LSE:NVTK

Stock Analysis Report

Executive Summary

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

NVTK

-1.8%

GB Oil and Gas

-0.07%

GB Market


1 Year Return

16.8%

NVTK

4.6%

GB Oil and Gas

6.0%

GB Market

Return vs Industry: NVTK exceeded the UK Oil and Gas industry which returned 4.6% over the past year.

Return vs Market: NVTK exceeded the UK Market which returned 6% over the past year.


Shareholder returns

NVTKIndustryMarket
7 Day-1.4%-1.8%-0.07%
30 Day-1.4%3.2%2.2%
90 Day7.3%4.7%3.8%
1 Year19.2%16.8%9.9%4.6%11.5%6.0%
3 Year87.3%77.7%40.9%22.8%22.0%6.6%
5 Year127.6%107.8%34.9%9.7%33.5%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NVTK ($207) is trading below our estimate of fair value ($213.11)

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


Price To Earnings Ratio

PE vs Industry: NVTK is good value based on its PE Ratio (4.6x) compared to the Oil and Gas industry average (7.1x).

PE vs Market: NVTK is good value based on its PE Ratio (4.6x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: NVTK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NVTK is overvalued based on its PB Ratio (2.5x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is PAO NOVATEK forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVTK's earnings are forecast to decline over the next 3 years (-25.8% per year).

Earnings vs Market: NVTK's earnings are forecast to decline over the next 3 years (-25.8% per year).

High Growth Earnings: NVTK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NVTK's revenue (3.5% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: NVTK's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVTK's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has PAO NOVATEK performed over the past 5 years?

43.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVTK has a high level of non-cash earnings.

Growing Profit Margin: NVTK's current net profit margins (104.8%) are higher than last year (23%).


Past Earnings Growth Analysis

Earnings Trend: NVTK's earnings have grown significantly by 43.1% per year over the past 5 years.

Accelerating Growth: NVTK's earnings growth over the past year (422%) exceeds its 5-year average (43.1% per year).

Earnings vs Industry: NVTK earnings growth over the past year (422%) exceeded the Oil and Gas industry 24.7%.


Return on Equity

High ROE: NVTK's Return on Equity (54.5%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PAO NOVATEK's financial position?


Financial Position Analysis

Short Term Liabilities: NVTK's short term assets (RUB502.4B) exceeds its short term liabilities (RUB147.5B)

Long Term Liabilities: NVTK's short term assets (RUB502.4B) exceeds its long term liabilities (232.1B)


Debt to Equity History and Analysis

Debt Level: NVTK's debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: NVTK's debt to equity ratio has reduced from 42.9% to 9.9% over the past 5 years.

Debt Coverage: NVTK's debt is well covered by operating cash flow (176.9%).

Interest Coverage: NVTK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: NVTK's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.0%markettop25%5.4%industryaverage5.3%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: NVTK's dividend (2.35%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: NVTK's dividend (2.35%) is low compared to the top 25% of dividend payers in the UK market (5.38%).


Stability and Growth of Payments

Stable Dividend: NVTK's dividends per share have been stable in the past 10 years.

Growing Dividend: NVTK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.8%), NVTK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NVTK's dividends in 3 years are forecast to be covered by earnings (83.6% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Leonid Mikhelson (64yo)

0yrs

Tenure

0

Mr. Leonid Viktorovich Mikhelson has been the Chairman of Executive Management Board at Joint Stock Company NOVATEK (formerly known as OAO Novatek) since 2003 and serves as its General Director and Chief E ...


Management Age and Tenure

4.2yrs

Average Tenure

60.5yo

Average Age

Experienced Management: NVTK's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

70yo

Average Age

Experienced Board: NVTK's board of directors are considered experienced (4.6 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

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


Management Team

  • Leonid Mikhelson (64yo)

    CEO, Chairman of the Management Board

    • Tenure: 0yrs
  • Mark Gyetvay (62yo)

    Deputy Chairman of the Management Board & CFO

    • Tenure: 9.3yrs
  • Alexander Fridman (68yo)

    First Deputy Chairman of Management Board

    • Tenure: 15.8yrs
  • Tatyana Kuznetsova (59yo)

    Deputy Chairman of Management Board & Director of Legal Department

    • Tenure: 0yrs
  • Vladimir Basko (59yo)

    Deputy Chairman of Management Board

    • Tenure: 14.8yrs
  • Lev Feodosyev

    First Deputy Chairman of the Management Board

    • Tenure: 4.8yrs
  • Ilya Tafintsev (34yo)

    Deputy Chairman of the Management Board

    • Tenure: 1.8yrs
  • Viktor Belyakov

    Deputy Chairman of Management Board

    • Tenure: 3.7yrs
  • Sergey Vasyunin

    Deputy Chairman of Management Board & Operations Director

    • Tenure: 2.5yrs
  • Eduard Gudkov

    Deputy Chairman of the Management Board

    • Tenure: 1.2yrs

Board Members

  • Robert Castaigne (73yo)

    Independent Director

    • Tenure: 4.6yrs
  • Burckhard Bergmann (76yo)

    Independent Director

    • Tenure: 11.1yrs
  • Andrey Akimov (66yo)

    Director

    • Tenure: 4.1yrs
  • Leonid Mikhelson (64yo)

    CEO, Chairman of the Management Board

    • Tenure: 0yrs
  • Alexander Natalenko (73yo)

    Chairman

    • Tenure: 15.8yrs
  • Michael Borrell (57yo)

    Director

    • Tenure: 4.6yrs
  • Gennady Timchenko (67yo)

    Director

    • Tenure: 4.1yrs
  • Viktor Orlov (79yo)

    Independent Director

    • Tenure: 5.6yrs
  • Arnaud Le Foll

    Director

    • Tenure: 0.8yrs
  • Sergey Soloviev

    Member of the Board

    • Tenure: 0yrs

Company Information

PAO NOVATEK's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PAO NOVATEK
  • Ticker: NVTK
  • Exchange: LSE
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$62.332b
  • Shares outstanding: 301.12m
  • Website: https://www.novatek.ru

Location

  • PAO NOVATEK
  • Ulitsa Pobedy 22a
  • Tarko-Sale
  • Yamalo-Nenetsky AO
  • 629850
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTKMISX (Micex - Rts)Ordinary SharesRURUBDec 2004
NVTKLSE (London Stock Exchange)YesGDR EACH REPR 10 ORD 'REG S'GBUSDJul 2005
N1ODB (Deutsche Boerse AG)YesGDR EACH REPR 10 ORD 'REG S'DEEURJul 2005
NOVK.YOTCPK (Pink Sheets LLC)YesGDR EACH REPR 10 ORD 'REG S'USUSDJul 2005
NVTKLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH REPR 10 ORD 'REG S'GBUSDJul 2005
NVTKWBAG (Wiener Boerse AG)YesGDR EACH REPR 10 ORD 'REG S'ATEURJul 2005

Biography

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons. It principally h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 20:54
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.