Bank Handlowy w Warszawie S.A. (BHW) AI Stock Analysis

• Market Cap: zł14.69B
• Dividend Yield: 12.95%
• Average Volume (3M): 26.07K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.90
• Revenue Growth: -1.33%
• EPS Growth: -19.83%
• Country: PL
• Employees: 3,050
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.60
• Shares Outstanding: 130,659,600
• 10 Day Avg. Volume: 35,020
• 30 Day Avg. Volume: 26,066
• PEG Ratio: -0.30
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.58
• P/FCF Ratio: 2.34
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: zł117.00 ▲(4.09% Upside)

Bank Handlowy w Warszawie S.A. receives a strong overall score driven primarily by its solid financial performance and attractive valuation. The company's robust revenue growth, profitability, and stable balance sheet are complemented by a low P/E ratio and high dividend yield, making it an appealing investment. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Bank Handlowy w Warszawie S.A. Business Overview & Revenue Model

Company Description

Bank Handlowy w Warszawie S.A. provides a range of banking services for individual and corporate clients in Poland and internationally. The company operates through two segments, Institutional Bank and Consumer Bank. The Institutional Bank segment offers traditional banking services, including credit and deposit activities; cash management, trade financing, leasing, brokerage, and custody services in securities; treasury products on financial and commodity markets; investment banking services on the local and international capital markets, including advisory services, obtaining, and underwriting financing via public and non-public issues of financial instruments; and proprietary transactions in the equity, debt, and derivative instruments markets to business entities, local government units, and the public sector. The Consumer Bank segment provides bank accounts, credit, deposits, cash loans, mortgage loans, credit cards, and asset management services, as well as acts as an agent in the sale of investment and insurance products to individuals, micro-enterprises, and individual entrepreneurs. The company was founded in 1870 and is headquartered in Warsaw, Poland. Bank Handlowy w Warszawie S.A. operates as a subsidiary of Overseas Investment Corporation.

How the Company Makes Money

Bank Handlowy generates revenue primarily through interest income from loans and advances made to customers, which is a significant portion of its earnings. Additionally, the bank earns fees and commissions from various services, including account maintenance, transaction processing, and advisory services in investment banking. The bank also engages in foreign exchange transactions and trading activities, contributing to its profitability. Significant partnerships with other financial institutions and corporations enhance the bank's capabilities, enabling it to offer competitive products and expand its customer base, thereby driving further revenue growth.

Bank Handlowy w Warszawie S.A. Financial Statement Overview

Summary

Bank Handlowy w Warszawie S.A. exhibits solid financial health with strong revenue growth, profitability, and a stable balance sheet. The company has managed to improve its cash flow position significantly in 2024, although there are areas for improvement in operational cash conversion. The low leverage and strong equity position provide a solid foundation for future growth.

Income Statement

Bank Handlowy w Warszawie S.A. has demonstrated consistent revenue growth, with a notable increase in revenue growth rate from 2023 to 2024. The company maintains strong profitability margins, with a gross profit margin consistently above 100% and a net profit margin improving over time. However, the EBIT margin showed a decline in 2023 but recovered in 2024, indicating some volatility in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. Return on equity remains robust, although it has slightly decreased from 2023 to 2024. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

The cash flow statement shows significant improvement in free cash flow growth in 2024, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is relatively low, suggesting potential inefficiencies in converting income to cash. However, the free cash flow to net income ratio is strong, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.05B	5.72B	5.67B	4.28B	2.48B	2.12B
Gross Profit	3.87B	4.51B	4.55B	3.68B	2.45B	2.12B
EBITDA	2.27B	2.43B	2.97B	2.10B	1.06B	423.93M
Net Income	1.44B	1.76B	2.26B	1.55B	717.47M	172.40M
Balance Sheet
Total Assets	79.52B	72.48B	72.57B	68.47B	61.86B	60.94B
Cash, Cash Equivalents and Short-Term Investments	15.45B	5.83B	1.30B	1.64B	6.62B	4.52B
Total Debt	3.35B	1.19B	113.10M	121.81M	125.67M	138.38M
Total Liabilities	70.18B	62.61B	62.84B	60.51B	54.48B	53.36B
Stockholders Equity	9.35B	9.87B	9.73B	7.96B	7.38B	7.58B
Cash Flow
Free Cash Flow	-1.35B	4.96B	1.22B	-5.18B	2.16B	717.63M
Operating Cash Flow	1.47B	5.13B	1.42B	-5.04B	2.25B	837.00M
Investing Cash Flow	5.63B	-142.82M	-197.63M	-113.16M	-36.42M	-106.40M
Financing Cash Flow	-452.90M	-434.37M	-1.19B	-726.29M	-168.45M	-13.84M

Bank Handlowy w Warszawie S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:BHW, the sentiment is Positive. The current price of 112.4 is above the 20-day moving average (MA) of 106.41, above the 50-day MA of 104.40, and above the 200-day MA of 103.89, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 75.25 is Negative, neither overbought nor oversold. The STOCH value of 88.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:BHW.

Bank Handlowy w Warszawie S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	75 Outperform	zł46.45B	10.17	25.90%	7.36%	7.35%	3.83%
BHW	73 Outperform	zł14.69B	10.20	18.15%	12.95%	-1.33%	-19.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MIL	63 Neutral	zł20.74B	20.18	12.54%	―	9.01%	51.90%