Public Joint-Stock Company Moscow Exchange MICEX-RTS (MCX:MOEX): What Does The Future Look Like?

In March 2018, Public Joint-Stock Company Moscow Exchange MICEX-RTS (MCX:MOEX) announced its earnings update. Overall, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 11.1% next year against the higher past 5-year average growth rate of 18.6%. Currently with trailing-twelve-month earnings of RUруб19.55b, we can expect this to reach RUруб21.73b by 2019. Below is a brief commentary around Moscow Exchange MICEX-RTS’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Moscow Exchange MICEX-RTS

How is Moscow Exchange MICEX-RTS going to perform in the near future?

The longer term view from the 9 analysts covering MOEX is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for MOEX, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
MISX:MOEX Future Profit August 24th 18
MISX:MOEX Future Profit August 24th 18
From the current net income level of RUруб20.27b and the final forecast of RUруб26.22b by 2021, the annual rate of growth for MOEX’s earnings is 6.8%. This leads to an EPS of RUB11.36 in the final year of projections relative to the current EPS of RUB9.02. The main reason for growth is a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. In 2021, MOEX’s profit margin will have expanded from 53.0% to 58.1%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Moscow Exchange MICEX-RTS, I’ve put together three relevant aspects you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Moscow Exchange MICEX-RTS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Moscow Exchange MICEX-RTS is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Moscow Exchange MICEX-RTS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.