PGE Polska Grupa Energetyczna SA (PGE) AI Stock Analysis

• Market Cap: zł25.19B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -17.42%
• EPS Growth: -144.01%
• Country: PL
• Employees: 42,921
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): -4.28
• Shares Outstanding: 2,243,713,000
• 10 Day Avg. Volume: 2,380,081
• 30 Day Avg. Volume: 2,195,891
• PEG Ratio: 0.12
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -151.33
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: zł10.50 ▼(-8.06% Downside)

The overall stock score is primarily impacted by weak financial performance and valuation concerns. The company's profitability challenges and negative P/E ratio are significant detractors. Technical indicators also suggest bearish momentum, further weighing on the stock's outlook.

PGE Polska Grupa Energetyczna SA Business Overview & Revenue Model

Company Description

PGE Polska Grupa Energetyczna S.A. engages in the production, transmission, and distribution of electricity in Poland. The company operates through seven segments: Conventional Generation, District Heating, Renewables, Supply, Distribution, Circular Economy, and Other Operations. It generates electricity from lignite, hard coal, natural gas, and biomass, as well as renewable energy sources, such as wind, photovoltaic, and hydro. The company operates 5 conventional power plants; 16 CHP plants; 2 lignite mines; 17 wind farms; 5 photovoltaic power plants; 29 run-of-river hydro power plants; and 4 pumped-storage power plants, including 2 with natural flow. It produces, transmits, and distributes heat; sells and purchases electricity and gas on wholesale market; trades in emission certificates; and purchases and sells fuels, as well as sells electricity and provides services to end users. The company supplies power to approximately 5 million households, businesses, and institutions. The company was founded in 1990 and is based in Warsaw, Poland.

How the Company Makes Money

PGE generates revenue through several key streams: electricity generation, which includes sales from its various power plants; distribution and transmission services, where it charges fees for the delivery of electricity to consumers; and retail energy sales, where it sells electricity directly to residential and business customers. Additionally, PGE has been increasing its focus on renewable energy projects, which not only contribute to its revenue but also align with global sustainability trends. Partnerships with local and international firms for energy projects and joint ventures in renewable energy initiatives further bolster its revenue. Government regulations and subsidies for renewable energy also play a significant role in enhancing its profitability.

PGE Polska Grupa Energetyczna SA Financial Statement Overview

Summary

PGE Polska Grupa Energetyczna SA faces significant challenges in profitability, with negative net income and declining revenue. Despite a stable balance sheet with low leverage, cash flow generation is under pressure, particularly in terms of free cash flow.

Income Statement

PGE Polska Grupa Energetyczna SA has experienced a decline in revenue growth, with a negative growth rate of -10.12% in the latest year. The gross profit margin improved to 14.69% from 8.76% in the previous year, indicating better cost management. However, the net profit margin remains negative at -4.91%, reflecting ongoing profitability challenges. The EBIT margin is slightly positive at 0.19%, but the EBITDA margin has decreased to 6.32%, suggesting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.30, indicating a conservative leverage position. However, the return on equity is negative at -7.11%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 42.75%, showing a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow has improved significantly to 10.26 billion, but free cash flow remains negative at -90 million, indicating cash flow challenges. The operating cash flow to net income ratio is 0.30, suggesting that the company is generating cash flow despite net losses. However, the free cash flow to net income ratio is negative, highlighting issues in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.16B	64.48B	95.96B	73.44B	52.73B	45.77B
Gross Profit	3.42B	9.47B	8.40B	5.74B	3.62B	4.15B
EBITDA	-1.72B	4.07B	10.61B	6.51B	7.92B	5.52B
Net Income	-12.37B	-3.16B	-5.01B	3.33B	3.97B	110.00M
Balance Sheet
Total Assets	99.60B	103.99B	113.44B	105.78B	88.97B	81.59B
Cash, Cash Equivalents and Short-Term Investments	14.34B	4.36B	6.03B	11.89B	6.73B	4.23B
Total Debt	12.66B	13.19B	14.90B	8.94B	10.83B	11.41B
Total Liabilities	60.99B	58.47B	65.59B	51.40B	40.67B	38.09B
Stockholders Equity	37.48B	44.47B	46.87B	53.54B	47.49B	42.52B
Cash Flow
Free Cash Flow	6.89B	-90.00M	-6.46B	4.95B	2.77B	4.33B
Operating Cash Flow	16.83B	10.81B	3.27B	11.61B	7.46B	10.26B
Investing Cash Flow	-9.80B	-10.30B	-11.45B	-7.30B	-4.37B	-6.04B
Financing Cash Flow	3.44B	-2.18B	2.33B	841.00M	-528.00M	-1.36B

PGE Polska Grupa Energetyczna SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PGE, the sentiment is Positive. The current price of 11.42 is above the 20-day moving average (MA) of 11.07, above the 50-day MA of 10.89, and above the 200-day MA of 9.77, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:PGE.

PGE Polska Grupa Energetyczna SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZEP	71 Outperform	€1.11B	14.28	3.70%	―	-20.30%	-74.56%
ENG	67 Neutral	€6.38B	20.77	2.58%	―	0.32%	685.59%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENA	64 Neutral	zł11.44B	11.00	―	2.20%	-23.28%	-39.53%
TPE	64 Neutral	€17.70B	5.08	―	―	-8.68%	―
PEP	61 Neutral	zł4.45B	108.52	0.98%	―	-7.17%	-87.31%
PGE	46 Neutral	zł25.19B	-2.04	-28.51%	―	-17.42%	-144.01%