Communications made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Play Communications used its assets more efficiently than the Europe Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Play Communications has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Play Communications's financial position?


Financial Position Analysis

Play Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Play Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Play Communications's level of debt (34417.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (256.9% vs 34417.3% today).

Debt is well covered by operating cash flow (37%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

4.67%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Play Communications's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.91%).

Play Communications's dividend is below the markets top 25% of dividend payers in Poland (7.33%).

It is too early to tell whether Play Communications has stable dividend payments.

Play Communications only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

What is the CEO of Play Communications's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Jean-Marc Harion (61yo)

1.1yrs

Tenure

0

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


Management Age and Tenure

0.8yrs

Average Tenure

47yo

Average Age

The average tenure for the Play Communications management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

57yo

Average Age

The average tenure for the Play Communications board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jacek Nieweglowski (50yo)

    • Tenure: 0.6yrs
  • Jørgen Bang-Jensen (63yo)

    Senior Advisor

    • Tenure: 1.0yrs
  • Holger Püchert (53yo)

    CFO & Member of Management Board

    • Tenure: 2.4yrs
  • Jean-Marc Harion (61yo)

    Chairman of the Management Board & CEO

    • Tenure: 1.1yrs
  • Michal Wawrzynowicz (47yo)

    Chief Commercial Officer & Member of Management Board

    • Tenure: 12.2yrs
  • Michal Sobolewski (46yo)

    Chief Marketing Officer & Member of Management Board

    • Tenure: 0.8yrs
  • Michal Ziolkowski (39yo)

    CTO & Member of the Management Board

    • Tenure: 0.8yrs
  • Wojciech Danieluk (46yo)

    Chief Information & Transformation Officer and Member of Management Board

    • Tenure: 0.8yrs
  • Piotr Kuriata (46yo)

    Chief Business Development & Regulatory Officer and Member of Management Board

    • Tenure: 0.5yrs
  • Tomasz Pozniak

    Investor Relations Director

    • Tenure: 0.0yrs

Board Members

  • Andrzej Olechowski (72yo)

    Independent Director

    • Tenure: 2.2yrs
  • Ioannis Karagiannis (57yo)

    Chairman of the Board

    • Tenure: 0.0yrs
  • Patrick Tillieux (62yo)

    Director

    • Tenure: 2.2yrs
  • Graham McInroy (59yo)

    Deputy Chairman of the Board

    • Tenure: 0.0yrs
  • Andrzej Klesyk (55yo)

    Independent Director

    • Tenure: 2.2yrs
  • Vasili Billis (51yo)

    Director

    • Tenure: 2.2yrs
  • Serdar Çetin (42yo)

    Director

    • Tenure: 2.2yrs
  • Rouben Bourlas

    Director

    • Tenure: 1.1yrs

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: zł8.112b
  • Shares outstanding: 254.13m
  • 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 video services to consumers and businesses on a contract and prepaid ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 22:09
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
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.