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KRUK SA (PL:KRU)
:KRU
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KRUK SA
(KRU)
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Rating:78Outperform
Price Target:
zł539.00
▲(9.40% Upside)
KRUK SA's strong valuation and positive technical indicators are the primary drivers of its score. While financial performance shows profitability, high leverage and negative cash flows are concerns. The absence of earnings call and corporate events data limits further insights.
KRUK SA (KRU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.48B
Dividend Yield3.65%
Average Volume (3M)30.58K
Price to Earnings (P/E)9.5
Beta (1Y)0.69
Revenue Growth17.00%
EPS Growth-3.19%
CountryPL
Employees3,112
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)15.08
Shares Outstanding19,492,338
10 Day Avg. Volume31,239
30 Day Avg. Volume30,576
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)1.78
Price to Sales (P/S)3.65
P/FCF Ratio-14.83
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue6.29
Enterprise Value/Gross Profit9.59
Enterprise Value/Ebitda12.73
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KRUK SA Business Overview & Revenue Model
Company DescriptionKRUK Spólka Akcyjna, together with its subsidiaries, engages in the management of debt in Poland, Romania, Italy, the Czech Republic, Slovakia, Germany, Spain, and internationally. The company operates through Debt Purchase, Credit Management, and Other segments. It purchases and manages debt portfolios, including consumer, mortgage-backed, and corporate debts; and offers consumer unsecured, mortgage, and SME/corporate loans, as well as credit management services. The company also manages the receivables of banks, loan brokers, insurers, leasing companies, landline and mobile telecommunications operators, cable TV operators, digital TV operators, and FMCG companies. In addition, it provides Novum loan services; detective services; financial intermediation agency services; and auxiliary services to small and medium-sized enterprises. Further, the company collects, processes, and provides credit information on natural persons; offers receivable management services; and portfolio underwriting services. Additionally, the company invests in receivables and certificates of securitization funds; and acquires agricultural real estate properties. KRUK Spólka Akcyjna was founded in 1998 and is headquartered in Wroclaw, Poland.
How the Company Makes MoneyKRUK SA generates revenue primarily through the acquisition of non-performing loan portfolios, which it purchases at a discount from financial institutions and other creditors. The company then engages in debt collection efforts to recover the owed amounts, earning profits from the difference between the purchase price of the debts and the amounts collected. Additionally, KRUK SA earns revenue from its debt management services, where it works on behalf of clients to recover debts while charging fees for its services. The company also benefits from partnerships with various banks and financial institutions that provide it access to a steady stream of debt portfolios for acquisition. Factors contributing to its earnings include effective debt recovery strategies, strong market presence in Central and Eastern Europe, and a diversified client base.
KRUK SA Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with record profits and cash EBITDA, successful funding, and positive recovery trends in several key markets. However, challenges remain in Spain's legal system stability, competitive pressures in Poland, and increased operating costs.Q3-2025 Updates
Positive Updates
Record Net Profit
KRUK Group has earned close to PLN 900 million of net profit after 9 months, with expectations to achieve record high profits for the full year 2025.
Record High Cash EBITDA
The company reported a record high cash EBITDA of over PLN 2 billion.
Strong Portfolio Investments
Investments in new portfolios reached PLN 1.4 billion, with expectations to achieve PLN 2.4 to PLN 2.5 billion by the end of Q4.
Successful Funding and Leverage Management
The company maintains good access to funding and is moderately leveraged at 2.6x net debt to cash EBITDA.
Positive Recovery Trends in Key Markets
Significant positive revaluation and strong recovery trends in Poland, Romania, and Italy.
Expansion into New Markets
Continued research into U.K. and U.S. markets for potential entry, with optimistic outlook for France.
Negative Updates
Decreased ROE
ROE decreased due to the inclusion of the weak Q4 of 2024 in the 12-month calculation.
Challenges in Spain
The legal system reorganization in Spain is ongoing, with the business facing higher risk and less stability compared to other markets.
Competitive Pressure in Poland
The Polish market is highly competitive, affecting investment levels compared to Italy.
Increased Operating Costs
Operating costs increased due to salary hikes and investments in the New Horizon digital transformation program.
Company Guidance
During the call, Michal Zasepa, CFO at KRUK, presented a robust Q3 and 9-month performance for 2025, highlighting a net profit nearing PLN 900 million, which positions the company for potentially record-breaking annual profits. The company deployed approximately PLN 1.4 billion in new portfolios, trending towards a target of PLN 2.4-2.5 billion by year-end. Recoveries hit a record PLN 2.9 billion, and the cash EBITDA exceeded PLN 2 billion. The leverage was moderate, with net debt to cash EBITDA at 2.6x and net debt to equity at 1.3x. Despite a decrease in ROE due to last year's weak Q4, improvements are expected post-Q4 2025. Investments varied by region, with notable activity in Italy, Poland, Romania, and a cautious approach in Spain. Operational costs rose due to salary increases and the New Horizon digital transformation initiative. The company has expanded its banking lines by PLN 90 million and enjoys strong funding access, primarily within Poland. Spain remains a focus, despite past challenges, as the company anticipates stability and recovery improvements. Future expansion considerations include the UK and US markets, with ongoing research and preparatory phases.KRUK SA Financial Statement Overview
Summary
KRUK SA demonstrates strong profitability with a high net profit margin and consistent revenue growth. However, high leverage and negative cash flows present potential risks, requiring focus on improving cash flow generation.Income Statement
KRUK SA demonstrates strong profitability with a high net profit margin of 43.75% TTM and consistent revenue growth, albeit at a slower pace recently. The EBIT and EBITDA margins are robust, indicating efficient operations. However, the slight decline in net profit margin from the previous year suggests potential pressure on profitability.85
Very Positive
Balance Sheet
The company maintains a high debt-to-equity ratio of 1.37 TTM, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity remains strong at 22.84%, reflecting effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced asset structure.70
Positive
Cash Flow
KRUK SA's cash flow situation is concerning, with negative operating and free cash flows TTM. Despite a significant improvement in free cash flow growth, the negative operating cash flow to net income ratio indicates challenges in converting profits into cash. The free cash flow to net income ratio is positive, suggesting some ability to cover net income with free cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49B | 2.20B | 1.79B | 1.49B | 1.20B | 1.16B |
| Gross Profit | 1.63B | 1.17B | 952.37M | 852.37M | 763.68M | 746.96M |
| EBITDA | 1.23B | 1.00B | 1.03B | 901.84M | 831.49M | 269.17M |
| Net Income | 991.82M | 1.07B | 983.93M | 804.98M | 694.76M | 81.36M |
Balance Sheet | ||||||
| Total Assets | 12.68B | 11.65B | 9.93B | 7.68B | 5.91B | 4.64B |
| Cash, Cash Equivalents and Short-Term Investments | 314.23M | 3.48B | 3.06B | 2.39B | 2.02B | 1.66B |
| Total Debt | 7.08B | 6.63B | 5.53B | 3.95B | 2.87B | 2.22B |
| Total Liabilities | 7.59B | 7.12B | 6.14B | 4.43B | 3.31B | 2.60B |
| Stockholders Equity | 5.08B | 4.53B | 3.79B | 3.25B | 2.60B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 42.70M | -542.32M | -827.87M | -602.03M | -304.87M | 726.54M |
| Operating Cash Flow | 125.32M | -499.13M | -785.25M | -567.77M | -288.80M | 743.52M |
| Investing Cash Flow | -102.73M | -36.41M | -23.33M | -32.27M | -13.61M | -10.90M |
| Financing Cash Flow | 113.27M | 361.87M | 994.88M | 603.04M | 356.02M | -737.33M |
KRUK SA Technical Analysis
Positive
492.70
Price Trends
465.73
Positive
456.97
Positive
419.49
Positive
Market Momentum
5.73
Negative
64.71
Neutral
83.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:KRU, the sentiment is Positive. The current price of 492.7 is above the 20-day moving average (MA) of 475.31, above the 50-day MA of 465.73, and above the 200-day MA of 419.49, indicating a bullish trend. The MACD of 5.73 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 83.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:KRU.
KRUK SA Peers Comparison
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PL:KRU
KRUK SA
492.70
95.49
24.04%
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PL:XTB
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PL:ALR
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PL:MIL
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16.70
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.