WSE:PEP

Stock Analysis Report

Executive Summary

Polenergia S.A., together with its subsidiaries, generates, distributes, and transmits electricity in Poland.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

PEP

5.0%

PL Renewable Energy

5.6%

PL Market


1 Year Return

0.8%

PEP

7.2%

PL Renewable Energy

-29.7%

PL Market

Return vs Industry: PEP underperformed the Polish Renewable Energy industry which returned 6.1% over the past year.

Return vs Market: PEP exceeded the Polish Market which returned -31.1% over the past year.


Shareholder returns

PEPIndustryMarket
7 Day-3.1%5.0%5.6%
30 Day2.0%-2.7%-0.6%
90 Day-3.1%-5.5%-24.2%
1 Year0.8%0.8%10.4%7.2%-27.6%-29.7%
3 Year87.5%87.5%63.5%51.8%-28.9%-33.9%
5 Year-23.8%-26.3%64.3%45.6%-27.5%-36.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PEP (PLN25) is trading below our estimate of fair value (PLN74.91)

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


Price To Earnings Ratio

PE vs Industry: PEP is good value based on its PE Ratio (10.4x) compared to the Renewable Energy industry average (24.6x).

PE vs Market: PEP is poor value based on its PE Ratio (10.4x) compared to the Polish market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: PEP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PEP is good value based on its PB Ratio (0.9x) compared to the XE Renewable Energy industry average (1.4x).


Next Steps

Future Growth

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

-1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEP's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: PEP's earnings are forecast to decline over the next 3 years (-1.8% per year).

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

Revenue vs Market: PEP's revenue (3.4% per year) is forecast to grow slower than the Polish market (4.5% per year).

High Growth Revenue: PEP's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEP's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Polenergia performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEP has high quality earnings.

Growing Profit Margin: PEP's current net profit margins (4.4%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: PEP has become profitable over the past 5 years, growing earnings by -2% per year.

Accelerating Growth: PEP's earnings growth over the past year (3102.4%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: PEP earnings growth over the past year (3102.4%) exceeded the Renewable Energy industry 23.7%.


Return on Equity

High ROE: PEP's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Polenergia's financial position?


Financial Position Analysis

Short Term Liabilities: PEP's short term assets (PLN598.7M) exceed its short term liabilities (PLN245.1M).

Long Term Liabilities: PEP's short term assets (PLN598.7M) do not cover its long term liabilities (PLN939.4M).


Debt to Equity History and Analysis

Debt Level: PEP's debt to equity ratio (60.4%) is considered high.

Reducing Debt: PEP's debt to equity ratio has increased from 51.8% to 60.4% over the past 5 years.

Debt Coverage: PEP's debt is well covered by operating cash flow (33.6%).

Interest Coverage: PEP's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PEP'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 PEP's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.3yrs

Average management tenure


CEO

Michal Michalski

1.25s

Tenure

Mr. Michal Michalski, Ph.D. serves as Chief Executive Officer at Polenergia S.A. since 2020. He has been President of the Management Board of Polenergia SA since January 23, 2019 and has been its Member of ...


Leadership Team

NamePositionTenureCompensationOwnership
Michal Michalski
CEO & President of Management Board1.25yrsno datano data
Tomasz Kietlinski
CFO & Member of Management Board0.25yrno datano data
Iwona Sierzega
Member of Management Board1.25yrsno datano data
Jaroslaw Bogacz
Member of Management Board1.25yrsno datano data
Piotr Maciolek
Member of Management Board0.25yrno datano data
Bogdan Warchol
Director of Investment Departmentno datano datano data
Agnieszka Grzeszczak
Director of Accounting Departmentno datano datano data

1.3yrs

Average Tenure

Experienced Management: PEP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Arkadiusz Jastrzebski
Member of Supervisory Board7.42yrsno datano data
Hans Schweickardt
Deputy Chairman of the Supervisory Board1.75yrsno datano data
Orest Nazaruk
Member of Supervisory Board4.33yrsno datano data
Sebastian Kulczyk
Member of Supervisory Board1.25yrsno datano data
Dominika Kulczyk-Lubomirska
Chair of the Supervisory Board1.75yrsno datano data
Brian Bode
Member of Supervisory Board4.17yrsno datano data
Marta Schmude-Olczak
Member of Supervisory Board1.75yrsno datano data
Marjolein Helder
Member of Supervisory Board1.25yrsno datano data

1.8yrs

Average Tenure

Experienced Board: PEP's board of directors are not considered experienced ( 1.8 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

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


Key Information

  • Name: Polenergia S.A.
  • Ticker: PEP
  • Exchange: WSE
  • Founded: 1997
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: zł1.113b
  • Shares outstanding: 45.44m
  • Website: https://www.polenergia.pl

Number of Employees


Location

  • Polenergia S.A.
  • ul. Krucza 24/26
  • Warsaw
  • 00-526
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEPWSE (Warsaw Stock Exchange)YesBearer SharesPLPLNMay 2005
0O5PLSE (London Stock Exchange)YesBearer SharesGBPLNMay 2005

Biography

Polenergia S.A., together with its subsidiaries, generates, distributes, and transmits electricity in Poland. The company operates through Conventional Energy, Development and Implementation, Wind Power, Biomass, Distribution, and Trading segments. It produces energy from conventional and renewable sources, such as wind, gas, coal, and biomass. The company distributes electricity to industrial customers, shopping centers, and housing estates in various regions of Poland through its distribution infrastructure; distributes and supplies natural gas to industrial customers through its distribution infrastructure; and sells and trades in electric energy and green certificates. It also produces pellets. In addition, the company develops and constructs wind farms and conventional energy plants. The company was formerly known as Polish Energy Partners Spolka Akcyjna. The company was founded in 1997 and is headquartered in Warsaw, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:38
End of Day Share Price2020/04/09 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.