LSE:MNOD

Stock Analysis Report

Mining and Metallurgical Company Norilsk Nickel

Executive Summary

Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel, together with its subsidiaries, operates as a metals and mining company in Europe, Asia, North and South America, Russia, and the CIS countries.

Snowflake

Fundamentals

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Mining and Metallurgical Company Norilsk Nickel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

MNOD

1.0%

GB Metals and Mining

2.3%

GB Market


1 Year Return

43.9%

MNOD

0.2%

GB Metals and Mining

2.5%

GB Market

Return vs Industry: MNOD exceeded the UK Metals and Mining industry which returned 0.2% over the past year.

Return vs Market: MNOD exceeded the UK Market which returned 2.5% over the past year.


Shareholder returns

MNODIndustryMarket
7 Day1.2%1.0%2.3%
30 Day1.7%-7.5%-1.3%
90 Day7.9%-12.1%-1.9%
1 Year57.8%43.9%8.8%0.2%7.4%2.5%
3 Year112.1%63.2%54.4%29.6%18.8%4.3%
5 Year110.1%35.1%44.7%18.0%36.4%6.8%

Price Volatility Vs. Market

How volatile is Mining and Metallurgical Company Norilsk Nickel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mining and Metallurgical Company Norilsk Nickel undervalued compared to its fair value and its price relative to the market?

9.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MNOD ($24.82) is trading above our estimate of fair value ($23.9)

Significantly Undervalued: MNOD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MNOD is poor value based on its PE Ratio (9.2x) compared to the Metals and Mining industry average (8.8x).

PE vs Market: MNOD is good value based on its PE Ratio (9.2x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: MNOD is poor value based on its PEG Ratio (24.9x)


Price to Book Ratio

PB vs Industry: MNOD is overvalued based on its PB Ratio (8.7x) compared to the GB Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Mining and Metallurgical Company Norilsk Nickel forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNOD's forecast earnings growth (0.4% per year) is below the savings rate (1.2%).

Earnings vs Market: MNOD's earnings (0.4% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: MNOD's revenue (2% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: MNOD's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MNOD's Return on Equity is forecast to be very high in 3 years time (100.3%).


Next Steps

Past Performance

How has Mining and Metallurgical Company Norilsk Nickel performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MNOD's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: MNOD's earnings growth over the past year (48.7%) exceeds its 5-year average (15.7% per year).

Earnings vs Industry: MNOD earnings growth over the past year (48.7%) exceeded the Metals and Mining industry 3.8%.


Return on Equity

High ROE: Whilst MNOD's Return on Equity (89.55%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Mining and Metallurgical Company Norilsk Nickel's financial position?


Financial Position Analysis

Short Term Liabilities: MNOD's short term assets ($6.9B) exceeds its short term liabilities ($4.3B)

Long Term Liabilities: MNOD's short term assets (6.9B) do not cover its long term liabilities (9.7B)


Debt to Equity History and Analysis

Debt Level: MNOD's debt to equity ratio (175.4%) is considered high

Reducing Debt: MNOD's debt to equity ratio has increased from 62.1% to 175.4% over the past 5 years.

Debt Coverage: MNOD's debt is well covered by operating cash flow (68.8%).

Interest Coverage: MNOD's interest payments on its debt are well covered by EBIT (32.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MNOD's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Mining and Metallurgical Company Norilsk Nickel's current dividend yield, its reliability and sustainability?

10.69%

Current Dividend Yield


Dividend Yield vs Market

company10.7%marketbottom25%2.0%markettop25%5.4%industryaverage7.6%forecastin3Years11.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MNOD's dividend (10.69%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: MNOD's dividend (10.69%) is in the top 25% of dividend payers in the UK market (5.44%)

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

Growing Dividend: MNOD's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.1%), MNOD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNOD's dividends in 3 years are not forecast to be well covered by earnings (96.5% payout ratio).


Next Steps

Management

What is the CEO of Mining and Metallurgical Company Norilsk Nickel's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Vladimir Potanin (58yo)

0yrs

Tenure

0

Mr. Vladimir Olegovich Potanin has been President of PJSC MMC Norilsk Nickel since 2015 and has been its Chairman of the Management Board since 2012 and served as its CEO from 2012 to 2015. He graduated fr ...


Management Age and Tenure

6.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: MNOD's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: MNOD's board of directors are considered experienced (6.6 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

  • Vladimir Potanin (58yo)

    President & Chairman of the Management Board

    • Tenure: 0yrs
  • Sergey Barbashev (57yo)

    Senior VP

    • Tenure: 8.6yrs
  • Larisa Zelkova (50yo)

    Senior VP of the Personnel

    • Tenure: 6.8yrs
  • Andrey Bugrov (67yo)

    Deputy Chairman

    • Tenure: 6.6yrs
  • Sergey Batekhin (54yo)

    Senior VP of Sales

    • Tenure: 6.8yrs
  • Marianna Zakharova (43yo)

    First VP

    • Tenure: 9.3yrs
  • Nina Plastinina (58yo)

    VP of Internal Control & Risk Management and Member of Management Board

    • Tenure: 6.8yrs
  • Sergey Malyshev (50yo)

    Senior VP

    • Tenure: 6.8yrs
  • Sergey Dyachenko (57yo)

    First VP

    • Tenure: 4.8yrs
  • Elena Kondratova (47yo)

    VP, Chief of Staff & Member of Management Board

    • Tenure: 5.3yrs

Board Members

  • Sergey Barbashev (57yo)

    Senior VP

    • Tenure: 8.6yrs
  • Andrey Bugrov (67yo)

    Deputy Chairman

    • Tenure: 6.6yrs
  • Gareth Herbert Penny (57yo)

    Independent Chairman of the Board

    • Tenure: 6.6yrs
  • Stalbek Mishakov (49yo)

    Non-Executive Director

    • Tenure: 7.3yrs
  • Marianna Zakharova (43yo)

    First VP

    • Tenure: 9.3yrs
  • Rob John Edwards (53yo)

    Independent Director

    • Tenure: 6.3yrs
  • Roger Munnings (69yo)

    Independent Director

    • Tenure: 1.3yrs
  • Alexey Bashkirov (42yo)

    Non-Executive Director

    • Tenure: 6.6yrs
  • Sergey Bratukhin (48yo)

    Independent Director

    • Tenure: 6.6yrs
  • Sergey Volk (50yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel
  • Ticker: MNOD
  • Exchange: LSE
  • Founded: 1997
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: US$39.277b
  • Shares outstanding: 1.58b
  • Website: https://www.nornickel.com

Number of Employees


Location

  • Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel
  • 15, 1st Krasnogvardeysky Drive
  • Moscow
  • 123100
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNODLSE (London Stock Exchange)SPON ADR EACH REPR 1/10 ORD LVL IGBUSDNo data
MNODLSE (London Stock Exchange)ADR EACH REPR 1/10 SHARE (SPONS)GBUSDNo data
NILS.YOTCPK (Pink Sheets LLC)YesSPON ADR EACH REPR 0.1 ORD SHSUSUSDJun 2001
MNODLSE (London Stock Exchange)YesSPON ADR EACH REPR 0.1 ORD SHSGBUSDJun 2001
NNICDB (Deutsche Boerse AG)YesSPON ADR EACH REPR 0.1 ORD SHSDEEURJun 2001
MNODLBATS-CHIXE (BATS 'Chi-X Europe')YesSPON ADR EACH REPR 0.1 ORD SHSGBUSDJun 2001
MNODWBAG (Wiener Boerse AG)YesSPON ADR EACH REPR 0.1 ORD SHSATEURJun 2001
GMKNMISX (Micex - Rts)Ordinary SharesRURUBOct 2001

Biography

Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel, together with its subsidiaries, operates as a metals and mining company in Europe, Asia, North and South America, Russia, and the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:45
End of Day Share Price2019/10/15 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.