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1. Company Snapshot

1.a. Company Description

Grupa Azoty S.A. manufactures and sells mineral fertilizers, engineering plastics, OXO products, and other chemicals in Poland, Germany, South America, Asia, other European Union countries, and others.The company operates through Fertilizers-Agro, Plastics, Chemical, Energy, and Other Activities segments.It provides nitrogen fertilizers, nitrogen fertilizers with sulfur content, compound fertilizers, phospho-nitrogenous fertilizers, ammonium nitrate, calcium ammonium nitrate, concentrated nitric acid, and technical gases; engineering plastics, including polyamide 6, POM, PP, PBT, PPC, PA66, and caprolactam, as well as polyamide 11 and 12 tubes, polyethylene tubes, polyamide 6 tubes, and food grade polyamide casings; and chemicals comprising oxo alcohols, plasticizers, melamine, and tytanpol, as well as special solutions based on urea and ammonia.


The company also manufactures and sells catalysts, such as iron-chromium catalyst, copper catalysts, and iron catalysts, as well as for production of ammonia, hydrogen, and synthesis gas; RedNOx, organic, and non-organic chemicals; and liquid, granulated, powder, and insoluble sulphur, as well as sulphur pastilles.In addition, it produces and sells heat and electricity for chemical installations; and provides a range of services, including environmental protection, water and wastewater management, laboratory, logistics, administration, research, and infrastructure management services, as well as rents properties.The company was formerly known as Zaklady Azotowe w Tarnowie-Moscicach Spólka Akcyjna and changed its name to Grupa Azoty Spólka Akcyjna in April 2013.


Grupa Azoty S.A. is based in Tarnów, Poland.

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1.b. Last Insights on ATT

Grupa Azoty S.A.'s recent performance was hindered by production and market challenges, despite a strong financial recovery. The company's EBITDA growth was driven by strategic transformations and favorable EU tariffs, but this was not enough to offset the difficulties in production and market dynamics. Furthermore, the company's recent earnings release highlighted a decline in revenue, primarily due to lower sales of fertilizers and other chemicals. Additionally, the company's production costs increased, partly due to higher energy prices and raw material expenses.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Grupa Azoty SA (STU:5PL) Q3 2025 Earnings Call Highlights: Strategic Plans and Financial Challenges

Nov -28

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Grupa Azoty SA (WAR:ATT) Q1 2025 Earnings Call Highlights: Strong Financial Recovery Amid ...

May -30

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Grupa Azoty SA (WAR:ATT) (H1 2024) Earnings Call Highlights: Navigating Financial Challenges ...

Oct -09

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.84%)

6. Segments

Agro Fertilizers

Expected Growth: 10%

Strong demand for fertilizers driven by increasing global food production, growing popularity of organic farming, and government initiatives supporting sustainable agriculture practices. Additionally, Grupa Azoty S.A.'s strategic expansion into Eastern European markets and investments in R&D for eco-friendly products contribute to the 10% growth.

Chemicals

Expected Growth: 9%

Grupa Azoty S.A.'s 9% growth in chemicals is driven by increasing demand for fertilizers and plastics, coupled with strategic acquisitions and investments in production capacity expansion. Additionally, the company's focus on specialty chemicals and high-margin products, such as oxo alcohols and plasticizers, contributes to its growth momentum.

Plastics

Expected Growth: 8%

Strong demand from packaging and construction industries, driven by e-commerce growth and infrastructure development, coupled with Grupa Azoty S.A.'s strategic expansion into high-margin specialty plastics and increasing market share in Eastern Europe, contribute to an 8% growth rate.

Energy

Expected Growth: 12%

Grupa Azoty S.A.'s 12% energy growth driven by increasing demand for fertilizers and plastics, coupled with strategic investments in renewable energy sources, such as wind and biomass power. Additionally, the company's focus on energy efficiency and cost reduction initiatives has contributed to the growth.

Other

Expected Growth: 11%

Grupa Azoty S.A.'s 11% growth in 'Other' segment is driven by increasing demand for specialty chemicals, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation and R&D has led to the development of new products, contributing to revenue growth.

7. Detailed Products

Fertilizers

Grupa Azoty S.A. offers a wide range of fertilizers, including nitrogen, phosphorus, potassium, and complex fertilizers, used in agriculture to promote plant growth and crop yields.

Plastics

The company produces a variety of plastics, including polyamide, polyethylene, and polypropylene, used in the production of packaging materials, textiles, and industrial applications.

Oxo Alcohols

Grupa Azoty S.A. produces oxo alcohols, which are used as solvents, plasticizers, and in the production of lubricants, adhesives, and coatings.

Caprolactam

The company produces caprolactam, a chemical intermediate used in the production of nylon, textiles, and industrial applications.

Adipic Acid

Grupa Azoty S.A. produces adipic acid, a chemical intermediate used in the production of nylon, polyurethane, and other industrial applications.

Nitrogen-based Products

The company produces a range of nitrogen-based products, including ammonia, ammonium nitrate, and urea, used in agriculture, industrial applications, and energy production.

8. Grupa Azoty S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Grupa Azoty S.A. is medium due to the presence of alternative products and services in the market, but the company's strong brand recognition and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Grupa Azoty S.A. due to the company's strong market position and the lack of concentration among its customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Grupa Azoty S.A. due to the presence of multiple suppliers in the market, but the company's large scale of operations and strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Grupa Azoty S.A. due to the high barriers to entry in the chemical industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Grupa Azoty S.A. due to the presence of several large competitors in the market, leading to intense competition and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.16%
Debt Cost 4.03%
Equity Weight 42.84%
Equity Cost 7.48%
WACC 5.51%
Leverage 133.45%

11. Quality Control: Grupa Azoty S.A. passed 4 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
Tharisa

A-Score: 6.5/10

Value: 8.2

Growth: 6.6

Quality: 5.4

Yield: 6.9

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
ICL

A-Score: 5.8/10

Value: 5.2

Growth: 3.7

Quality: 4.2

Yield: 8.8

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Corbion

A-Score: 5.0/10

Value: 6.7

Growth: 7.4

Quality: 4.3

Yield: 4.4

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Origin Agritech

A-Score: 4.8/10

Value: 9.2

Growth: 6.4

Quality: 6.4

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
EPC

A-Score: 4.6/10

Value: 4.4

Growth: 7.4

Quality: 3.2

Yield: 0.6

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Grupa Azoty

A-Score: 3.3/10

Value: 8.0

Growth: 3.3

Quality: 1.0

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

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

17.13$

Current Price

17.13$

Potential

-0.00%

Expected Cash-Flows