MISX:MGNT

Stock Analysis Report

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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. More Details


Snowflake Analysis

Slightly overvalued unattractive dividend payer.


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

2.4%

MGNT

0.4%

RU Consumer Retailing

-2.3%

RU Market


1 Year Return

55.9%

MGNT

0.8%

RU Consumer Retailing

-9.3%

RU Market

Return vs Industry: MGNT exceeded the Russian Consumer Retailing industry which returned 0.5% over the past year.

Return vs Market: MGNT exceeded the Russian Market which returned -8.8% over the past year.


Shareholder returns

MGNTIndustryMarket
7 Day2.4%0.4%-2.3%
30 Day2.5%0.09%-7.5%
90 Day6.8%2.1%-5.4%
1 Year69.7%55.9%4.0%0.8%-3.1%-9.3%
3 Year-26.6%-39.8%13.7%1.9%40.0%16.5%
5 Year-40.8%-54.2%13.0%-4.7%97.0%50.5%

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?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGNT (RUB4950) is trading below our estimate of fair value (RUB6256.16)

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


Price To Earnings Ratio

PE vs Industry: MGNT is poor value based on its PE Ratio (50.5x) compared to the XE Consumer Retailing industry average (21x).

PE vs Market: MGNT is poor value based on its PE Ratio (50.5x) compared to the Russian market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: MGNT is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: MGNT is overvalued based on its PB Ratio (2.6x) compared to the XE Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Magnit forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGNT's forecast earnings growth (17.3% per year) is above the savings rate (8.3%).

Earnings vs Market: MGNT's earnings (17.3% per year) are forecast to grow slower than the Russian market (25.9% per year).

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

Revenue vs Market: MGNT's revenue (5.4% per year) is forecast to grow slower than the Russian market (8.2% per year).

High Growth Revenue: MGNT's revenue (5.4% 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 (15.4%).


Next Steps

Past Performance

How has Magnit performed over the past 5 years?

-30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNT has high quality earnings.

Growing Profit Margin: MGNT's current net profit margins (1.3%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: MGNT's earnings have declined by 30.9% 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 (-16.1%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2.1%).


Return on Equity

High ROE: MGNT's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Magnit's financial position?


Financial Position Analysis

Short Term Liabilities: MGNT's short term assets (RUB251.3B) do not cover its short term liabilities (RUB300.4B).

Long Term Liabilities: MGNT's short term assets (RUB251.3B) do not cover its long term liabilities (RUB459.8B).


Debt to Equity History and Analysis

Debt Level: MGNT's debt to equity ratio (97.7%) is considered high.

Reducing Debt: MGNT's debt to equity ratio has increased from 62.7% to 97.7% over the past 5 years.

Debt Coverage: MGNT's debt is well covered by operating cash flow (47.9%).

Interest Coverage: MGNT's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

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

6.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGNT's dividend (6.15%) is higher than the bottom 25% of dividend payers in the Russian market (3.88%).

High Dividend: MGNT's dividend (6.15%) is low compared to the top 25% of dividend payers in the Russian market (8.99%).


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 (160.4%), 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 (123.4% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Jan Dunning (61 yo)

1.33yrs

Tenure

Mr. Jan Gezinus 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 Chie ...


Leadership Team

NamePositionTenureCompensationOwnership
Jan Dunning
CEO, President1.33yrsno data0.17%
RUB 843.2m
Dmitry Ivanov
Acting Chief Financial Officer0.25yrno datano data
Elena Zhavoronkova
Chief legal Officer & Member of the Management Board2.33yrsno data0.0049%
RUB 23.8m
Maria Dei
Supply Chain Director & Member of the Management Board1.67yrsno data0.0034%
RUB 16.3m
Anna Bobrova
HR Director & Member of the Management Board1.08yrsno datano data
Andrey Bodrov
Chief Investment & Strategy Officer and Member of the Management Board0.83yrno datano data
Maxim Shchegolev
Director of Chain Development0.50yrno datano data
Florian Jansen
Executive Director0.25yrno datano data
Ruslan Arif Ismailov
Deputy CEO of Retail Chain Director & Member of the Management Board0.33yrno datano data
Valentin Schitov
Chief Information Officer0.42yrno datano data
Albert Avetikov
Chief Investor Relations Officerno datano datano data
Barsukov Pavlovich
Deputy CEO of Sales5yrsno datano data

0.8yrs

Average Tenure

46.5yo

Average Age

Experienced Management: MGNT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jan Dunning
CEO, President1.33yrsno data0.17%
RUB 843.2m
Charles Ryan
Independent Chairmanno datano datano data
Alexey Makhnev
Director2.5yrsno datano data
Alexander Vinokurov
Director1.42yrsno datano data
Gregor Movat
Director0.33yrno datano data
Evgeniy Kuznetsov
Director1.42yrsno datano data
James Simmons
Independent Vice Chairman1.25yrsno datano data
Timothy Demchenko
Director2.5yrsno datano data
Walter Koch
Director1.42yrsno datano data
Evgeniy Prokoshev
Member of Supervisory Boardno datano data0.00025%
RUB 1.2m

1.4yrs

Average Tenure

46yo

Average Age

Experienced Board: MGNT's board of directors are not considered experienced ( 1.4 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

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: ₽482.873b
  • 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 EACH REPR 0.20 ORD 'REGS'GBUSDApr 2008
5M71DB (Deutsche Boerse AG)GDR EACH REPR 0.20 ORD 'REGS'DEEURApr 2008
MGNTLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REPR 0.20 ORD 'REGS'GBUSDApr 2008
MGNTWBAG (Wiener Boerse AG)GDR EACH REPR 0.20 ORD 'REGS'ATEURApr 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 Analysis2020/10/19 23:00
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.