WEBULL

Do Its Financials Have Any Role To Play In Driving Creepy Jar S.A.'s (WSE:CRJ) Stock Up Recently?

Simply Wall St · 3d ago

Creepy Jar's (WSE:CRJ) stock is up by a considerable 47% over the past month. 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 Creepy Jar'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.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

How Is ROE Calculated?

The formula for ROE is:

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

So, based on the above formula, the ROE for Creepy Jar is:

15% = zł17m ÷ zł112m (Based on the trailing twelve months to September 2025).

The 'return' refers to a company's earnings over the last year. That means that for every PLN1 worth of shareholders' equity, the company generated PLN0.15 in profit.

Check out our latest analysis for Creepy Jar

Why Is ROE Important For 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.

Creepy Jar's Earnings Growth And 15% ROE

At first glance, Creepy Jar seems to have a decent ROE. Further, the company's ROE is similar to the industry average of 19%. As you might expect, the 10% net income decline reported by Creepy Jar is a bit of a surprise. We reckon that there could be some other factors at play here that are preventing the company's growth. For example, it could be that the company has a high payout ratio or the business has allocated capital poorly, for instance.

Next, when we compared with the industry, which has shrunk its earnings at a rate of 4.2% in the same 5-year period, we still found Creepy Jar's performance to be quite bleak, because the company has been shrinking its earnings faster than the industry.

past-earnings-growth
WSE:CRJ Past Earnings Growth January 8th 2026

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Creepy Jar is trading on a high P/E or a low P/E, relative to its industry.

Is Creepy Jar Using Its Retained Earnings Effectively?

Creepy Jar has a high three-year median payout ratio of 69% (that is, it is retaining 31% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. You can see the 2 risks we have identified for Creepy Jar by visiting our risks dashboard for free on our platform here.

Moreover, Creepy Jar has been paying dividends for four years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 69%. Regardless, Creepy Jar's ROE is speculated to decline to 11% despite there being no anticipated change in its payout ratio.

Conclusion

In total, it does look like Creepy Jar has some positive aspects to its business. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE. Bear in mind, the company reinvests a small portion of its profits, which means that investors aren't reaping the benefits of the high rate of return. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.