WSE:VRB

Stock Analysis Report

Executive Summary

Verbicom S.A. operates as an integrator of IT systems.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

13.5%

VRB

3.5%

PL Telecom

1.2%

PL Market


1 Year Return

23.9%

VRB

20.6%

PL Telecom

-3.7%

PL Market

Return vs Industry: VRB exceeded the Polish Telecom industry which returned 20.6% over the past year.

Return vs Market: VRB exceeded the Polish Market which returned -3.7% over the past year.


Shareholder returns

VRBIndustryMarket
7 Day13.5%3.5%1.2%
30 Day9.0%-1.8%-2.9%
90 Day-12.8%-5.5%-6.8%
1 Year26.1%23.9%20.7%20.6%-0.8%-3.7%
3 Year-21.9%-26.8%3.4%0.8%11.5%3.5%
5 Year-45.7%-50.5%-29.9%-38.4%-0.9%-12.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VRB (PLN1.09) is trading below our estimate of fair value (PLN34.97)

Significantly Undervalued: VRB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VRB is good value based on its PE Ratio (1.7x) compared to the Telecom industry average (12.6x).

PE vs Market: VRB is good value based on its PE Ratio (1.7x) compared to the Polish market (9.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VRB is good value based on its PB Ratio (0.5x) compared to the PL Telecom industry average (0.9x).


Next Steps

Future Growth

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

-17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRB's earnings are forecast to decline over the next 3 years (-17.9% per year).

Earnings vs Market: VRB's earnings are forecast to decline over the next 3 years (-17.9% per year).

High Growth Earnings: VRB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if VRB's revenue is forecast to grow faster than the Polish market.

High Growth Revenue: Insufficient data to determine if VRB's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if VRB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Verbicom performed over the past 5 years?

-20.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VRB's earnings have declined by -20.4% per year over the past 5 years.

Accelerating Growth: VRB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VRB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (67.6%).


Return on Equity

High ROE: VRB's Return on Equity (32%) is considered high.


Return on Assets

ROA vs Industry: VRB has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: VRB has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Verbicom's financial position?


Financial Position Analysis

Short Term Liabilities: VRB's short term assets (PLN24.8M) exceeds its short term liabilities (PLN12.5M)

Long Term Liabilities: VRB's short term assets (24.8M) exceeds its long term liabilities (1.7M)


Debt to Equity History and Analysis

Debt Level: VRB's debt to equity ratio (25.5%) is considered satisfactory

Reducing Debt: Insufficient data to determine if VRB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VRB's debt is well covered by operating cash flow (299.5%).

Interest Coverage: VRB's interest payments on its debt are well covered by EBIT (14.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: VRB's debt is covered by short term assets (assets are 6.307850x debt).


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.6%markettop25%7.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VRB's dividend (1.83%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.56%).

High Dividend: VRB's dividend (1.83%) is low compared to the top 25% of dividend payers in the Polish market (7.2%).

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

Growing Dividend: VRB has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its 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

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


CEO

Boleslaw Zajac 0

0yrs

Tenure

0

Mr. Boleslaw Zajac serves as the President of The Management Board at Verbicom Spólka Akcyjna. 


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Robert Primke

    Vice President of the Management Board

    • Tenure: 0yrs
  • Boleslaw Zajac

    President of the Management Board

    • Tenure: 0yrs

Board Members

  • Andrzej Koch

    Chairman of the Supervisory Board

    • Tenure: 0yrs
  • Mieczyslaw Zajac

    Vice Chairman of Supervisory Board

    • Tenure: 0yrs
  • Krystyna Primke

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Aleksandra Szymczak

    Member of the Supervisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Verbicom S.A.
  • Ticker: VRB
  • Exchange: WSE
  • Founded: 2002
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: zł14.208m
  • Shares outstanding: 13.03m
  • Website: https://www.verbicom.pl

Location

  • Verbicom S.A.
  • ul. Skarbka 36
  • Poznan
  • 60-348
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRBWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNAug 2008

Biography

Verbicom S.A. operates as an integrator of IT systems. The company engages in the fields of voice, data, and image transmission. It builds multifunctional business networks; provides telephony support solu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:02
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.