PKP Cargo SA (PKP) AI Stock Analysis

• Market Cap: €741.22M
• Dividend Yield: N/A
• Average Volume (3M): 66.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -17.64%
• EPS Growth: -1571.24%
• Country: PL
• Employees: 16,623
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): N/A
• Shares Outstanding: 44,786,915
• 10 Day Avg. Volume: 81,733
• 30 Day Avg. Volume: 66,647
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 0.61
• 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: €16.49
• Price Target Upside: -0.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: zł16.50 ▼(-0.60% Downside)

PKP Cargo SA's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, substantial losses, and high leverage. Technical analysis provides some positive signals with bullish momentum, but these are overshadowed by the company's poor valuation metrics, including a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

PKP Cargo SA Business Overview & Revenue Model

Company Description

Pkp Cargo S.A. engages in the transport of goods and the provision of logistics services in the field of rail freight in Poland and internationally. The company offers railway transportation services for coal, coke, aggregates, construction materials, timber and agricultural products, chemicals, liquid fuels, metals and ores, automotive products, and special freight. It also provides intermodal transportation services, such as transport of containers through various means of transport, including train, ship, and car; operates 25 handling terminals that offers handling, forwarding, storage, and packaging services; and provides railway, road, sea, and air forwarding services. In addition, it offers railway siding operation services, and diagnostics and maintenance of railway siding infrastructure; and maintains, upgrades, and repairs rolling stock items. Further, the company is involved in the transport of goods; trading of coal; physical liquidation of carriages and locomotives, and repair of electrical machines and wheelsets, as well as weighing and adjustment of rolling stock; collection, processing, and disposal of waste and recovery of raw materials; and cleaning of railway and car tanks. Additionally, it provides border and fleet management services; and engages in the civil engineering activities, including management and revitalization of post-industrial areas consisting of mining, demolition works, management of waste treatment facilities, liquidation workings, soil decontamination, etc. The company serves mining and metal processing, construction, chemicals, timber, food, and automotive industries. Pkp Cargo S.A. was founded in 2001 and is headquartered in Warsaw, Poland.

How the Company Makes Money

PKP Cargo generates revenue primarily through the transportation of freight by rail, which constitutes its main revenue stream. The company charges customers for the movement of goods over its extensive rail network, and it also offers additional logistics services that include cargo handling, storage, and intermodal transport solutions. Significant partnerships with various industrial players and logistics companies enhance its service offerings and customer base. Moreover, PKP Cargo may benefit from government contracts and subsidies aimed at promoting rail transport as a sustainable alternative to road transport, contributing further to its earnings.

PKP Cargo SA Financial Statement Overview

Summary

PKP Cargo SA faces significant financial challenges. The income statement highlights declining revenues and substantial losses, while the balance sheet reveals high leverage and negative returns on equity. Although cash flow generation has improved, it is not sufficient to offset the company's profitability issues. Strategic initiatives are necessary to address these financial weaknesses and enhance long-term stability and growth.

Income Statement

PKP Cargo SA's income statement reveals significant challenges. The company has experienced a decline in revenue growth, with a negative growth rate of -5.00% in the most recent year. Profitability metrics are concerning, with a gross profit margin of 9.89% and a net profit margin of -54.09%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. These factors suggest a need for strategic improvements to enhance revenue and profitability.

Balance Sheet

The balance sheet of PKP Cargo SA shows a high debt-to-equity ratio of 3.70, indicating significant leverage and potential financial risk. The return on equity is negative at -323.32%, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 11.58%, suggesting a relatively low proportion of equity financing. These metrics point to financial instability and a need for improved capital management.

Cash Flow

PKP Cargo SA's cash flow statement presents mixed results. The company achieved a substantial free cash flow growth rate of 322.91%, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is 0.31, suggesting that cash flow from operations is not fully covering net losses. The free cash flow to net income ratio is 1.0, showing that free cash flow is equal to net income, which is positive but reflects the net loss situation. Overall, cash flow management shows some strengths but is overshadowed by underlying profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.21B	4.46B	5.49B	5.39B	4.27B	4.08B
Gross Profit	384.00M	441.00M	1.13B	799.80M	-231.40M	840.60M
EBITDA	-1.89B	-1.81B	1.06B	1.05B	484.20M	558.60M
Net Income	-2.34B	-2.41B	82.10M	148.00M	-225.30M	-224.30M
Balance Sheet
Total Assets	6.33B	6.44B	8.32B	7.66B	7.61B	7.56B
Cash, Cash Equivalents and Short-Term Investments	529.20M	559.70M	263.70M	181.50M	254.50M	306.00M
Total Debt	2.73B	2.76B	2.89B	2.37B	2.56B	2.58B
Total Liabilities	5.64B	5.69B	5.12B	4.43B	4.57B	4.42B
Stockholders Equity	696.90M	746.20M	3.20B	3.23B	3.04B	3.14B
Cash Flow
Free Cash Flow	763.60M	1.03B	-148.00M	161.50M	-108.70M	-165.90M
Operating Cash Flow	880.80M	1.03B	1.21B	1.02B	699.80M	553.10M
Investing Cash Flow	-284.60M	-420.70M	-987.10M	-772.90M	-645.60M	-655.10M
Financing Cash Flow	-211.00M	-281.50M	-133.40M	-319.50M	-106.40M	-145.90M

PKP Cargo SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PKP, the sentiment is Neutral. The current price of 16.6 is below the 20-day moving average (MA) of 16.67, above the 50-day MA of 16.39, and above the 200-day MA of 16.37, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 27.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PL:PKP.

PKP Cargo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNC	78 Outperform	zł1.62B	14.72	16.33%	3.46%	8.25%	13.02%
GEA	77 Outperform	€1.86B	5.29	16.09%	―	11.24%	83.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PXM	56 Neutral	zł1.72B	―	-30.96%	―	23.59%	-29.92%
PKP	49 Neutral	€741.22M	―	-115.40%	―	-17.64%	-1571.24%