OTCPK:ASOZ.Y

Stock Analysis Report

Executive Summary

Asseco Poland S.A. develops and produces software products.


Snowflake Analysis

6 star dividend payer and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

7.4%

ASOZ.Y

-9.9%

US Software

-10.6%

US Market


1 Year Return

n/a

ASOZ.Y

20.4%

US Software

5.2%

US Market

Return vs Industry: Insufficient data to determine how ASOZ.Y performed against the US Software industry.

Return vs Market: Insufficient data to determine how ASOZ.Y performed against the US Market.


Shareholder returns

ASOZ.YIndustryMarket
7 Day7.4%-9.9%-10.6%
30 Day7.4%-5.5%-8.5%
90 Dayn/a1.9%-4.6%
1 Yearn/a21.7%20.4%7.4%5.2%
3 Year25.8%25.8%122.5%112.9%31.7%23.2%
5 Year19.7%19.7%190.9%169.8%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Asseco Poland 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: ASOZ.Y ($16.75) is trading below our estimate of fair value ($34.23)

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


Price To Earnings Ratio

PE vs Industry: ASOZ.Y is good value based on its PE Ratio (16x) compared to the Software industry average (43.4x).

PE vs Market: ASOZ.Y is good value based on its PE Ratio (16x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ASOZ.Y is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ASOZ.Y is good value based on its PB Ratio (0.9x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is Asseco Poland forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASOZ.Y's forecast earnings growth (5% per year) is above the savings rate (1.7%).

Earnings vs Market: ASOZ.Y's earnings (5% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: ASOZ.Y's revenue (2.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ASOZ.Y's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASOZ.Y's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has Asseco Poland performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASOZ.Y has high quality earnings.

Growing Profit Margin: ASOZ.Y's current net profit margins (3.2%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: ASOZ.Y's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: ASOZ.Y's earnings growth over the past year (10.8%) exceeds its 5-year average (3% per year).

Earnings vs Industry: ASOZ.Y earnings growth over the past year (10.8%) underperformed the Software industry 18.4%.


Return on Equity

High ROE: ASOZ.Y's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Asseco Poland's financial position?


Financial Position Analysis

Short Term Liabilities: ASOZ.Y's short term assets (PLN5.4B) exceed its short term liabilities (PLN3.7B).

Long Term Liabilities: ASOZ.Y's short term assets (PLN5.4B) exceed its long term liabilities (PLN2.7B).


Debt to Equity History and Analysis

Debt Level: ASOZ.Y's debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: ASOZ.Y's debt to equity ratio has increased from 8.7% to 27.1% over the past 5 years.

Debt Coverage: ASOZ.Y's debt is well covered by operating cash flow (60.8%).

Interest Coverage: ASOZ.Y's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

Inventory Level: ASOZ.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: ASOZ.Y's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

4.73%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: ASOZ.Y's dividend (4.73%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: ASOZ.Y's dividend (4.73%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

Stable Dividend: ASOZ.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: ASOZ.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.8%), ASOZ.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASOZ.Y's dividends in 3 years are forecast to be covered by earnings (65.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Adam Góral 0

13.1yrs

Tenure

0

Mr. Adam Tadeusz Góral has been the Chief Executive Officer and President of the Management Board at Asseco Poland Spólka Akcyjna (Alternatively, COMP Rzeszów S.A.) since January 2007 and has been its Memb ...


Leadership Team

NamePositionTenureCompensationOwnership
Adam Góral
President of Management Board13.1yrsno data9.74% PLN133.5m
Rafal Kozlowski
Vice President of Management Board7.7yrsno datano data
Marek Panek
Vice President of the Management Board12.7yrsno datano data
Zbigniew Pomianek
Vice President of the Management Board12.7yrsno datano data
Pawel Piwowar
Vice President of the Management Board10.3yrsno datano data
Andrzej Dopierala
Vice President of the Management Board0yrsno datano data
Krzysztof Groyecki
Vice President of the Management Board3.7yrsno datano data
Gabriela Zukowicz
Vice President of Management Board2.3yrsno datano data
Artur Wiza
Vice President of Management Board1.9yrsno datano data
Slawomir Szmytkowski
Vice President of the Management Board0.6yrsno datano data

7.7yrs

Average Tenure

49yo

Average Age

Experienced Management: ASOZ.Y's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guy Bernstein
Chief Executive Officer of Formula & Magic and Chairman of Sapiens & Matrix0yrsno datano data
Piotr Augustyniak
Member of the Supervisory Board7.3yrsno datano data
Jacek Duch
Chairman of the Supervisory Board12.3yrsno data0.038% PLN519.5k
Adam Noga
Vice President of the Supervisory Board13.1yrsno datano data
Dariusz Brzeski
Member of the Supervisory Board11yrsno datano data
Artur Kucharski
Member of Supervisory Board9.5yrsno datano data
Izabela Albrycht
Member of the Supervisory Board3.1yrsno datano data

10.3yrs

Average Tenure

54yo

Average Age

Experienced Board: ASOZ.Y's board of directors are seasoned and experienced ( 10.3 years average tenure).


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

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


Key Information

  • Name: Asseco Poland S.A.
  • Ticker: ASOZ.Y
  • Exchange: OTCPK
  • Founded: 1989
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: zł5.391b
  • Listing Market Cap: zł1.371b
  • Shares outstanding: 83.00m
  • Website: https://asseco.com

Number of Employees


Location

  • Asseco Poland S.A.
  • 14 Olchowa Street
  • Rzeszów
  • 35-322
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACPWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNJun 1998
0LQGLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNJun 1998
ASOZ.FOTCPK (Pink Sheets LLC)YesOrdinary Bearer SharesUSUSDJun 1998
SFB1DB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURJun 1998
ASOZ.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 2010

Biography

Asseco Poland S.A. develops and produces software products. It operates in Polish Market, Central European Market, South Eastern European Market, Israeli Market, Western European Market, and Eastern European Market segments. The company offers IT solutions for banking, healthcare, insurance, telecommunications, and utilities sector; and public institutions. It also provides enterprise resource planning software for small, medium, and large enterprises; end-to-end infrastructure services, including computing and communication solutions; and solutions for consumer goods enterprises employing mobile sales force. The company was formerly known as Softbank S.A. and changed its name to Asseco Poland S.A. in January 2007. Asseco Poland S.A. was founded in 1989 and is based in Rzeszów, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:14
End of Day Share Price2020/02/24 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.