Votum S.A. provides assistance for obtaining compensation in Central and Eastern Europe. It helps people injured in road accidents to obtain due compensation, as well as assistance at every stage of the compensation procedure to individual clients. The company was founded in 2005 and is headquartered in Wroclaw, Poland.

Poland

Votum S.A.

Consumer Cyclical

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. On average, the company pays dividends annually. 

VOT.WA reported revenue of PLN 411mn in the last 12 months, up 3% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 14% from FY23 to PLN 9.44. Market expects EPS to reach PLN 8.61 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 40ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 37.2% in the last 12 months, a decline from 45.1% in FY23. 

Historically, VOT.WA has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 27.5%, down from 34.2% in FY23. 

Votum S.A. reported a return on equity (RoE) of 39.1% in the last 12 months, down from 67.1% in FY23. The market consensus projects an RoE of 35.6% in FY24, again ahead of its peers. 

Another important profitability metric, return on assets (RoA), amounted to 22.0% in the last 12 months, a decrease from 38.0% in FY23. The market analysts predict that RoA will be 20.5% in FY24, again stronger than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to 24.0%, above the peers. The consensus estimate for FY24 for RoCE is 32.8%, again ahead of the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 7.9 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

VOT.WA has very poor trading liquidity. It will take several trading days for the average private investor to sell a common position under normal market conditions. Liquidity is usually stable and is unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is minimal. We note resilient historical revenue growth, robust profitability, solid return on capital, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, excessive margin volatility.

In highly turbulent market conditions, VOT.WA is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, VOT.WA is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to mild. 

Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, reasonably priced on P/FCF. 

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Votum S.A.

PLN 45

5

Votum S.A.

PLN 45

5

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Risk factor

Profitability factor

PLN 45

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