Equity Brief · Industrials2026-10-27
ELQ.WA·Industrials

ELQ S.A.

I · AI Analysis

The brief

ELQ designs, manufactures and sells transformer stations and electrical equipment for renewable energy projects, particularly solar and wind power installations in Poland [Yahoo Finance]. The company also constructs photovoltaic and wind power plants directly and offers technical consulting services to help customers select energy equipment [Yahoo Finance]. Founded in 1976, ELQ operates in the electrical equipment sector serving Poland's renewable energy infrastructure market [Yahoo Finance].

ELQ S.A. is a Polish industrial company that designs and produces transformer stations for renewable energy sources, constructs photovoltaic and wind power plants, and provides technical consulting services [Yahoo Finance]. The company employs 93 people and is based in Częstochowa, Poland, operating as a subsidiary of Veltoro Sp. z o.o. [Yahoo Finance]. Financial health is critically weak, with trailing-twelve-month revenue of PLN 70.4M, a negative operating margin of -2.3%, negative free cash flow, and a Health Score of just 1.6/10 [Yahoo Finance] [Sentinellis calculation].

The company is loss-making across all profitability measures with very weak financial health indicators.

The brief AI analysisConfidence 4/10

Sentinellis health

Significant risks

1.6/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

16% of score3.3/10
Net margin-14.8%· need ≥ 0%, the lower third of Electrical Equipment & Parts in our libraryGross margin+29.2%

Returns on capital

16% of score0.0/10
ROIC-8.7%· need > 10%Return on equity-174.0%· need > 12%

Growth & momentum

11% of score0.0/10
Revenue growth-18.6%· need ≥ 12.2%, the lower third of Electrical Equipment & Parts in our libraryOperating margin trend—· no data

Balance sheet

32% of score1.7/10
Current ratio0.4x· need > 1.2xNet debt / EBITDA—· need < 3.0xInterest coverage-2.0x· need > 6.0xDebt / equity1.34

Cash generation

16% of score3.3/10
Free cash flowPLN -2.5M· need positiveCash vs reported profitPLN -1.8M vs PLN -3.9M

Value creation

11% of score0.0/10
ROIC vs cost of capital-17.9pp· need ROIC above WACC

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

PLN 164.0M

Revenue (TTM)

PLN 70.4M

Explainers

How we read these numbers

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Revenue contracted sharply by 18.6% year-over-year in the latest quarter, indicating weakening demand or competitive pressure [Yahoo Finance].

1 of 6 risks in this report

Risks

6

Opportunities

3

Red flags

5

Leadership

1

13 more findings in the full report — free with any account.

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III · Related

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Produced 27 Oct 2026, 10:32 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated