WSE:TPE

Stock Analysis Report

TAURON Polska Energia

Executive Summary

TAURON Polska Energia S.A., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity and heat in Poland.

Rewards

Trading at 75.9% below its fair value

Earnings are forecast to grow 13.27% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (1%) are lower than last year (5.8%)



Snowflake Analysis

Good value with limited growth.


Similar Companies

Share Price & News

How has TAURON Polska Energia's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

TPE

-2.7%

PL Electric Utilities

0.7%

PL Market


1 Year Return

-37.9%

TPE

-40.8%

PL Electric Utilities

-7.1%

PL Market

Return vs Industry: TPE exceeded the Polish Electric Utilities industry which returned -41.5% over the past year.

Return vs Market: TPE underperformed the Polish Market which returned -7.7% over the past year.


Shareholder returns

TPEIndustryMarket
7 Day-1.6%-2.7%0.7%
30 Day-10.4%-15.1%-1.7%
90 Day-18.3%-21.2%-0.2%
1 Year-37.9%-37.9%-40.7%-40.8%-4.3%-7.1%
3 Year-51.1%-51.1%-43.3%-43.9%-4.3%-11.1%
5 Year-68.5%-70.8%-64.5%-67.5%2.7%-10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TAURON Polska Energia 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: TPE (PLN1.43) is trading below our estimate of fair value (PLN5.93)

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


Price To Earnings Ratio

PE vs Industry: TPE is poor value based on its PE Ratio (12.1x) compared to the Electric Utilities industry average (5.9x).

PE vs Market: TPE is poor value based on its PE Ratio (12.1x) compared to the Polish market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: TPE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: TPE is good value based on its PB Ratio (0.1x) compared to the PL Electric Utilities industry average (0.2x).


Next Steps

Future Growth

How is TAURON Polska Energia forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPE's forecast earnings growth (13.3% per year) is above the savings rate (2%).

Earnings vs Market: TPE's earnings (13.3% per year) are forecast to grow faster than the Polish market (11.5% per year).

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

Revenue vs Market: TPE's revenue (2.5% per year) is forecast to grow slower than the Polish market (6.2% per year).

High Growth Revenue: TPE's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPE's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has TAURON Polska Energia performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPE has a large one-off loss of PLN797.2M impacting its September 30 2019 financial results.

Growing Profit Margin: TPE's current net profit margins (1%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: TPE's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: TPE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TPE had negative earnings growth (-80.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (14.4%).


Return on Equity

High ROE: TPE's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TAURON Polska Energia's financial position?


Financial Position Analysis

Short Term Liabilities: TPE's short term assets (PLN6.5B) do not cover its short term liabilities (PLN7.5B).

Long Term Liabilities: TPE's short term assets (PLN6.5B) do not cover its long term liabilities (PLN13.6B).


Debt to Equity History and Analysis

Debt Level: TPE's debt to equity ratio (62.5%) is considered high.

Reducing Debt: TPE's debt to equity ratio has increased from 36.3% to 62.5% over the past 5 years.

Debt Coverage: TPE's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: TPE's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: TPE's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is TAURON Polska Energia's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.6%industryaverage3.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.7yrs

Average management tenure


CEO

Filip Grzegorczyk (41yo)

3.3yrs

Tenure

zł1,200,000

Compensation

Mr. Filip Grzegorczyk has been the President of the Management Board at Tauron Polska Energia Spolka Akcyjna since November 15, 2016. Mr. Grzegorczyk served as Chairman of the Supervisory Board of TAURON W ...


CEO Compensation Analysis

Compensation vs Market: Filip's total compensation ($USD306.44K) is about average for companies of similar size in the Polish market ($USD392.92K).

Compensation vs Earnings: Filip's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Filip Grzegorczyk
President of the Management Board3.3yrszł1.20mno data
Jaroslaw Broda
Vice-President of the Management Board for Asset Management & Development4.2yrszł1.18mno data
Kamil Kamiñski
Vice President of the Management Board for Customer & Corporate Affairs2.8yrszł1.18mno data
Marek Wadowski
Vice-President of the Management Board for Finance4.1yrszł1.17mno data
Jacek Szyke
Secretary & Member of the Supervisory Board9.4yrszł85.00kno data
Oliwia Tokarczyk
Executive Director for Taxes & Accounting0yrsno datano data

3.7yrs

Average Tenure

41yo

Average Age

Experienced Management: TPE's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jacek Szyke
Secretary & Member of the Supervisory Board9.4yrszł85.00kno data
Beata Chlodzinska
Chair of the Supervisory Board4.5yrszł97.00kno data
Agnieszka Wozniak
Member of the Supervisory Board3.2yrszł85.00kno data
Jan Pludowski
Member of the Supervisory Board3.2yrszł85.00kno data
Teresa Famulska
Vice Chair of the Supervisory Board2.7yrszł85.00kno data
Barbara Lasak-Jarszak
Member of the Supervisory Board2.7yrszł85.00kno data
Marcin Szlenk
Member of the Supervisory Board1.8yrszł60.00kno data
Katarzyna Taczanowska
Member of the Supervisory Board1.1yrsno datano data
Grzegorz Peczkis
Member of the Supervisory Board1.1yrsno datano data

2.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: TPE's board of directors are not considered experienced ( 2.7 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

TAURON Polska Energia S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TAURON Polska Energia S.A.
  • Ticker: TPE
  • Exchange: WSE
  • Founded: 2006
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: zł2.504b
  • Shares outstanding: 1.75b
  • Website: https://www.tauron.pl

Number of Employees


Location

  • TAURON Polska Energia S.A.
  • Katowice Business Point
  • ul. ks. Piotra Sciegiennego 3
  • Katowice
  • 40-114
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPEWSE (Warsaw Stock Exchange)YesClass AA Bearer SharesPLPLNJun 2010
0N2XLSE (London Stock Exchange)YesClass AA Bearer SharesGBPLNJun 2010
1T5DB (Deutsche Boerse AG)YesClass AA Bearer SharesDEEURJun 2010

Biography

TAURON Polska Energia S.A., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity and heat in Poland. The company generates electricity from renewable energy sources, including biomass burning and cofiring, and hydroelectric power plants, as well as wind farms. It is also involved in the mining of hard coal; extraction of stone, including limestone, for the needs of power generation, steel, construction, and road building industries. In addition, the company supplies electricity and natural gas supply to the consumers; and engages in the wholesale trade of electricity, natural gas, and derivative products, as well as trading and management of CO2 emission allowances, property rights arising from certificates of origin that confirm electricity generation from renewable sources, and cogeneration and property rights arising from energy efficiency certificates and fuels. Further, it produces sorbents for wet desulphurization installations and fluidized bed boilers. The company was formerly known as Energetyka Poludnie S.A. and changed its name to TAURON Polska Energia S.A. in November 2007. TAURON Polska Energia S.A. was founded in 2006 and is based in Katowice, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:49
End of Day Share Price2020/02/17 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.