PGE Polska Grupa Energetyczna SA (PGE) AI Stock Analysis

• Market Cap: zł23.79B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -17.42%
• EPS Growth: -144.01%
• Country: PL
• Employees: 42,921
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): -4.28
• Shares Outstanding: 2,243,713,000
• 10 Day Avg. Volume: 2,030,890
• 30 Day Avg. Volume: 2,291,068
• PEG Ratio: 0.12
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -151.33
• 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: zł10.50
• Price Target Upside: -1.50% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: zł10.50 ▼(-1.50% Downside)

The overall stock score is primarily impacted by weak financial performance and valuation concerns. The company's profitability challenges and negative P/E ratio are significant detractors. Technical indicators also suggest bearish momentum, further weighing on the stock's outlook.

PGE Polska Grupa Energetyczna SA Business Overview & Revenue Model

Company Description

PGE Polska Grupa Energetyczna SA (PGE) is the largest energy company in Poland, primarily engaged in the generation, distribution, and sale of electricity and heat. The company operates across multiple sectors, including conventional energy, renewable energy, and distribution infrastructure. PGE is involved in the production of electricity from coal, gas, and renewables like wind and solar, and also provides services related to energy efficiency and modernization of energy systems.

How the Company Makes Money

PGE generates revenue through several key streams: electricity generation, which includes sales from its various power plants; distribution and transmission services, where it charges fees for the delivery of electricity to consumers; and retail energy sales, where it sells electricity directly to residential and business customers. Additionally, PGE has been increasing its focus on renewable energy projects, which not only contribute to its revenue but also align with global sustainability trends. Partnerships with local and international firms for energy projects and joint ventures in renewable energy initiatives further bolster its revenue. Government regulations and subsidies for renewable energy also play a significant role in enhancing its profitability.

PGE Polska Grupa Energetyczna SA Financial Statement Overview

Summary

PGE Polska Grupa Energetyczna SA faces significant challenges in profitability, with negative net income and declining revenue. Despite a stable balance sheet with low leverage, cash flow generation is under pressure, particularly in terms of free cash flow.

Income Statement

PGE Polska Grupa Energetyczna SA has experienced a decline in revenue growth, with a negative growth rate of -10.12% in the latest year. The gross profit margin improved to 14.69% from 8.76% in the previous year, indicating better cost management. However, the net profit margin remains negative at -4.91%, reflecting ongoing profitability challenges. The EBIT margin is slightly positive at 0.19%, but the EBITDA margin has decreased to 6.32%, suggesting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.30, indicating a conservative leverage position. However, the return on equity is negative at -7.11%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 42.75%, showing a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow has improved significantly to 10.26 billion, but free cash flow remains negative at -90 million, indicating cash flow challenges. The operating cash flow to net income ratio is 0.30, suggesting that the company is generating cash flow despite net losses. However, the free cash flow to net income ratio is negative, highlighting issues in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.16B	64.48B	95.96B	73.44B	52.73B	45.77B
Gross Profit	3.42B	9.47B	8.40B	5.74B	3.62B	4.15B
EBITDA	-1.72B	4.07B	10.61B	6.51B	7.92B	5.52B
Net Income	-12.37B	-3.16B	-5.01B	3.33B	3.97B	110.00M
Balance Sheet
Total Assets	99.60B	103.99B	113.44B	105.78B	88.97B	81.59B
Cash, Cash Equivalents and Short-Term Investments	14.34B	4.36B	6.03B	11.89B	6.73B	4.23B
Total Debt	12.66B	13.19B	14.90B	8.94B	10.83B	11.41B
Total Liabilities	60.99B	58.47B	65.59B	51.40B	40.67B	38.09B
Stockholders Equity	37.48B	44.47B	46.87B	53.54B	47.49B	42.52B
Cash Flow
Free Cash Flow	6.89B	-90.00M	-6.46B	4.95B	2.77B	4.33B
Operating Cash Flow	16.83B	10.81B	3.27B	11.61B	7.46B	10.26B
Investing Cash Flow	-9.80B	-10.30B	-11.45B	-7.30B	-4.37B	-6.04B
Financing Cash Flow	3.44B	-2.18B	2.33B	841.00M	-528.00M	-1.36B

PGE Polska Grupa Energetyczna SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PGE, the sentiment is Neutral. The current price of 10.66 is below the 20-day moving average (MA) of 10.80, below the 50-day MA of 11.25, and above the 200-day MA of 9.15, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 49.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PL:PGE.

PGE Polska Grupa Energetyczna SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZEP	71 Outperform	zł1.22B	4.81	12.10%	―	-20.30%	-74.56%
ENG	67 Neutral	zł6.13B	19.96	2.03%	―	0.32%	685.59%
ENA	64 Neutral	zł9.36B	8.99	9.12%	2.83%	-23.28%	-39.53%
TPE	64 Neutral	zł15.19B	4.36	3.30%	―	-8.68%	―
PEP	61 Neutral	zł4.59B	111.91	0.97%	―	-7.17%	-87.31%
PGE	46 Neutral	zł23.79B	―	-28.51%	―	-17.42%	-144.01%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%