Lenta International (MISX:LNTA) - Share price, News & Analysis

LNTA fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

LNTA Stock Overview

Lenta International public joint-stock company, together with its subsidiaries, develops and operates hypermarket and supermarket stores.

Rewards

Trading at 81.4% below our estimate of its fair value

Earnings are forecast to grow 13.56% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over the past 3 months

Profit margins (2.6%) are lower than last year (3.7%)

Lenta International Competitors

Magnit

MISX:MGNT

₽449.7b

Metro

XTRA:B4B

€3.0b

Fix Price Group

LSE:FIXP

US$799.0m

O'Key Group

LSE:OKEY

US$160.4m

Price History & Performance

Summary of all time highs, changes and price drops for Lenta International
Historical stock prices
Current Share Price	US$102.00
52 Week High	US$256.80
52 Week Low	US$82.70
Beta	1.1
1 Month Change	-15.49%
3 Month Change	-43.58%
1 Year Change	-57.20%
3 Year Change	-55.44%
5 Year Change	-71.02%
Change since IPO	-76.87%

Shareholder Returns

	LNTA	RU Consumer Retailing	RU Market
7D	0%	-0.2%	8.2%
1Y	-57.2%	-6.5%	-19.0%

Return vs Industry: LNTA underperformed the Russian Consumer Retailing industry which returned -6.5% over the past year.

Return vs Market: LNTA underperformed the Russian Market which returned -24.2% over the past year.

Price Volatility

Is LNTA's price volatile compared to industry and market?
LNTA volatility
LNTA Average Weekly Movement	24.8%
Consumer Retailing Industry Average Movement	6.1%
Market Average Movement	15.3%
10% most volatile stocks in RU Market	21.7%
10% least volatile stocks in RU Market	9.6%

Stable Share Price: LNTA is more volatile than 90% of Russian stocks over the past 3 months, typically moving +/- 25% a week.

Volatility Over Time: LNTA's weekly volatility has increased from 10% to 25% over the past year.

About the Company

Founded	Employees	CEO	Website
1993	50,000	Vladimir Sorokin	https://www.lentainvestor.com

Lenta International public joint-stock company, together with its subsidiaries, develops and operates hypermarket and supermarket stores. As of September 30, 2021, it operated 255 hypermarkets and 419 supermarkets in 88 cities across Russia. The company was founded in 1993 and is headquartered in Saint Petersburg, Russia.

Lenta International Fundamentals Summary

How do Lenta International's earnings and revenue compare to its market cap?
LNTA fundamental statistics
Market Cap	₽59.23b
Earnings (TTM)	₽12.48b
Revenue (TTM)	₽483.64b

4.7x

P/E Ratio

0.1x

P/S Ratio

Is LNTA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LNTA income statement (TTM)
Revenue	₽483.64b
Cost of Revenue	₽372.28b
Gross Profit	₽111.36b
Other Expenses	₽98.88b
Earnings	₽12.48b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Apr 25, 2022

Earnings per share (EPS)	25.82
Gross Margin	23.03%
Net Profit Margin	2.58%
Debt/Equity Ratio	124.1%

How did LNTA perform over the long term?

See historical performance and comparison

Valuation

Is Lenta International undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LNTA (RUB102) is trading below our estimate of fair value (RUB547.72)

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

Price To Earnings Ratio

PE vs Industry: LNTA is good value based on its PE Ratio (4.7x) compared to the European Consumer Retailing industry average (16x).

PE vs Market: LNTA is good value based on its PE Ratio (4.7x) compared to the Russian market (6.9x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: LNTA is good value based on its PB Ratio (0.6x) compared to the XE Consumer Retailing industry average (2x).

Future Growth

How is Lenta International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNTA's forecast earnings growth (13.6% per year) is above the savings rate (7.3%).

Earnings vs Market: LNTA's earnings (13.6% per year) are forecast to grow faster than the Russian market (1.5% per year).

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

Revenue vs Market: LNTA's revenue (5.7% per year) is forecast to grow slower than the Russian market (6.2% per year).

High Growth Revenue: LNTA's revenue (5.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LNTA's Return on Equity is forecast to be low in 3 years time (13.2%).

Past Performance

How has Lenta International performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LNTA has high quality earnings.

Growing Profit Margin: LNTA's current net profit margins (2.6%) are lower than last year (3.7%).

Past Earnings Growth Analysis

Earnings Trend: LNTA's earnings have grown by 0.3% per year over the past 5 years.

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

Earnings vs Industry: LNTA had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (45.8%).

Return on Equity

High ROE: LNTA's Return on Equity (12.5%) is considered low.

Financial Health

How is Lenta International's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LNTA's short term assets (RUB79.7B) exceed its short term liabilities (RUB79.0B).

Long Term Liabilities: LNTA's short term assets (RUB79.7B) do not cover its long term liabilities (RUB97.6B).

Debt to Equity History and Analysis

Debt Level: LNTA's net debt to equity ratio (94.1%) is considered high.

Reducing Debt: LNTA's debt to equity ratio has reduced from 160.3% to 124.1% over the past 5 years.

Debt Coverage: LNTA's debt is well covered by operating cash flow (30.6%).

Interest Coverage: LNTA's interest payments on its debt are not well covered by EBIT (3x coverage).

Balance Sheet

Dividend

What is Lenta International current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LNTA has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

1.3yrs

Average management tenure

CEO

Vladimir Sorokin (50 yo)

1.58yrs

Tenure

Mr. Vladimir Leonidovich Sorokin has been Chief Executive Officer and Director at Lenta International public joint-stock company (formerly known as Lenta PLC) since September 03, 2020. He served as Member...

Leadership Team

Experienced Management: LNTA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: LNTA's board of directors are not considered experienced ( 2.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/04/20 00:00
End of Day Share Price	2022/04/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31