MISX:GCHE

Stock Analysis Report

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Executive Summary

Public Joint Stock Company Cherkizovo Group, together with its subsidiaries, engages in poultry and pork production, and meat processing activities in Russia and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.


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Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

GCHE

-1.8%

RU Food

-2.3%

RU Market


1 Year Return

-7.0%

GCHE

-6.4%

RU Food

-6.0%

RU Market

Return vs Industry: GCHE underperformed the Russian Food industry which returned -2% over the past year.

Return vs Market: GCHE underperformed the Russian Market which returned -5.4% over the past year.


Shareholder returns

GCHEIndustryMarket
7 Day-1.7%-1.8%-2.3%
30 Day2.0%1.4%-0.8%
90 Day-11.9%-11.3%5.8%
1 Year-1.4%-7.0%-2.1%-6.4%-1.0%-6.0%
3 Year64.9%30.5%46.1%23.8%57.5%33.4%
5 Year205.5%126.8%50.3%36.0%117.3%69.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cherkizovo Group undervalued compared to its fair value and its price relative to the market?

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GCHE (RUB1730.5) is trading below our estimate of fair value (RUB2268.18)

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


Price To Earnings Ratio

PE vs Industry: GCHE is good value based on its PE Ratio (10.8x) compared to the Food industry average (17.7x).

PE vs Market: GCHE is poor value based on its PE Ratio (10.8x) compared to the Russian market (8.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GCHE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GCHE is overvalued based on its PB Ratio (1.2x) compared to the XE Food industry average (1.1x).


Next Steps

Future Growth

How is Cherkizovo Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.3%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cherkizovo Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cherkizovo Group performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCHE has high quality earnings.

Growing Profit Margin: GCHE's current net profit margins (5.3%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: GCHE's earnings have declined by -7.8% per year over the past 5 years.

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

Earnings vs Industry: GCHE had negative earnings growth (-46.3%) over the past year, making it difficult to compare to the Food industry average (-3%).


Return on Equity

High ROE: GCHE's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Cherkizovo Group's financial position?


Financial Position Analysis

Short Term Liabilities: GCHE's short term assets (RUB53.6B) exceed its short term liabilities (RUB49.4B).

Long Term Liabilities: GCHE's short term assets (RUB53.6B) exceed its long term liabilities (RUB44.6B).


Debt to Equity History and Analysis

Debt Level: GCHE's debt to equity ratio (117%) is considered high.

Reducing Debt: GCHE's debt to equity ratio has increased from 58.4% to 117% over the past 5 years.

Debt Coverage: GCHE's debt is well covered by operating cash flow (24.2%).

Interest Coverage: GCHE's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Cherkizovo Group current dividend yield, its reliability and sustainability?

6.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GCHE's dividend (6.34%) is higher than the bottom 25% of dividend payers in the Russian market (4.04%).

High Dividend: GCHE's dividend (6.34%) is low compared to the top 25% of dividend payers in the Russian market (9.21%).


Stability and Growth of Payments

Stable Dividend: GCHE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GCHE's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.7%), GCHE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Sergey Mikhailov (41yo)

14.5yrs

Tenure

Mr. Sergey I. Mikhailov has been the Chief Executive Officer Public Joint Stock Company Cherkizovo Group since February 8, 2006 and served as its Member of Management Board until February 12, 2020 & serves ...


Leadership Team

NamePositionTenureCompensationOwnership
Ludmila Mikhaylova
CFO & Member of Management Board14.5yrs₽656.00k0.42% RUB300.1m
Evgeny Mikhailov
Chairman of the Board & Head of Business Development4.17yrsno data43.6% RUB31.0b
Sergey Mikhailov
Group CEO & Executive Director14.5yrsno data28.13% RUB20.0b
Yury Dyachuk
Head of the Legal Support & Real Estate Operations Department and Member of Management Boardno datano data0.093% RUB65.7m
Vladislav Belyaev
Head of IT & Member of Management Boardno datano datano data
Alexey Skorobogatov
Director of Procurementno datano datano data
Emin Tofik Mammadov
Deputy CEO & Member of the Management Board0.17yrno datano data
Alexander Gusakov
Security Director & Member of Management Board3.83yrsno datano data
Maksim Zudin
Director of the MC Poultry Breeding & Member of the Management Board3.83yrsno datano data
Leonid Izmailov
Head of Investment Projects Department & Member of Management Board3.83yrsno data0.00077% RUB546.9k

3.8yrs

Average Tenure

42.5yo

Average Age

Experienced Management: GCHE's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Evgeny Mikhailov
Chairman of the Board & Head of Business Development4.17yrsno data43.6% RUB31.0b
Sergey Mikhailov
Group CEO & Executive Director14.5yrsno data28.13% RUB20.0b
Richard Sobel
Deputy Chairman4.17yrsno datano data
Filip Kegels
Independent Non-Executive Directorno datano datano data
Yekaterina Kolesnikova
Member of Audit Commissionno datano datano data
Yevgeniy Fillipov
Member of Audit Commissionno datano datano data
Elliot Jones
Independent Non-Executive Director4.25yrsno datano data
Rafael Fuertes
Non-Executive Director4.25yrsno datano data

4.2yrs

Average Tenure

41yo

Average Age

Experienced Board: GCHE's board of directors are considered experienced (4.2 years average tenure).


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 "Cherkizovo Group"'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company "Cherkizovo Group"
  • Ticker: GCHE
  • Exchange: MISX
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₽71.032b
  • Shares outstanding: 41.05m
  • Website: https://www.cherkizovo.com

Number of Employees


Location

  • Public Joint Stock Company "Cherkizovo Group"
  • White Square Office Center
  • 12th Floor
  • Moscow
  • 125047
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
L6HBST (Boerse-Stuttgart)GDR(EACH 3 REPR 2 ORD) REGSDEEURMay 2006
GCHEMISX (Micex - Rts)YesOrdinary SharesRURUBDec 2006

Biography

Public Joint Stock Company Cherkizovo Group, together with its subsidiaries, engages in poultry and pork production, and meat processing activities in Russia and internationally. It operates through five segments: Meat Processing, Pork, Poultry, Grain, and Feed. The company produces a range of processed meat products, including sausages, ham, hot dogs, cutlets, pork meat, etc. It also engages in the breeding, raising, and processing of broilers; sale of chilled and frozen chicken products; and breeding, raising, and sale of live pigs. In addition, the company is involved in the farming of wheat and other crops; production of dairy; sale of non-hatchery eggs; and other services. It offers its products under the Cherkizovo, Pyat Zvezd, Petelinka, Kurinoe Tsarstvo, and Imperia Vkusa brands. Public Joint Stock Company Cherkizovo Group is headquartered in Moscow, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 20:49
End of Day Share Price2020/06/30 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.