Seco/Warwick SA

Seco/Warwick maintains a conservative capital structure with a debt-to-equity ratio of 0.35, indicating a relatively low reliance on debt financing. The company holds 67.96 million PLN in cash and equivalents, but after subtracting long-term debt of 87.32 million PLN, the net cash position is negative, signaling potential liquidity constraints. The liquidity risk is assessed as medium, with the current ratio at 1.36, suggesting the company can cover its short-term liabilities but with limited buffer.

Profitability metrics show a return on equity (ROE) of 2.53% and a return on assets (ROA) of 0.98%, both below the typical thresholds for industrial machinery firms. The gross margin is 20.17% (36.72 million PLN gross profit on 182.09 million PLN revenue), but operating margin is only 5.10% (9.29 million PLN operating income), indicating high operating costs relative to revenue. These figures are below the industry median for ROE and ROA, suggesting underperformance in asset utilization and profitability.

The company's revenue is concentrated in disclosed segments, with no geographic breakdown provided in the input data. However, the industrial machinery sector is typically exposed to regional manufacturing cycles, and the absence of geographic diversification could pose a risk if demand in key markets declines.

Outlook data is not provided in the input, but the company's free cash flow of 4.17 million PLN and capital expenditure of -6.57 million PLN suggest a modest investment in growth. Analysts have assigned a mean price target of 43.09 PLN, implying a 20.1% upside from the current market price of 35.8 PLN. This suggests a positive near-term outlook, though the absence of detailed revenue growth projections limits visibility.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company has not issued additional shares recently, and the diluted share count is equal to the basic share count, indicating no imminent dilution pressure. However, the negative net cash position could necessitate future financing, which may introduce dilution risk if equity is used.

Recent events include the publication of the latest financial data, which shows a stable but modest performance. No significant regulatory or operational events are disclosed in the input data, and the company's risk profile remains relatively stable.

Seco/Warwick generated PLN 746 million in FY2026 revenue, demonstrating consistent top-line growth over the analyzed period.

Operating income surged 75.1% year-over-year to PLN 43.1 million in FY2026, indicating significant operational leverage.

The company maintains a conservative debt-to-equity ratio of 0.35, providing a stable capital structure relative to peers.

Cash conversion of 1.05 exceeds the industrial machinery cohort median of 0.95, highlighting efficient working capital management.

Analysts assign a strong buy recommendation with a target price implying 1.2% upside from current levels.

Net income declined 270.5% year-over-year in FY2025, signaling severe volatility and potential earnings instability.

Free cash flow turned negative at PLN -6.8 million in FY2025, raising concerns about liquidity and capital generation.

Long-term debt increased to PLN 153.1 million in FY2026, reflecting a rising leverage burden over time.

Revenue PLN 176.6M, −1,6% YoY; Operating income −30,9% YoY.

• ▍Revenue PLN 176.6M, −1,6% YoY
• ▍Operating income −30,9% YoY
• ▍Net income −55,7% YoY
• ▍Free cash flow −153,8% YoY
• ▍Net margin 2.8%

Revenue PLN 182.0M, +5,9% YoY; Operating income +125,9% YoY.

• ▍Revenue PLN 182.0M, +5,9% YoY
• ▍Operating income +125,9% YoY
• ▍Net income +223,8% YoY
• ▍Free cash flow +244,8% YoY
• ▍Net margin 6.5%

Revenue PLN 200.4M, +11,7% YoY; Operating income +311,0% YoY.

• ▍Revenue PLN 200.4M, +11,7% YoY
• ▍Operating income +311,0% YoY
• ▍Net income +21,1% YoY
• ▍Free cash flow +145,5% YoY
• ▍Net margin 1.9%

Revenue PLN 186.9M, +2,6% YoY; Operating income −9,9% YoY.

• ▍Revenue PLN 186.9M, +2,6% YoY
• ▍Operating income −9,9% YoY
• ▍Net income −12,3% YoY
• ▍Free cash flow −26,5% YoY
• ▍Net margin 3.0%

Revenue PLN 179.4M; Operating income PLN 13.4M.

• ▍Revenue PLN 179.4M
• ▍Operating income PLN 13.4M
• ▍Net margin 6.2%

Revenue PLN 171.8M; Operating income PLN 6.5M.

• ▍Revenue PLN 171.8M
• ▍Operating income PLN 6.5M
• ▍Net margin 2.1%

Revenue PLN 179.5M; Operating income PLN 2.6M.

• ▍Revenue PLN 179.5M
• ▍Operating income PLN 2.6M
• ▍Net margin 1.8%

Revenue PLN 182.1M; Operating income PLN 9.3M.

• ▍Revenue PLN 182.1M
• ▍Operating income PLN 9.3M
• ▍Net margin 3.5%

Revenue PLN 745.9M, +4,6% YoY; Operating income +35,7% YoY.

• ▍Revenue PLN 745.9M, +4,6% YoY
• ▍Operating income +35,7% YoY
• ▍Net income +7,3% YoY
• ▍Free cash flow +110,2% YoY
• ▍Net margin 3.5%

Revenue PLN 712.8M, +4,3% YoY; Operating income −21,6% YoY.

• ▍Revenue PLN 712.8M, +4,3% YoY
• ▍Operating income −21,6% YoY
• ▍Net income −31,3% YoY
• ▍Free cash flow −130,2% YoY
• ▍Net margin 3.4%

Revenue PLN 683.7M, +9,8% YoY; Operating income −3,7% YoY.

• ▍Revenue PLN 683.7M, +9,8% YoY
• ▍Operating income −3,7% YoY
• ▍Net income −43,5% YoY
• ▍Free cash flow −28,4% YoY
• ▍Net margin 5.2%