MISX:MGNT

Stock Analysis Report

Executive Summary

Public Joint Stock Company Magnit, together with its subsidiaries, engages in the retail and distribution of consumer goods under the Magnit name in Russia.

Rewards

Trading at 81.2% below its fair value

Earnings are forecast to grow 24.37% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 9.71% is not well covered by earnings or forecast to be in the next 3 years



Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.7%

MGNT

3.1%

RU Consumer Retailing

1.3%

RU Market


1 Year Return

-10.0%

MGNT

10.0%

RU Consumer Retailing

20.0%

RU Market

Return vs Industry: MGNT underperformed the Russian Consumer Retailing industry which returned 10% over the past year.

Return vs Market: MGNT underperformed the Russian Market which returned 20% over the past year.


Shareholder returns

MGNTIndustryMarket
7 Day1.7%3.1%1.3%
30 Day-2.1%-1.3%-1.9%
90 Day-9.8%-0.8%3.5%
1 Year-2.2%-10.0%14.4%10.0%28.8%20.0%
3 Year-65.1%-69.8%3.9%-6.0%50.3%27.0%
5 Year-62.5%-69.5%30.5%10.3%171.2%112.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Magnit 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: MGNT (RUB3234) is trading below our estimate of fair value (RUB17208.25)

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


Price To Earnings Ratio

PE vs Industry: MGNT is good value based on its PE Ratio (13.7x) compared to the Consumer Retailing industry average (20.6x).

PE vs Market: MGNT is poor value based on its PE Ratio (13.7x) compared to the Russian market (7.6x).


Price to Earnings Growth Ratio

PEG Ratio: MGNT is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MGNT is overvalued based on its PB Ratio (1.6x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Magnit forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGNT's forecast earnings growth (24.4% per year) is above the savings rate (6.4%).

Earnings vs Market: MGNT's earnings (24.4% per year) are forecast to grow faster than the Russian market (4.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MGNT's revenue (8% per year) is forecast to grow faster than the Russian market (4.3% per year).

High Growth Revenue: MGNT's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGNT's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Magnit performed over the past 5 years?

-17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNT has high quality earnings.

Growing Profit Margin: MGNT's current net profit margins (1.8%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: MGNT's earnings have declined by -17.1% per year over the past 5 years.

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

Earnings vs Industry: MGNT had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (1.6%).


Return on Equity

High ROE: MGNT's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Magnit's financial position?


Financial Position Analysis

Short Term Liabilities: MGNT's short term assets (RUB230.9B) do not cover its short term liabilities (RUB254.4B).

Long Term Liabilities: MGNT's short term assets (RUB230.9B) do not cover its long term liabilities (RUB467.9B).


Debt to Equity History and Analysis

Debt Level: MGNT's debt to equity ratio (98.6%) is considered high.

Reducing Debt: MGNT's debt to equity ratio has increased from 43.7% to 98.6% over the past 5 years.

Debt Coverage: MGNT's debt is well covered by operating cash flow (29.8%).

Interest Coverage: MGNT's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: MGNT's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

9.71%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Magnit before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company9.7%marketbottom25%3.5%markettop25%8.7%industryaverage3.5%forecastin3Years8.0%

Current dividend yield vs market & industry

Notable Dividend: MGNT's dividend (9.71%) is higher than the bottom 25% of dividend payers in the Russian market (3.54%).

High Dividend: MGNT's dividend (9.71%) is in the top 25% of dividend payers in the Russian market (8.67%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (128.5%), MGNT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGNT's dividends in 3 years are not forecast to be well covered by earnings (128% payout ratio).


Next Steps

Management

What is the CEO of Magnit's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Jan Dunning (60yo)

0.5yrs

Tenure

0

Mr. Jan Gezinius Dunning serves as President and Member of Management Board at Public Joint Stock Company Magnit since January 29, 2019 and Chairman of Management Board since 2019. Mr. Dunning has been Chi ...


Management Age and Tenure

0.9yrs

Average Tenure

48yo

Average Age

Experienced Management: MGNT's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

44yo

Average Age

Experienced Board: MGNT's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Vladimir Sorokin (48yo)

    Member of the Management Board

    • Tenure: 0.9yrs
  • Jan Dunning (60yo)

    CEO, President

    • Tenure: 0.5yrs
  • Elena Milinova (43yo)

    CFO & Deputy Chairman of the Management Board

    • Tenure: 1.5yrs
  • Anton Grigorevich

    Member of Management Board

    • Tenure: 0.4yrs
  • Jyrki Talvitie (53yo)

    Member of the Management Board & Director of Strategic Communications

    • Tenure: 0.8yrs
  • Elena Zhavoronkova (49yo)

    Member of the Management Board

    • Tenure: 1.5yrs
  • Petr Molchanov

    Chief Investment Officer

    • Tenure: 1.2yrs
  • Evgeny Melnikov (39yo)

    Director of IT

    • Tenure: 1.2yrs
  • Maria Dei (36yo)

    Supply Chain Director & Member of the Management Board

    • Tenure: 0.8yrs
  • Anna Bobrova

    HR Director & Member of the Management Board

    • Tenure: 0.3yrs

Board Members

  • Charlie Ryan (52yo)

    Chairman

    • Tenure: 0yrs
  • Alexey Makhnev (43yo)

    Director

    • Tenure: 1.7yrs
  • Jan Dunning (60yo)

    CEO, President

    • Tenure: 0.5yrs
  • Alexander Vinokurov (37yo)

    Director

    • Tenure: 0.6yrs
  • Evgeny Kuznetsov

    Director

    • Tenure: 0.6yrs
  • James Simmons (41yo)

    Vice Chairman

    • Tenure: 0.4yrs
  • Tim Demchenko (45yo)

    Director

    • Tenure: 1.7yrs
  • Walter Koch

    Director

    • Tenure: 0.6yrs
  • Jansen Florian

    Director

    • Tenure: 0.6yrs
  • Evgeniy Prokoshev

    Member of Supervisory Board

    • Tenure: 0yrs

Company Information

Public Joint Stock Company Magnit's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Magnit
  • Ticker: MGNT
  • Exchange: MISX
  • Founded: 1994
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: ₽315.477b
  • Shares outstanding: 97.55m
  • Website: https://www.magnit-info.ru

Number of Employees


Location

  • Public Joint Stock Company Magnit
  • 15/5 Solnechnaya Street
  • Krasnodar
  • Krasnodarskiy kray
  • 350072
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGNTMISX (Micex - Rts)YesOrdinary SharesRURUBApr 2006
RU_MGNTKAS (Kazakhstan Stock Exchange)YesOrdinary SharesKZKZTApr 2006
50XDLSE (London Stock Exchange)GDR (5 GDRS REP 1 ORD) 144AGBUSDMar 2008
MGNTLSE (London Stock Exchange)GDR(5 GDRS REP 1 ORD) REGSGBUSDApr 2008
5M71DB (Deutsche Boerse AG)GDR(5 GDRS REP 1 ORD) REGSDEEURApr 2008
MGNTLBATS-CHIXE (BATS 'Chi-X Europe')GDR(5 GDRS REP 1 ORD) REGSGBUSDApr 2008
MGNTWBAG (Wiener Boerse AG)GDR(5 GDRS REP 1 ORD) REGSATEURApr 2008

Biography

Public Joint Stock Company Magnit, together with its subsidiaries, engages in the retail and distribution of consumer goods under the Magnit name in Russia. The company’s retail operations are operated thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 21:51
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.