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Has IBC POLSKA F & P spólka akcyjna's (WSE:IBC) Impressive Stock Performance Got Anything to Do With Its Fundamentals?

Simply Wall St · 5d ago

IBC POLSKA F & P spólka akcyjna's (WSE:IBC) stock is up by a considerable 12% over the past week. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to IBC POLSKA F & P spólka akcyjna's ROE today.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

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How To Calculate Return On Equity?

Return on equity can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for IBC POLSKA F & P spólka akcyjna is:

5.4% = zł251k ÷ zł4.6m (Based on the trailing twelve months to September 2025).

The 'return' is the income the business earned over the last year. That means that for every PLN1 worth of shareholders' equity, the company generated PLN0.05 in profit.

Check out our latest analysis for IBC POLSKA F & P spólka akcyjna

What Has ROE Got To Do With Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

IBC POLSKA F & P spólka akcyjna's Earnings Growth And 5.4% ROE

As you can see, IBC POLSKA F & P spólka akcyjna's ROE looks pretty weak. Even when compared to the industry average of 7.1%, the ROE figure is pretty disappointing. However, the moderate 14% net income growth seen by IBC POLSKA F & P spólka akcyjna over the past five years is definitely a positive. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.

Next, on comparing IBC POLSKA F & P spólka akcyjna's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 14% over the last few years.

past-earnings-growth
WSE:IBC Past Earnings Growth January 6th 2026

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about IBC POLSKA F & P spólka akcyjna's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is IBC POLSKA F & P spólka akcyjna Efficiently Re-investing Its Profits?

IBC POLSKA F & P spólka akcyjna doesn't pay any regular dividends, meaning that all of its profits are being reinvested in the business, which explains the fair bit of earnings growth the company has seen.

Conclusion

On the whole, we do feel that IBC POLSKA F & P spólka akcyjna has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 4 risks we have identified for IBC POLSKA F & P spólka akcyjna visit our risks dashboard for free.