Cognor fundamental analysis. 10-fold increase in net profit in 2021




Cognor fundamental analysis.  10-fold increase in net profit in 2021The year 2021 was an extremely successful time for the Cognor company, which resulted from very high steel prices, Konrad Książak points out on the Comparic24 channel. The beginning of this year also looks promising for the company, and this is due to the war in Ukraine, which has raised the prices of steel, the producer of which is the company.

The steel road drives the quotes

– In the steel industry, you can be a part distributor, and you can also be a producer. That being said, the earlier you are in that chain the better. Cognor is a producer, so the situation of this company is very good, very favorable, due to what is happening at the moment, what is the demand for steel. And if there is a demand for a product, we probably all know that the price is going up. – points out Konrad Książak. – We took about 25% of the steel from this eastern direction. Now, of course, this direction is in some sense unavailable at the moment. Of course, the demand is still high, but we have less raw material, so the price is higher. Given the current situation, she favors Cognor. – he also adds.
Cognor fundamental analysis.  10-fold increase in net profit in 2021Cognor quotes in 2021-2022. Source: Stooq.pl When looking at the stock exchange valuation of the company, it should be noted that the company reaches its long-term highs. Currently, the valuation is close to PLN 6, although the company’s shares have temporarily increased even above PLN 6.5, which took place at the end of March 2021. It is worth noting, however, that in January 2021 the company was valued by investors at less than PLN 1.80, so the increase compared to today’s valuation is almost 2.5 times.

Strong increase in net profit

– Considering the financial results and even its indicators, it is at a very good level, but the whole steel industry is at a good level, as the P / E ratios are at the level of 2/3 at this point in terms of the steel segment. – emphasizes Konrad Książak. They look at the financial results presented by the company, it should be noted that the year 2021 is marked by a clear improvement in both sales revenues and net profit. While the company’s revenues for 2020 amounted to PLN 1.73 billion, at the end of 2021 it was already PLN 2.81 billion.
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The net profit increased even more at that time. In 2021, the net profit of the shareholders of the parent company amounted to PLN 342.77 million, while in the previous year it was PLN 32.68 million, in 2019 only PLN 19.11 million.

Modest dividend

Cognor is definitely not a solid dividend company, but it has historically been. In 2018, the company paid its shareholders PLN 11.86 million (for 2017), which translated into a dividend of PLN 0.10 per share. A year later (i.e. in 2019), the company paid out PLN 34.5 million of profit generated in 2018, which resulted in a dividend of PLN 0.28 per share. In 2021, shareholders received PLN 0.15 per share from the profit generated in 2020. Taking into account today’s valuation (i.e. PLN 6), this level of dividend would translate into only 2.5% of the dividend rate, which is the result of very mediocre.
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