LSE:FIVE

Stock Analysis Report

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Executive Summary

X5 Retail Group N.V. retails, creates, develops, and manages grocery retail stores primarily in Russia.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has X5 Retail Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIVE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.2%

FIVE

1.9%

GB Consumer Retailing

2.5%

GB Market


1 Year Return

-0.2%

FIVE

-1.6%

GB Consumer Retailing

-12.4%

GB Market

Return vs Industry: FIVE exceeded the UK Consumer Retailing industry which returned -1.6% over the past year.

Return vs Market: FIVE exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

FIVEIndustryMarket
7 Day-4.2%1.9%2.5%
30 Day-0.5%-1.5%2.8%
90 Day-5.7%1.1%-7.2%
1 Year4.4%-0.2%2.6%-1.6%-8.2%-12.4%
3 Year-8.8%-20.4%3.9%-5.7%-5.9%-17.5%
5 Year86.9%63.1%14.6%2.9%12.5%-12.9%

Price Volatility Vs. Market

How volatile is X5 Retail Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is X5 Retail Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIVE ($29.36) is trading below our estimate of fair value ($88.65)

Significantly Below Fair Value: FIVE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FIVE is poor value based on its PE Ratio (37.1x) compared to the Consumer Retailing industry average (22.3x).

PE vs Market: FIVE is poor value based on its PE Ratio (37.1x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: FIVE is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: FIVE is overvalued based on its PB Ratio (4.7x) compared to the GB Consumer Retailing industry average (1.2x).


Next Steps

Future Growth

How is X5 Retail Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIVE's forecast earnings growth (11.6% per year) is above the savings rate (1.2%).

Earnings vs Market: FIVE's earnings (11.6% per year) are forecast to grow slower than the UK market (20.3% per year).

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

Revenue vs Market: FIVE's revenue (8.5% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: FIVE's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FIVE's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has X5 Retail Group performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIVE has high quality earnings.

Growing Profit Margin: FIVE's current net profit margins (0.8%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: FIVE's earnings have grown by 10.8% per year over the past 5 years.

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

Earnings vs Industry: FIVE had negative earnings growth (-51.7%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-25.1%).


Return on Equity

High ROE: FIVE's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is X5 Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: FIVE's short term assets (RUB158.3B) do not cover its short term liabilities (RUB363.0B).

Long Term Liabilities: FIVE's short term assets (RUB158.3B) do not cover its long term liabilities (RUB577.1B).


Debt to Equity History and Analysis

Debt Level: FIVE's debt to equity ratio (164.9%) is considered high.

Reducing Debt: FIVE's debt to equity ratio has increased from 114.4% to 164.9% over the past 5 years.

Debt Coverage: FIVE's debt is well covered by operating cash flow (78.2%).

Interest Coverage: FIVE's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

What is X5 Retail Group's current dividend yield, its reliability and sustainability?

5.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FIVE's dividend (5.32%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: FIVE's dividend (5.32%) is low compared to the top 25% of dividend payers in the UK market (5.67%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FIVE has been paying a dividend for less than 10 years.

Growing Dividend: FIVE's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (197.7%), FIVE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FIVE's dividends in 3 years are forecast to be covered by earnings (85.7% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Igor Shekhterman (49yo)

4.5yrs

Tenure

₽259,000,000

Compensation

Mr. Igor Shekhterman has been the Chief Executive Officer and Member of Management Board at X5 Retail Group N.V. of Alfa Group Consortium since November 12, 2015 and serves as its Chairman of Management Bo ...


CEO Compensation Analysis

Compensation vs Market: Igor's total compensation ($USD3.66M) is about average for companies of similar size in the UK market ($USD3.36M).

Compensation vs Earnings: Igor's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Igor Shekhterman
CEO & Chairman of Management Board4.5yrs₽259.00mno data
Frank Lhoëst
Corporate Secretary and Member of Management Boardno data₽35.00mno data
Quinten Peer
Member of Management Board1yr₽10.00mno data
Svetlana Demyashkevich
Chief Financial Officer2.92yrsno datano data
Natalia Zagvozdina
Head of Corporate Finance & IRno datano datano data
Anton Valkov
Chief Information Officer0.33yrno datano data
Ekaterina Lobacheva
General Counsel & Government Relations Directorno datano datano data
Elena Konnova
Corporate Communication Director5.33yrsno datano data
Tatiana Krasnoperova
Director of Human Resources & Organisational Development1.33yrsno datano data
Vladimir Rusanov
Head of Public Relationsno datano datano data

2.1yrs

Average Tenure

48.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Nadia Shouraboura
Independent Member of Supervisory Board1.75yrs₽12.00mno data
Mikhail Fridman
Member of Supervisory Board14yrsno datano data
Marat Atnashev
Member of Supervisory Boardno datano datano data
Stephan DuCharme
Chairman of Supervisory Board4.5yrs₽40.00m0.049% RUB3.9m
Michael Kuchment
Independent Member of Supervisory Board4.5yrs₽15.00m0.0022% RUB174.6k
Karl-Heinz Holland
Independent Member of Supervisory Board1.75yrs₽11.00mno data
Alexander Torbakhov
Independent Member of Supervisory Board0.58yr₽17.00mno data
Geoffrey King
Independent Member of Supervisory Board5yrs₽36.00m0.010% RUB809.1k
Peter Demchenkov
Independent Vice Chairman of Supervisory Board1.17yrs₽31.00m0.0042% RUB333.2k

3.1yrs

Average Tenure

49yo

Average Age

Experienced Board: FIVE's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FIVE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

X5 Retail Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: X5 Retail Group N.V.
  • Ticker: FIVE
  • Exchange: LSE
  • Founded: 1975
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: US$7.971b
  • Shares outstanding: 271.51m
  • Website: https://www.x5.ru

Number of Employees


Location

  • X5 Retail Group N.V.
  • WTC Tower H
  • 24th floor
  • Amsterdam
  • Noord-Holland
  • 1077 XV
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIVELSE (London Stock Exchange)YesSPONS GDR REGSGBUSDMay 2005
PJPDB (Deutsche Boerse AG)YesSPONS GDR REGSDEEURMay 2005
FIVEMISX (Micex - Rts)YesSPONS GDR REGSRURUBMay 2005
FIVELBATS-CHIXE (BATS 'Chi-X Europe')YesSPONS GDR REGSGBUSDMay 2005
FIVEWBAG (Wiener Boerse AG)YesSPONS GDR REGSATEURMay 2005

Biography

X5 Retail Group N.V. retails, creates, develops, and manages grocery retail stores primarily in Russia. As of March 31, 2020, the company operated 15,739 stores under the Pyaterochka brand, 846 supermarkets under the Perekrestok brand, and 73 Karusel hypermarkets. It also engages in wholesale operations and online retail business, as well as providing franchise and other services. The company was founded in 1975 and is headquartered in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:29
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.