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IPOPEMA Securities S.A.'s (WSE:IPE) Shares Leap 27% Yet They're Still Not Telling The Full Story

Simply Wall St · 2d ago

IPOPEMA Securities S.A. (WSE:IPE) shares have continued their recent momentum with a 27% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 67%.

In spite of the firm bounce in price, it's still not a stretch to say that IPOPEMA Securities' price-to-earnings (or "P/E") ratio of 13x right now seems quite "middle-of-the-road" compared to the market in Poland, where the median P/E ratio is around 12x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

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For example, consider that IPOPEMA Securities' financial performance has been poor lately as its earnings have been in decline. It might be that many expect the company to put the disappointing earnings performance behind them over the coming period, which has kept the P/E from falling. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.

Check out our latest analysis for IPOPEMA Securities

pe-multiple-vs-industry
WSE:IPE Price to Earnings Ratio vs Industry December 23rd 2025
Although there are no analyst estimates available for IPOPEMA Securities, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

Is There Some Growth For IPOPEMA Securities?

IPOPEMA Securities' P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.

Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 40%. Even so, admirably EPS has lifted 122% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.

Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 18% shows it's noticeably more attractive on an annualised basis.

In light of this, it's curious that IPOPEMA Securities' P/E sits in line with the majority of other companies. Apparently some shareholders believe the recent performance is at its limits and have been accepting lower selling prices.

The Final Word

IPOPEMA Securities' stock has a lot of momentum behind it lately, which has brought its P/E level with the market. Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company.

We've established that IPOPEMA Securities currently trades on a lower than expected P/E since its recent three-year growth is higher than the wider market forecast. When we see strong earnings with faster-than-market growth, we assume potential risks are what might be placing pressure on the P/E ratio. At least the risk of a price drop looks to be subdued if recent medium-term earnings trends continue, but investors seem to think future earnings could see some volatility.

Having said that, be aware IPOPEMA Securities is showing 5 warning signs in our investment analysis, and 1 of those shouldn't be ignored.

You might be able to find a better investment than IPOPEMA Securities. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).