Fact based stock research
KGHM Polska (WSE:KGH)
PLKGHM000017
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
KGHM Polska stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), KGHM Polska (Copper, Poland) shares have above-average financial characteristics compared with similar stocks. Shares of KGHM Polska are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives). But they show above-average growth (Growth Rank of 72) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on KGHM Polska's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company KGHM Polska exhibits low value (Obermatt Value Rank of 26), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 72). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | Poland |
Industry | Copper |
Index | Low Emissions, Copper, Energy Efficient, Iron, Lithium, Rare Earth, Uranium, WIG 20 |
Size class | X-Large |
This stock has achievements: Insight 2022-04-07, Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: KGHM Polska
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 86 |
|
29 |
|
12 |
|
26 |
|
GROWTH | ||||||||
GROWTH | 68 |
|
43 |
|
7 |
|
72 |
|
SAFETY | ||||||||
SAFETY | 5 |
|
37 |
|
62 |
|
70 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
78 |
|
14 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
35 |
|
4 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), KGHM Polska (Copper, Poland) shares have above-average financial characteristics compared with similar stocks. Shares of KGHM Polska are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives). But they show above-average growth (Growth Rank of 72) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on KGHM Polska's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company KGHM Polska exhibits low value (Obermatt Value Rank of 26), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 72). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 86 |
|
29 |
|
12 |
|
26 |
|
GROWTH | ||||||||
GROWTH | 68 |
|
43 |
|
7 |
|
72 |
|
SAFETY | ||||||||
SAFETY | 5 |
|
37 |
|
62 |
|
70 |
|
COMBINED | ||||||||
COMBINED | 54 |
|
23 |
|
6 |
|
70 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), KGHM Polska shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for KGHM Polska. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 60, which means that the stock price is lower compared with invested capital than for 60% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 31 which means the stock price compared with what market professionals expect for future profits is higher than 69% of comparable companies, indicating a low value concerning KGHM Polska's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 60 and for the dividend yields rank which is lower than for 73% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on KGHM Polska's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for KGHM Polska, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 86 |
|
34 |
|
34 |
|
31 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 89 |
|
38 |
|
11 |
|
48 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 76 |
|
67 |
|
67 |
|
60 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 50 |
|
38 |
|
20 |
|
27 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 86 |
|
29 |
|
12 |
|
26 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 72 (better than 72% compared with alternatives), KGHM Polska shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for KGHM Polska. Profit Growth has a rank of 96, which means that currently professionals expect the company to grow its profits more than 96% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 64 (above 64% of alternative investments). But Sales Growth has a below the median rank of 31, which means that, currently, professionals expect the company to grow less than 69% of its competitors, and Capital Growth also has a lower rank of 46. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 72, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for KGHM Polska. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 54 |
|
31 |
|
10 |
|
31 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 74 |
|
79 |
|
13 |
|
96 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
52 |
|
44 |
|
46 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 76 |
|
11 |
|
47 |
|
64 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 68 |
|
43 |
|
7 |
|
72 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company KGHM Polska has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of KGHM Polska is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for KGHM Polska. Leverage is at a rank of 69, meaning the company has a below-average debt-to-equity ratio. It has less debt than 69% of its competitors. Liquidity is also good at a rank of 92, meaning the company generates more profit to service its debt than 92% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 14, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 86% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), KGHM Polska has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for KGHM Polska. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with KGHM Polska and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 16 |
|
62 |
|
68 |
|
69 |
|
REFINANCING | ||||||||
REFINANCING | 8 |
|
11 |
|
21 |
|
14 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 50 |
|
72 |
|
98 |
|
92 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 5 |
|
37 |
|
62 |
|
70 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
17 |
|
1 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
31 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
77 |
|
12 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
96 |
|
100 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
78 |
|
14 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for KGHM Polska from December 19, 2024.
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