PGE Polska Grupa Energetyczna SA

PGE maintains a capital structure with a debt-to-equity ratio of 0.23, indicating a relatively conservative leverage position compared to the industry median of 0.35. The company's liquidity is assessed as medium, with a current ratio of 0.83, which is below the industry median of 1.10. Free cash flow is negative at -387 million PLN, driven by capital expenditures of -4.69 billion PLN, suggesting ongoing investment in infrastructure.

Profitability metrics show a return on equity (ROE) of 2.28% and a return on assets (ROA) of 0.94%, both below the industry median of 4.50% and 1.80%, respectively. This suggests that PGE is underperforming in terms of capital efficiency and asset utilization relative to its peers. Operating income of 1.45 billion PLN and net income of 1.125 billion PLN reflect a healthy gross profit margin of 11.97%, but the company's operating margin of 10.03% is also below the industry median of 12.50%.

Geographically, PGE's revenue is heavily concentrated in Poland, with no material international exposure disclosed in the financial snapshot. The company operates in a single business segment, which is typical for electric utilities but increases exposure to local regulatory and economic conditions.

Growth trajectory is mixed. Revenue for the latest period is 14.45 billion PLN, with no prior period data provided for comparison. Analysts project a mean price target of 11.29 PLN, with a median of 10.45 PLN, suggesting a modest upside from the current valuation. However, the company's free cash flow remains negative, and capital expenditures are high, indicating continued investment in the business.

Risk factors include medium liquidity risk due to a current ratio below 1.0 and a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no significant dilution events reported in the latest filings. The company has not issued additional shares recently, and there is no indication of a pending equity raise.

Recent events include the publication of the latest financial results, which show a decline in free cash flow and a high level of capital expenditures. No major regulatory changes or legal proceedings were disclosed in the latest filings. Analysts have issued a mean recommendation of 3.50, indicating a neutral stance, with one strong buy and one hold recommendation.

Analysts project 7.2% upside to a mean price target of 11.29 PLN, suggesting modest valuation improvement potential.

The company maintains a low debt-to-equity ratio of 0.23, significantly below the electric utilities cohort median of 0.75.

Cash conversion metrics are rated best-in-class at 5.43, far surpassing the cohort median of 1.65.

The company faces high credit risk, signaling significant concerns regarding its ability to meet financial obligations.

Free cash flow deteriorated sharply to -10.9 billion PLN in FY2026, reflecting severe liquidity generation challenges.

Return on equity of 2.3% lags significantly behind the electric utilities cohort median of 6.3%, showing poor capital efficiency.

Revenue declined 4.7% year-over-year to 61.4 billion PLN in FY2026, marking a contraction in top-line growth.

Revenue PLN 16.68B, −5,4% YoY; Operating income +88,3% YoY.

• ▍Revenue PLN 16.68B, −5,4% YoY
• ▍Operating income +88,3% YoY
• ▍Net income +157,7% YoY
• ▍Free cash flow +98,4% YoY
• ▍Net margin 18.8%

Revenue PLN 13.79B, −11,4% YoY; Operating income +15,5% YoY.

• ▍Revenue PLN 13.79B, −11,4% YoY
• ▍Operating income +15,5% YoY
• ▍Net income −24,2% YoY
• ▍Free cash flow −73,4% YoY
• ▍Net margin 4.0%

Revenue PLN 13.80B, −4,5% YoY; Operating income −567,8% YoY.

• ▍Revenue PLN 13.80B, −4,5% YoY
• ▍Operating income −567,8% YoY
• ▍Net income −953,9% YoY
• ▍Free cash flow −2 719,4% YoY
• ▍Net margin -69.6%

Revenue PLN 17.17B; Operating income PLN 3.26B.

• ▍Revenue PLN 17.17B
• ▍Operating income PLN 3.26B
• ▍Net margin 14.1%

Revenue PLN 17.63B; Operating income -PLN 3.76B.

• ▍Revenue PLN 17.63B
• ▍Operating income -PLN 3.76B
• ▍Net margin -30.9%

Revenue PLN 15.56B; Operating income PLN 1.30B.

• ▍Revenue PLN 15.56B
• ▍Operating income PLN 1.30B
• ▍Net margin 4.7%

Revenue PLN 14.45B; Operating income PLN 1.45B.

• ▍Revenue PLN 14.45B
• ▍Operating income PLN 1.45B
• ▍Net margin 7.8%

Revenue PLN 61.43B, −4,7% YoY; Operating income −773,0% YoY.

• ▍Revenue PLN 61.43B, −4,7% YoY
• ▍Operating income −773,0% YoY
• ▍Net income −29,6% YoY
• ▍Free cash flow −29,6% YoY
• ▍Net margin -5.7%

Revenue PLN 64.48B, −32,8% YoY; Operating income +110,7% YoY.

• ▍Revenue PLN 64.48B, −32,8% YoY
• ▍Operating income +110,7% YoY
• ▍Net income +46,2% YoY
• ▍Free cash flow +15,0% YoY
• ▍Net margin -4.2%

Revenue PLN 95.96B, +30,7% YoY; Operating income −179,8% YoY.

• ▍Revenue PLN 95.96B, +30,7% YoY
• ▍Operating income −179,8% YoY
• ▍Net income −250,6% YoY
• ▍Free cash flow −1 105,1% YoY
• ▍Net margin -5.2%

Revenue PLN 73.44B, +39,3% YoY; Operating income −16,1% YoY.

• ▍Revenue PLN 73.44B, +39,3% YoY
• ▍Operating income −16,1% YoY
• ▍Net income −16,2% YoY
• ▍Free cash flow −71,6% YoY
• ▍Net margin 4.5%

Revenue PLN 52.73B; Operating income PLN 5.12B.

• ▍Revenue PLN 52.73B
• ▍Operating income PLN 5.12B
• ▍Net margin 7.5%