PKP Cargo SA (PKP) AI Stock Analysis

• Market Cap: zł568.35M
• Dividend Yield: N/A
• Average Volume (3M): 67.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -17.64%
• EPS Growth: -1571.24%
• Country: PL
• Employees: 16,623
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): N/A
• Shares Outstanding: 44,786,915
• 10 Day Avg. Volume: 70,534
• 30 Day Avg. Volume: 67,733
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 0.61
• 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: 49 Neutral
• Price Target: zł16.50 ▲(30.02% Upside)

PKP Cargo SA's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, substantial losses, and high leverage. Technical analysis provides some positive signals with bullish momentum, but these are overshadowed by the company's poor valuation metrics, including a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

PKP Cargo SA Business Overview & Revenue Model

Company Description

PKP Cargo SA is a leading rail freight operator in Poland and one of the largest in Europe. The company operates primarily in the logistics and transportation sector, providing a wide range of services including freight transport, logistics solutions, and cargo handling. PKP Cargo specializes in the transportation of goods across various industries, including coal, steel, and intermodal transport, leveraging its extensive rail network and modern rolling stock to ensure efficient and reliable service.

How the Company Makes Money

PKP Cargo generates revenue primarily through the transportation of freight by rail, which constitutes its main revenue stream. The company charges customers for the movement of goods over its extensive rail network, and it also offers additional logistics services that include cargo handling, storage, and intermodal transport solutions. Significant partnerships with various industrial players and logistics companies enhance its service offerings and customer base. Moreover, PKP Cargo may benefit from government contracts and subsidies aimed at promoting rail transport as a sustainable alternative to road transport, contributing further to its earnings.

PKP Cargo SA Financial Statement Overview

Summary

PKP Cargo SA faces significant financial challenges. The income statement highlights declining revenues and substantial losses, while the balance sheet reveals high leverage and negative returns on equity. Although cash flow generation has improved, it is not sufficient to offset the company's profitability issues. Strategic initiatives are necessary to address these financial weaknesses and enhance long-term stability and growth.

Income Statement

PKP Cargo SA's income statement reveals significant challenges. The company has experienced a decline in revenue growth, with a negative growth rate of -5.00% in the most recent year. Profitability metrics are concerning, with a gross profit margin of 9.89% and a net profit margin of -54.09%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. These factors suggest a need for strategic improvements to enhance revenue and profitability.

Balance Sheet

The balance sheet of PKP Cargo SA shows a high debt-to-equity ratio of 3.70, indicating significant leverage and potential financial risk. The return on equity is negative at -323.32%, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 11.58%, suggesting a relatively low proportion of equity financing. These metrics point to financial instability and a need for improved capital management.

Cash Flow

PKP Cargo SA's cash flow statement presents mixed results. The company achieved a substantial free cash flow growth rate of 322.91%, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is 0.31, suggesting that cash flow from operations is not fully covering net losses. The free cash flow to net income ratio is 1.0, showing that free cash flow is equal to net income, which is positive but reflects the net loss situation. Overall, cash flow management shows some strengths but is overshadowed by underlying profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.85B	4.46B	5.49B	5.39B	4.27B	4.08B
Gross Profit	579.40M	441.00M	1.13B	799.80M	-231.40M	840.60M
EBITDA	-1.33B	-1.81B	1.06B	1.05B	484.20M	558.60M
Net Income	-1.63B	-2.41B	82.10M	148.00M	-225.30M	-224.30M
Balance Sheet
Total Assets	6.40B	6.44B	8.32B	7.66B	7.61B	7.56B
Cash, Cash Equivalents and Short-Term Investments	536.80M	559.70M	263.70M	181.50M	254.50M	306.00M
Total Debt	2.66B	2.76B	2.89B	2.37B	2.56B	2.58B
Total Liabilities	5.67B	5.69B	5.12B	4.43B	4.57B	4.42B
Stockholders Equity	725.70M	746.20M	3.20B	3.23B	3.04B	3.14B
Cash Flow
Free Cash Flow	395.80M	1.03B	-148.00M	161.50M	-108.70M	-165.90M
Operating Cash Flow	395.80M	1.03B	1.21B	1.02B	699.80M	553.10M
Investing Cash Flow	-163.50M	-420.70M	-987.10M	-772.90M	-645.60M	-655.10M
Financing Cash Flow	-165.10M	-281.50M	-133.40M	-319.50M	-106.40M	-145.90M

PKP Cargo SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:PKP, the sentiment is Negative. The current price of 12.69 is below the 20-day moving average (MA) of 13.52, below the 50-day MA of 14.98, and below the 200-day MA of 15.95, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 59.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:PKP.

PKP Cargo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNC	78 Outperform	€2.40B	4.95	55.08%	2.31%	8.25%	13.02%
GEA	77 Outperform	€1.73B	4.91	16.15%	―	11.24%	83.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PXM	56 Neutral	zł2.00B	33.32	8.90%	―	23.59%	-29.92%
PKP	49 Neutral	zł568.35M	-0.36	-105.22%	―	-17.64%	-1571.24%
MRB	―	zł1.60B	14.90	―	―	―	―