KGHM Polska Miedz SA (KGH) AI Stock Analysis

• Market Cap: zł37.31B
• Dividend Yield: 0.77%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.32
• Revenue Growth: 7.74%
• EPS Growth: N/A
• Country: PL
• Employees: 33,882
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 1.22
• Shares Outstanding: 200,000,000
• 10 Day Avg. Volume: 1,092,487
• 30 Day Avg. Volume: 1,365,741
• PEG Ratio: -0.05
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -18.53
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: zł168.00 ▼(-13.45% Downside)

KGHM Polska Miedz SA's stock score is driven by strong technical momentum and improved financial performance, despite challenges in cash flow and declining net profits. The valuation is reasonable, but the earnings call highlighted significant operational challenges, particularly in Polish operations.

KGHM Polska Miedz SA Business Overview & Revenue Model

Company Description

KGHM Polska Miedz SA is a leading global copper and silver producer based in Poland. The company operates in the mining and metallurgy sectors, focusing primarily on the extraction and processing of copper ore and the production of copper and silver. KGHM also engages in the production of minerals and other metals, contributing to its diverse portfolio of industrial products. With operations spanning multiple continents, KGHM plays a crucial role in the supply chain of essential raw materials for various industries.

How the Company Makes Money

KGHM generates revenue primarily through the sale of copper and silver, which are its core products. The company extracts copper from its mining operations and refines it into various forms, including cathodes and wire rods, which are sold to manufacturers and other industries. In addition to copper, KGHM also profits from the sale of silver, which is extracted as a byproduct during the copper refining process. The company benefits from fluctuating global commodity prices, which can significantly impact its revenue. Furthermore, KGHM has established strategic partnerships and joint ventures that enhance its operational efficiency and market reach, contributing to its overall earnings. The diversification into other metals and minerals also provides additional revenue streams, reinforcing its financial stability.

KGHM Polska Miedz SA Financial Statement Overview

Summary

KGHM Polska Miedz SA shows strong revenue recovery and improved profitability margins, with stable leverage. However, challenges in cash flow generation persist, which could impact future financial flexibility.

Income Statement

KGHM Polska Miedz SA has shown a positive revenue growth rate of 5.16% in the latest year, recovering from a decline in the previous year. The gross profit margin improved significantly to 16.91% from 8.09%, indicating better cost management. However, the net profit margin is relatively low at 8.12%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.20, indicating a balanced approach to leveraging. The return on equity (ROE) stands at 9.25%, showing a moderate return on shareholders' investments. The equity ratio is stable, suggesting a strong capital structure. Overall, the balance sheet reflects financial stability with manageable leverage.

Cash Flow

KGHM Polska Miedz SA experienced a decline in free cash flow, with a negative growth rate of -25.11%. The operating cash flow to net income ratio is 0.43, indicating adequate cash generation relative to net income. However, the negative free cash flow to net income ratio highlights challenges in converting earnings into free cash flow, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.40B	35.32B	32.83B	33.85B	29.80B	23.63B
Gross Profit	6.01B	5.97B	2.66B	6.31B	6.27B	4.65B
EBITDA	5.96B	6.87B	-1.14B	7.52B	10.24B	5.23B
Net Income	2.37B	2.87B	-3.70B	4.77B	6.16B	1.80B
Balance Sheet
Total Assets	54.41B	53.89B	51.38B	53.44B	48.03B	42.78B
Cash, Cash Equivalents and Short-Term Investments	705.00M	699.00M	1.70B	1.47B	2.03B	2.53B
Total Debt	5.86B	6.17B	5.72B	6.44B	5.95B	7.33B
Total Liabilities	22.29B	22.83B	22.75B	21.30B	20.89B	21.70B
Stockholders Equity	32.05B	30.99B	28.57B	32.09B	27.05B	20.99B
Cash Flow
Free Cash Flow	-2.38B	-1.24B	1.12B	-1.67B	338.00M	2.18B
Operating Cash Flow	3.48B	4.69B	6.05B	2.46B	4.27B	5.66B
Investing Cash Flow	-4.96B	-5.51B	-4.80B	-2.69B	-2.53B	-3.66B
Financing Cash Flow	-618.00M	-217.00M	-747.00M	-446.00M	-2.20B	-548.00M

KGHM Polska Miedz SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 194.10
• 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:KGH, the sentiment is Positive. The current price of 194.1 is above the 20-day moving average (MA) of 190.51, above the 50-day MA of 167.41, and above the 200-day MA of 138.12, indicating a bullish trend. The MACD of 5.97 indicates Positive momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:KGH.

KGHM Polska Miedz SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTY	75 Outperform	€9.03B	15.99	30.14%	5.94%	6.98%	-7.08%
KGH	71 Outperform	zł37.31B	15.72	7.37%	0.77%	7.74%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STP	52 Neutral	zł1.41B	55.15	0.67%	2.29%	0.21%	―
COG	47 Neutral	zł1.11B	―	-7.57%	―	-4.86%	-295.77%