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1. Company Snapshot

1.a. Company Description

Mennica Polska S.A. produces and distributes mint products for time-engraving medals in Poland and internationally.It operates through three segments: Coin Products, Electronic Payments, and Real Estate Development.The Coin Products segment produces and sells various mint products, including circulation and collector coins, such as the sale of silver and gold; investment products, primarily gold investment bars and bullion coins; tokens and other mint products; and engraving and medallion products comprising medals, decorations, stamps, seals, date stamps, and hallmarking stamps, as well as commercial and marketing activities related in particular to the promotion and distribution of collector coins, numismatics, bars, and other investment products and other mint goods.


The Electronic Payments segment engages in the operation of city card systems; and sale and intermediation in the sale of tickets public transport, pre-paid tickets, railway tickets, maintenance services, and technical devices for electronic payment processing.The Real Estate Development segment is involved in the implementation of development projects; and rental of office and warehouse spaces.The company serves foreign issuers, national and foreign distributors of mint products, collectors, investors, and corporations interested in token coin programs; local government units servicing public transport, railway companies, and individual customers; and institutional clients and natural persons.


Mennica Polska S.A. was founded in 1766 and is headquartered in Warsaw, Poland.

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1.b. Last Insights on MNC

Mennica Polska S.A.'s recent performance is driven by favorable business conditions. The company's solid fundamentals and growth prospects make it an attractive investment opportunity. With European markets showing resilience, investors are focusing on dividend stocks, but Mennica Polska's growth potential sets it apart. There have been no recent announcements on new products, legal issues, or acquisitions. As a hidden small-cap treasure in Europe, Mennica Polska offers untapped potential, with its valuation worth exploring further.

1.c. Company Highlights

2. Transcript Summary

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.58%)

6. Segments

Mint

Expected Growth: 4.5%

Growing demand for collectible coins and medals, increasing popularity of numismatic items, and Mennica Polska S.A.'s commitment to quality and craftsmanship drive the market growth.

Electronic Payments

Expected Growth: 10.3%

The growth of electronic payments in Poland is driven by increasing adoption of online transactions, government initiatives promoting digital payments, and rising demand for convenient payment methods.

Development Activity

Expected Growth: 4.5%

Growing demand for secure documents and innovative solutions in the financial sector, driven by increasing concerns over counterfeiting and fraud, will drive Mennica Polska S.A.'s growth.

7. Detailed Products

Coins and Medals

Mennica Polska S.A. produces circulation coins, commemorative coins, and medals, using advanced minting technologies and high-quality materials.

Security Papers

The company produces high-security paper for banknotes, passports, and other sensitive documents, featuring advanced security features and watermarks.

Banknote Printing

Mennica Polska S.A. offers banknote printing services, including design, production, and security features integration.

ID Documents

The company produces identification documents, such as passports, ID cards, and driver's licenses, featuring advanced security features and biometric data.

Secure Printing

Mennica Polska S.A. offers secure printing services for sensitive documents, such as checks, bonds, and other financial instruments.

8. Mennica Polska S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Mennica Polska S.A. is medium due to the presence of alternative products and services in the market, but the company's strong brand reputation and quality of products mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong market position and the lack of concentration among customers, giving Mennica Polska S.A. a significant advantage in negotiating prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations and long-term contracts with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the market, including significant capital requirements and regulatory hurdles, making it difficult for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a highly competitive environment and a constant need for innovation and differentiation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.37%
Debt Cost 6.46%
Equity Weight 89.63%
Equity Cost 6.78%
WACC 6.75%
Leverage 11.57%

11. Quality Control: Mennica Polska S.A. passed 9 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
Odfjell

A-Score: 6.8/10

Value: 8.5

Growth: 7.7

Quality: 6.2

Yield: 9.4

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

Stock-Card
Mennica Polska

A-Score: 6.1/10

Value: 4.7

Growth: 5.2

Quality: 6.2

Yield: 6.2

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Belships

A-Score: 5.9/10

Value: 6.8

Growth: 6.0

Quality: 6.2

Yield: 7.5

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
RHI Magnesita

A-Score: 4.4/10

Value: 7.0

Growth: 5.8

Quality: 2.5

Yield: 8.8

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

Stock-Card
NORMA

A-Score: 3.9/10

Value: 6.9

Growth: 3.1

Quality: 3.2

Yield: 3.8

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

Stock-Card
Sif Holding

A-Score: 3.1/10

Value: 9.4

Growth: 2.8

Quality: 1.8

Yield: 0.6

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.8$

Current Price

37.8$

Potential

-0.00%

Expected Cash-Flows