PKO Bank Polski S.A. (PKO) AI Stock Analysis

• Market Cap: zł95.52B
• Dividend Yield: 7.13%
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.47
• Revenue Growth: 6.34%
• EPS Growth: 27.79%
• Country: PL
• Employees: 24,820
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.27
• Shares Outstanding: 1,250,000,000
• 10 Day Avg. Volume: 2,382,023
• 30 Day Avg. Volume: 2,819,756
• PEG Ratio: 0.12
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -10.45
• 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: zł84.00
• Price Target Upside: 9.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: zł75.00 ▼(-2.42% Downside)

PKO Bank Polski S.A. has a solid financial performance with strong profitability and a stable balance sheet, but faces challenges in revenue growth and cash flow management. The technical analysis indicates bearish momentum, while the valuation is attractive with a low P/E ratio and high dividend yield. The overall score reflects these mixed factors, with financial performance and valuation being the most significant contributors.

PKO Bank Polski S.A. Business Overview & Revenue Model

Company Description

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna provides banking services in Poland, Ukraine, Sweden, the Czech Republic, Ireland, and Germany. Its Retail segment offers current and savings accounts, term deposits, private and electronic banking services, investment and insurance products, credit and debit cards, and consumer and mortgage loans, as well as corporate loans to firms and enterprises, developers, cooperatives, and property managers. The company's Corporate and Investment segment provides current accounts, term deposits, currency products and derivatives, leasing and factoring, and safekeeping of securities services. This segment is also involved in financing large investment projects; the issuance of non-treasury securities; and provision of investing and brokerage services, interbank transactions, derivatives and debt securities transactions, as well as in real estate development and management activities. The company also offers investment and pension fund management; transfer agent; life, other personal, and property insurance; financial; leasing and lending; and IT specialist outsourcing and business support services, as well as fleet management and debt collection services. Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna was founded in 1919 and is based in Warsaw, Poland.

How the Company Makes Money

PKO Bank Polski generates revenue primarily through interest income from loans and advances, which constitutes a significant portion of its earnings. The bank offers various loan products, including consumer loans, mortgages, and business loans, charging interest on these products. Additionally, PKO earns money from fees and commissions related to account maintenance, transaction services, and financial advisory services. Investment banking activities, such as underwriting and capital markets services, also contribute to its revenue. The bank has established partnerships with various financial institutions and technology firms to enhance its service offerings, particularly in digital banking, which has become a crucial revenue stream as more customers engage with online and mobile banking solutions. Furthermore, PKO invests in securities and manages assets, generating income through investment returns and management fees.

PKO Bank Polski S.A. Financial Statement Overview

Summary

PKO Bank Polski S.A. demonstrates strong profitability with a net profit margin of 34% and a healthy return on equity of 17.76%. However, the company faces challenges with a declining revenue growth rate of 18.48% and negative cash flows, which need improvement to sustain financial health.

Income Statement

PKO Bank Polski S.A. has shown a strong net profit margin of 34% in the latest year, indicating solid profitability. However, the revenue growth rate has declined by 18.48%, which is a concern for future revenue streams. The EBIT and EBITDA margins are robust, reflecting efficient operations despite the revenue drop.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.58, suggesting a balanced approach to leverage. Return on equity is healthy at 17.76%, indicating effective use of equity to generate profits. The equity ratio is stable, showing a solid capital structure.

Cash Flow

The cash flow situation is challenging, with negative operating and free cash flows in the latest year. The free cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, but the overall cash flow position needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.25B	38.85B	37.11B	25.61B	15.78B	16.04B
Gross Profit	30.71B	28.87B	24.21B	17.28B	15.09B	14.58B
EBITDA	15.48B	14.26B	9.93B	6.03B	7.72B	-524.00M
Net Income	10.04B	9.30B	5.50B	3.31B	4.87B	-2.56B
Balance Sheet
Total Assets	547.30B	525.23B	501.52B	430.68B	418.09B	376.97B
Cash, Cash Equivalents and Short-Term Investments	29.76B	28.64B	31.29B	31.50B	20.05B	9.67B
Total Debt	31.20B	30.16B	25.98B	21.48B	30.01B	38.17B
Total Liabilities	495.37B	472.86B	456.29B	395.25B	380.39B	337.06B
Stockholders Equity	51.94B	52.38B	45.24B	35.45B	37.71B	39.92B
Cash Flow
Free Cash Flow	3.72B	-7.15B	49.43B	17.50B	31.77B	31.61B
Operating Cash Flow	4.96B	-5.90B	51.20B	18.54B	32.80B	33.00B
Investing Cash Flow	-3.78B	1.84B	-47.58B	5.04B	-13.30B	-39.80B
Financing Cash Flow	430.00M	1.14B	34.00M	-12.36B	-8.42B	-2.17B

PKO Bank Polski S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.86
• 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:PKO, the sentiment is Positive. The current price of 76.86 is above the 20-day moving average (MA) of 75.93, above the 50-day MA of 74.27, and above the 200-day MA of 71.72, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 36.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:PKO.

PKO Bank Polski S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	75 Outperform	zł43.97B	9.63	25.90%	7.45%	7.35%	3.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PKO	63 Neutral	zł95.52B	9.52	―	7.13%	6.34%	27.79%
MIL	63 Neutral	zł19.41B	18.89	12.54%	―	9.01%	51.90%