Stock Analysis

I Built A List Of Growing Companies And Moscow Exchange MICEX-RTS (MCX:MOEX) Made The Cut

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MISX:MOEX
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Moscow Exchange MICEX-RTS (MCX:MOEX). While profit is not necessarily a social good, it's easy to admire a business that can consistently produce it. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.

Check out our latest analysis for Moscow Exchange MICEX-RTS

Moscow Exchange MICEX-RTS's Earnings Per Share Are Growing.

The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. That makes EPS growth an attractive quality for any company. We can see that in the last three years Moscow Exchange MICEX-RTS grew its EPS by 13% per year. That's a pretty good rate, if the company can sustain it.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. I note that Moscow Exchange MICEX-RTS's revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. Moscow Exchange MICEX-RTS maintained stable EBIT margins over the last year, all while growing revenue 15% to ₽54b. That's progress.

In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.

earnings-and-revenue-history
MISX:MOEX Earnings and Revenue History December 26th 2021

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Moscow Exchange MICEX-RTS's forecast profits?

Are Moscow Exchange MICEX-RTS Insiders Aligned With All Shareholders?

I always like to check up on CEO compensation, because I think that reasonable pay levels, around or below the median, can be a sign that shareholder interests are well considered. I discovered that the median total compensation for the CEOs of companies like Moscow Exchange MICEX-RTS with market caps between ₽147b and ₽471b is about ₽113m.

The Moscow Exchange MICEX-RTS CEO received total compensation of only ₽116k in the year to . You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally.

Is Moscow Exchange MICEX-RTS Worth Keeping An Eye On?

One positive for Moscow Exchange MICEX-RTS is that it is growing EPS. That's nice to see. Not only that, but the CEO is paid quite reasonably, which makes me feel more trusting of the board of directors. So all in all I think it's worth at least considering for your watchlist. You should always think about risks though. Case in point, we've spotted 1 warning sign for Moscow Exchange MICEX-RTS you should be aware of.

Although Moscow Exchange MICEX-RTS certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Valuation is complex, but we're helping make it simple.

Find out whether Moscow Exchange MICEX-RTS is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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