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

• Market Cap: €881.20M
• Dividend Yield: N/A
• Average Volume (3M): 706.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 0.70%
• EPS Growth: 43.84%
• Country: PL
• Employees: 4,614
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -6.33
• 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 ▲(5.49% Upside)

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.

Grupa Azoty Zaklady Azotowe Pulawy SA Business Overview & Revenue Model

Company Description

Grupa Azoty Zaklady Azotowe Pulawy SA (ZAP) is a leading Polish chemical company that specializes in the production of fertilizers and chemical products. It operates primarily in the agrochemical sector, providing a wide range of nitrogen fertilizers, as well as other chemical compounds used in various industries. ZAP is an integral part of the Grupa Azoty Group, which is one of the largest chemical producers in Europe, focusing on innovation and sustainable practices to meet the needs of agriculture and industry.

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	3.79B	3.48B	4.40B	8.90B	5.49B	3.21B
Gross Profit	30.98M	-127.73M	-137.35M	1.39B	931.43M	689.77M
EBITDA	232.91M	52.76M	-328.59M	1.08B	412.08M	533.47M
Net Income	-241.06M	-368.22M	-621.56M	290.55M	209.54M	215.85M
Balance Sheet
Total Assets	6.89B	6.56B	6.91B	7.41B	7.33B	5.52B
Cash, Cash Equivalents and Short-Term Investments	439.46M	392.69M	577.77M	979.47M	999.39M	545.51M
Total Debt	337.43M	291.44M	310.52M	358.21M	815.51M	270.45M
Total Liabilities	4.12B	3.58B	3.57B	3.45B	3.53B	1.94B
Stockholders Equity	2.77B	2.98B	3.34B	3.96B	3.80B	3.58B
Cash Flow
Free Cash Flow	2.92B	2.25B	1.98B	1.83B	1.13B	-5.68M
Operating Cash Flow	3.11B	2.49B	2.49B	2.29B	2.17B	610.15M
Investing Cash Flow	-182.64M	-242.30M	-507.93M	-456.26M	-1.04B	-440.11M
Financing Cash Flow	-2.91B	-2.44B	-2.38B	-1.86B	-671.67M	-185.87M

Grupa Azoty Zaklady Azotowe Pulawy SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.50
• 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:ZAP, the sentiment is Negative. The current price of 45.5 is below the 20-day moving average (MA) of 46.50, below the 50-day MA of 47.34, and below the 200-day MA of 49.79, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€901.94M	10.07	12.00%	6.49%	-1.42%	-2.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZAP	49 Neutral	€881.20M	-3.66	-8.44%	―	0.70%	43.84%
PCR	―	zł1.36B	12.89	―	―	―	―
ATT	52 Neutral	€1.86B	-1.61	-24.98%	―	4.17%	52.69%
PCE	46 Neutral	€1.04B	-8.64	-21.80%	―	-9.69%	89.50%
PCX	―	―	―	―	―	―	―