MISX:ALRS

Stock Analysis Report

Executive Summary

Public Joint Stock Company ALROSA, together with subsidiaries, engages in the exploration and extraction of diamond reserves; and marketing and distribution of raw and cut diamonds in Russia.

Rewards

Trading at 21.6% below its fair value

Earnings are forecast to grow 13.81% per year

Risk Analysis

Has a high level of debt

Dividend of 9.54% is not well covered by earnings



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

ALRS

-0.2%

RU Metals and Mining

-0.4%

RU Market


1 Year Return

-15.8%

ALRS

14.0%

RU Metals and Mining

22.6%

RU Market

Return vs Industry: ALRS underperformed the Russian Metals and Mining industry which returned 14% over the past year.

Return vs Market: ALRS underperformed the Russian Market which returned 22.6% over the past year.


Shareholder returns

ALRSIndustryMarket
7 Day-1.8%-0.2%-0.4%
30 Day-10.7%-1.3%-4.2%
90 Day5.3%13.5%4.4%
1 Year-6.5%-15.8%24.0%14.0%31.0%22.6%
3 Year15.6%-15.5%54.1%20.0%63.3%37.6%
5 Year60.2%11.3%233.5%137.8%133.8%82.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALRS (RUB80.5) is trading below our estimate of fair value (RUB102.65)

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


Price To Earnings Ratio

PE vs Industry: ALRS is poor value based on its PE Ratio (10.1x) compared to the Metals and Mining industry average (7.3x).

PE vs Market: ALRS is poor value based on its PE Ratio (10.1x) compared to the Russian market (9x).


Price to Earnings Growth Ratio

PEG Ratio: ALRS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ALRS is overvalued based on its PB Ratio (2.4x) compared to the RU Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is ALROSA forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALRS's forecast earnings growth (13.8% per year) is above the savings rate (6.4%).

Earnings vs Market: ALRS's earnings (13.8% per year) are forecast to grow faster than the Russian market (5.3% per year).

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

Revenue vs Market: ALRS's revenue (6.7% per year) is forecast to grow faster than the Russian market (3.8% per year).

High Growth Revenue: ALRS's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALRS's Return on Equity is forecast to be high in 3 years time (31.4%)


Next Steps

Past Performance

How has ALROSA performed over the past 5 years?

25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALRS has high quality earnings.

Growing Profit Margin: ALRS's current net profit margins (27.7%) are lower than last year (38.4%).


Past Earnings Growth Analysis

Earnings Trend: ALRS's earnings have grown significantly by 25.9% per year over the past 5 years.

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

Earnings vs Industry: ALRS had negative earnings growth (-41.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (21.9%).


Return on Equity

High ROE: ALRS's Return on Equity (24.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ALROSA's financial position?


Financial Position Analysis

Short Term Liabilities: ALRS's short term assets (RUB178.1B) exceed its short term liabilities (RUB62.2B).

Long Term Liabilities: ALRS's short term assets (RUB178.1B) exceed its long term liabilities (RUB128.1B).


Debt to Equity History and Analysis

Debt Level: ALRS's debt to equity ratio (41.8%) is considered high.

Reducing Debt: ALRS's debt to equity ratio has reduced from 99.4% to 41.8% over the past 5 years.

Debt Coverage: ALRS's debt is well covered by operating cash flow (57.4%).

Interest Coverage: ALRS's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: ALRS's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

9.45%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%3.2%markettop25%7.6%industryaverage7.5%forecastin3Years12.1%

Current dividend yield vs market & industry

Notable Dividend: ALRS's dividend (9.54%) is higher than the bottom 25% of dividend payers in the Russian market (3.21%).

High Dividend: ALRS's dividend (9.54%) is in the top 25% of dividend payers in the Russian market (7.63%)


Stability and Growth of Payments

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

Growing Dividend: ALRS's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.7%), ALRS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALRS's dividends in 3 years are forecast to be covered by earnings (89.7% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Sergey Ivanov (39yo)

2.9yrs

Tenure

0

Mr. Sergey Sergeevich Ivanov, Jr., has been the President and Chief Executive Officer of Public Joint Stock Company ALROSA since March 13, 2017 and has been its Chairman of the Executive Committee since Ja ...


Leadership Team

NamePositionTenureCompensationOwnership
Sergey Ivanov
President2.9yrsno datano data
Alexey Philippovskiy
CFO & Member of the Executive Committee2.5yrsno datano data
Igor Sobolev
First Deputy CEO0yrsno datano data
Sergei Barsukov
Deputy CEO & Member of the Executive Committee2.4yrsno datano data
Alexander Matveev
Head of Legal Department & Member of the Executive Committee0yrsno datano data
Andrey Cherepnov
Chief Engineer & Member of the Executive Committee0yrsno data0.00041% RUB2.4m
Yevgeny Agureyev
Deputy General Director2.4yrsno datano data
Evgeny Agureev
Deputy CEO & Director of the United Selling Organization and Member of the Executive Committee0yrsno datano data
Svetlana Linnik
Chief Accountant5.1yrsno datano data
Sergey Takhiev
Head of Corporate Finance1.8yrsno datano data

2.5yrs

Average Tenure

45yo

Average Age

Experienced Management: ALRS's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sergey Ivanov
President2.9yrsno datano data
Egor Borisov
First Deputy Chairman of the Supervisory Board4.6yrsno datano data
Galina Makarova
Independent Member of the Supervisory Board1.3yrsno datano data
Maria Gordon
Senior Independent Member of the Supervisory Board2.4yrs₽6.90mno data
Aysen Nikolaev
First Deputy Chairman of the Supervisory Board0.6yrsno datano data
Anton Siluanov
Chairman of the Supervisory Board0.6yrsno datano data
Sergey Mestnikov
Member of the Supervisory Board2.7yrs₽6.00mno data
Evgenia Grigorieva
Member of the Supervisory Board4.7yrsno datano data
Victor Pushmin
Deputy Chairman of the Auditing Committee0.9yrsno datano data
Pshchenichnikov Alexeevich
Chairman of the Auditing Committee0.9yrsno datano data

1.1yrs

Average Tenure

47.5yo

Average Age

Experienced Board: ALRS's board of directors are not considered experienced ( 1.1 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 ALROSA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company ALROSA
  • Ticker: ALRS
  • Exchange: MISX
  • Founded: 1957
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: ₽585.724b
  • Shares outstanding: 7.21b
  • Website: https://www.alrosa.ru

Location

  • Public Joint Stock Company ALROSA
  • ul. Lenina, 6
  • Mirny
  • Arkhangelskaya obl.
  • 678174
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALRSMISX (Micex - Rts)YesOrdinary SharesRURUBOct 2011

Biography

Public Joint Stock Company ALROSA, together with subsidiaries, engages in the exploration and extraction of diamond reserves; and marketing and distribution of raw and cut diamonds in Russia. The company operates through Diamonds Segment, Transportation, and Social Infrastructure segments. It operates mining facilities in Mirny, Udachny, Aikhal, Nyurba, and Anabar located in eastern Siberia, as well as in the Arkhangelsk region. The company also engages in the airline business and production of electricity; and provides transportation services, as well as services at transportation terminals, ports, and airports. Public Joint Stock Company ALROSA markets its products in Belgium, Russia, India, Israel, the United Arab Emirates, China, the Republic of Botswana, Armenia, Angola, Belarus, the United States, the United Kingdom, and internationally. The company was founded in 1957 and is headquartered in Mirny, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:42
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.