MISX:AKRN

Stock Analysis Report

Executive Summary

Public Joint Stock Company Acron, together with its subsidiaries, manufactures, distributes, and sells chemical fertilizers and related mineral by-products in Russia, European Union, the Commonwealth of Independent States, the United States, Canada, Latin America, the People’s Republic of China, rest of Asia, and other regions.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

AKRN

2.3%

RU Chemicals

2.5%

RU Market


1 Year Return

30.8%

AKRN

11.0%

RU Chemicals

-1.3%

RU Market

Return vs Industry: AKRN exceeded the Russian Chemicals industry which returned 11.2% over the past year.

Return vs Market: AKRN exceeded the Russian Market which returned -3.7% over the past year.


Shareholder returns

AKRNIndustryMarket
7 Day-1.3%2.3%2.5%
30 Day16.9%2.7%-11.3%
90 Day24.4%1.4%-18.7%
1 Year37.5%30.8%21.9%11.0%5.5%-1.3%
3 Year131.5%79.8%40.9%19.9%36.8%15.3%
5 Year289.4%158.7%105.8%63.5%96.9%54.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AKRN (RUB5950) is trading above our estimate of fair value (RUB3450.53)

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


Price To Earnings Ratio

PE vs Industry: AKRN is poor value based on its PE Ratio (9.6x) compared to the Chemicals industry average (7x).

PE vs Market: AKRN is poor value based on its PE Ratio (9.6x) compared to the Russian market (7.5x).


Price to Earnings Growth Ratio

PEG Ratio: AKRN is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: AKRN is overvalued based on its PB Ratio (3.8x) compared to the RU Chemicals industry average (1.4x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKRN's forecast earnings growth (4% per year) is below the savings rate (6.4%).

Earnings vs Market: AKRN's earnings (4% per year) are forecast to grow slower than the Russian market (6.4% per year).

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

Revenue vs Market: AKRN's revenue (7.3% per year) is forecast to grow faster than the Russian market (5.4% per year).

High Growth Revenue: AKRN's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKRN's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Acron performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKRN has high quality earnings.

Growing Profit Margin: AKRN's current net profit margins (21.1%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: AKRN's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: AKRN's earnings growth over the past year (89.7%) exceeds its 5-year average (11.1% per year).

Earnings vs Industry: AKRN earnings growth over the past year (89.7%) exceeded the Chemicals industry 52.1%.


Return on Equity

High ROE: Whilst AKRN's Return on Equity (30.24%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Acron's financial position?


Financial Position Analysis

Short Term Liabilities: AKRN's short term assets (RUB42.8B) exceed its short term liabilities (RUB33.7B).

Long Term Liabilities: AKRN's short term assets (RUB42.8B) do not cover its long term liabilities (RUB84.7B).


Debt to Equity History and Analysis

Debt Level: AKRN's debt to equity ratio (105.6%) is considered high.

Reducing Debt: AKRN's debt to equity ratio has increased from 86.5% to 105.6% over the past 5 years.

Debt Coverage: AKRN's debt is well covered by operating cash flow (32.7%).

Interest Coverage: AKRN's interest payments on its debt are well covered by EBIT (23.9x coverage).


Balance Sheet

Inventory Level: AKRN has a high level of physical assets or inventory.

Debt Coverage by Assets: AKRN's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

4.34%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AKRN's dividend (4.34%) is higher than the bottom 25% of dividend payers in the Russian market (4.08%).

High Dividend: AKRN's dividend (4.34%) is low compared to the top 25% of dividend payers in the Russian market (9.75%).


Stability and Growth of Payments

Stable Dividend: AKRN's dividend payments have been volatile in the past 10 years.

Growing Dividend: AKRN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.6%), AKRN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AKRN's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Vladimir Kunitsky (71yo)

9.25s

Tenure

Mr. Vladimir Ya. Kunitsky has been the Chairman of the Managing Board and Chief Executive Officer of Public Joint Stock Company Acron since 2011 and has been its Member of the Managing Board since 2005. Mr ...


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Popov
Chairman & Senior VP4.75yrsno data0.051% RUB118.2m
Vladimir Kunitsky
Chairman of the Management Board & CEO9.25yrsno data0.045% RUB103.7m
Vladimir Gavrikov
Deputy Chairman of the Board4.75yrsno datano data
Dmitry Balandin
VP of Finance & Economics and Member of the Managing Board1.33yrsno datano data
Alexei Milenkov
Finance Director & Member of the Managing Board10yrsno data0.0021% RUB4.8m
Dmitry Khabrat
VP of Overseas & Member of the Managing Board7.75yrsno datano data
Irina Raber
VP of Human Resources & Special Projects and Member of the Managing Board6.25yrsno datano data
Alexander Lebedev
VP of Domestic Business & Agricultural Projects and Member of the Managing Board1.33yrsno datano data
Ilya K. Popov
Head of Investor Relationsno datano datano data
Alexander Dynkin
CEO Advisor & Director12.25yrsno datano data

8.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: AKRN's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Popov
Chairman & Senior VP4.75yrsno data0.051% RUB118.2m
Vladimir Gavrikov
Deputy Chairman of the Board4.75yrsno datano data
Alexander Dynkin
CEO Advisor & Director12.25yrsno datano data
Georgy Golukhov
CEO Advisor & Director3.92yrsno datano data
Nikolai Arutyunov
Senior Independent Director3.92yrsno datano data
Yuriy Malyshev
Independent Director4.92yrsno datano data
Vladimir Sister
Independent Director4.92yrsno datano data

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: AKRN's board of directors are considered experienced (4.8 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 Acron's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Acron
  • Ticker: AKRN
  • Exchange: MISX
  • Founded: 1992
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: ₽231.795b
  • Shares outstanding: 38.96m
  • Website: https://www.acron.ru

Location

  • Public Joint Stock Company Acron
  • World Trade Centre
  • 12 Krasnopresnenskaya Naberezhnaya
  • Moscow
  • 123610
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKRNMISX (Micex - Rts)YesOrdinary SharesRURUBJan 1996
AKRNLSE (London Stock Exchange)GDR 10 GDRS REP 1 ORD 'REG S'GBUSDAug 2008
AKRNLBATS-CHIXE (BATS 'Chi-X Europe')GDR 10 GDRS REP 1 ORD 'REG S'GBUSDAug 2008

Biography

Public Joint Stock Company Acron, together with its subsidiaries, manufactures, distributes, and sells chemical fertilizers and related mineral by-products in Russia, European Union, the Commonwealth of Independent States, the United States, Canada, Latin America, the People’s Republic of China, rest of Asia, and other regions. It offers mineral fertilizers, including complex and nitrogen fertilizers; organic compounds comprising methanol, formalin, urea-formaldehyde resins, melamine-urea-formaldehyde resins, and dipping resins; and non-organic compounds, such as low and high density ammonium nitrate, conversion calcium carbonate, liquid carbon dioxide, and urea for diesel exhaust fluid production. The company also provides rare earth elements (REE) from apatite concentrate process flows consisting of cerium, lanthanum, neodymium, and didymium, as well as concentrates of light, medium, and heavy REE; and apatite concentrate and ammonia. The company was formerly known as Joint Stock Company Acron and changed its name to Public Joint Stock Company Acron in June 2016. The company was incorporated in 1992 and is headquartered in Moscow, Russia. Public Joint Stock Company Acron is a subsidiary of Redbrick Investments S.a.r.l. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 21:54
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.