ZE PAK SA (ZEP) AI Stock Analysis

• Market Cap: zł1.14B
• Dividend Yield: N/A
• Average Volume (3M): 14.30K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.55
• Revenue Growth: -20.30%
• EPS Growth: -74.56%
• Country: PL
• Employees: 2,562
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): -1.29
• Shares Outstanding: 50,823,547
• 10 Day Avg. Volume: 14,307
• 30 Day Avg. Volume: 14,304
• PEG Ratio: -0.04
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -384.98
• 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: zł27.01
• Price Target Upside: 20.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: zł27.00 ▲(20.27% Upside)

ZE PAK SA's stock is supported by strong valuation metrics and positive technical indicators, despite financial performance challenges. The low P/E ratio and bullish technical signals are the most significant factors driving the score.

ZE PAK SA Business Overview & Revenue Model

Company Description

Zespól Elektrowni Patnów-Adamów-Konin S.A. produces and distributes electricity and heat in Poland. The company produces energy from conventional sources; and through the combustion and co-combustion of biomass and coal, as well as through lignite-fired power plants. It also engages in the construction and installation work, maintenance work, services, manufacturing, and commercial activities. The company was founded in 1958 and is headquartered in Konin, Poland. Zespól Elektrowni Patnów-Adamów-Konin S.A. is a subsidiary of Argumenol Investment Company Limited.

How the Company Makes Money

ZE PAK SA generates revenue primarily through the sale of electricity and heat to various customers, including households and businesses. The company's core revenue streams come from its coal-fired power plants, which produce a substantial portion of its electricity output. In addition to traditional energy sales, ZE PAK SA is also investing in renewable energy projects, which could enhance its revenue base as the market shifts towards greener alternatives. The company may also engage in power trading and participate in capacity markets, further diversifying its income sources. Partnerships with other energy firms and participation in government energy programs could also play a role in boosting earnings, especially as the energy sector evolves.

ZE PAK SA Financial Statement Overview

Summary

ZE PAK SA has shown improvements in profitability with a positive net profit margin and low leverage, but faces challenges with declining revenues and weak cash flow performance.

Income Statement

ZE PAK SA has shown a significant improvement in profitability with a net profit margin of 12.03% in 2024, up from negative margins in previous years. However, the revenue growth rate has been negative, indicating a decline in sales. The gross profit margin has decreased from 39.23% in 2023 to 16.59% in 2024, suggesting increased cost pressures.

Balance Sheet

The company has a strong balance sheet with a low debt-to-equity ratio of 0.0156, indicating low leverage. Return on equity has improved to 12.10% in 2024, reflecting better profitability. However, the equity ratio is not explicitly provided, but the overall financial health appears stable.

Cash Flow

Cash flow performance is weak, with a negative free cash flow and a drastic decline in free cash flow growth. The operating cash flow to net income ratio is 0.455, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	2.19B	3.11B	2.74B	2.28B	2.03B
Gross Profit	349.26M	362.58M	1.22B	355.34M	-441.73M	-138.22M
EBITDA	264.59M	284.63M	744.05M	506.08M	-369.84M	-129.20M
Net Income	253.77M	262.93M	745.11M	203.31M	-317.40M	-222.39M
Balance Sheet
Total Assets	3.91B	3.85B	3.59B	4.54B	3.31B	2.88B
Cash, Cash Equivalents and Short-Term Investments	412.79M	505.96M	545.36M	1.46B	506.82M	497.87M
Total Debt	27.86M	33.84M	39.85M	1.17B	499.60M	106.50M
Total Liabilities	1.75B	1.67B	1.68B	3.32B	2.79B	1.93B
Stockholders Equity	2.16B	2.17B	1.91B	723.70M	524.63M	951.21M
Cash Flow
Free Cash Flow	-193.08M	-1.81M	-897.75M	-98.48M	-403.17M	102.58M
Operating Cash Flow	472.28M	480.05M	-321.80M	503.26M	6.55M	166.06M
Investing Cash Flow	-705.96M	-478.41M	-488.70M	-651.18M	-391.23M	-57.62M
Financing Cash Flow	-29.70M	-29.69M	-1.01M	1.10B	393.48M	-25.48M

ZE PAK SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:ZEP, the sentiment is Negative. The current price of 22.45 is below the 20-day moving average (MA) of 23.51, below the 50-day MA of 22.91, and above the 200-day MA of 20.86, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:ZEP.

ZE PAK SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZEP	71 Outperform	zł1.14B	14.70	3.70%	―	-20.30%	-74.56%
KGN	71 Outperform	zł861.22M	4.68	8.63%	―	-6.88%	-6.00%
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%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%