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Wittchen

WSE:WTN
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WTN
WSE
PLN111M
Market Cap
  1. Home
  2. PL
  3. Retail
Company description

Wittchen S.A. manufactures and sells leather goods for men, women, and kids. The last earnings update was 143 days ago. More info.


Add to Portfolio Compare Print
  • Wittchen has significant price volatility in the past 3 months.
WTN Share Price and Events
7 Day Returns
-17.6%
WSE:WTN
-2.2%
PL Specialty Retail
0.9%
PL Market
1 Year Returns
-62.4%
WSE:WTN
-42.1%
PL Specialty Retail
-33.2%
PL Market
WTN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wittchen (WTN) -17.6% -38.9% -51.4% -62.4% -63.8% -
PL Specialty Retail -2.2% -30.4% -32.2% -42.1% -57.3% -70.7%
PL Market 0.9% -18.9% -28.2% -33.2% -38% -39%
1 Year Return vs Industry and Market
  • WTN underperformed the Specialty Retail industry which returned -42.1% over the past year.
  • WTN underperformed the Market in Poland which returned -33.2% over the past year.
Price Volatility
WTN
Industry
5yr Volatility vs Market

Value

 Is Wittchen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wittchen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wittchen.

WSE:WTN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year PL Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WSE:WTN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year PL Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.5%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.736 (1 + (1- 19%) (105.77%))
1.246
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.99% + (1.246 * 6.51%)
10.1%

Discounted Cash Flow Calculation for WSE:WTN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wittchen is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

WSE:WTN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (PLN, Millions) Source Present Value
Discounted (@ 10.1%)
2020 48.59 Est @ 90.46% 44.13
2021 79.64 Est @ 63.92% 65.70
2022 115.75 Est @ 45.34% 86.72
2023 153.18 Est @ 32.34% 104.24
2024 188.77 Est @ 23.23% 116.67
2025 220.59 Est @ 16.86% 123.83
2026 247.94 Est @ 12.4% 126.41
2027 270.94 Est @ 9.28% 125.46
2028 290.15 Est @ 7.09% 122.03
2029 306.28 Est @ 5.56% 117.00
Present value of next 10 years cash flows PLN1,032.00
WSE:WTN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= PLN306.28 × (1 + 1.99%) ÷ (10.1% – 1.99%)
PLN3,850.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= PLN3,850.88 ÷ (1 + 10.1%)10
PLN1,471.00
WSE:WTN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= PLN1,032.00 + PLN1,471.00
PLN2,503.00
Equity Value per Share
(PLN)
= Total value / Shares Outstanding
= PLN2,503.00 / 18.18
PLN137.69
WSE:WTN Discount to Share Price
Calculation Result
Value per share (PLN) From above. PLN137.69
Current discount Discount to share price of PLN6.20
= -1 x (PLN6.20 - PLN137.69) / PLN137.69
95.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Wittchen is available for.
Intrinsic value
>50%
Share price is PLN6.2 vs Future cash flow value of PLN137.69
Current Discount Checks
For Wittchen to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Wittchen's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Wittchen's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wittchen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wittchen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WSE:WTN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in PLN PLN1.22
WSE:WTN Share Price ** WSE (2020-04-03) in PLN PLN6.2
Poland Specialty Retail Industry PE Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 6.55x
Poland Market PE Ratio Median Figure of 421 Publicly-Listed Companies 9.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wittchen.

WSE:WTN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= WSE:WTN Share Price ÷ EPS (both in PLN)

= 6.2 ÷ 1.22

5.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wittchen is good value based on earnings compared to the PL Specialty Retail industry average.
  • Wittchen is good value based on earnings compared to the Poland market.
Price based on expected Growth
Does Wittchen's expected growth come at a high price?
Raw Data
WSE:WTN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
0.9%per year
Europe Specialty Retail Industry PEG Ratio Median Figure of 45 Publicly-Listed Specialty Retail Companies 0.74x
Poland Market PEG Ratio Median Figure of 102 Publicly-Listed Companies 0.73x

*Line of best fit is calculated by linear regression .

WSE:WTN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.09x ÷ 0.9%

5.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wittchen is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wittchen's assets?
Raw Data
WSE:WTN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in PLN PLN6.97
WSE:WTN Share Price * WSE (2020-04-03) in PLN PLN6.2
Poland Specialty Retail Industry PB Ratio Median Figure of 15 Publicly-Listed Specialty Retail Companies 1.02x
Poland Market PB Ratio Median Figure of 638 Publicly-Listed Companies 0.84x
WSE:WTN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= WSE:WTN Share Price ÷ Book Value per Share (both in PLN)

= 6.2 ÷ 6.97

0.89x

* Primary Listing of Wittchen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wittchen is good value based on assets compared to the PL Specialty Retail industry average.
X
Value checks
We assess Wittchen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Wittchen has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Wittchen expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wittchen expected to grow at an attractive rate?
  • Wittchen's earnings growth is positive but not above the low risk savings rate of 2%.
Growth vs Market Checks
  • Wittchen's earnings growth is positive but not above the Poland market average.
  • Wittchen's revenue growth is expected to exceed the Poland market average.
Annual Growth Rates Comparison
Raw Data
WSE:WTN Future Growth Rates Data Sources
Data Point Source Value (per year)
WSE:WTN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 0.9%
WSE:WTN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 10.7%
Europe Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 9.4%
Europe Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4%
Poland Market Earnings Growth Rate Market Cap Weighted Average 11.9%
Poland Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WSE:WTN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in PLN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WSE:WTN Future Estimates Data
Date (Data in PLN Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 337 45 24 1
2020-12-31 310 44 24 1
2020-04-05
2019-12-31 277 40 25 1
WSE:WTN Past Financials Data
Date (Data in PLN Millions) Revenue Cash Flow Net Income *
2019-09-30 264 45 22
2019-06-30 260 42 29
2019-03-31 253 34 31
2018-12-31 245 30 31
2018-09-30 248 23 34
2018-06-30 231 23 29
2018-03-31 222 21 26
2017-12-31 215 23 22
2017-09-30 197 13 17
2017-06-30 183 12 14
2017-03-31 177 24 17
2016-12-31 170 21 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wittchen's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
  • Wittchen's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WSE:WTN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Wittchen Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WSE:WTN Future Estimates Data
Date (Data in PLN Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.30 1.30 1.30 1.00
2020-12-31 1.30 1.30 1.30 1.00
2020-04-05
2019-12-31 1.40 1.40 1.40 1.00
WSE:WTN Past Financials Data
Date (Data in PLN Millions) EPS *
2019-09-30 1.22
2019-06-30 1.60
2019-03-31 1.69
2018-12-31 1.71
2018-09-30 1.88
2018-06-30 1.61
2018-03-31 1.44
2017-12-31 1.21
2017-09-30 0.93
2017-06-30 0.77
2017-03-31 0.94
2016-12-31 1.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Wittchen is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Wittchen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wittchen has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wittchen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wittchen's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wittchen's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Wittchen's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Wittchen's 1-year earnings growth is negative, it can't be compared to the Europe Specialty Retail industry average.
Earnings and Revenue History
Wittchen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wittchen Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WSE:WTN Past Revenue, Cash Flow and Net Income Data
Date (Data in PLN Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 263.82 22.13 118.35
2019-06-30 260.33 28.98 111.93
2019-03-31 252.77 30.59 106.16
2018-12-31 245.09 31.00 101.52
2018-09-30 247.98 34.12 97.39
2018-06-30 230.93 29.25 92.51
2018-03-31 221.63 26.01 87.50
2017-12-31 215.01 21.87 83.73
2017-09-30 197.48 16.93 78.80
2017-06-30 183.32 13.87 74.56
2017-03-31 176.64 17.03 71.79
2016-12-31 170.28 20.34 68.63
2016-09-30 155.46 21.71 64.06
2016-06-30 159.01 25.44 60.53
2016-03-31 155.66 26.97 56.67
2015-12-31 151.65 27.11 54.70
2015-09-30 146.37 27.43 52.42
2014-12-31 130.52 27.67 47.44
2013-12-31 87.04 14.43

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wittchen has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wittchen used its assets less efficiently than the PL Specialty Retail industry average last year based on Return on Assets.
  • Wittchen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wittchen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wittchen has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wittchen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wittchen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wittchen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wittchen's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wittchen's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wittchen Company Filings, last reported 6 months ago.

WSE:WTN Past Debt and Equity Data
Date (Data in PLN Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 126.69 59.43 3.86
2019-06-30 122.55 53.85 4.58
2019-03-31 137.41 22.51 4.38
2018-12-31 135.09 17.99 8.18
2018-09-30 122.55 56.03 10.44
2018-06-30 111.71 48.09 4.37
2018-03-31 121.92 13.84 2.92
2017-12-31 119.14 13.89 8.87
2017-09-30 103.09 44.43 2.92
2017-06-30 97.32 32.80 1.75
2017-03-31 110.58 45.84 44.54
2016-12-31 111.93 39.26 47.77
2016-09-30 100.89 36.27 23.37
2016-06-30 97.96 50.87 53.30
2016-03-31 104.94 61.70 61.09
2015-12-31 102.93 55.41 70.52
2015-09-30 64.58 62.34 9.91
2014-12-31 54.45 56.90 36.58
2013-12-31 27.69 60.07 15.21
  • Wittchen's level of debt (46.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (137% vs 46.9% today).
  • Debt is well covered by operating cash flow (75.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.3x coverage).
X
Financial health checks
We assess Wittchen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wittchen has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Wittchen's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
16.13%
Current annual income from Wittchen dividends. Estimated to be 16.13% next year.
If you bought PLN2,000 of Wittchen shares you are expected to receive PLN323 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wittchen's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (3.14%).
  • Wittchen's dividend is above the markets top 25% of dividend payers in Poland (8.93%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WSE:WTN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 60 Stocks 4.4%
Poland Market Average Dividend Yield Market Cap Weighted Average of 195 Stocks 5.9%
Poland Minimum Threshold Dividend Yield 10th Percentile 1.5%
Poland Bottom 25% Dividend Yield 25th Percentile 3.1%
Poland Top 25% Dividend Yield 75th Percentile 8.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WSE:WTN Future Dividends Estimate Data
Date (Data in PLN) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.00 1.00
2020-12-31 1.00 1.00
2020-04-05
2019-12-31 1.00 1.00
WSE:WTN Past Annualized Dividends Data
Date (Data in PLN) Dividend per share (annual) Avg. Yield (%)
2019-05-16 1.000 7.938
2019-03-28 1.000 5.949
2019-01-15 1.000 6.236
2018-05-17 0.840 5.221
2018-03-29 0.840 4.138
2017-05-18 0.830 4.549
2017-03-30 0.830 4.595
2016-05-12 0.660 3.843
2016-03-17 0.660 3.809

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Wittchen has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Wittchen only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Wittchen's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Wittchen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wittchen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wittchen has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Wittchen's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jêdrzej Wittchen
COMPENSATION PLN0
CEO Bio

Mr. Jedrzej Rafal Wittchen serves as President of the Management Board at Wittchen Spolka Akcyjna. Mr. Wittchen founded Wittchen Spolka Akcyjna in 1990 and served as its President. Mr. Wittchen is a Co-Founder and Member of the Investment Committee at Business Angel Seedfund Sp. z o.o. S.K.A. Mr. Wittchen is a Member of the Management Board at Centrum Podrozy SA. Mr. Wittchen is a businessman, an investor, and a Member of the Chief Council of the Business Center Club. He serves as the Chairman of the Board of Wittchen Spolka Akcyjna. He traveled around the world in the years 1985 to 1990. In 1985, Mr. Wittchen graduated from the Faculty of Geography of Adam Mickiewicz University in Poznan and is a geomorphologist.

CEO Compensation
  • Jêdrzej's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jêdrzej's remuneration is lower than average for companies of similar size in Poland.
Management Team

Jêdrzej Wittchen

TITLE
President of the Management Board

Monika Wittchen

TITLE
Vice President of the Management Board

Iwona Czapran

TITLE
Head of Public Relations
Board of Directors

Józef Mirecki

TITLE
Member of the Supervisory Board

Barbara Mirecka

TITLE
Member of the Supervisory Board

Monika Dziedzic

TITLE
Member of the Supervisory Board

Pawel Marcinkiewicz

TITLE
Member of the Supervisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (PLN) Value (PLN)
X
Management checks
We assess Wittchen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wittchen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

At zł15.45, Is It Time To Put Wittchen S.A. (WSE:WTN) On Your Watch List?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … Great news for investors – Wittchen is still trading at a fairly cheap price. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

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Is Wittchen S.A.'s (WSE:WTN) ROE Of 22% Impressive?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Wittchen: 22% = zł31m ÷ zł137m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Wittchen Have A Good Return On Equity? … Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.

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Evaluating Wittchen S.A.’s (WSE:WTN) Investments In Its Business

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Wittchen: 0.18 = zł38m ÷ (zł247m - zł40m) (Based on the trailing twelve months to March 2019.) So, Wittchen has an ROCE of 18%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

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Could Wittchen S.A. (WSE:WTN) Have The Makings Of Another Dividend Aristocrat?

(WSE:WTN) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. Wittchen pays a 6.6% dividend yield, and has been paying dividends for the past three years. A 6.6% yield does look good. Could the short payment history hint at future dividend growth? Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Wittchen's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. … Unfortunately, earnings growth has also been mediocre, and we think it has not been paying dividends long enough to demonstrate resilience across economic cycles.

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Investors Who Bought Wittchen (WSE:WTN) Shares A Year Ago Are Now Down 21%

Even though the Wittchen share price is down over the year, its EPS actually improved. … We don't see any weakness in the Wittchen's dividend so the steady payout can't really explain the share price drop. … We note that for Wittchen the TSR over the last year was -16%, which is better than the share price return mentioned above.

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A Look At The Intrinsic Value Of Wittchen S.A. (WSE:WTN)

(WSE:WTN) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (PLN, Millions) PLN17.40 PLN19.32 PLN20.99 PLN22.43 PLN23.70 PLN24.84 PLN25.89 PLN26.88 PLN27.83 PLN28.75 Growth Rate Estimate Source Est @ 14.57% Est @ 11.05% Est @ 8.59% Est @ 6.87% Est @ 5.66% Est @ 4.82% Est @ 4.23% Est @ 3.82% Est @ 3.53% Est @ 3.32% Present Value (PLN, Millions) Discounted @ 10.04% PLN15.81 PLN15.96 PLN15.75 PLN15.30 PLN14.69 PLN13.99 PLN13.25 PLN12.50 PLN11.76 PLN11.05 Present Value of 10-year Cash Flow (PVCF)= PLN140.08m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … WSE:WTN Intrinsic value, June 7th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

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Why Wittchen S.A. (WSE:WTN) Is An Attractive Investment To Consider

WSE:WTN Income Statement, May 22nd 2019 Next Steps: For Wittchen, I've put together three important aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for WTN’s future growth? … Take a look at our free research report of analyst consensus for WTN’s outlook. … The intrinsic value infographic in our free research report helps visualize whether WTN is currently mispriced by the market.

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Does The Wittchen S.A. (WSE:WTN) Share Price Fall With The Market?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). … What this means for you: One potential advantage of owning low beta stocks like Wittchen is that your overall portfolio won't be too sensitive to overall market movements.

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Is Wittchen S.A. (WSE:WTN) A High Quality Stock To Own?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Wittchen has a return on equity of 23% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

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What Can We Make Of Wittchen S.A.’s (WSE:WTN) High Return On Capital?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

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Company Info

Description

Wittchen S.A. manufactures and sells leather goods for men, women, and kids. It offers classic, tote, shopper, hobo, evening and clutch, messenger, and laptop bags, as well as backpacks; leather goods, such as wallets, cases, briefcases, business card holders, document holders, and organizers; and luggage products, including suitcases, cosmetic cases, travel bags, waist and wrist bags, and travel accessories. The company also provides clothing products comprising jackets, coats, gilets, ponchos, and furs product; shoes consisting of ballerina shoes, sandals and flip flops, court shoes, stiletto shoes, boots and chelsea boots, knee high boots, cowboy boots, and shoes and moccasins; and accessories, such as belts, gloves, scarves and shawls, perfumes, umbrellas, winter accessories, key chains, ties and bow ties, pocket squares, hats, and toiletry bags. It operates through a network of approximately 100 sales showrooms in Europe, as well as an online store. The company was founded in 1990 and is based in Nowy Dwór Mazowiecki, Poland. Wittchen S.A. is a subsidiary of Simei Investments Ltd.

Details
Name: Wittchen S.A.
WTN
Exchange: WSE
Founded: 1990
PLN110,890,509
18,178,772
Website: http://www.wittchen.com
Address: Wittchen S.A.
Gdanska 60 Street,
Palmiry,
Nowy Dwór Mazowiecki,
05-152,
Poland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
WSE WTN Common Bearer Shares Warsaw Stock Exchange PL PLN 09. Nov 2015
LSE 0RCI Common Bearer Shares London Stock Exchange GB PLN 09. Nov 2015
Number of employees
Current staff
Staff numbers
0
Wittchen employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 01:54
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2019/11/14
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.