New Risk • Apr 27
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.4x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.4x net interest cover). Earnings have declined by 25% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (1.8% net profit margin). New Risk • Nov 30
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.4% Last year net profit margin: 3.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 19% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.4% net profit margin). Duyuru • Aug 20
Rawlplug S.A. to Report First Half, 2025 Results on Aug 29, 2025 Rawlplug S.A. announced that they will report first half, 2025 results on Aug 29, 2025 Upcoming Dividend • Aug 06
Upcoming dividend of zł0.40 per share Eligible shareholders must have bought the stock before 13 August 2025. Payment date: 29 August 2025. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Polish dividend payers (7.2%). In line with average of industry peers (2.4%). New Risk • Jun 24
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings have declined by 6.3% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jun 02
First quarter 2025 earnings released: EPS: zł0.034 (vs zł0.24 in 1Q 2024) First quarter 2025 results: EPS: zł0.034 (down from zł0.24 in 1Q 2024). Revenue: zł272.2m (down 2.0% from 1Q 2024). Net income: zł1.05m (down 86% from 1Q 2024). Profit margin: 0.4% (down from 2.7% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Duyuru • May 22
Rawlplug S.A., Annual General Meeting, Jun 18, 2025 Rawlplug S.A., Annual General Meeting, Jun 18, 2025. Declared Dividend • May 19
Dividend of zł0.40 announced Dividend of zł0.40 is the same as last year. Ex-date: 13th August 2025 Payment date: 29th August 2025 Dividend yield will be 2.3%, which is lower than the industry average of 5.3%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has increased by an average of 1.9% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Duyuru • May 17
Rawlplug S.A. announces Annual dividend, payable on August 29, 2025 Rawlplug S.A. announced Annual dividend of PLN 0.4000 per share payable on August 29, 2025, ex-date on August 13, 2025 and record date on August 14, 2025. New Risk • Apr 28
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 45% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.7% per year over the past 5 years. Minor Risk High level of debt (45% net debt to equity). Reported Earnings • Apr 28
Full year 2024 earnings released: EPS: zł1.71 (vs zł1.05 in FY 2023) Full year 2024 results: EPS: zł1.71 (up from zł1.05 in FY 2023). Revenue: zł1.13b (down 2.8% from FY 2023). Net income: zł53.0m (up 63% from FY 2023). Profit margin: 4.7% (up from 2.8% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. New Risk • Apr 27
New major risk - Revenue and earnings growth Earnings have declined by 0.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.7% per year over the past 5 years. Minor Risk High level of debt (46% net debt to equity). New Risk • Nov 28
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 46% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 24
Third quarter 2024 earnings released: EPS: zł0.49 (vs zł0.31 in 3Q 2023) Third quarter 2024 results: EPS: zł0.49 (up from zł0.31 in 3Q 2023). Revenue: zł290.3m (down 1.5% from 3Q 2023). Net income: zł15.3m (up 60% from 3Q 2023). Profit margin: 5.3% (up from 3.2% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. New Risk • Aug 29
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 46% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (46% net debt to equity). Profit margins are more than 30% lower than last year (3.0% net profit margin). Reported Earnings • Aug 25
Second quarter 2024 earnings released: EPS: zł0.49 (vs zł0.41 in 2Q 2023) Second quarter 2024 results: EPS: zł0.49 (up from zł0.41 in 2Q 2023). Revenue: zł291.4m (down 5.5% from 2Q 2023). Net income: zł15.4m (up 21% from 2Q 2023). Profit margin: 5.3% (up from 4.1% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 06
Upcoming dividend of zł0.40 per share Eligible shareholders must have bought the stock before 13 August 2024. Payment date: 29 August 2024. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Polish dividend payers (8.1%). Lower than average of industry peers (4.2%). New Risk • Jun 09
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 47% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (47% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.8% net profit margin). Duyuru • May 25
Rawlplug S.A., Annual General Meeting, Jun 20, 2024 Rawlplug S.A., Annual General Meeting, Jun 20, 2024. Reported Earnings • Apr 28
Full year 2023 earnings released: EPS: zł1.05 (vs zł3.50 in FY 2022) Full year 2023 results: EPS: zł1.05 (down from zł3.50 in FY 2022). Revenue: zł1.17b (down 4.3% from FY 2022). Net income: zł32.6m (down 70% from FY 2022). Profit margin: 2.8% (down from 8.9% in FY 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Nov 21
Third quarter 2023 earnings released: EPS: zł0.31 (vs zł0.86 in 3Q 2022) Third quarter 2023 results: EPS: zł0.31 (down from zł0.86 in 3Q 2022). Revenue: zł294.6m (down 4.9% from 3Q 2022). Net income: zł9.57m (down 64% from 3Q 2022). Profit margin: 3.2% (down from 8.7% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Sep 11
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 44% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (44% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.4% net profit margin). Reported Earnings • Aug 28
Second quarter 2023 earnings released: EPS: zł0.41 (vs zł1.27 in 2Q 2022) Second quarter 2023 results: EPS: zł0.41 (down from zł1.27 in 2Q 2022). Revenue: zł308.4m (down 3.2% from 2Q 2022). Net income: zł12.8m (down 68% from 2Q 2022). Profit margin: 4.1% (down from 12% in 2Q 2022). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Upcoming Dividend • Jul 27
Upcoming dividend of zł0.60 per share at 4.0% yield Eligible shareholders must have bought the stock before 03 August 2023. Payment date: 25 August 2023. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of Polish dividend payers (7.3%). In line with average of industry peers (4.2%). New Risk • Jun 12
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 44% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (44% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.5% net profit margin). Reported Earnings • May 30
First quarter 2023 earnings released: EPS: zł0.28 (vs zł1.22 in 1Q 2022) First quarter 2023 results: EPS: zł0.28 (down from zł1.22 in 1Q 2022). Revenue: zł313.5m (up 1.2% from 1Q 2022). Net income: zł8.72m (down 77% from 1Q 2022). Profit margin: 2.8% (down from 12% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Duyuru • May 26
Rawlplug S.A., Annual General Meeting, Jun 22, 2023 Rawlplug S.A., Annual General Meeting, Jun 22, 2023, at 11:00 Central European Standard Time. Reported Earnings • Nov 20
Third quarter 2022 earnings released: EPS: zł0.87 (vs zł0.96 in 3Q 2021) Third quarter 2022 results: EPS: zł0.87 (down from zł0.96 in 3Q 2021). Revenue: zł309.9m (up 14% from 3Q 2021). Net income: zł26.8m (down 11% from 3Q 2021). Profit margin: 8.7% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Sep 23
Now 20% undervalued Over the last 90 days, the stock is up 1.4%. The fair value is estimated to be zł18.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 58%. Reported Earnings • Aug 28
Second quarter 2022 earnings released: EPS: zł1.27 (vs zł1.19 in 2Q 2021) Second quarter 2022 results: EPS: zł1.27 (up from zł1.19 in 2Q 2021). Revenue: zł318.4m (up 22% from 2Q 2021). Net income: zł39.6m (up 6.7% from 2Q 2021). Profit margin: 12% (down from 14% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 26
Upcoming dividend of zł0.60 per share Eligible shareholders must have bought the stock before 02 August 2022. Payment date: 24 August 2022. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of Polish dividend payers (8.3%). Higher than average of industry peers (3.4%). Duyuru • May 20
Rawlplug S.A., Annual General Meeting, Jun 14, 2022 Rawlplug S.A., Annual General Meeting, Jun 14, 2022, at 11:00 Central European Standard Time. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 16% share price decline to zł13.30, the stock trades at a trailing P/E ratio of 9.8x. Average trailing P/E is 8x in the Machinery industry in Poland. Total returns to shareholders of 54% over the past three years. Upcoming Dividend • Jun 30
Upcoming dividend of zł0.38 per share Eligible shareholders must have bought the stock before 07 July 2021. Payment date: 29 July 2021. Trailing yield: 2.4%. Lower than top quartile of Polish dividend payers (5.7%). Lower than average of industry peers (3.8%). Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improved over the past week After last week's 17% share price gain to zł13.20, the stock trades at a trailing P/E ratio of 10.2x. Average trailing P/E is 13x in the Machinery industry in Poland. Total returns to shareholders of 47% over the past three years. Is New 90 Day High Low • Feb 01
New 90-day high: zł10.50 The company is up 40% from its price of zł7.50 on 03 November 2020. The Polish market is up 22% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Machinery industry, which is up 44% over the same period. Is New 90 Day High Low • Jan 14
New 90-day high: zł9.70 The company is up 27% from its price of zł7.66 on 16 October 2020. The Polish market is up 20% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Machinery industry, which is up 33% over the same period. Is New 90 Day High Low • Dec 29
New 90-day high: zł9.30 The company is up 19% from its price of zł7.80 on 30 September 2020. The Polish market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 2.0% over the same period. Is New 90 Day High Low • Nov 16
New 90-day high: zł8.26 The company is up 1.0% from its price of zł8.16 on 18 August 2020. The Polish market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is down 4.0% over the same period. Is New 90 Day High Low • Oct 31
New 90-day low: zł7.26 The company is down 10.0% from its price of zł8.10 on 31 July 2020. The Polish market is down 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is down 17% over the same period. Is New 90 Day High Low • Oct 15
New 90-day low: zł7.40 The company is down 10.0% from its price of zł8.18 on 17 July 2020. The Polish market is down 6.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Machinery industry, which is down 11% over the same period.