Grupa Azoty Zaklady Azotowe Pulawy SA (ZAP) AI Stock Analysis

• Market Cap: zł974.86M
• Dividend Yield: N/A
• Average Volume (3M): 706.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 0.70%
• EPS Growth: 43.84%
• Country: PL
• Employees: 4,614
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.97
• Shares Outstanding: 19,115,000
• 10 Day Avg. Volume: 366
• 30 Day Avg. Volume: 706
• PEG Ratio: 0.05
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 0.36
• 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: zł48.00 ▼(-5.88% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, with declining revenues and negative margins. Technical analysis shows a lack of strong momentum, and valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively contribute to a low overall score.

Positive Factors

Strong Cash Flow Generation

Improved cash flow generation indicates efficient operations and provides the company with the flexibility to invest in growth opportunities and manage debt obligations.

Low Leverage

Low leverage suggests financial stability and reduces the risk of financial distress, allowing the company to navigate economic fluctuations more effectively.

Diversified Revenue Model

A diversified revenue model across multiple products and industries helps mitigate risks associated with market volatility and supports long-term revenue stability.

Negative Factors

Declining Revenues

Continued revenue decline poses a challenge to growth and profitability, potentially impacting the company's ability to invest in new opportunities and maintain market position.

Negative Margins

Negative margins indicate operational inefficiencies and profitability challenges, which could hinder the company's ability to generate sustainable earnings and shareholder value.

Negative Return on Equity

A negative return on equity suggests the company is not effectively utilizing shareholder investments to generate profits, which could affect investor confidence and capital raising efforts.

Grupa Azoty Zaklady Azotowe Pulawy SA Business Overview & Revenue Model

Company Description

Zaklady Azotowe Pulawy S.A. manufactures and sells fertilizer and chemical products worldwide. Its fertilizers include ammonium nitrate under the PULAN name; Pulan Macro, a white to beige granular fertilizer; urea-ammonium nitrate solution under the UAN name; ammonium sulphate under the PULSAR name; urea-ammonium nitrate solution with sulphur under the UAN+S name; PULASKA, a solution of nitrogen fertilizer containing sulphur; and urea-ammonium sulfate under the PULGRAN S name. The company also offers chemical products, such as COOLANT, a dry ice; hydrogen peroxide; anhydrous ammonia, compressed hydrogen, liquefied carbon dioxide, and nitric acid that are used for various applications in the chemical industry; caprolactam used for industrial production of solid and liquid formulations; melamine for manufacturing a range of synthetic resins; LIKAM, an ammonia water solution that are used in power generation, tanning, agricultural, rubber, dye, organic, and glass industries, as well as for use in as pH control agent; NOXy, a urea water solution used in automotive industry; and PULNOx that is used as a reducing agent in vehicle emissions control technologies. In addition, it provides packaging and foil products, including flat open sacks, big bag contribution, colored foils, flat foil belts, FSS foil tape with side folds, garbage bags, garden foils, LDPE, and stretch protective films. The company was founded in 1960 and is based in Pulawy, Poland. Zaklady Azotowe Pulawy S.A. is a subsidiary of Grupa Azoty S.A.

How the Company Makes Money

Grupa Azoty Zaklady Azotowe Pulawy SA generates revenue primarily through the sale of its nitrogen fertilizers, which are essential for agricultural productivity. The company has a diversified revenue model that includes various key revenue streams such as the production of urea, ammonium nitrate, and other specialty fertilizers. In addition to fertilizers, ZAP also manufactures chemical intermediates that are used in industries such as construction, automotive, and pharmaceuticals. The company's earnings are bolstered by strategic partnerships with agricultural cooperatives and distributors, allowing them to reach a wide array of customers. Furthermore, ZAP benefits from favorable market conditions in the agricultural sector, government policies promoting sustainable farming practices, and ongoing investments in technology and production efficiency that enhance their competitive edge.

Grupa Azoty Zaklady Azotowe Pulawy SA Financial Statement Overview

Summary

Grupa Azoty Zaklady Azotowe Pulawy SA faces significant challenges in its income statement, with declining revenues and negative margins. The balance sheet remains stable with low leverage, but profitability is a concern. Cash flow generation has improved, but sustainability remains a question. Overall, the company needs to address its operational inefficiencies to enhance financial performance.

Income Statement

The company has experienced a significant decline in revenue over the past two years, with a negative revenue growth rate of -2.76% in 2024. Margins have deteriorated, with a gross profit margin of -3.67% and a net profit margin of -10.58% in 2024, indicating operational challenges. The EBIT and EBITDA margins are also negative, reflecting ongoing profitability issues.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.10, suggesting conservative leverage. However, the return on equity is negative at -12.36%, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

The cash flow statement reveals a positive free cash flow growth rate of 8.1% in 2024, indicating improved cash generation. The operating cash flow to net income ratio is strong at 0.80, suggesting efficient cash conversion. However, the free cash flow to net income ratio is below 1, highlighting potential challenges in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.80B	3.48B	4.40B	8.90B	5.49B	3.21B
Gross Profit	125.30M	-127.73M	-137.35M	1.39B	931.43M	689.77M
EBITDA	378.01M	52.76M	-328.59M	1.08B	412.08M	533.47M
Net Income	-111.80M	-368.22M	-621.56M	290.55M	209.54M	215.85M
Balance Sheet
Total Assets	6.05B	6.56B	6.91B	7.41B	7.33B	5.52B
Cash, Cash Equivalents and Short-Term Investments	356.11M	392.69M	577.77M	979.47M	999.39M	545.51M
Total Debt	317.03M	291.44M	310.52M	358.21M	815.51M	270.45M
Total Liabilities	3.30B	3.58B	3.57B	3.45B	3.53B	1.94B
Stockholders Equity	2.75B	2.98B	3.34B	3.96B	3.80B	3.58B
Cash Flow
Free Cash Flow	3.01B	2.25B	1.98B	1.83B	1.13B	-5.68M
Operating Cash Flow	3.15B	2.49B	2.49B	2.29B	2.17B	610.15M
Investing Cash Flow	-94.19M	-242.30M	-507.93M	-456.26M	-1.04B	-440.11M
Financing Cash Flow	-2.84B	-2.44B	-2.38B	-1.86B	-671.67M	-185.87M

Grupa Azoty Zaklady Azotowe Pulawy SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.00
• 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:ZAP, the sentiment is Positive. The current price of 51 is above the 20-day moving average (MA) of 50.39, above the 50-day MA of 48.21, and above the 200-day MA of 49.85, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:ZAP.

Grupa Azoty Zaklady Azotowe Pulawy SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEL	79 Outperform	zł1.25B	10.71	15.05%	4.58%	-1.42%	-2.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ATT	52 Neutral	zł1.74B	-1.63	-24.17%	―	4.17%	52.69%
ZAP	49 Neutral	zł974.86M	-8.72	-4.09%	―	0.70%	43.84%
PCE	46 Neutral	zł859.30M	-6.31	-24.59%	―	-9.69%	89.50%