Grupa Kety SA

Grupa Kety SA maintains a balanced capital structure with total equity of PLN 2.0 billion and total liabilities of PLN 2.16 billion. The debt-to-equity ratio stands at 0.72, indicating moderate leverage, while the current ratio of 1.63 suggests adequate short-term liquidity. However, the company holds only PLN 64 million in cash and equivalents against long-term debt of PLN 1.44 billion, resulting in a negative net cash position. Free cash flow is minimal at PLN 31 million, constrained by capital expenditures of PLN 220 million despite operating cash flow of PLN 937 million.

Profitability metrics demonstrate strong returns, with a return on equity of 29.6% and return on assets of 14.22%. The company generated net income of PLN 568 million on revenue of PLN 5.49 billion, yielding a net margin of approximately 10.3%. The price-to-earnings ratio of 20.19 and price-to-book ratio of 5.98 reflect market expectations for continued performance, while the EV/EBITDA multiple of 16.45 indicates a premium valuation relative to earnings before interest, taxes, depreciation, and amortization.

Revenue concentration and segment details are not explicitly provided in the available data, limiting specific analysis of geographic or product mix exposure. The company’s total revenue of PLN 5.49 billion serves as the baseline for valuation multiples, with an EV-to-revenue ratio of 2.42. Without detailed segment breakdowns, the analysis relies on aggregate financial performance to assess operational efficiency and market positioning.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current financial snapshot provides a single-period view, preventing year-over-year or quarter-over-quarter trend analysis. Consequently, the assessment of revenue growth, profit expansion, or cyclical patterns remains incomplete based on the provided information.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, emphasizing reliance on operating cash flows to service obligations. The low dilution risk is supported by identical basic and diluted share counts of 9.73 million, indicating no significant outstanding options or convertible securities impacting share count.

Recent analyst observations indicate a mean price target of PLN 961.98, which is below the current market price of PLN 1,228.00. The mean recommendation of 3.00 suggests a neutral stance, with five hold ratings and one strong buy rating among analysts. This divergence between market price and analyst targets may reflect differing views on future growth prospects or valuation fairness.

Free cash flow is projected to surge 175.6% year-over-year to PLN 31 million in fiscal 2026.

Cash conversion ratio of 1.58 is above the cohort median of 1.2, reflecting efficient cash generation.

Net income CAGR is negative at -1.1% over four years, signaling a lack of long-term earnings growth.

Long-term debt increased to PLN 1.58 billion in fiscal 2025, up from PLN 979 million in fiscal 2022.

The company faces a medium liquidity risk flag, suggesting potential challenges in meeting short-term obligations.

Revenue PLN 1.37B, +1,5% YoY; Operating income +15,3% YoY.

• ▍Revenue PLN 1.37B, +1,5% YoY
• ▍Operating income +15,3% YoY
• ▍Net income +19,8% YoY
• ▍Free cash flow +2,2% YoY
• ▍Net margin 10.6%

Revenue PLN 1.25B, +0,2% YoY; Operating income +1,9% YoY.

• ▍Revenue PLN 1.25B, +0,2% YoY
• ▍Operating income +1,9% YoY
• ▍Net income +6,4% YoY
• ▍Free cash flow −16,1% YoY
• ▍Net margin 8.2%

Revenue PLN 1.45B, +6,8% YoY; Operating income +17,6% YoY.

• ▍Revenue PLN 1.45B, +6,8% YoY
• ▍Operating income +17,6% YoY
• ▍Net income +19,4% YoY
• ▍Free cash flow +8,4% YoY
• ▍Net margin 12.2%

Revenue PLN 1.44B, +10,9% YoY; Operating income +14,4% YoY.

• ▍Revenue PLN 1.44B, +10,9% YoY
• ▍Operating income +14,4% YoY
• ▍Net income +1,6% YoY
• ▍Free cash flow +34,0% YoY
• ▍Net margin 11.7%

Revenue PLN 1.35B; Operating income PLN 170.0M.

• ▍Revenue PLN 1.35B
• ▍Operating income PLN 170.0M
• ▍Net margin 8.9%

Revenue PLN 1.25B; Operating income PLN 142.3M.

• ▍Revenue PLN 1.25B
• ▍Operating income PLN 142.3M
• ▍Net margin 7.7%

Revenue PLN 1.36B; Operating income PLN 199.1M.

• ▍Revenue PLN 1.36B
• ▍Operating income PLN 199.1M
• ▍Net margin 10.9%

Revenue PLN 1.30B; Operating income PLN 205.4M.

• ▍Revenue PLN 1.30B
• ▍Operating income PLN 205.4M
• ▍Net margin 12.8%

Revenue PLN 5.49B, +6,8% YoY; Operating income +8,7% YoY.

• ▍Revenue PLN 5.49B, +6,8% YoY
• ▍Operating income +8,7% YoY
• ▍Net income +1,4% YoY
• ▍Free cash flow +175,6% YoY
• ▍Net margin 10.3%

Revenue PLN 5.14B, −1,4% YoY; Operating income +4,9% YoY.

• ▍Revenue PLN 5.14B, −1,4% YoY
• ▍Operating income +4,9% YoY
• ▍Net income +3,9% YoY
• ▍Free cash flow +79,3% YoY
• ▍Net margin 10.9%

Revenue PLN 5.22B, −12,3% YoY; Operating income −20,6% YoY.

• ▍Revenue PLN 5.22B, −12,3% YoY
• ▍Operating income −20,6% YoY
• ▍Net income −20,5% YoY
• ▍Free cash flow −740,2% YoY
• ▍Net margin 10.3%

Revenue PLN 5.95B, +28,9% YoY; Operating income +16,0% YoY.

• ▍Revenue PLN 5.95B, +28,9% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +14,1% YoY
• ▍Free cash flow −69,2% YoY
• ▍Net margin 11.4%