Trakcja S.A. (TRK.WA) | Investment Case

1. Company Snapshot

1.a. Company Description

Trakcja S.A. operates in the infrastructure and energy construction sector in Poland and internationally.It operates through Civil Engineering Poland; Construction, Engineering and Concession Arrangements Baltic States; and Other segments.The company engages in the railway construction and modernization, as well as provision of catenary services; construction of power lines and transformer stations, and traction substations; construction of bridges, railroads bridges, by-pass roads, and underground pedestrian passages; and altering of the railroad tunnels and bridges.

It also offers specialized design services in technical studies, feasibility studies, conceptual designs, building, implementation, assembly and as-built designs, tender dossiers, and cost estimates, as well as other specific analyses in railway construction and railway transport technology.In addition, the company provides environmental engineering services, such as construction of external sanitary sewer networks, wastewater treatment plants, pumping stations and separators, and regulation of watercourses; constructs residential buildings, industrial, and general-purpose buildings; acts as a general contractor and developer; and offers rail transportation services.Further, it rents equipment, machines, and special devices; and produces switchgears, supporting structures, C-channels and H-bars, gate constructions, girder fittings, and section insulators, as well as asphalt concrete and bituminous emulsion, including polymer modified ones, concrete, and concrete products.

Additionally, the company engages in the excavation and processing of building materials.Trakcja S.A. was incorporated in 2002 and is headquartered in Warsaw, Poland.

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1.b. Last Insights on TRK

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1.c. Company Highlights

Last Price	3.17
Change Percentage	5.66%
Open	3.0
Previous Close	3.0
Market Cap ( Millions)	1465
Volume	461875
Year High	3.33
Year Low	1.5
M A 50	2.86
M A 200	2.41

FCF Yield	8.89%
Dividend Yield	0.00%
ROE	12.56%
Debt / Equity	44.86%
Net Debt / EBIDTA	-162.32%
Price To Book	0.04
Price Earnings Ratio	0.41
Price To FCF	11.25
Price To sales	0.7
EV / EBITDA	13.16

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Civil Construction - Poland

Expected Growth: 4.5%

Poland's infrastructure development, driven by EU funding and government initiatives, fuels demand for civil construction services. Trakcja S.A.'s diversified portfolio, including railway, road, and bridge construction, positions the company for growth.

Construction, Engineering and Concession Contracts - the Baltic Countries

Expected Growth: 5.2%

Growing infrastructure development projects in Estonia, Latvia, and Lithuania, driven by increasing investments in road, rail, and energy sectors, will fuel the growth of construction, engineering, and concession contracts in the Baltic region.

Other

Expected Growth: 4.5%

Trakcja S.A.'s railway infrastructure services are expected to drive growth, fueled by increasing investments in Poland's rail network and rising demand for efficient transportation. The 'Other' segment, including property management and sales, will also contribute to growth, albeit at a slower pace.

7. Detailed Products

Railway Infrastructure

Design, construction, and maintenance of railway infrastructure, including tracks, bridges, and stations.

Electrification Systems

Design, installation, and maintenance of electrification systems for railways, including overhead lines and substations.

Signaling and Interlocking Systems

Design, installation, and maintenance of signaling and interlocking systems for railways, ensuring safe and efficient train operations.

Telecommunications Systems

Design, installation, and maintenance of telecommunications systems for railways, including GSM-R and fiber optic networks.

Railway Engineering Services

Providing engineering services, including design, testing, and commissioning of railway systems and infrastructure.

8. Trakcja S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Trakcja S.A. is medium due to the presence of alternative transportation methods such as buses and taxis.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is high due to the low barriers to entry in the transportation industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple players in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	43.62%
Debt Cost	3.95%
Equity Weight	56.38%
Equity Cost	8.35%
WACC	6.43%
Leverage	77.36%

11. Quality Control: Trakcja S.A. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Multiconsult

A-Score: 6.5/10

Value: 5.6

Growth: 7.6

Quality: 5.8

Yield: 8.8

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

Bravida Holding

A-Score: 5.9/10

Value: 5.8

Growth: 5.8

Quality: 5.5

Yield: 5.6

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

Afry

A-Score: 5.1/10

Value: 6.2

Growth: 5.2

Quality: 5.2

Yield: 6.2

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

MT Højgaard Holding

A-Score: 5.0/10

Value: 6.6

Growth: 4.4

Quality: 5.2

Yield: 1.2

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

Etteplan

A-Score: 4.7/10

Value: 5.3

Growth: 4.2

Quality: 4.7

Yield: 4.4

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

Trakcja

A-Score: 4.5/10

Value: 8.0

Growth: 3.6

Quality: 4.6

Yield: 0.0

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.08%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.43%

Trakcja S.A. - PLTRKPL00014

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TRK

Have nothing to say about that one ...

1.c. Company Highlights

Strong Momentum

Lower Yield

Medium Volatility

More Volatile

Lower Growth

Stable Momentum

Fairly Valued

Weak Momentum

Average Growth

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Civil Construction - Poland

Expected Growth: 4.5%

Construction, Engineering and Concession Contracts - the Baltic Countries

Expected Growth: 5.2%

Other

Expected Growth: 4.5%

7. Detailed Products

Railway Infrastructure

Electrification Systems

Signaling and Interlocking Systems

Telecommunications Systems

Railway Engineering Services

8. Trakcja S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Trakcja S.A. passed 5 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.17$

Current Price

3.17$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA