WBAG:LNTA

Stock Analysis Report

Executive Summary

Lenta Limited, together with its subsidiaries, develops and operates hypermarket and supermarket stores.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Lenta's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

LNTA

0.1%

AT Consumer Retailing

1.6%

AT Market


1 Year Return

-15.1%

LNTA

8.5%

AT Consumer Retailing

-4.5%

AT Market

Return vs Industry: LNTA underperformed the Austrian Consumer Retailing industry which returned 8.5% over the past year.

Return vs Market: LNTA underperformed the Austrian Market which returned -4.5% over the past year.


Shareholder returns

LNTAIndustryMarket
7 Day-0.8%0.1%1.6%
30 Day-1.5%-3.6%-1.6%
90 Day-0.5%-0.1%-0.1%
1 Year-15.1%-15.1%12.9%8.5%-1.0%-4.5%
3 Yearn/a4.0%-6.0%44.1%31.0%
5 Yearn/a27.7%8.2%69.3%44.9%

Price Volatility Vs. Market

How volatile is Lenta's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lenta undervalued compared to its fair value and its price relative to the market?

44.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LNTA (€3.02) is trading below our estimate of fair value (€5.44)

Significantly Undervalued: LNTA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LNTA is poor value based on its PE Ratio (57.8x) compared to the Consumer Retailing industry average (19.5x).

PE vs Market: LNTA is poor value based on its PE Ratio (57.8x) compared to the Austrian market (14x).


Price to Earnings Growth Ratio

Low PEG Ratio: LNTA is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: LNTA is good value based on its PB Ratio (1.4x) compared to the XE Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Lenta forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNTA's forecast earnings growth (26.4% per year) is above the savings rate (0.5%).

Earnings vs Market: LNTA's earnings (26.4% per year) are forecast to grow faster than the Austrian market (8.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNTA's revenue (6% per year) is forecast to grow faster than the Austrian market (3% per year).

High Growth Revenue: LNTA's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LNTA's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Lenta performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LNTA's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: LNTA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LNTA had negative earnings growth (-87%) over the past year, making it difficult to compare to the Consumer Retailing industry average (0.4%).


Return on Equity

High ROE: LNTA's Return on Equity (2.4%) is considered low.


Return on Assets

ROA vs Industry: LNTA's Return on Assets is below or equal to the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: LNTA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lenta's financial position?


Financial Position Analysis

Short Term Liabilities: LNTA's short term assets (RUB121.2B) do not cover its short term liabilities (RUB126.1B)

Long Term Liabilities: LNTA's short term assets (121.2B) do not cover its long term liabilities (126.2B)


Debt to Equity History and Analysis

Debt Level: LNTA's debt to equity ratio (224.1%) is considered high

Reducing Debt: LNTA's debt to equity ratio has reduced from 640.4% to 224.1% over the past 5 years.

Debt Coverage: LNTA's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: LNTA's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: LNTA has a high level of physical assets or inventory.

Debt Coverage by Assets: LNTA's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Lenta's current dividend yield, its reliability and sustainability?

2.38%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.5%industryaverage3.6%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate LNTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LNTA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if LNTA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LNTA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LNTA's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

What is the CEO of Lenta's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Herman Tinga (61yo)

0.8yrs

Tenure

0

Mr. Herman Tinga has been Chief Executive Officer of Lenta Limited since December 7, 2018 and its Director since 2018. He served as Chief Commercial Officer of Lenta Ltd since joining in 2013 to December 7 ...


Management Age and Tenure

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: LNTA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

52yo

Average Age

Experienced Board: LNTA's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rud Pedersen (50yo)

    CFO & Director

    • Tenure: 0.5yrs
  • Jago Lemmens (50yo)

    Executive Officer

    • Tenure: 0.5yrs
  • Sergey Prokofiev (50yo)

    Legal & Government Relations Director

    • Tenure: 7.8yrs
  • Edward Doeffinger (62yo)

    Chief Operations Officer

    • Tenure: 7.9yrs
  • Herman Tinga (61yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Tatiana Yurkevich (46yo)

    Human Resources Director

    • Tenure: 7.8yrs
  • Dmitry Bogod (35yo)

    Chief Strategy & Marketing Officer

    • Tenure: 0.8yrs
  • Sergey Korotkov (48yo)

    Chief Information Officer

    • Tenure: 1.8yrs
  • Mariya Filippova

    Head of PR & GR

    • Tenure: 0yrs

Board Members

  • Alexey Mordashov (54yo)

    Chairman

    • Tenure: 0.8yrs
  • Steve Johnson (55yo)

    Senior Independent Director

    • Tenure: 6.8yrs
  • Alexey Kulichenko (45yo)

    Director

    • Tenure: 0.4yrs
  • Julia Solovieva (46yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Michael Lynch-Bell (65yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
  • Rud Pedersen (50yo)

    CFO & Director

    • Tenure: 0.5yrs
  • Herman Tinga (61yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Tomas Korganas

    Non-Executive Director

    • Tenure: 0.2yrs
  • Roman Vasilkov (40yo)

    Director

    • Tenure: 0.4yrs

Company Information

Lenta Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lenta Limited
  • Ticker: LNTA
  • Exchange: WBAG
  • Founded: 1993
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: US$1.614b
  • Listing Market Cap: US$1.465b
  • Shares outstanding: 483.38m
  • Website: https://www.lentainvestor.com

Number of Employees


Location

  • Lenta Limited
  • 112 Savushkina Street
  • Saint Petersburg
  • 197374
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNTALSE (London Stock Exchange)YesGDR EACH 5 REPR 1 ORD REGSGBUSDFeb 2014
17LADB (Deutsche Boerse AG)YesGDR EACH 5 REPR 1 ORD REGSDEEURFeb 2014
LNTAMISX (Micex - Rts)YesGDR EACH 5 REPR 1 ORD REGSRURUBFeb 2014
LNTALBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH 5 REPR 1 ORD REGSGBUSDFeb 2014
LNTAWBAG (Wiener Boerse AG)YesGDR EACH 5 REPR 1 ORD REGSATEURFeb 2014
LNTRLSE (London Stock Exchange)GDR EACH 5 REPR 1 ORD 144AGBUSDMar 2014

Biography

Lenta Limited, together with its subsidiaries, develops and operates hypermarket and supermarket stores. As of June 19, 2019, it operated 246 hypermarkets in 88 cities across Russia; and 132 supermarkets i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:42
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.