Grupa Azoty Zaklady Chemiczne Police S.A. (PCE) AI Stock Analysis

• Market Cap: €1.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -9.69%
• EPS Growth: 89.50%
• Country: PL
• Employees: 472
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.84
• Shares Outstanding: 124,175,766
• 10 Day Avg. Volume: 1,257
• 30 Day Avg. Volume: 1,364
• PEG Ratio: 0.13
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 0.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €8.51
• Price Target Upside: -1.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: zł8.50 ▼(-1.39% Downside)

Grupa Azoty Zaklady Chemiczne Police S.A. is currently facing significant financial and valuation challenges, with declining revenue and profitability issues. Technical indicators suggest bearish momentum, further impacting the stock's outlook. Improvements in cash flow provide some positive aspects, but the overall risk remains high.

Grupa Azoty Zaklady Chemiczne Police S.A. Business Overview & Revenue Model

Company Description

Grupa Azoty Zaklady Chemiczne Police S.A. manufactures and sells mineral fertilizers in Poland, Germany, South America, rest of Europe, and internationally. The company provides compound fertilizers, such as nitrogen, phosphorus, and potassium fertilizers under the POLIFOSKA and POLIDAP brand; nitrogen-based fertilizers; phosphoric and sulfuric acids; and urea solutions to reduce nitrogen oxide emissions from diesel engines and used as a reducing agent in vehicle emissions control technologies under the NOXy and Pulnox name, as well as liquid ammonia. It also offers pigments comprising titanium white products, including iron sulfate and hydrolytic acid under the TYTANPOL brand, which is used in production of paints and varnishes, printing inks, and plastics, as well as paper and laminates; and produces electricity, hot steam, and heating water, as well as fly ash. In addition, the company provides logistics, transport, plant and equipment, and workshop services; and sea port operation, port construction, property management, research works, sea and inland shipping, and coastal water transportation services. Further, it engages in the provision of overhauls and services for mechanical and construction industries; project execution, technical, and engineering activities in automation and power engineering; repairing of instrumentation and control equipment, and power generation plant and equipment; plant engineering in process control and visualization systems; and wastewater disposal, waste storage, laboratory, property rental, and other activities. The company was founded in 1995 and is based in Police, Poland. Grupa Azoty Zaklady Chemiczne Police S.A. is a subsidiary of Grupa Azoty S.A.

How the Company Makes Money

Grupa Azoty Zaklady Chemiczne Police S.A. generates revenue primarily through the sale of its chemical products and fertilizers. The company focuses on key revenue streams such as nitrogen fertilizers, which are in high demand due to their necessity in modern agriculture, and specialty chemicals, which cater to various industrial applications. PCE benefits from its strategic partnerships with agricultural cooperatives and distributors, enabling it to reach a broader customer base. Additionally, fluctuations in global commodity prices and the demand for sustainable agricultural solutions impact its earnings. The company also invests in research and development to innovate and improve its product offerings, potentially opening new revenue channels.

Grupa Azoty Zaklady Chemiczne Police S.A. Financial Statement Overview

Summary

Grupa Azoty Zaklady Chemiczne Police S.A. is facing financial challenges with declining revenue growth and negative net profit margins. However, there are improvements in cash flow and operational efficiency. The company needs to address high leverage and negative returns on equity for future stability.

Income Statement

Grupa Azoty Zaklady Chemiczne Police S.A. has faced declining revenue growth over recent years, with a significant drop of 4.52% in the latest period. The company also reported negative net profit margins, indicating profitability challenges. However, there was a slight improvement in gross profit margin compared to the previous year, suggesting some operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose financial risks. The return on equity remains negative, reflecting ongoing profitability issues. However, the equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

There has been a significant improvement in free cash flow growth, with a notable increase of 114.44%. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio suggests that cash flow improvements are not yet translating into profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.48B	2.97B	5.35B	3.22B	2.43B
Gross Profit	113.41M	102.24M	7.07M	422.55M	446.23M	328.17M
EBITDA	105.80M	149.07M	-572.42M	60.26M	297.60M	297.57M
Net Income	-70.21M	-71.78M	-1.07B	-135.39M	113.06M	116.45M
Balance Sheet
Total Assets	3.60B	3.37B	3.30B	4.35B	4.18B	3.41B
Cash, Cash Equivalents and Short-Term Investments	126.21M	128.90M	45.59M	50.97M	275.44M	64.33M
Total Debt	990.47M	862.16M	653.10M	655.03M	891.21M	721.50M
Total Liabilities	3.01B	2.71B	2.55B	2.48B	2.32B	1.66B
Stockholders Equity	591.75M	657.49M	754.32M	1.87B	1.85B	1.74B
Cash Flow
Free Cash Flow	1.06B	917.48M	1.36B	833.13M	864.09M	-1.59B
Operating Cash Flow	1.16B	1.02B	1.47B	1.03B	1.03B	171.26M
Investing Cash Flow	-76.44M	-67.71M	-218.60M	-183.97M	-147.49M	-2.17B
Financing Cash Flow	-1.01B	-867.16M	-1.26B	-1.07B	-668.53M	1.61B

Grupa Azoty Zaklady Chemiczne Police S.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PCE, the sentiment is Neutral. The current price of 8.62 is above the 20-day moving average (MA) of 8.56, below the 50-day MA of 8.73, and below the 200-day MA of 8.86, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 64.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PL:PCE.

Grupa Azoty Zaklady Chemiczne Police S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEL	79 Outperform	zł890.53M	9.94	12.00%	6.41%	-1.42%	-2.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ATT	52 Neutral	€1.89B	―	-24.98%	―	4.17%	52.69%
ZAP	49 Neutral	zł923.25M	―	-8.44%	―	0.70%	43.84%
PCE	46 Neutral	€1.06B	―	-21.80%	―	-9.69%	89.50%