LSE:NLMK

Stock Analysis Report

Executive Summary

Public Joint Stock Company Novolipetsk Steel, together with its subsidiaries, manufactures and sells steel products.


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

NLMKIndustryMarket
7 Day7.9%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 Year0.1%-26.3%7.1%-11.0%-12.9%-24.2%
5 Year70.3%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

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

NamePositionTenureCompensationOwnership
Grigory Fedorishin
President2yrsno data0.0060% $527.5k
Shamil Kurmashov
CFO & Member of Management Board1.33yrsno datano data
Barend De Vos
VP of International Operations & Member of the Management Board3.92yrsno datano data
Sergey Filatov
Advisor to the President & Member of the Management Board7.17yrsno datano data
Ilya Guschin
VP of Sales & Member of the Management Board5.25yrsno datano data
Sergey Likharev
VP of Logistics & Member of the Management Board6.17yrsno datano data
Eugene Ovcharov
VP of Risk Management & Member of the Management Board1.92yrsno datano data
Sergey Chebotarev
VP of Energy & Member of the Management Board1.92yrsno datano data
Tatyana Averchenkova
VP of Operational Efficiency & Member of Management Board3yrsno datano data
Mikhail Arkhipov
VP for Human Resources & Management System and member of the Management Board1.92yrsno datano 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

NamePositionTenureCompensationOwnership
Mikhail Makeev
Chairman of the Audit Commission & Director of Audit Divisionno datano datano data
Benedict Sciortino
Independent Director8.17yrsUS$16.32mno data
Vladimir Lisin
Chairman of the Board22.17yrsUS$21.26mno data
Joachim Limberg
Independent Director0.92yrno datano data
Maria Oudeman
Independent Director1.75yrsno datano data
Nikolai Gagarin
Director19.17yrsUS$12.36mno data
Oleg Bagrin
Director16.17yrsUS$13.85mno data
Stanislav Shekshnia
Independent Director4.75yrsUS$16.32mno data
Karen Sarkisov
Director9.75yrsUS$14.84mno data
Thomas Veraszto
Independent Director3.75yrsUS$12.36mno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLMBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REP 1 GDRARARSNo data
NLMKMISX (Micex - Rts)Common StockRURUBJul 2004
RU_NLMKKAS (Kazakhstan Stock Exchange)Common StockKZKZTJul 2004
N7MGDB (Deutsche Boerse AG)YesGDR EACH REP 10 ORD RUB1 'REGS'DEEURDec 2005
NLMKLSE (London Stock Exchange)YesGDR EACH REP 10 ORD RUB1 'REGS'GBUSDDec 2005
NLMKLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH REP 10 ORD RUB1 'REGS'GBUSDDec 2005
NLMKWBAG (Wiener Boerse AG)YesGDR EACH REP 10 ORD RUB1 'REGS'ATEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:11
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.