WSE:ZEP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Zespól Elektrowni Patnów-Adamów-Konin

Executive Summary

Zespól Elektrowni Patnów-Adamów-Konin S.A.

Rewards

Earnings are forecast to grow 30.88% per year

Risk Analysis

No risks detected for ZEP from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

-0.4%

ZEP

-0.3%

PL Electric Utilities

1.2%

PL Market


1 Year Return

17.8%

ZEP

-2.4%

PL Electric Utilities

-7.5%

PL Market

Return vs Industry: ZEP exceeded the Polish Electric Utilities industry which returned -5.2% over the past year.

Return vs Market: ZEP exceeded the Polish Market which returned -6.9% over the past year.


Shareholder returns

ZEPIndustryMarket
7 Day-0.4%-0.3%1.2%
30 Day0.4%-2.2%2.7%
90 Day29.6%55.0%17.6%
1 Year17.8%17.8%-2.2%-2.4%-6.7%-7.5%
3 Year-31.2%-39.2%-44.7%-45.0%-17.5%-22.4%
5 Year-30.6%-47.6%-48.1%-51.6%-5.6%-16.4%

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?

0.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ZEP (PLN9.54) is trading above our estimate of fair value (PLN2.1)

Significantly Below Fair Value: ZEP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZEP is unprofitable, so we can't compare its PE Ratio to the XE 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's PB Ratio (0.4x) is in line with the PL Electric Utilities industry average.


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?

30.9%

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 (2.9%).

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 (-3.9% per year).

High Growth Revenue: ZEP's revenue is forecast to decline over the next 3 years (-3.9% 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 (4.2%).


Next Steps

  • Explore growth companies in the Utilities industry.

Past Performance

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

18.6%

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 18.6% 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 (6.3%).


Return on Equity

High ROE: ZEP has a negative Return on Equity (-40.25%), as it is currently unprofitable.


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 (PLN1.2B) do not cover its short term liabilities (PLN1.2B).

Long Term Liabilities: ZEP's short term assets (PLN1.2B) exceed its long term liabilities (PLN970.6M).


Debt to Equity History and Analysis

Debt Level: ZEP's debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: ZEP's debt to equity ratio has reduced from 33.8% to 13.6% over the past 5 years.


Balance Sheet


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 27.2% per year.


Next Steps

Dividend

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

2.51%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ZEP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

1.6yrs

Average management tenure


CEO

Henryk Sobierajski

0.17

Tenure

zł1,567,930

Compensation

Mr. Henryk Sobierajski serves as President of the Management Board at Zespól Elektrowni „Patnów-Adamów-Konin” Spólka Akcyjna since June 2020. Previously, He was President of the Management Board at Zespól ...


CEO Compensation Analysis

Compensation vs Market: Henryk's total compensation ($USD419.28K) is above average for companies of similar size in the Polish market ($USD155.31K).

Compensation vs Earnings: Henryk's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Henryk Sobierajski
President of the Management Board0.17yrzł1.57mno data
Zygmunt Artwik
Vice President of the Management Board4.83yrszł652.40kno data
Pawel Markowski
VP of Management Board & Deputy CEOno datazł497.90kno data
Pawel Lisowski
Vice President of Management Board1.58yrszł478.26kno data
Maciej Nietopiel
Vice President of the Management Board1.58yrszł300.74kno data
Tomasz Szelag
Secretary of the Supervisory Board & Member of Supervisory Board3.83yrszł120.00kno data

1.6yrs

Average Tenure

Experienced Management: ZEP's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tomasz Szelag
Secretary of the Supervisory Board & Member of Supervisory Board3.83yrszł120.00kno data
Leszek Wyslocki
Member of the Supervisory Boardno datazł120.00kno data
Alojzy Nowak
Member of the Supervisory Board0.17yrno datano data
Wieslaw Walendziak
Vice-Chairman of the Supervisory Board1.33yrszł157.40kno data
Slawomir Zakrzewski
Member of the Supervisory Board2.83yrszł120.00kno data
Grzegorz Krystek
Member of Supervisory Board1.33yrszł75.20kno data
Piotr Wozny
Chairman of the Supervisory Board0.17yrno datano data
Maciej Stec
Member of the Supervisory Board0.17yrno datano data

1.3yrs

Average Tenure

Experienced Board: ZEP's board of directors are not considered experienced ( 1.3 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: zł484.857m
  • 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 bi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:04
End of Day Share Price2020/08/11 00:00
Earnings2020/03/31
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.