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

Eurocash S.A. is a leading Polish wholesale distributor of food and fast-moving consumer goods (FMCG), operating through multiple business segments including Wholesale, Retail, and Projects. The companys extensive product portfolio encompasses basic food items, beverages, tobacco products, and non-food items such as cosmetics and household chemicals, catering to a diverse customer base including retail stores, restaurants, and hotel chains. Eurocash S.A. manages a vast network of stores under various brands such as Cash & Carry, abc, Delikatesy Centrum, and Inmedio, providing a comprehensive distribution network across Poland.

From a market perspective, Eurocash S.A. is listed on the Warsaw Stock Exchange with the ticker symbol EUR, categorized under the Food Retail sub-industry according to the GICS classification. The companys operational headquarters is based in Komorniki, Poland, and it was incorporated in 2004. For more detailed information, Eurocash S.A.s official website can be accessed at https://www.eurocash.pl.

Analyzing the provided technical data, Eurocash S.A.s stock is currently priced at 8.11 PLN, below its SMA20 and SMA50 averages of 8.92 and 9.76, respectively, but above its SMA200 average of 9.00. The ATR indicates a daily price volatility of 4.26%. Given the stocks current price relative to its moving averages and its volatility, a potential trading range could be anticipated between 7.77 PLN and 8.45 PLN, based on the last price and ATR. A breakout above the SMA20 could signal a bullish trend.

From a fundamental analysis perspective, Eurocash S.A. has a market capitalization of 1167.58M PLN. However, the absence of P/E and forward P/E ratios, coupled with a negative RoE of -26.67%, suggests that the company is currently facing profitability challenges. The negative RoE indicates that the company is not generating profits from shareholder equity, which could be a concern for investors. Considering the fundamental data and the current market price, a cautious approach is warranted. If Eurocash S.A. can address its profitability issues, the stock might see an upward trend. A potential forecast could involve monitoring the stocks price action around the SMA200 level, as a sustained position above this could indicate a recovery phase, potentially targeting the 52W high of 12.85 PLN in the long term, albeit with significant challenges given the current fundamental outlook.

Combining both technical and fundamental insights, a speculative investor might consider Eurocash S.A. as a potential buy if the stock demonstrates a strong recovery pattern, indicated by a sustained move above its SMA20 and SMA50 averages, and if the company shows signs of improving profitability. However, the negative RoE and lack of P/E ratios necessitate a cautious stance, emphasizing the need for close monitoring of both the companys financial health and market trends.