MISX:NVTK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NVTK is more volatile than 75% of Russian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NVTK's weekly volatility (5%) has been stable over the past year, but is still higher than 75% of Russian stocks.


Market Performance


7 Day Return

-0.5%

NVTK

1.9%

RU Oil and Gas

-0.5%

RU Market


1 Year Return

-0.3%

NVTK

-21.9%

RU Oil and Gas

-5.0%

RU Market

Return vs Industry: NVTK exceeded the Russian Oil and Gas industry which returned -23.3% over the past year.

Return vs Market: NVTK exceeded the Russian Market which returned -5.7% over the past year.


Shareholder returns

NVTKIndustryMarket
7 Day-0.5%1.9%-0.5%
30 Day21.8%14.1%9.0%
90 Day13.7%-1.8%-0.5%
1 Year2.6%-0.3%-16.1%-21.9%1.6%-5.0%
3 Year104.0%89.9%53.1%25.3%46.8%21.7%
5 Year135.8%110.6%92.1%44.3%110.2%60.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PAO NOVATEK undervalued compared to its fair value and its price relative to the market?

55.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NVTK (RUB1265.6) is trading above our estimate of fair value (RUB427.89)

Significantly Below Fair Value: NVTK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NVTK is poor value based on its PE Ratio (55.1x) compared to the RU Oil and Gas industry average (10.7x).

PE vs Market: NVTK is poor value based on its PE Ratio (55.1x) compared to the Russian market (10.8x).


Price to Earnings Growth Ratio

PEG Ratio: NVTK is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: NVTK is overvalued based on its PB Ratio (2.4x) compared to the RU Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is PAO NOVATEK forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVTK's forecast earnings growth (30.5% per year) is above the savings rate (8.3%).

Earnings vs Market: NVTK's earnings (30.5% per year) are forecast to grow faster than the Russian market (24.4% per year).

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

Revenue vs Market: NVTK's revenue (10.7% per year) is forecast to grow faster than the Russian market (8.4% per year).

High Growth Revenue: NVTK's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVTK's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has PAO NOVATEK performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVTK has high quality earnings.

Growing Profit Margin: NVTK's current net profit margins (10.5%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: NVTK's earnings have grown significantly by 31.6% per year over the past 5 years.

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

Earnings vs Industry: NVTK had negative earnings growth (-92.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-45.3%).


Return on Equity

High ROE: NVTK's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is PAO NOVATEK's financial position?


Financial Position Analysis

Short Term Liabilities: NVTK's short term assets (RUB394.0B) exceed its short term liabilities (RUB193.3B).

Long Term Liabilities: NVTK's short term assets (RUB394.0B) exceed its long term liabilities (RUB235.9B).


Debt to Equity History and Analysis

Debt Level: NVTK's debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: NVTK's debt to equity ratio has reduced from 71.4% to 12.7% over the past 5 years.

Debt Coverage: NVTK's debt is well covered by operating cash flow (95.4%).

Interest Coverage: NVTK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is PAO NOVATEK current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NVTK's dividend (2.38%) isn’t notable compared to the bottom 25% of dividend payers in the Russian market (3.94%).

High Dividend: NVTK's dividend (2.38%) is low compared to the top 25% of dividend payers in the Russian market (8.14%).


Stability and Growth of Payments

Stable Dividend: NVTK is not paying a notable dividend for the Russian market, therefore no need to check if payments are stable.

Growing Dividend: NVTK is not paying a notable dividend for the Russian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NVTK is not paying a notable dividend for the Russian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVTK's dividend in 3 years as they are not forecast to pay a notable one for the Russian market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Leonid Mikhelson (65 yo)

no data

Tenure

Mr. Leonid Viktorovich Mikhelson has been the Chairman of Executive Management Board at Joint Stock Company NOVATEK (formerly known as PAO NOVATEK (formerly known as OAO NOVATEK)) since 2003 and serves as ...


Leadership Team

NamePositionTenureCompensationOwnership
Leonid Mikhelson
CEO, Chairman of the Management Boardno datano data0.0068%
RUB 251.5m
Mark Gyetvay
Deputy Chairman of the Management Board & CFO10.33yrsno datano data
Tatyana Kuznetsova
Deputy Chairman of Management Boardno datano data0.20%
RUB 7.3b
Vladimir Basko
Deputy Chairman of Management Board15.83yrsno data0.029%
RUB 1.1b
Lev Feodosyev
First Deputy Chairman of the Management Board5.75yrsno datano data
Viktor Belyakov
Deputy Chairman of Management Board4.67yrsno datano data
Ilya Tafintsev
Deputy Chairman of the Management Board2.83yrsno data0.00081%
RUB 30.1m
Sergey Vasyunin
Deputy Chairman of Management Board & Operations Director3.5yrsno data0.00030%
RUB 11.1m
Eduard Gudkov
Deputy Chairman of the Management Board2.17yrsno data0.00030%
RUB 11.1m
Denis Solovyov
Deputy Chairman of the Management Board & Director of Communications Development Department2.17yrsno datano data
Evgeniy Ambrosov
Deputy Chairman of the Management Board and Director for Marine Operationsno datano datano data
Evgeny Kot
Member of Management Board1.83yrsno datano data

3.5yrs

Average Tenure

61.5yo

Average Age

Experienced Management: NVTK's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leonid Mikhelson
CEO, Chairman of the Management Boardno datano data0.0068%
RUB 251.5m
Robert Castaigne
Independent Director5.58yrsno datano data
Andrey Akimov
Director5.08yrsno data0.010%
RUB 387.9m
Alexander Natalenko
Chairman of the Board16.83yrsno datano data
Michael Borrell
Director5.58yrsno datano data
Gennady Timchenko
Director5.08yrsno datano data
Viktor Orlov
Independent Director6.58yrsno datano data
Arnaud Le Foll
Director1.83yrsno datano data
Tatiana Mitrova
Independent Director0.58yrno datano data

5.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NVTK's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NVTK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PAO NOVATEK's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PAO NOVATEK
  • Ticker: NVTK
  • Exchange: MISX
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$49.215b
  • Listing Market Cap: US$3.715t
  • Shares outstanding: 300.28m
  • Website: https://www.novatek.ru

Location

  • PAO NOVATEK
  • Ulitsa Pobedy 22a
  • Tarko-Sale
  • Yamalo-Nenetsky AO
  • 629850
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTKMISX (Micex - Rts)Ordinary SharesRURUBDec 2004
NVTKLSE (London Stock Exchange)YesGDR EACH REPR 10 ORD 'REG S'GBUSDJul 2005
N1ODB (Deutsche Boerse AG)YesGDR EACH REPR 10 ORD 'REG S'DEEURJul 2005
NOVK.YOTCPK (Pink Sheets LLC)YesGDR EACH REPR 10 ORD 'REG S'USUSDJul 2005
NVTKLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH REPR 10 ORD 'REG S'GBUSDJul 2005
NVTKWBAG (Wiener Boerse AG)YesGDR EACH REPR 10 ORD 'REG S'ATEURJul 2005

Biography

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons. It principally h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 21:54
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.