Download PDF

1. Company Snapshot

1.a. Company Description

KRUK Spólka Akcyjna, together with its subsidiaries, engages in the management of debt in Poland, Romania, Italy, the Czech Republic, Slovakia, Germany, Spain, and internationally.The company operates through Debt Purchase, Credit Management, and Other segments.It purchases and manages debt portfolios, including consumer, mortgage-backed, and corporate debts; and offers consumer unsecured, mortgage, and SME/corporate loans, as well as credit management services.


The company also manages the receivables of banks, loan brokers, insurers, leasing companies, landline and mobile telecommunications operators, cable TV operators, digital TV operators, and FMCG companies.In addition, it provides Novum loan services; detective services; financial intermediation agency services; and auxiliary services to small and medium-sized enterprises.Further, the company collects, processes, and provides credit information on natural persons; offers receivable management services; and portfolio underwriting services.


Additionally, the company invests in receivables and certificates of securitization funds; and acquires agricultural real estate properties.KRUK Spólka Akcyjna was founded in 1998 and is headquartered in Wroclaw, Poland.

Show Full description

1.b. Last Insights on KRU

KRUK Spólka Akcyjna's recent performance was driven by record profits and strong debt recovery growth in Q3 2024. The company achieved a significant increase in revenue, driven by its debt collection services. Additionally, KRUK's strategic growth initiatives, including expansion into new markets, contributed to its success. The company's ability to navigate increased costs and market challenges also demonstrates its resilience. Furthermore, KRUK's focus on debt recovery growth and cost optimization is expected to drive future profitability.

1.c. Company Highlights

2. KRUK's Q3 2025 Earnings: A Strong Performance

KRUK reported a net profit of close to PLN 900 million in Q3 2025, with revenues and cash EBITDA exceeding expectations. The actual EPS came out at 6.53, below estimates of 9.86. Despite lower 9 months results compared to last year, the company expects 2025 to be a record year. The cash EBITDA was over PLN 2 billion, and the return on equity (ROE) decreased due to last year's weak Q4. The company's financial performance was robust, with a net debt to cash EBITDA ratio of 2.6x, indicating moderate leverage.

Publication Date: Nov -19

📋 Highlights
  • Record Net Profit: Achieved PLN 900 million net profit in Q3, projecting a record year despite lower 9M 2025 results due to prior-year’s high Q3 performance.
  • Recoveries Surpass Targets: Recorded PLN 2.9 billion in recoveries, exceeding operating plans, alongside cash EBITDA of over PLN 2 billion.
  • Deployment Progress: Invested PLN 1.4 billion in new portfolios (Q3), with Q4 expected to push annual deployment to PLN 2.4-2.5 billion.
  • Moderate Leverage: Net debt-to-cash EBITDA ratio at 2.6x, with plans to adjust leverage in Q4 to align with investment targets.

Segment Performance

The Italy segment was the largest investment market, followed by Poland. The company has invested significantly in Romania and Spain, but remains cautious about Spain due to the legal environment. In Poland, recovery trends are strong, and the company expects this to continue. Romania had a good investment quarter and strong recoveries, while Italy had record-high recoveries. Spain's results are stable, but the company is selective about investments until the situation stabilizes.

Valuation and Outlook

Using the given valuation metrics, KRUK's P/E Ratio is 8.35, and the ROE is 22.84%. The EV/EBITDA ratio is 11.5, indicating a reasonable valuation. Analysts estimate next year's revenue growth at 9.9%. As the company continues to expand into new markets, including France, and potentially the US and UK in the longer term, its digital transformation program promises significant benefits from 2028 onwards. The company's commitment to the Spanish market is evident, despite being cautious about investments. With a dividend yield of 3.96%, KRUK remains an attractive investment opportunity.

Growth Prospects and Challenges

KRUK is researching new markets, including the UK and US, which offer significant growth opportunities due to their size and demand. However, both markets are competitive, mature, and highly regulated, making it challenging to enter and succeed. The company expects higher prices and price pressure across its markets in 2025, mainly due to lower interest rates, but sees a stable competitive environment with a few strong players in each market.

3. NewsRoom

Card image cap

Kruk SA (FRA:83I) Q3 2024 Earnings Call Highlights: Record Profits and Strategic Growth Amid ...

Nov -02

Source:

Card image cap

Kruk SA (STU:83I) (Q2 2024) Earnings Call Highlights: Record Profits Amid Strategic Expansion

Oct -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.63%)

6. Segments

Debt Packages Purchased

Expected Growth: 15%

KRUK Spólka Akcyjna's 15% growth in debt packages purchased is driven by increasing demand for debt recovery services, expansion into new markets, and strategic partnerships. Additionally, the company's efficient debt collection process, advanced data analytics, and experienced management team contribute to its growth. Furthermore, the rising number of non-performing loans in the European market also fuels the demand for KRUK's services.

Other Products

Expected Growth: 12%

KRUK Spólka Akcyjna's 12% growth in Other Products is driven by increasing demand for debt management services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and data analytics has improved operational efficiency, enabling it to offer more competitive pricing and attract new customers.

Collection Services

Expected Growth: 10%

KRUK Spólka Akcyjna's 10% growth in Collection Services is driven by increasing demand for debt recovery solutions, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and data analytics has improved operational efficiency, enabling it to handle a higher volume of cases and deliver better results for clients.

Unallocated

Expected Growth: 8%

KRUK Spólka Akcyjna's 8% unallocated growth is driven by increasing debt purchasing, expansion into new markets, and a growing demand for debt recovery services. Additionally, the company's efficient cost structure and effective debt collection processes contribute to its growth. Furthermore, KRUK's strategic acquisitions and partnerships also support its growth momentum.

7. Detailed Products

Debt Collection

KRUK Spólka Akcyjna provides debt collection services to help businesses recover outstanding debts from customers.

Debt Purchase

KRUK Spólka Akcyjna purchases debts from businesses, providing them with immediate cash flow and taking on the responsibility of debt collection.

Business Information Services

KRUK Spólka Akcyjna provides business information services, including credit reports and debt monitoring, to help businesses make informed decisions.

Risk Management

KRUK Spólka Akcyjna offers risk management services to help businesses identify and mitigate potential risks in their operations.

8. KRUK Spólka Akcyjna's Porter Forces

Forces Ranking

Threat Of Substitutes

KRUK Spólka Akcyjna operates in the debt collection industry, where substitutes are limited. However, the company faces some threat from alternative debt recovery methods, such as debt management plans and credit counseling services.

Bargaining Power Of Customers

KRUK Spólka Akcyjna's customers are primarily banks and financial institutions, which have limited bargaining power due to their reliance on the company's debt collection services.

Bargaining Power Of Suppliers

KRUK Spólka Akcyjna's suppliers are primarily IT service providers and data analytics companies, which have limited bargaining power due to the company's dominant position in the debt collection industry.

Threat Of New Entrants

The debt collection industry has high barriers to entry, including regulatory requirements and the need for specialized expertise, which limits the threat of new entrants.

Intensity Of Rivalry

The debt collection industry is highly competitive, with several established players competing for market share. KRUK Spólka Akcyjna faces intense rivalry from competitors such as GetBack and Kredyt Inkaso.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.15%
Debt Cost 7.39%
Equity Weight 40.85%
Equity Cost 10.92%
WACC 8.83%
Leverage 144.83%

11. Quality Control: KRUK Spólka Akcyjna passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mapfre

A-Score: 7.9/10

Value: 6.8

Growth: 6.6

Quality: 7.2

Yield: 8.1

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
BAWAG

A-Score: 7.3/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 8.8

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
VIG

A-Score: 7.2/10

Value: 6.4

Growth: 4.2

Quality: 6.2

Yield: 7.5

Momentum: 10.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
PKO Bank Polski

A-Score: 7.0/10

Value: 5.8

Growth: 8.6

Quality: 6.8

Yield: 10.0

Momentum: 7.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
KRUK

A-Score: 6.4/10

Value: 6.0

Growth: 5.9

Quality: 7.2

Yield: 6.9

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Edenred

A-Score: 4.9/10

Value: 7.8

Growth: 7.1

Quality: 6.0

Yield: 5.6

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

468.9$

Current Price

468.9$

Potential

-0.00%

Expected Cash-Flows