KGHM Polska Miedz S.A.
KGHM Polska Miedz S.A. Fundamental Analysis
KGHM Polska Miedz S.A. (KGHPF) shows moderate financial fundamentals with a PE ratio of 9.82, profit margin of 17.31%, and ROE of 24.88%. The company generates $39.8B in annual revenue with weak year-over-year growth of 2.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KGHPF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKGHPF demonstrates superior asset utilization.
Valuation Score
ExcellentKGHPF trades at attractive valuation levels.
Growth Score
ModerateKGHPF shows steady but slowing expansion.
Financial Health Score
ExcellentKGHPF maintains a strong and stable balance sheet.
Profitability Score
ModerateKGHPF maintains healthy but balanced margins.
Key Financial Metrics
Is KGHPF Expensive or Cheap?
P/E Ratio
KGHPF trades at 9.82 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KGHPF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values KGHM Polska Miedz S.A. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.16 times EBITDA. This is generally considered low.
How Well Does KGHPF Make Money?
Net Profit Margin
For every $100 in sales, KGHM Polska Miedz S.A. keeps $17.31 as profit after all expenses.
Operating Margin
Core operations generate 18.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.88 in profit for every $100 of shareholder equity.
ROA
KGHM Polska Miedz S.A. generates $10.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KGHM Polska Miedz S.A. produces operating cash flow of $4.02B, showing steady but balanced cash generation.
Free Cash Flow
KGHM Polska Miedz S.A. generates weak or negative free cash flow of $-503.45M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.52 in free cash annually.
FCF Yield
KGHPF converts -0.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How KGHPF Stacks Against Its Sector Peers
| Metric | KGHPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.82 | 25.30 | Better (Cheaper) |
| ROE | 24.88% | 990.00% | Weak |
| Net Margin | 17.31% | -108945.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.47 | Strong (Low Leverage) |
| Current Ratio | 1.27 | 6.14 | Neutral |
| ROA | 10.85% | -5717.00% (disorted) | Strong |
KGHPF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KGHM Polska Miedz S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.88%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
104.83%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-28.66%
Industry Style: Cyclical, Commodity, Value
Declining