Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. (KGN) AI Stock Analysis

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A.

(Warsaw:KGN)

Select Model

Rating:67Neutral

Price Target:PLN 62.00▼(-26.37% Downside)

Action:initiatedcoverage

Date:09/16/25

Strong financial stability and prudent leverage are tempered by recent declines in gross margin and revenue, indicating operational headwinds. The primary upside is a deeply discounted valuation based on the low P/E ratio. The lack of technical momentum or signals and the absence of recent earnings or corporate events keep the score moderate despite clear value potential. The primary risks relate to margin compression and sector cyclicality.

Positive Factors

Strong Cash Flow GenerationStrong cash flow generation indicates effective operational management and provides the company with flexibility for investments and debt reduction, supporting long-term growth.

Negative Factors

Revenue DeclineA decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future earnings and requiring strategic adjustments to regain momentum.

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. (KGN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: PLN 1.30B
Dividend Yield: 7.97%
Average Volume (3M): 15.32K
Price to Earnings (P/E): 3.8
Beta (1Y): 0.73
Revenue Growth: 11.53%
EPS Growth: 81.75%
Country: PL
Employees: 529
Sector: Utilities
Sector Strength: 66
Industry: Regulated Electric

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. Business Overview & Revenue Model

Company Description

Based in Wroclaw, Poland, Zespól Elektrocieplowni Wroclawskich KOGENERACJA S.A. is an energy company focused on generating electricity and heat within Poland. Its activities also encompass the wholesale and retail commercialization of electricity, he...

How the Company Makes Money

KGN primarily generates revenue through the sale of electricity and thermal energy. Its revenue model is based on long-term contracts and agreements with local municipalities and businesses, ensuring a steady demand for its products. The company bene...

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. Financial Statement Overview

Summary

Solid balance sheet with low leverage and improved cash flow support financial stability, but declining revenue and sharp gross margin contraction reveal significant operational and market risks. Steady profitability is countered by recent margin pressures and cyclical industry exposure.

Income Statement

61Positive

Balance Sheet

78Positive

Cash Flow

69Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.86B	2.65B	2.56B	3.16B	1.81B	1.43B
Gross Profit	578.80M	487.25M	331.35M	993.27M	269.70M	143.39M
EBITDA	717.68M	595.10M	484.59M	536.02M	397.04M	261.94M
Net Income	334.29M	277.02M	201.75M	255.70M	149.53M	56.25M
Balance Sheet
Total Assets	4.62B	4.59B	4.73B	4.72B	3.53B	3.21B
Cash, Cash Equivalents and Short-Term Investments	16.14M	2.76M	31.63M	34.28M	5.17M	21.92M
Total Debt	385.06M	403.01M	437.93M	433.57M	112.43M	57.97M
Total Liabilities	1.81B	1.99B	2.39B	2.58B	1.64B	1.46B
Stockholders Equity	2.80B	2.60B	2.34B	2.14B	1.88B	1.74B
Cash Flow
Free Cash Flow	400.99M	482.20M	613.76M	26.49M	-122.98M	5.70M
Operating Cash Flow	666.00M	804.02M	850.72M	611.91M	425.56M	328.19M
Investing Cash Flow	-417.74M	-317.09M	-371.38M	-917.53M	-629.69M	-321.87M
Financing Cash Flow	-256.02M	-484.72M	-481.99M	334.73M	187.38M	1.52M

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. Technical Analysis

Technical Analysis SentimentPositive

Last Price84.20

Price Trends

50DMA75.64Positive

100DMA73.20Positive

200DMA74.67Positive

Market Momentum

MACD2.88Negative

RSI61.19Neutral

STOCH77.89Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:KGN, the sentiment is Positive. The current price of 84.20 is above the 20-day moving average (MA) of 81.45, above the 50-day MA of 75.64, and above the 200-day MA of 74.67, indicating a bullish trend. The MACD of 2.88 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 77.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:KGN.

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

PL:KGN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PL:KGN	67Neutral	PLN 1.30B	3.75	12.51%	7.97%	11.53%	81.75%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
PL:TPE	64Neutral	PLN 15.82B	5.45	13.26%	2.28%	-2.77%	-18.89%
PL:ENA	60Neutral	PLN 11.18B	8.02	―	2.67%	-13.15%	33.40%
PL:ZEP	47Neutral	PLN 929.05M	-6.52	-7.05%	―	-28.82%	-282.17%
PL:PGE	37Underperform	PLN 36.57B	4.66	17.75%	―	-1.53%	―

* Utilities Sector Average

Performance Comparison

PL:KGN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PL:KGN	Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A.	84.20	21.10	33.44%
PL:ENA	ENEA SA	20.94	-0.04	-0.21%
PL:PGE	PGE Polska Grupa Energetyczna SA	15.89	4.67	41.56%
PL:ZEP	ZE PAK SA	18.12	-3.68	-16.88%
PL:TPE	TAURON Polska Energia S.A.	8.77	-1.13	-11.37%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 16, 2025

Zespol Elektrocieplowni Wroclawskich KOGENERACJA S.A. AI Stock Analysis