WSE:ZEP

Stock Analysis Report

Zespól Elektrowni Patnów-Adamów-Konin

Executive Summary

Zespól Elektrowni Patnów-Adamów-Konin S.A.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Zespól Elektrowni Patnów-Adamów-Konin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZEP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

ZEP

-7.4%

PL Electric Utilities

-0.2%

PL Market


1 Year Return

-9.4%

ZEP

-42.1%

PL Electric Utilities

-7.2%

PL Market

Return vs Industry: ZEP exceeded the Polish Electric Utilities industry which returned -42.1% over the past year.

Return vs Market: ZEP underperformed the Polish Market which returned -7.2% over the past year.


Shareholder returns

ZEPIndustryMarket
7 Day-2.7%-7.4%-0.2%
30 Day-8.9%-16.2%-2.1%
90 Day-1.4%-21.2%0.1%
1 Year-9.4%-9.4%-42.0%-42.1%-4.5%-7.2%
3 Year-50.1%-59.1%-44.3%-44.9%-6.7%-13.3%
5 Year-64.7%-73.3%-64.8%-67.8%2.2%-10.7%

Price Volatility Vs. Market

How volatile is Zespól Elektrowni Patnów-Adamów-Konin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zespól Elektrowni Patnów-Adamów-Konin 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: ZEP (PLN7.2) is trading below our estimate of fair value (PLN15.46)

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


Price To Earnings Ratio

PE vs Industry: ZEP is unprofitable, so we can't compare its PE Ratio to the Electric Utilities industry average.

PE vs Market: ZEP is unprofitable, so we can't compare its PE Ratio to the Polish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is Zespól Elektrowni Patnów-Adamów-Konin forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

43.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZEP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ZEP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ZEP's is expected to become profitable in the next 3 years.

Revenue vs Market: ZEP's revenue is expected to decline over the next 3 years (-4.9% per year).

High Growth Revenue: ZEP's revenue is forecast to decline over the next 3 years (-4.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZEP's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Zespól Elektrowni Patnów-Adamów-Konin performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZEP is currently unprofitable.

Growing Profit Margin: ZEP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZEP is unprofitable, but has reduced losses over the past 5 years at a rate of 11.6% per year.

Accelerating Growth: Unable to compare ZEP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZEP is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (14.4%).


Return on Equity

High ROE: ZEP has a negative Return on Equity (-19.41%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zespól Elektrowni Patnów-Adamów-Konin's financial position?


Financial Position Analysis

Short Term Liabilities: ZEP's short term assets (PLN805.6M) do not cover its short term liabilities (PLN927.2M).

Long Term Liabilities: ZEP's short term assets (PLN805.6M) do not cover its long term liabilities (PLN1.0B).


Debt to Equity History and Analysis

Debt Level: ZEP's debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: ZEP's debt to equity ratio has reduced from 33% to 11.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ZEP's debt is covered by short term assets (assets are 4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ZEP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ZEP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.3% per year.


Next Steps

Dividend

What is Zespól Elektrowni Patnów-Adamów-Konin's current dividend yield, its reliability and sustainability?

6.94%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.6%industryaverage3.5%forecastin3Years6.9%

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.1yrs

Average management tenure


CEO

Henryk Sobierajski 0

0.8yrs

Tenure

zł120,000

Compensation

Mr. Henryk Sobierajski is President of the Management Board at Zespól Elektrowni „Patnów-Adamów-Konin” Spólka Akcyjna since October 2019 and served as its Acting President of the Management Board since Apr ...


Leadership Team

NamePositionTenureCompensationOwnership
Henryk Sobierajski
President of the Management Board0.8yrszł120.00kno data
Zygmunt Artwik
Vice President of the Management Board4.3yrszł1.20kno data
Pawel Markowski
VP of Management Board & Deputy CEO0yrsno datano data
Pawel Lisowski
Vice President of Management Board1.1yrsno datano data
Maciej Nietopiel
Vice President of the Management Board1.1yrsno datano data
Tomasz Szelag
Secretary of the Supervisory Board & Member of Supervisory Board3.3yrsno datano data

1.1yrs

Average Tenure

Experienced Management: ZEP's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tomasz Szelag
Secretary of the Supervisory Board & Member of Supervisory Board3.3yrsno datano data
Leszek Wyslocki
Member of the Supervisory Board0yrszł120.00kno data
Slawomir Sykucki
Member of the Supervisory Board0yrszł10.10kno data
Wojciech Piskorz
Chairman of the Supervisory Board0.8yrszł198.80kno data
Wieslaw Walendziak
Vice-Chairman of the Supervisory Board0.8yrszł120.00kno data
Slawomir Zakrzewski
Member of the Supervisory Board2.3yrsno datano data
Piotr Stepniak
Member of Supervisory Board0.8yrsno datano data
Grzegorz Krystek
Member of Supervisory Board0.8yrsno datano data

0.8yrs

Average Tenure

Experienced Board: ZEP's board of directors are not considered experienced ( 0.8 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

Zespól Elektrowni Patnów-Adamów-Konin S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zespól Elektrowni Patnów-Adamów-Konin S.A.
  • Ticker: ZEP
  • Exchange: WSE
  • Founded: 1958
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: zł375.078m
  • Shares outstanding: 50.82m
  • Website: https://www.zepak.com.pl

Location

  • Zespól Elektrowni Patnów-Adamów-Konin S.A.
  • ul. Kazimierska 45
  • Konin
  • 62-510
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZEPWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNOct 2012
0QBJLSE (London Stock Exchange)YesOrdinary SharesGBPLNOct 2012

Biography

Zespól Elektrowni Patnów-Adamów-Konin S.A. produces and distributes electricity and heat in Poland. The company produces energy from conventional sources; and through the combustion and co-combustion of biomass, as well as through lignite-fired plants. It also engages in the construction and installation work, maintenance work, services, manufacturing, and commercial activities. The company was founded in 1958 and is headquartered in Konin, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:15
End of Day Share Price2020/02/18 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.