Polenergia S.A. (PEP) AI Stock Analysis

• Market Cap: zł4.15B
• Dividend Yield: N/A
• Average Volume (3M): 3.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -7.17%
• EPS Growth: -87.31%
• Country: PL
• Employees: 490
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): -0.15
• Shares Outstanding: 77,218,910
• 10 Day Avg. Volume: 3,587
• 30 Day Avg. Volume: 3,413
• PEG Ratio: 13.74
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 12.40
• 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): 11.35
• Revenue Forecast (FY): zł12.82B

• Rating: 61 Neutral
• Price Target: zł63.00 ▲(17.10% Upside)

Polenergia S.A.'s overall stock score reflects moderate financial performance with positive revenue growth but declining profitability and increased leverage. Technical analysis indicates short-term bullish momentum, though longer-term challenges persist. The high P/E ratio suggests overvaluation, and the lack of a dividend yield limits appeal to income investors.

Polenergia S.A. Business Overview & Revenue Model

Company Description

Polenergia S.A., together with its subsidiaries, generates, distributes, and trades in electricity in Poland. The company operates through Onshore Wind Farms, Photovoltaics, Offshore Wind Farms, Gas and Clean Fuels, Trading and Sales, and Distribution segments. The Onshore Wind Farms segment engages in the development, construction, and maintenance of facilities generating electrical energy from onshore wind. The Photovoltaics segment develops, constructs, and maintains facilities generating electrical energy using the solar radiation. The Offshore Wind Farms segment develops, constructs, and maintains facilities generating electrical energy from wind at sea. The Gas and Clean Fuels segment is involved in the development, construction, and maintenance of facilities generating electrical energy in gas cogeneration; and development work in the manufacture of hydrogen and generation of energy from hydrogen based on the renewable sources originating energy. The Trading and Sales segment trades in electricity, and certificates of origin, and other energy market instruments; sells electricity to industrial customers; and provides market access services to energy producers using renewable energy sources. The Distribution segment offers electrical energy and gas distribution and sale services to commercial, industrial, and household customers, as well as e-mobility solutions. The company was formerly known as Polish Energy Partners Spolka Akcyjna. Polenergia S.A. was founded in 1997 and is based in Warsaw, Poland.

How the Company Makes Money

Polenergia generates revenue primarily through the sale of electricity produced from its renewable energy assets, including wind farms and solar installations. The company benefits from government incentives and subsidies for renewable energy production, which enhance its profitability. Additionally, Polenergia engages in power trading and offers energy management services, further diversifying its revenue streams. Partnerships with local and international investors, as well as collaborations with technology providers, play a crucial role in financing new projects and expanding its operational capacity, contributing significantly to its earnings.

Polenergia S.A. Financial Statement Overview

Summary

Polenergia S.A. demonstrates moderate financial health with positive revenue growth but declining profitability margins. The balance sheet shows increased leverage, which could pose risks if not managed carefully. Cash flow generation is under pressure, with negative free cash flow growth. The company needs to focus on improving operational efficiency and managing debt levels to enhance financial stability.

Income Statement

Polenergia S.A. shows a modest revenue growth of 4.99% in the TTM period, indicating a positive trend compared to previous declines. However, the gross profit margin has decreased to 14.87% from 18.71% in 2024, and the net profit margin has significantly dropped to 0.90% from 6.97%. The EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency and profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.75 in the TTM period, indicating higher leverage compared to 0.55 in 2024. However, the return on equity remains low at 0.96%, suggesting limited profitability on shareholders' investments. The equity ratio is stable, showing a balanced capital structure.

Cash Flow

Operating cash flow has decreased, resulting in a lower operating cash flow to net income ratio of 0.74. Free cash flow growth is negative at -7.34%, indicating challenges in generating free cash flow. The free cash flow to net income ratio is relatively healthy at 0.64, showing some ability to convert net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.54B	4.32B	5.62B	7.09B	4.00B	1.81B
Gross Profit	618.21M	808.38M	676.84M	478.08M	342.10M	207.49M
EBITDA	403.27M	684.16M	581.58M	386.39M	549.19M	262.55M
Net Income	-43.98M	301.17M	263.59M	159.92M	337.38M	110.55M
Balance Sheet
Total Assets	8.22B	7.62B	6.71B	6.25B	5.61B	3.02B
Cash, Cash Equivalents and Short-Term Investments	985.95M	1.63B	1.31B	729.21M	387.37M	374.35M
Total Debt	3.25B	2.41B	1.74B	1.69B	1.65B	1.11B
Total Liabilities	4.03B	3.31B	2.71B	3.16B	3.75B	1.60B
Stockholders Equity	4.19B	4.30B	4.00B	3.08B	1.86B	1.42B
Cash Flow
Free Cash Flow	415.83M	433.27M	294.74M	-414.07M	-432.17M	-127.86M
Operating Cash Flow	568.79M	772.23M	615.56M	245.73M	144.83M	204.16M
Investing Cash Flow	-1.54B	-1.14B	-747.89M	-778.96M	-525.98M	-353.75M
Financing Cash Flow	1.40B	448.46M	674.40M	1.01B	394.17M	178.23M

Polenergia S.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PEP, the sentiment is Negative. The current price of 53.8 is below the 20-day moving average (MA) of 56.40, below the 50-day MA of 57.60, and below the 200-day MA of 61.56, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 28.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:PEP.

Polenergia S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZEP	71 Outperform	zł888.40M	187.15	0.16%	―	-20.30%	-74.56%
ENG	67 Neutral	€8.28B	15.62	4.31%	―	0.32%	685.59%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENA	64 Neutral	zł10.26B	12.56	―	2.58%	-23.28%	-39.53%
TPE	64 Neutral	zł15.21B	4.12	19.45%	―	-8.68%	―
PEP	61 Neutral	zł4.15B	-94.47	-1.03%	―	-7.17%	-87.31%
PGE	46 Neutral	zł19.39B	-1.55	-28.63%	―	-17.42%	-144.01%