LSE:SVST

Stock Analysis Report

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Executive Summary

PAO Severstal, together with its subsidiaries, operates as an integrated steel and steel-related mining company in Russia, Europe, CIS, the Middle East, North America, Africa, Central and South America, and Asia.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.1%

SVST

2.9%

GB Metals and Mining

2.0%

GB Market


1 Year Return

-16.8%

SVST

-5.2%

GB Metals and Mining

-12.8%

GB Market

Return vs Industry: SVST underperformed the UK Metals and Mining industry which returned -5.1% over the past year.

Return vs Market: SVST underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

SVSTIndustryMarket
7 Day9.1%2.9%2.0%
30 Day9.9%13.3%5.7%
90 Day8.5%5.4%-8.2%
1 Year-10.1%-16.8%2.1%-5.2%-8.6%-12.8%
3 Year47.0%3.0%40.3%16.7%-6.2%-17.6%
5 Year95.6%20.0%70.9%31.4%12.7%-12.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PAO Severstal 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: SVST ($13.12) is trading below our estimate of fair value ($26.5)

Significantly Below Fair Value: SVST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SVST is good value based on its PE Ratio (7.7x) compared to the Metals and Mining industry average (7.7x).

PE vs Market: SVST is good value based on its PE Ratio (7.7x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: SVST is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SVST is overvalued based on its PB Ratio (3.8x) compared to the GB Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is PAO Severstal forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVST's forecast earnings growth (6.6% per year) is above the savings rate (1.2%).

Earnings vs Market: SVST's earnings (6.6% per year) are forecast to grow slower than the UK market (20.3% per year).

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

Revenue vs Market: SVST's revenue (3.8% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: SVST's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SVST's Return on Equity is forecast to be high in 3 years time (36%)


Next Steps

Past Performance

How has PAO Severstal performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVST has high quality earnings.

Growing Profit Margin: SVST's current net profit margins (17.8%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: SVST has become profitable over the past 5 years, growing earnings by 32.8% per year.

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

Earnings vs Industry: SVST had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (9.8%).


Return on Equity

High ROE: SVST's Return on Equity (49.8%) is considered outstanding.


Next Steps

Financial Health

How is PAO Severstal's financial position?


Financial Position Analysis

Short Term Liabilities: SVST's short term assets ($2.7B) exceed its short term liabilities ($969.0M).

Long Term Liabilities: SVST's short term assets ($2.7B) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: SVST's debt to equity ratio (85.3%) is considered high.

Reducing Debt: SVST's debt to equity ratio has reduced from 96.5% to 85.3% over the past 5 years.

Debt Coverage: SVST's debt is well covered by operating cash flow (86.4%).

Interest Coverage: SVST's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet


Next Steps

Dividend

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

15.11%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SVST's dividend (15.11%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: SVST's dividend (15.11%) is in the top 25% of dividend payers in the UK market (5.67%)


Stability and Growth of Payments

Stable Dividend: SVST's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (216.3%), SVST's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVST's dividends in 3 years are forecast to be covered by earnings (74.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Alexander Shevelev (45yo)

3.42yrs

Tenure

Mr. Alexander Anatolievich Shevelev has been the Chief Executive Officer of AO Severstal Management at PAO Severstal since November 2016. He started his career at Cherepovets Steel Mill as a repairman in r ...


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Shevelev
CEO of AO Severstal Management & Director3.42yrsno data0.00073% $77.6k
Alexey Kulichenko
CFO of AO Severstal Management & Director10.58yrsno data0.015% $1.6m
Agnes Ritter
Chief Technical Officer of AO Severstal Management & Director1.67yrsno datano data
Vladimir Zaluzhsky
Head of Communications & Investor Relations4.33yrsno datano data
Dmitry Fedotov
Legal Affairs Officer2.5yrsno datano data
Tomas Korganas
Head of Corporate Development7.5yrsno datano data
Maria Shalina
Director of marketing & Customer Experience Improvement1.33yrsno datano data
Anna Lvova
Acting Director of Human Resources0.17yrno datano data
Natalia Poppel
Head of Corporate Social Responsibility Departmentno datano datano data
Olga Antonova
Head of Press Serviceno datano datano data

3.5yrs

Average Tenure

42yo

Average Age

Experienced Management: SVST's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Shevelev
CEO of AO Severstal Management & Director3.42yrsno data0.00073% $77.6k
Alexey Kulichenko
CFO of AO Severstal Management & Director10.58yrsno data0.015% $1.6m
Agnes Ritter
Chief Technical Officer of AO Severstal Management & Director1.67yrsno datano data
Nikolay Lavrov
Chief Internal Audit Executive & Member of Internal Audit Commissionno datano datano data
Roman Antonov
Deputy Chief Internal Audit Executive & Member of Internal Audit Commissionno datano data0.00058% $61.7k
Sakari Tamminen
Senior Independent Non-Executive Director5yrsno data0.00086% $91.5k
Alexey Mordashov
Chairman of the Board5yrsno datano data
Philip Dayer
Independent Non-Executive Director5.92yrsno data0.00056% $59.6k
Andrey Mityukov
Director2.92yrsno datano data
Alun Bowen
Independent Non-Executive Director5.92yrsno data0.00052% $55.3k

5.0yrs

Average Tenure

50yo

Average Age

Experienced Board: SVST's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SVST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: PAO Severstal
  • Ticker: SVST
  • Exchange: LSE
  • Founded: 1955
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$10.635b
  • Shares outstanding: 810.60m
  • Website: https://www.severstal.com

Location

  • PAO Severstal
  • st. Clara Zetkin, 2
  • Moscow
  • 127299
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHMFMISX (Micex - Rts)Ordinary SharesRURUBApr 1995
0SJQLSE (London Stock Exchange)Ordinary SharesGBRUBApr 1995
RTS2DB (Deutsche Boerse AG)YesSP GDR S OCT 06DEEURNov 2006
SVJT.YOTCPK (Pink Sheets LLC)YesSP GDR S OCT 06USUSDNov 2006
SVSTLSE (London Stock Exchange)YesSP GDR S OCT 06GBUSDNov 2006
SVSTLBATS-CHIXE (BATS 'Chi-X Europe')YesSP GDR S OCT 06GBUSDNov 2006
SVSTWBAG (Wiener Boerse AG)YesSP GDR S OCT 06ATEURNov 2006

Biography

PAO Severstal, together with its subsidiaries, operates as an integrated steel and steel-related mining company in Russia, Europe, CIS, the Middle East, North America, Africa, Central and South America, and Asia. The company operates through two divisions, Severstal Resources and Severstal Russian Steel. It produces iron ore pellets, iron ore concentrates, crushed stones, and ferrite strontium powder; and coking and steam coal, and coking coal concentrates; blast furnace unfluxed and fluxed pellets, as well as iron ore to steel producers. The company also provides flat and long-rolled products, hot and cold-rolled flat products, galvanized and color coated products, and long-steel applications for use in automotive and construction industry; pipes for use in oil and gas pipeline projects; and cold-drawn steel products, steel shapes, railway fasteners, low carbon and high carbon wires, nails, steel fiber products, steel wire ropes, wire strands, and steel meshes and fasteners. In addition, it engages in repair and steel construction, air transport, scrap processing, steel machining, and shipping operations. The company offers metal products for construction and service processing, oil and gas, tube and pipe, machinery, automotive, and other companies. PAO Severstal sells its products to regional and national distributors, and directly to end-users, as well as through a network of metal centers. The company was formerly known as Open Joint-Stock Company Severstal and changed its name to PAO Severstal in December 2014. PAO Severstal was founded in 1955 and is headquartered in Moscow, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 22:47
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.