(EUR) Eurocash S.A. - Ratings and Ratios

Eurocash S.A. (WAR:EUR) is a leading wholesale distributor of food and fast-moving consumer goods (FMCG) in Poland, operating through three key segments: Wholesale, Retail, and Projects. The company specializes in supplying a diverse range of products, including basic food items, soft and alcoholic beverages, tobacco products, phone cards, and pre-paid top-ups, as well as non-food items such as cosmetics, household chemicals, and over-the-counter (OTC) medicines. Eurocash serves various channels, including traditional grocery markets, convenience stores, gas stations, restaurants, and hotel and café chains, ensuring broad market coverage. The companys extensive distribution network includes Cash & Carry stores, abc outlets, small supermarkets under the Delikatesy Centrum brand, stores under the Duzy Ben brand, and franchise and partner stores of Eurocash distribution, as well as stores under the Inmedio and Inmedio Trendy brands. Eurocash S.A. was established in 2004 and is headquartered in Komorniki, Poland. The companys strategic focus on logistics and distribution efficiency has positioned it as a key player in Polands FMCG sector, with a strong emphasis on supporting independent retailers and small businesses.

Eurocash S.A. has a market capitalization of 1,455.65 million PLN, reflecting its significant presence in Polands retail and wholesale markets. The companys price-to-book (P/B) ratio of 2.08 indicates a premium valuation relative to its book value, while the price-to-sales (P/S) ratio of 0.05 suggests a low valuation compared to its revenue. However, the return on equity (RoE) of -1.34% highlights challenges in generating profits from shareholders equity. From a technical perspective, the stock is currently trading at 11.06 PLN, above its 20-day (9.94) and 50-day (9.53) moving averages, signaling short-term bullish momentum. The average true range (ATR) of 0.38 PLN indicates relatively low volatility. Over the next three months, the stock is expected to remain range-bound, with potential resistance at the 200-day moving average of 9.26 PLN and support at the current price level. Fundamental challenges, such as the negative RoE, may offset near-term technical strength, leading to a cautious outlook.