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 43.8% below its fair value

Earnings are forecast to grow 13.57% per year

Risk Analysis

Dividend of 9.97% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt



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

-1.1%

ALRS

-0.8%

RU Metals and Mining

-0.7%

RU Market


1 Year Return

-22.2%

ALRS

0.5%

RU Metals and Mining

18.2%

RU Market

Return vs Industry: ALRS underperformed the Russian Metals and Mining industry which returned 0.5% over the past year.

Return vs Market: ALRS underperformed the Russian Market which returned 18.2% over the past year.


Shareholder returns

ALRSIndustryMarket
7 Day-1.1%-0.8%-0.7%
30 Day2.0%-4.1%-2.4%
90 Day2.2%-4.6%4.4%
1 Year-13.6%-22.2%9.7%0.5%26.8%18.2%
3 Year14.6%-16.3%40.9%10.1%52.0%28.5%
5 Year113.7%48.5%273.1%165.6%165.1%107.6%

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?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALRS (RUB77.04) is trading below our estimate of fair value (RUB136.97)

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 (9.7x) compared to the Metals and Mining industry average (5.1x).

PE vs Market: ALRS is poor value based on its PE Ratio (9.7x) compared to the Russian market (7.5x).


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 (2.3x) compared to the RU Metals and Mining industry average (0.5x).


Next Steps

Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALRS's forecast earnings growth (13.6% per year) is above the savings rate (6.4%).

Earnings vs Market: ALRS's earnings (13.6% per year) are forecast to grow faster than the Russian market (4.4% per year).

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

Revenue vs Market: ALRS's revenue (10.1% per year) is forecast to grow faster than the Russian market (4.2% per year).

High Growth Revenue: ALRS's revenue (10.1% 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 (37.9%)


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 (19%).


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?

9.97%

Current Dividend Yield


Dividend Yield vs Market

company10.0%marketbottom25%3.5%markettop25%8.6%industryaverage8.2%forecastin3Years12.0%

Current dividend yield vs market & industry

Notable Dividend: ALRS's dividend (9.97%) is higher than the bottom 25% of dividend payers in the Russian market (3.54%).

High Dividend: ALRS's dividend (9.97%) is in the top 25% of dividend payers in the Russian market (8.55%)


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 not forecast to be well covered by earnings (100.3% payout ratio).


Next Steps

Management

What is the CEO of ALROSA's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Sergey Ivanov (39yo)

2.8yrs

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 ...


Management Age and Tenure

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: ALRS's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

49.5yo

Average Age

Experienced Board: ALRS's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Igor Sobolev (50yo)

    First Deputy CEO

    • Tenure: 0yrs
  • Alexey Philippovskiy (47yo)

    CFO & Member of the Executive Committee

    • Tenure: 2.3yrs
  • Sergei Barsukov (48yo)

    Deputy CEO & Member of the Executive Committee

    • Tenure: 2.3yrs
  • Sergey Takhiev

    Head of Corporate Finance

    • Tenure: 1.6yrs
  • Alexander Matveev (43yo)

    Head of Legal Department & Member of the Executive Committee

    • Tenure: 0yrs
  • Andrey Cherepnov (53yo)

    Chief Engineer & Member of the Executive Committee

    • Tenure: 0yrs
  • Svetlana Linnik

    Chief Accountant

    • Tenure: 4.9yrs
  • Sergey Ivanov (39yo)

    President

    • Tenure: 2.8yrs
  • Yevgeny Agureyev (41yo)

    Deputy General Director

    • Tenure: 2.3yrs
  • Vadim Zheltuhin

    Chief Financial Officer and Risk Management

    • Tenure: 0yrs

Board Members

  • Egor Borisov (65yo)

    First Deputy Chairman of the Supervisory Board

    • Tenure: 4.4yrs
  • Galina Makarova (63yo)

    Independent Member of the Supervisory Board

    • Tenure: 1.2yrs
  • Maria Gordon (45yo)

    Senior Independent Member of the Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: ₽6.90m
  • Aysen Nikolaev (47yo)

    First Deputy Chairman of the Supervisory Board

    • Tenure: 0.4yrs
  • Anton Siluanov (56yo)

    Chairman of the Supervisory Board

    • Tenure: 0.4yrs
  • Sergey Mestnikov (38yo)

    Member of the Supervisory Board

    • Tenure: 2.5yrs
    • Compensation: ₽6.00m
  • Evgenia Grigorieva (54yo)

    Member of the Supervisory Board

    • Tenure: 4.5yrs
  • Oleg Fedorov (51yo)

    Independent Member of the Supervisory Board

    • Tenure: 6.5yrs
    • Compensation: ₽6.00m
  • Victor Pushmin (48yo)

    Deputy Chairman of the Auditing Committee

    • Tenure: 0.8yrs
  • Sergey Ivanov (39yo)

    President

    • Tenure: 2.8yrs

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: ₽550.112b
  • 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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 21:36
End of Day Share Price2019/12/06 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.