• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Here's Why Miraculum (WSE:MIR) Can Afford Some Debt

    Simply Wall St·01/08/2026 04:29:49
    Listen to the news

    Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. As with many other companies Miraculum S.A. (WSE:MIR) makes use of debt. But is this debt a concern to shareholders?

    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

    Why Does Debt Bring Risk?

    Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.

    What Is Miraculum's Debt?

    As you can see below, at the end of September 2025, Miraculum had zł11.5m of debt, up from zł10.7m a year ago. Click the image for more detail. And it doesn't have much cash, so its net debt is about the same.

    debt-equity-history-analysis
    WSE:MIR Debt to Equity History January 8th 2026

    How Healthy Is Miraculum's Balance Sheet?

    The latest balance sheet data shows that Miraculum had liabilities of zł14.7m due within a year, and liabilities of zł14.4m falling due after that. On the other hand, it had cash of zł20.4k and zł4.38m worth of receivables due within a year. So its liabilities total zł24.6m more than the combination of its cash and short-term receivables.

    This deficit is considerable relative to its market capitalization of zł34.7m, so it does suggest shareholders should keep an eye on Miraculum's use of debt. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry. There's no doubt that we learn most about debt from the balance sheet. But you can't view debt in total isolation; since Miraculum will need earnings to service that debt. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

    See our latest analysis for Miraculum

    In the last year Miraculum wasn't profitable at an EBIT level, but managed to grow its revenue by 4.9%, to zł50m. That rate of growth is a bit slow for our taste, but it takes all types to make a world.

    Caveat Emptor

    Over the last twelve months Miraculum produced an earnings before interest and tax (EBIT) loss. Indeed, it lost zł520k at the EBIT level. Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt. So we think its balance sheet is a little strained, though not beyond repair. We would feel better if it turned its trailing twelve month loss of zł2.0m into a profit. So to be blunt we do think it is risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For example - Miraculum has 1 warning sign we think you should be aware of.

    If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.