BST:UK1

Stock Analysis Report

Executive Summary

Public Joint-Stock Company Ukrtelecom provides fixed line telephony and Internet services primarily in Ukraine.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

UK1

2.3%

DE Telecom

2.8%

DE Market


1 Year Return

-60.7%

UK1

5.6%

DE Telecom

2.9%

DE Market

Return vs Industry: UK1 underperformed the German Telecom industry which returned 5.6% over the past year.

Return vs Market: UK1 underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

UK1IndustryMarket
7 Day0%2.3%2.8%
30 Day-31.3%2.2%-0.2%
90 Day-52.2%5.0%0.9%
1 Year-60.7%-60.7%10.8%5.6%6.2%2.9%
3 Year-77.2%-77.2%16.1%1.9%18.2%8.0%
5 Year-91.1%-91.1%57.8%29.4%43.1%23.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: UK1 (€0.06) is trading below our estimate of fair value (€0.4)

Significantly Undervalued: UK1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UK1 is good value based on its PE Ratio (2.8x) compared to the Telecom industry average (29x).

PE vs Market: UK1 is good value based on its PE Ratio (2.8x) compared to the German market (19.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate UK1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UK1 is good value based on its PB Ratio (0.1x) compared to the DE Telecom industry average (1.2x).


Next Steps

Future Growth

How is Ukrtelecom forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UK1's forecast earnings growth (6.3% per year) is above the savings rate (0.2%).

Earnings vs Market: UK1's earnings (6.3% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: UK1's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if UK1's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if UK1's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if UK1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ukrtelecom performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UK1 has become profitable over the past 5 years, growing earnings by 52.9% per year.

Accelerating Growth: UK1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UK1 had negative earnings growth (-45%) over the past year, making it difficult to compare to the Telecom industry average (-27.1%).


Return on Equity

High ROE: UK1's Return on Equity (5.4%) is considered low.


Return on Assets

ROA vs Industry: UK1 has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: UK1's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ukrtelecom's financial position?


Financial Position Analysis

Short Term Liabilities: UK1's short term assets (UAH2.1B) exceeds its short term liabilities (UAH2.0B)

Long Term Liabilities: UK1's short term assets (2.1B) exceeds its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: UK1's debt to equity ratio (20.8%) is considered satisfactory

Reducing Debt: UK1's debt to equity ratio has reduced from 65.5% to 20.8% over the past 5 years.

Debt Coverage: UK1's debt is well covered by operating cash flow (79.6%).

Interest Coverage: UK1's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: UK1 has a high level of physical assets or inventory.

Debt Coverage by Assets: UK1's debt is covered by short term assets (assets are 1.242810x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.9%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate UK1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UK1'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 UK1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UK1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: UK1 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UK1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Yuriy Kurmaz 0

5.7yrs

Tenure

0

Mr. Yuriy P. Kurmaz has been the Chief Executive Officer and Director of Public Joint-Stock Company Ukrtelecom since February 24, 2014. In 2004-2014, before joining Ukrtelecom JSC, Mr. Kurmaz was holding  ...


Management Age and Tenure

5.7yrs

Average Tenure

Experienced Management: UK1's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

Experienced Board: UK1's board of directors are considered experienced (6 years average tenure).


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

  • Igor Portnoy

    Vice President - Marketing & Sales

    • Tenure: 10.8yrs
  • Igor Sirotenko

    Head of Centralised Sale Office

    • Tenure: 0yrs
  • Lyudmyla Nakalyuzhna

    Chief Accountant

    • Tenure: 0yrs
  • Yuriy Kurmaz

    CEO & Director

    • Tenure: 5.7yrs
  • Theatian Petroke

    Director of Personnel Management & Organizational Development

    • Tenure: 0yrs
  • Mikola Davidenko

    Director of Corporate Development Directorate

    • Tenure: 5.7yrs
  • Dmitro Mikityuk

    Director of Technical Directorate

    • Tenure: 5.6yrs
  • Lubomir Kotsyumbas

    Chief Financial Officer

    • Tenure: 0yrs
  • Mikhailo Shuranov

    Director of Corporate Communications Department

    • Tenure: 4.8yrs
  • Alexander Bilonozhko

    Director of Legal Support & Business Support

    • Tenure: 0yrs

Board Members

  • Alexander Barinov

    Member of Supervisory Board

    • Tenure: 4.8yrs
  • Leonid Netudykhata

    Chairman of the Supervisory Board

    • Tenure: 6yrs
  • Liudmyla Pavlenko

    Member of Supervisory Board

    • Tenure: 6yrs
  • Sergiy Mukovnin

    Member of Supervisory Board

    • Tenure: 0yrs

Company Information

Public Joint-Stock Company Ukrtelecom's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint-Stock Company Ukrtelecom
  • Ticker: UK1
  • Exchange: BST
  • Founded: 1993
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €44.194m
  • Shares outstanding: 374.52m
  • Website: https://www.ukrtelecom.ua

Number of Employees


Location

  • Public Joint-Stock Company Ukrtelecom
  • 18, Taras Shevchenko Boulevard
  • Kyiv
  • 1601
  • Ukraine

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UK1DB (Deutsche Boerse AG)YesGDR-REP 50 ORD UAH0.25 REG SDEEURMar 2004
UK1BST (Boerse-Stuttgart)YesGDR-REP 50 ORD UAH0.25 REG SDEEURMar 2004
UTLMUKR (PFTS Ukraine Stock Exchange)Ordinary SharesUAUAHOct 2008

Biography

Public Joint-Stock Company Ukrtelecom provides fixed line telephony and Internet services primarily in Ukraine. The company offers fixed line services, including international, long-distance, and local tel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:22
End of Day Share Price2019/10/14 00:00
Earnings2018/12/31
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.