Novolipetsk Steel
Market Cap
US$8.8b
Last Updated
2020/03/30 21:11 UTC
Data Sources
Company Financials +
Executive Summary
Public Joint Stock Company Novolipetsk Steel, together with its subsidiaries, manufactures and sells steel products.
Rewards
Risk Analysis
Dividend of 16.31% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Excellent balance sheet and good value.
Similar Companies
Share Price & News
How has Novolipetsk Steel's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NLMK's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.9%
NLMK
15.3%
GB Metals and Mining
10.0%
GB Market
1 Year Return
-44.2%
NLMK
-28.1%
GB Metals and Mining
-23.0%
GB Market
Return vs Industry: NLMK underperformed the UK Metals and Mining industry which returned -27.1% over the past year.
Return vs Market: NLMK underperformed the UK Market which returned -22.7% over the past year.
Shareholder returns
| NLMK | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.9% | 15.3% | 10.0% |
| 30 Day | -22.5% | -13.9% | -17.6% |
| 90 Day | -36.3% | -26.0% | -27.3% |
| 1 Year | -38.0%-44.2% | -22.3%-28.1% | -18.9%-23.0% |
| 3 Year | 0.1%-26.3% | 7.1%-11.0% | -12.9%-24.2% |
| 5 Year | 70.3%8.3% | 42.4%8.1% | 1.6%-21.8% |
Price Volatility Vs. Market
How volatile is Novolipetsk Steel's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Why I Like Novolipetsk Steel (LON:NLMK)1 year ago | Simply Wall St
A Look At The Fair Value Of Novolipetsk Steel (LON:NLMK)Valuation
Is Novolipetsk Steel 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: NLMK ($14.67) is trading below our estimate of fair value ($38.48)
Significantly Below Fair Value: NLMK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NLMK is good value based on its PE Ratio (6.6x) compared to the Metals and Mining industry average (6.6x).
PE vs Market: NLMK is good value based on its PE Ratio (6.6x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: NLMK is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: NLMK is overvalued based on its PB Ratio (1.5x) compared to the GB Metals and Mining industry average (0.8x).
Next Steps
Future Growth
How is Novolipetsk Steel forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
5.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NLMK's forecast earnings growth (5.5% per year) is above the savings rate (0.5%).
Earnings vs Market: NLMK's earnings (5.5% per year) are forecast to grow slower than the UK market (15.4% per year).
High Growth Earnings: NLMK's earnings are forecast to grow, but not significantly.
Revenue vs Market: NLMK's revenue (1% per year) is forecast to grow slower than the UK market (2.6% per year).
High Growth Revenue: NLMK's revenue (1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NLMK's Return on Equity is forecast to be high in 3 years time (22.8%)
Next Steps
Past Performance
How has Novolipetsk Steel performed over the past 5 years?
20.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NLMK has high quality earnings.
Growing Profit Margin: NLMK's current net profit margins (12.7%) are lower than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: NLMK's earnings have grown significantly by 20.3% per year over the past 5 years.
Accelerating Growth: NLMK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NLMK had negative earnings growth (-40.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (7.2%).
Return on Equity
High ROE: NLMK's Return on Equity (22.5%) is considered high.
Next Steps
Financial Health
How is Novolipetsk Steel's financial position?
Financial Position Analysis
Short Term Liabilities: NLMK's short term assets ($3.7B) exceed its short term liabilities ($1.9B).
Long Term Liabilities: NLMK's short term assets ($3.7B) exceed its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: NLMK's debt to equity ratio (43.3%) is considered high.
Reducing Debt: NLMK's debt to equity ratio has reduced from 44.1% to 43.3% over the past 5 years.
Debt Coverage: NLMK's debt is well covered by operating cash flow (101.7%).
Interest Coverage: NLMK's interest payments on its debt are well covered by EBIT (56.6x coverage).
Balance Sheet
Inventory Level: NLMK has a high level of physical assets or inventory.
Debt Coverage by Assets: NLMK's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Novolipetsk Steel's current dividend yield, its reliability and sustainability?
16.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NLMK's dividend (16.31%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).
High Dividend: NLMK's dividend (16.31%) is in the top 25% of dividend payers in the UK market (7.3%)
Stability and Growth of Payments
Stable Dividend: NLMK's dividend payments have been volatile in the past 10 years.
Growing Dividend: NLMK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (139.9%), NLMK's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NLMK's dividends in 3 years are not forecast to be well covered by earnings (94.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Grigory Fedorishin (40yo)
2s
Tenure
Mr. Grigory Fedorishin has been President, Chief Executive Officer and Chairman of the Management Board of PJSC Novolipetsk Steel since March 12, 2018 and as its Member of Management Board since November 0 ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2yrs | no data | 0.0060% $527.5k | |
| CFO & Member of Management Board | 1.33yrs | no data | no data | |
| VP of International Operations & Member of the Management Board | 3.92yrs | no data | no data | |
| Advisor to the President & Member of the Management Board | 7.17yrs | no data | no data | |
| VP of Sales & Member of the Management Board | 5.25yrs | no data | no data | |
| VP of Logistics & Member of the Management Board | 6.17yrs | no data | no data | |
| VP of Risk Management & Member of the Management Board | 1.92yrs | no data | no data | |
| VP of Energy & Member of the Management Board | 1.92yrs | no data | no data | |
| VP of Operational Efficiency & Member of Management Board | 3yrs | no data | no data | |
| VP for Human Resources & Management System and member of the Management Board | 1.92yrs | no data | no data |
2.5yrs
Average Tenure
41.5yo
Average Age
Experienced Management: NLMK's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Audit Commission & Director of Audit Division | no data | no data | no data | |
| Independent Director | 8.17yrs | US$16.32m | no data | |
| Chairman of the Board | 22.17yrs | US$21.26m | no data | |
| Independent Director | 0.92yr | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Director | 19.17yrs | US$12.36m | no data | |
| Director | 16.17yrs | US$13.85m | no data | |
| Independent Director | 4.75yrs | US$16.32m | no data | |
| Director | 9.75yrs | US$14.84m | no data | |
| Independent Director | 3.75yrs | US$12.36m | no data |
8.2yrs
Average Tenure
61yo
Average Age
Experienced Board: NLMK's board of directors are considered experienced (8.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
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.
Top Shareholders
Company Information
Public Joint Stock Company "Novolipetsk Steel"'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Public Joint Stock Company "Novolipetsk Steel"
- Ticker: NLMK
- Exchange: LSE
- Founded: 1931
- Industry: Steel
- Sector: Materials
- Market Cap: US$8.792b
- Shares outstanding: 599.32m
- Website: https://www.nlmk.com
Location
- Public Joint Stock Company "Novolipetsk Steel"
- 2, Metallurgov square
- Lipetsk
- Lipetskaya obl.
- 398040
- Russia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NLM | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 2 REP 1 GDR | AR | ARS | No data | |
| NLMK | MISX (Micex - Rts) | Common Stock | RU | RUB | Jul 2004 | |
| RU_NLMK | KAS (Kazakhstan Stock Exchange) | Common Stock | KZ | KZT | Jul 2004 | |
| N7MG | DB (Deutsche Boerse AG) | Yes | GDR EACH REP 10 ORD RUB1 'REGS' | DE | EUR | Dec 2005 |
| NLMK | LSE (London Stock Exchange) | Yes | GDR EACH REP 10 ORD RUB1 'REGS' | GB | USD | Dec 2005 |
| NLMKL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | GDR EACH REP 10 ORD RUB1 'REGS' | GB | USD | Dec 2005 |
| NLMK | WBAG (Wiener Boerse AG) | Yes | GDR EACH REP 10 ORD RUB1 'REGS' | AT | EUR | Dec 2005 |
Biography
Public Joint Stock Company Novolipetsk Steel, together with its subsidiaries, manufactures and sells steel products. It operates in six segments: Mining, Russian Flat Products, Russian Long Products, NLMK USA, NLMK DanSteel and Plates Distribution Network, and Investments in NBH. The Mining segment mines, processes, and sells iron ore, fluxing limestone, and metallurgical dolomite, as well as supplies raw materials to the steel segment and third parties. The Russian Flat Products segment produces and sells coke and steel products, such as pig iron, steel slabs, hot rolled steel, cold rolled steel, galvanized cold rolled sheets, and cold rolled sheets with polymeric coatings, as well as electro-technical steel. The Russian Long Products segment produces long products, reinforcing rebars, and metalware from scrap iron collection and recycling. The NLMK USA segment produces and sells steel products in the United States. The NLMK DanSteel and Plates Distribution Network segment produces and sells steel plates in Europe and internationally. The Investments in NBH segment produces hot rolled, cold rolled coil, plate, and galvanized and pre-pained steel products, as well as operates steel service centers. The company’s products are used in oil and gas infrastructure, automotive industrial, truck, railroad transportation, mining machinery, agriculture machinery, construction, white good, and energy equipment applications. It has operations in Russia, North America, the European Union, the Middle East, Commonwealth of Independent States, Central and South America, Asia, Oceania, and internationally. The company was founded in 1931 and is based in Lipetsk, Russia. Public Joint Stock Company Novolipetsk Steel is a subsidiary of Fletcher Group Holdings Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 21:11 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.