Verdict: Whenever the CEO uses the revenue and profit of different segments or subsidiaries, I must check the operating profit / net margin for myself. ROIC decreased because of overspending.Hortico SA is a consumer brand:Same-Store Sales Growth (SSS) / Inventory Turnover is a fact for their company archetype, and later on, I will use inventory turnover to measure their efficiency.Hortico SA:ROIC & WACC (2024 - left, 2025 - right):Moat shark: why?ROIC explanation:The company has been investing too much into its growth — its growth engine (NOPAT) can’t keep up and the ROIC decreased.Inventory grew faster than NOPAT, so it’s understandable why they wanted to invest more — so as not to be seen as doing nothing?But doing nothing is sometimes the best choice.translation:Materials, Half products, Ready products, Inventory and advances on deliveries:2025 on the left, 2024 on the right2024 on the left, 2023 on the right2024 vs 2023:Materials started to exist — up 100%?Half-products went up by 249%.Ready products — 0.Towary (inventory) went up by 14.21%.Zaliczki na dostawy (advances on deliveries) — up 20.86%.2025 vs 2024:Materials grew by 3.8%.Half products decreased by 100% — to 0.Ready products — 0.Inventory grew by 19.41%.Advances on deliveries decreased by 8.8%.2025 vs 2024: Hobby share of revenue increased.No change in competition description y/y.According to management: Achieved indicators are high - sales 10.2%, net 7.5% - I used that for lie detection - and I feel like they are true, and couldn’t really find anything that seemed too over-boasted.Incentives:Ownership:1 Paweł Kolasa 5 231 978 40,50%2 Andrzej Guszał 2 350 000 18,19%3 Robert Bender 2 117 544 16,39%4 Urszula Bender 86 928 0,67%5 Pozostali akcjonariusze 3 130 949 24,24%Y/y all board members (even the CEO - Paweł Kolasa) had lower salaries - that means, they don’t get a stable paycheck, only money somehow get that through profit sharing? They don’t have bonus paymentsThere is a yellow flag I must mention, though: they did have a 647 168.51 buy line item in “related party transactions” with a company called the PW serwis Paweł Kolasa. This is probably a JDG (a solo proprietor of the CEO - so he’s earning some money on the side).I calculated the % of net worth the CEO gets each year:Paweł Kolasa – Prezes Zarządu: 217.659,00 zł brutto, w tym: 161.667,00 zł z tytułu pełnieniafunkcji w Zarządzie (board member compensation) i 55.992,00 zł z tytułu umowy o pracę (employment salary)his shares * current price of hortico SA =5 231 978 * 7.85 =net worth: 41071027,3 PLN= 41M PLNslary per year = 0,005299575 of net worth = 0.5% - alignedHowever, that is except for the JDG revenue he gets, but that adds about 650k, so even with that, it’s about 800k per year, which is 2% of his net worth each year - still aligned. 50 years until total unalignment.Vice-ceo: Andrzej Guszał – Wiceprezes Zarządu 263.600,23 zł brutto, w tym: 207.387,91 zł z tytułupełnienia funkcji w Zarządzie (board member compensation) i 56.212,32 zł z tytułu umowy o pracę (employment salary); 2 350 000 * 7.85 =net worth = 18447500 PLN = 18.5 MLNsalary per year = 0,014 of net worth = 1.4% - alignedPhase 2 next week. Stay tuned!If you become a Founding Member of the NabzdykRatings Software today (€9/mo), I will manually grant you Premium Access to this Substack for free (until you cancel the free trial).Become a founding member