LSE:EVR

Stock Analysis Report

Executive Summary

EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products.

Snowflake

Fundamentals

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

EVR

3.5%

GB Metals and Mining

2.0%

GB Market


1 Year Return

-18.1%

EVR

4.6%

GB Metals and Mining

3.3%

GB Market

Return vs Industry: EVR underperformed the UK Metals and Mining industry which returned 4.6% over the past year.

Return vs Market: EVR underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

EVRIndustryMarket
7 Day2.9%3.5%2.0%
30 Day-18.8%-4.3%-1.0%
90 Day-31.4%-8.7%-1.7%
1 Year-5.3%-18.1%13.4%4.6%8.3%3.3%
3 Year211.5%115.0%61.6%35.6%19.0%4.5%
5 Year389.1%237.6%50.6%23.1%38.4%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EVRAZ undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: EVR (£4.35) is trading below our estimate of fair value (£7.94)

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


Price Based on Earnings

PE vs Industry: EVR is good value based on its PE Ratio (5x) compared to the Metals and Mining industry average (8.9x).

PE vs Market: EVR is good value based on its PE Ratio (5x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: EVR is good value based on its PEG Ratio (0.7x)


Price Based on Value of Assets

PB vs Industry: EVR is overvalued based on its PB Ratio (3.9x) compared to the GB Metals and Mining industry average (1x).


Next Steps

Future Growth

How is EVRAZ expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: EVR's forecast earnings growth (7.5% per year) is above the savings rate (1.2%).

Earnings vs Market: EVR's earnings (7.5% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: EVR's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: EVR's revenue is forecast to decline over the next 3 years (-0.1%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: EVR's Return on Equity is forecast to be very high in 3 years time (52.2%).


Next Steps

Past Performance

How has EVRAZ performed over the past 5 years?

70.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EVR has become profitable over the past 5 years, growing earnings by 70.8% per year.

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

Earnings vs Industry: EVR had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (3.8%).


Return on Equity

High ROE: Whilst EVR's Return on Equity (72.82%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: EVR has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: EVR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is EVRAZ's financial position?


Financial Position Analysis

Short Term Liabilities: EVR's short term assets ($3.8B) exceeds its short term liabilities ($2.3B)

Long Term Liabilities: EVR's short term assets (3.8B) do not cover its long term liabilities (5.3B)


Debt to Equity History and Analysis

Debt Level: EVR's debt to equity ratio (191.1%) is considered high

Reducing Debt: EVR's debt to equity ratio has increased from 142.4% to 191.1% over the past 5 years.

Debt Coverage: EVR's debt is well covered by operating cash flow (65.6%).

Interest Coverage: EVR's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: EVR's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

13.59%

Expected Dividend Yield


Dividend Yield vs Market

company21.4%marketbottom25%2.0%markettop25%5.4%industryaverage3.9%forecastin3Years13.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: EVR's dividend (21.41%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: EVR's dividend (21.41%) is in the top 25% of dividend payers in the UK market (5.42%)

Stable Dividend: EVR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EVR's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (125.8%), EVR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVR's dividends in 3 years are forecast to be covered by earnings (78.5% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Alexander Frolov (55yo)

8yrs

Tenure

US$5,393,884

Compensation

Mr. Alexander Vladimirovich Frolov has been Chief Executive Officer of EVRAZ plc (also known as Evraz Group) since October 14, 2011. Mr. Frolov served as President and Managing Director of Corporate of EVR ...


CEO Compensation Analysis

Compensation vs. Market: Alexander's total compensation ($USD5.39M) is about average for companies of similar size in the UK market ($USD3.36M).

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


Management Age and Tenure

5.6yrs

Average Tenure

48yo

Average Age

Experienced Management: EVR's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

55yo

Average Age

Experienced Board: EVR's board of directors are considered experienced (8 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.


Recent Insider Transactions

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SellUS$425,92928 Mar 19
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Role
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Max PriceUS$6.08
SellUS$7,178,67519 Mar 19
Toshi Holdings Ltd.
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Max PriceUS$5.95
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Abiglaze Ltd
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SellUS$25,163,14519 Mar 19
Crosland Global Ltd.
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Shares4,229,100
Max PriceUS$5.95

Ownership Breakdown


Management Team

  • Alexander Frolov (55yo)

    CEO & Director

    • Tenure: 8yrs
    • Compensation: US$5.39m
  • Leonid Kachur (58yo)

    Senior Vice President of Business Support & Interregional Relations

    • Tenure: 17.3yrs
  • Natalia Ionova (53yo)

    Vice President of Human Resources

    • Tenure: 13.8yrs
  • Aleksey Ivanov (44yo)

    Senior Vice President of Commerce & Business Development

    • Tenure: 8.4yrs
  • Ilya Shirokobrod (47yo)

    Vice President of Sales & Logistics

    • Tenure: 4.9yrs
  • Vsevolod Sementsov (48yo)

    Vice President of Corporate Communications

    • Tenure: 6.3yrs
  • Nikolay Ivanov (47yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
  • Irina Bakhturina

    Director of Investor Relations

    • Tenure: 4.6yrs
  • Sergei Vasiliev (52yo)

    Vice President of Compliance with Business Procedures & Asset Protection

    • Tenure: 4.3yrs
  • Yanina Stanulenaite (39yo)

    Vice President of Legal

    • Tenure: 1.3yrs

Board Members

  • Alexander Izosimov (55yo)

    Independent Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: US$278.00k
  • Eugene Shvidler (55yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: US$204.00k
  • Eugene Tenenbaum (55yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: US$180.00k
  • Karl Gruber (67yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: US$268.00k
  • Alexander Frolov (55yo)

    CEO & Director

    • Tenure: 8yrs
    • Compensation: US$5.39m
  • Alexander Abramov (60yo)

    Non-Executive Chairman

    • Tenure: 8yrs
    • Compensation: US$780.00k
  • Michael Charles Peat (70yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: US$254.00k
  • Laurie Argo (47yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$81.00k
  • Deborah Gudgeon (59yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: US$304.00k

Company Information

EVRAZ plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EVRAZ plc
  • Ticker: EVR
  • Exchange: LSE
  • Founded: 1992
  • Industry: Steel
  • Sector: Materials
  • Market Cap: UK£6.309b
  • Shares outstanding: 1.45b
  • Website: https://www.evraz.com

Number of Employees


Location

  • EVRAZ plc
  • Street Belovezhskaya, 4
  • Block B
  • Moscow
  • 121353
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVRLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2011
EVZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2011
EVRZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2011
EVRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2011

Biography

EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products. It operates through four segments: Steel; Steel, North America; Coal; and Other Operations. The company’s pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 22:53
End of Day Share Price2019/10/11 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.

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