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.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.4%

MGNT

2.0%

RU Consumer Retailing

1.9%

RU Market


1 Year Return

0.04%

MGNT

0.004%

RU Consumer Retailing

0.5%

RU Market

Return vs Industry: MGNT matched the Russian Consumer Retailing industry which returned 0.1% over the past year.

Return vs Market: MGNT underperformed the Russian Market which returned 1.3% over the past year.


Shareholder returns

MGNTIndustryMarket
7 Day3.4%2.0%1.9%
30 Day1.4%0.4%2.8%
90 Day16.8%3.1%-4.0%
1 Year9.4%0.04%3.3%0.004%7.2%0.5%
3 Year-49.8%-57.9%0.7%-9.1%58.8%33.4%
5 Year-55.8%-65.0%4.9%-11.1%115.0%67.6%

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 (RUB3740) is trading below our estimate of fair value (RUB11370.12)

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 (33.2x) compared to the Consumer Retailing industry average (20.1x).

PE vs Market: MGNT is poor value based on its PE Ratio (33.2x) compared to the Russian market (8.5x).


Price to Earnings Growth Ratio

PEG Ratio: MGNT is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MGNT is overvalued based on its PB Ratio (1.9x) 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 11 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGNT's forecast earnings growth (21.6% per year) is above the savings rate (8.3%).

Earnings vs Market: MGNT's earnings (21.6% per year) are forecast to grow faster than the Russian market (11.8% per year).

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

Revenue vs Market: MGNT's revenue (7.5% per year) is forecast to grow faster than the Russian market (5.9% per year).

High Growth Revenue: MGNT's revenue (7.5% 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 (13.4%).


Next Steps

Past Performance

How has Magnit performed over the past 5 years?

-30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNT has high quality earnings.

Growing Profit Margin: MGNT's current net profit margins (0.8%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: MGNT's earnings have declined by -30.3% 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 (-63.4%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-1.1%).


Return on Equity

High ROE: MGNT's Return on Equity (5.8%) 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 (1x coverage).


Balance Sheet


Next Steps

Dividend

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

8.13%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MGNT's dividend (8.13%) is higher than the bottom 25% of dividend payers in the Russian market (3.65%).

High Dividend: MGNT's dividend (8.13%) is low compared to the top 25% of dividend payers in the Russian market (9.06%).


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 (270.3%), 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 (112.1% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Jan Dunning (60yo)

0.83

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, President0.83yrno data0.17% RUB636.9m
Elena Milinova
CFO & Deputy Chairman of the Management Board1.83yrsno data0.014% RUB51.4m
Elena Zhavoronkova
Member of the Management Board1.83yrsno data0.0049% RUB17.9m
Evgeny Melnikov
Director of IT1.58yrsno data0.0033% RUB12.2m
Vladimir Sorokin
Member of the Management Board1.33yrsno data0.038% RUB137.2m
Maria Dei
Supply Chain Director & Member of the Management Board1.17yrsno data0.0033% RUB12.2m
Anton Grigorevich
Member of Management Board0.83yrno datano data
Anna Bobrova
HR Director & Member of the Management Board0.58yrno datano data
Andrey Bodrov
Chief Investment Officer & Member of the Management Board0.42yrno datano data
Maxim Shchegolev
Member of Management Boardno datano datano data

1.2yrs

Average Tenure

45.5yo

Average Age

Experienced Management: MGNT's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jan Dunning
CEO, President0.83yrno data0.17% RUB636.9m
Florian Jansen
Executive Director & Deputy CEO0.83yrno datano data
Charles Ryan
Independent Chairmanno datano datano data
Alexey Makhnev
Director2yrsno datano data
Alexander Vinokurov
Director1yrno datano data
Evgeniy Kuznetsov
Director1yrno datano data
James Simmons
Vice Chairman0.83yrno datano data
Timothy Demchenko
Director2yrsno datano data
Walter Koch
Director1yrno datano data
Evgeniy Prokoshev
Member of Supervisory Boardno datano data0.00025% RUB912.1k

1.0yrs

Average Tenure

44yo

Average Age

Experienced Board: MGNT's board of directors are not considered experienced ( 1 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: ₽364.837b
  • 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 through convenience stores, cosmetic stores, hypermarkets, and others. As of March 31, 2019, it operated 38 distribution centers, 13,909 convenience, 467 supermarkets, and 4,847 drogerie stores in 3,077 cities and towns throughout seven federal regions of Russia. Public Joint Stock Company Magnit was founded in 1994 and is headquartered in Krasnodar, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 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.