DB:17LA

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 14.6% below its fair value

Earnings are forecast to grow 54.65% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.4%) are lower than last year (3.5%)



Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 17LA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

17LA

2.1%

DE Consumer Retailing

0.1%

DE Market


1 Year Return

-0.7%

17LA

1.8%

DE Consumer Retailing

14.1%

DE Market

Return vs Industry: 17LA underperformed the German Consumer Retailing industry which returned 1.8% over the past year.

Return vs Market: 17LA underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

17LAIndustryMarket
7 Day4.4%2.1%0.1%
30 Day0%2.0%0.2%
90 Day-3.0%2.1%3.3%
1 Year-0.7%-0.7%5.9%1.8%17.6%14.1%
3 Year-60.4%-60.4%6.8%-3.9%14.8%4.8%
5 Year-58.0%-58.0%10.5%-6.4%22.2%5.4%

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?

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 17LA (€2.75) is trading below our estimate of fair value (€3.22)

Significantly Below Fair Value: 17LA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 17LA is poor value based on its PE Ratio (51.6x) compared to the Consumer Retailing industry average (21x).

PE vs Market: 17LA is poor value based on its PE Ratio (51.6x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 17LA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 17LA is good value based on its PB Ratio (1.2x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Lenta forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

54.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 17LA's forecast earnings growth (54.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 17LA's earnings (54.7% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: 17LA's revenue (3.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 17LA's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 17LA's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Lenta performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 17LA has a large one-off loss of RUB8.6B impacting its June 30 2019 financial results.

Growing Profit Margin: 17LA's current net profit margins (0.4%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 17LA's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: 17LA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 17LA had negative earnings growth (-87%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.7%).


Return on Equity

High ROE: 17LA's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lenta's financial position?


Financial Position Analysis

Short Term Liabilities: 17LA's short term assets (RUB121.2B) do not cover its short term liabilities (RUB126.1B).

Long Term Liabilities: 17LA's short term assets (RUB121.2B) do not cover its long term liabilities (RUB126.2B).


Debt to Equity History and Analysis

Debt Level: 17LA's debt to equity ratio (224.1%) is considered high.

Reducing Debt: 17LA's debt to equity ratio has reduced from 640.4% to 224.1% over the past 5 years.

Debt Coverage: 17LA's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: 17LA's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: 17LA has a high level of physical assets or inventory.

Debt Coverage by Assets: 17LA'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?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 17LA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 17LA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 17LA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 17LA'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 17LA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Herman Tinga (61yo)

1.2yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Herman Tinga
CEO & Director1.2yrsno data0.033% RUB444.3k
Rud Pedersen
CFO & Director0.8yrsno datano data
Edward Doeffinger
Chief Operations Officer8.3yrsno data0.12% RUB1.6m
Sergey Korotkov
Chief Information Officer2.1yrsno datano data
Maria Rybina
Head of Investor Relations0yrsno datano data
Sergey Prokofiev
Legal & Government Relations Director8.1yrsno data0.0070% RUB94.5k
Mariya Filippova
Head of PR & GR0yrsno datano data
Dmitry Bogod
Chief Strategy & Marketing Officer1.1yrsno datano data
Tatiana Yurkevich
Human Resources Director8.1yrsno data0.0070% RUB94.5k

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: 17LA's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Herman Tinga
CEO & Director1.2yrsno data0.033% RUB444.3k
Rud Pedersen
CFO & Director0.8yrsno datano data
Alexey Mordashov
Chairman1.1yrsno datano data
Stephen Johnson
Senior Independent Director7.1yrsno data0.083% RUB1.1m
Alexey Kulichenko
Director0.8yrsno datano data
Julia Solovieva
Independent Non-Executive Director1.7yrsno datano data
Michael Lynch-Bell
Independent Non-Executive Director6.3yrsno data0.0033% RUB44.8k
Tomas Korganas
Non-Executive Director0.5yrsno datano data
Roman Vasilkov
Director0.8yrsno datano data

1.1yrs

Average Tenure

52yo

Average Age

Experienced Board: 17LA's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Lenta Limited
  • Ticker: 17LA
  • Exchange: DB
  • Founded: 1993
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: US$1.460b
  • Listing Market Cap: US$1.352b
  • Shares outstanding: 483.38m
  • Website: https://www.lentainvestor.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNTALSE (London Stock Exchange)YesSPON GDR REG SGBUSDFeb 2014
17LADB (Deutsche Boerse AG)YesSPON GDR REG SDEEURFeb 2014
LNTAMISX (Micex - Rts)YesSPON GDR REG SRURUBFeb 2014
LNTALBATS-CHIXE (BATS 'Chi-X Europe')YesSPON GDR REG SGBUSDFeb 2014
LNTAWBAG (Wiener Boerse AG)YesSPON GDR REG SATEURFeb 2014
LENT.YOTCPK (Pink Sheets LLC)YesSPON GDR REG SUSUSDFeb 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 November 22, 2019, it operated 249 hypermarkets in 88 cities across Russia and 131 supermarkets in Moscow, St. Petersburg, as well as the Siberia, Urals, and Central regions. The company was founded in 1993 and is headquartered in Saint Petersburg, Russia. Lenta Limited is a subsidiary of Severgroup LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:42
End of Day Share Price2020/02/19 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.