SEHK:486

Stock Analysis Report

United Company RUSAL

Executive Summary

United Company RUSAL Plc produces and sells aluminum and related products.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has United Company RUSAL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 486's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.2%

486

6.8%

HK Metals and Mining

7.4%

HK Market


1 Year Return

-25.3%

486

-38.0%

HK Metals and Mining

-22.7%

HK Market

Return vs Industry: 486 exceeded the Hong Kong Metals and Mining industry which returned -34.4% over the past year.

Return vs Market: 486 underperformed the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

486IndustryMarket
7 Day15.2%6.8%7.4%
30 Day-31.6%-22.9%-11.2%
90 Day-32.7%-32.2%-17.3%
1 Year-25.3%-25.3%-35.9%-38.0%-19.9%-22.7%
3 Year-34.1%-35.9%-34.5%-38.6%-5.3%-14.8%
5 Year-40.5%-47.2%-31.8%-38.6%-8.7%-23.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is United Company RUSAL undervalued compared to its fair value and its price relative to the market?

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 486 (HK$2.33) is trading below our estimate of fair value (HK$3.92)

Significantly Below Fair Value: 486 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 486 is good value based on its PE Ratio (4.8x) compared to the Metals and Mining industry average (9x).

PE vs Market: 486 is good value based on its PE Ratio (4.8x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 486 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 486 is overvalued based on its PB Ratio (0.7x) compared to the HK Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is United Company RUSAL forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 486's forecast earnings growth (10.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 486's earnings (10.9% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Earnings: 486's earnings are forecast to grow, but not significantly.

Revenue vs Market: 486's revenue (4.2% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 486's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 486's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has United Company RUSAL performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 486 has high quality earnings.

Growing Profit Margin: 486's current net profit margins (9.9%) are lower than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: 486 has become profitable over the past 5 years, growing earnings by 23.7% per year.

Accelerating Growth: 486's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 486 had negative earnings growth (-43.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-17.1%).


Return on Equity

High ROE: 486's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is United Company RUSAL's financial position?


Financial Position Analysis

Short Term Liabilities: 486's short term assets ($6.3B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: 486's short term assets ($6.3B) do not cover its long term liabilities ($8.7B).


Debt to Equity History and Analysis

Debt Level: 486's debt to equity ratio (122.2%) is considered high.

Reducing Debt: 486's debt to equity ratio has reduced from 419.9% to 122.2% over the past 5 years.

Debt Coverage: 486's debt is well covered by operating cash flow (20%).

Interest Coverage: 486's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet

Inventory Level: 486 has a high level of physical assets or inventory.

Debt Coverage by Assets: 486's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is United Company RUSAL's current dividend yield, its reliability and sustainability?

5.65%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 486's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 486's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 486's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 486's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 486 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 486's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Evgenii Nikitin (53yo)

1.83s

Tenure

US$1,207,000

Compensation

Mr. Evgenii V. Nikitin is the Chief Executive Officer of United Company RUSAL Plc since November 1, 2018. He has been Interim Chief Executive Officer/Acting Chief Executive Officer and Executive Director a ...


CEO Compensation Analysis

Compensation vs Market: Evgenii's total compensation ($USD1.21M) is above average for companies of similar size in the Hong Kong market ($USD718.74K).

Compensation vs Earnings: Insufficient data to compare Evgenii's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Evgenii Nikitin
CEO, Head of Aluminium Division & Executive Director1.83yrsUS$1.21mno data
Vladislav Soloviev
President2yrsUS$5.57mno data
Evgenii Vavilov
Executive Director1.67yrsUS$27.00kno data
Alexandra Bouriko
Chief Financial Officerno dataUS$180.00kno data
Victor Mann
Technical Director15.17yrsno datano data
Anton Yegorov
General Counsel & Head of Legal1.17yrsno datano data
Vera Kurochkina
Director of Public Relations4.42yrsUS$392.00kno data
Oleg Mukhamedshin
Director of Strategy8.17yrsno datano data
Roman Andryushin
Director of Sales & Marketingno datano datano data
Natalia Beketova
Director of Human Resources4.42yrsno datano data

4.4yrs

Average Tenure

46yo

Average Age

Experienced Management: 486's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Evgenii Nikitin
CEO, Head of Aluminium Division & Executive Director1.83yrsUS$1.21mno data
Evgenii Vavilov
Executive Director1.67yrsUS$27.00kno data
Evgeny Kuryanov
MD of Krasnoyarsk Aluminium Smelter & Executive Director1yrno datano data
Maxim Poletaev
Independent Non-Executive Director1yrno datano data
Christopher Burnham
Independent Non-Executive Director1yrno datano data
Bernard Zonneveld
Independent Chairman of the Board1yrUS$230.00kno data
Vyacheslav Solomin
Non-Executive Director1.67yrsUS$82.00kno data
Oi-Sie Leung
Independent Non-Executive Director10.25yrsUS$203.00kno data
Dmitry Vasiliev
Independent Non-Executive Director4.67yrsUS$193.00kno data
Marco Musetti
Non-Executive Director3.25yrsUS$186.00kno data

1.7yrs

Average Tenure

50yo

Average Age

Experienced Board: 486's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

United Company RUSAL Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Company RUSAL Plc
  • Ticker: 486
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: HK$35.400b
  • Shares outstanding: 15.19b
  • Website: https://www.rusal.ru

Number of Employees


Location

  • United Company RUSAL Plc
  • 44 Esplanade
  • 3rd Floor
  • Saint Helier
  • Jersey
  • JE4 9WG
  • Channel Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
486SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2010
R6LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2010
0QD5LSE (London Stock Exchange)GDS-REPR 20 ORD USD0.01 REG SGBEURJan 2010
URSS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2010
RUALMISX (Micex - Rts)YesOrdinary SharesRURUBJan 2010
RUALRTS (Moscow Exchange Classica)YesOrdinary SharesRUUSDJan 2010

Biography

United Company RUSAL Plc produces and sells aluminum and related products. It operates through Aluminium, Alumina, Energy, and Mining and Metals segments. The company is involved in the mining and refining of bauxite and nepheline ore into alumina; the smelting of primary aluminium from alumina; and the fabrication of aluminium and aluminium alloys into semi-fabricated and finished products. Its products include primary aluminum, aluminum alloys, high purity aluminum, wire rods, aluminum foil and packaging products, aluminum coarse and fine powders, bauxite and alumina, silicon, gallium, corundum, anticorrosion aluminum protectors, cast aluminum wheels, and silica fume. The company is also involved in the mining and sale of coal; generation and transmission of electricity produced from various sources; trading business; and the provision of repair and maintenance, and finance services. In addition, it manufactures semi-finished products from primary aluminium for the transportation, packaging, building and construction, consumer goods, and technology industries. The company sells its products primarily in Europe, Russia, other countries of the Commonwealth of Independent States, Asia, and North America. United Company RUSAL Plc was founded in 2000 and is based in Saint Helier, the Channel Islands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:08
End of Day Share Price2020/03/31 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.