MISX:CHMF

Stock Analysis Report

Executive Summary

PAO Severstal, together with its subsidiaries, operates as an integrated steel and steel-related mining company in Russia, Europe, CIS, the Middle East, North America, Africa, Central and South America, and Asia.

Rewards

PE ratio (6.8x) is below the Russian market (8.9x)

Risk Analysis

Earnings are forecast to decline by an average of -3.9% per year for the next 3 years

Has a high level of debt

Dividend of 16.49% is not well covered by earnings



Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.3%

CHMF

0.08%

RU Metals and Mining

2.4%

RU Market


1 Year Return

-8.7%

CHMF

14.1%

RU Metals and Mining

23.9%

RU Market

Return vs Industry: CHMF underperformed the Russian Metals and Mining industry which returned 15.3% over the past year.

Return vs Market: CHMF underperformed the Russian Market which returned 23% over the past year.


Shareholder returns

CHMFIndustryMarket
7 Day0.3%0.08%2.4%
30 Day-5.4%-0.9%-2.9%
90 Day2.2%14.7%5.6%
1 Year3.0%-8.7%24.1%14.1%32.4%23.9%
3 Year58.6%4.8%53.0%19.2%65.7%39.5%
5 Year136.9%31.2%231.6%136.2%134.1%82.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHMF (RUB924.6) is trading above our estimate of fair value (RUB743.24)

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


Price To Earnings Ratio

PE vs Industry: CHMF is good value based on its PE Ratio (6.8x) compared to the Metals and Mining industry average (6.8x).

PE vs Market: CHMF is good value based on its PE Ratio (6.8x) compared to the Russian market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: CHMF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CHMF is overvalued based on its PB Ratio (3.5x) compared to the RU Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is PAO Severstal forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHMF's earnings are forecast to decline over the next 3 years (-3.9% per year).

Earnings vs Market: CHMF's earnings are forecast to decline over the next 3 years (-3.9% per year).

High Growth Earnings: CHMF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CHMF's revenue (0.4% per year) is forecast to grow slower than the Russian market (3.8% per year).

High Growth Revenue: CHMF's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHMF's Return on Equity is forecast to be high in 3 years time (34.7%)


Next Steps

Past Performance

How has PAO Severstal performed over the past 5 years?

41.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHMF has high quality earnings.

Growing Profit Margin: CHMF's current net profit margins (21.7%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: CHMF has become profitable over the past 5 years, growing earnings by 41% per year.

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

Earnings vs Industry: CHMF had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (21.9%).


Return on Equity

High ROE: CHMF's Return on Equity (50.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PAO Severstal's financial position?


Financial Position Analysis

Short Term Liabilities: CHMF's short term assets ($3.1B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: CHMF's short term assets ($3.1B) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: CHMF's debt to equity ratio (76.2%) is considered high.

Reducing Debt: CHMF's debt to equity ratio has reduced from 120.4% to 76.2% over the past 5 years.

Debt Coverage: CHMF's debt is well covered by operating cash flow (86.5%).

Interest Coverage: CHMF's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CHMF's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

16.49%

Current Dividend Yield


Upcoming Dividend Payment

Purchase PAO Severstal before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company16.5%marketbottom25%3.2%markettop25%7.5%industryaverage7.4%forecastin3Years9.9%

Current dividend yield vs market & industry

Notable Dividend: CHMF's dividend (16.49%) is higher than the bottom 25% of dividend payers in the Russian market (3.26%).

High Dividend: CHMF's dividend (16.49%) is in the top 25% of dividend payers in the Russian market (7.69%)


Stability and Growth of Payments

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

Growing Dividend: CHMF's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (172.6%), CHMF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHMF's dividends in 3 years are forecast to be covered by earnings (75% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Alexander Shevelev (45yo)

3.2yrs

Tenure

0

Mr. Alexander Anatolievich Shevelev has been the Chief Executive Officer of AO Severstal Management at PAO Severstal since November 2016. He started his career at Cherepovets Steel Mill as a repairman in r ...


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Shevelev
CEO of AO Severstal Management & Director3.2yrsno data0.00073% $5.5m
Alexey Kulichenko
CFO of AO Severstal Management & Director10.3yrsno data0.030% $221.6m
Agnes Ritter
Chief Technical Officer of AO Severstal Management & Director1.4yrsno datano data
Vladimir Zaluzhsky
Head of Communications & Investor Relations4.1yrsno datano data
Dmitry Fedotov
Legal Affairs Officer2.3yrsno datano data
Tomas Korganas
Head of Corporate Development7.3yrsno datano data
Maria Shalina
Director of marketing & Customer Experience Improvement1.1yrsno datano data
Andrey Belyshev
Head of Human Resources0yrsno datano data
Natalia Poppel
Head of Corporate Social Responsibility Department0yrsno datano data
Olga Antonova
Head of Press Service0yrsno datano data

3.4yrs

Average Tenure

42yo

Average Age

Experienced Management: CHMF's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Shevelev
CEO of AO Severstal Management & Director3.2yrsno data0.00073% $5.5m
Alexey Kulichenko
CFO of AO Severstal Management & Director10.3yrsno data0.030% $221.6m
Agnes Ritter
Chief Technical Officer of AO Severstal Management & Director1.4yrsno datano data
Nikolay Lavrov
Chief Internal Audit Executive & Member of Internal Audit Commission0yrsno datano data
Roman Antonov
Deputy Chief Internal Audit Executive & Member of Internal Audit Commission0yrsno data0.00058% $4.3m
Sakari Tamminen
Senior Independent Non-Executive Director4.8yrsno data0.00086% $6.4m
Alexey Mordashov
Chairman of the Board4.8yrsno datano data
Philip Dayer
Independent Non-Executive Director5.7yrsno data0.00056% $4.2m
Andrey Mityukov
Director2.7yrsno datano data
Alun Bowen
Independent Non-Executive Director5.7yrsno data0.00044% $3.3m

4.8yrs

Average Tenure

50yo

Average Age

Experienced Board: CHMF'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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: PAO Severstal
  • Ticker: CHMF
  • Exchange: MISX
  • Founded: 1955
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$11.770b
  • Listing Market Cap: US$748.521b
  • Shares outstanding: 810.60m
  • Website: https://www.severstal.com

Location

  • PAO Severstal
  • st. Clara Zetkin, 2
  • Moscow
  • 127299
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHMFMISX (Micex - Rts)Ordinary SharesRURUBApr 1995
0SJQLSE (London Stock Exchange)Ordinary SharesGBRUBApr 1995
RTS2DB (Deutsche Boerse AG)YesGDR EACH REPR 1 ORD SHARE'REGS'DEEURNov 2006
SVJT.YOTCPK (Pink Sheets LLC)YesGDR EACH REPR 1 ORD SHARE'REGS'USUSDNov 2006
SVSTLSE (London Stock Exchange)YesGDR EACH REPR 1 ORD SHARE'REGS'GBUSDNov 2006
SVSTLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH REPR 1 ORD SHARE'REGS'GBUSDNov 2006
SVSTWBAG (Wiener Boerse AG)YesGDR EACH REPR 1 ORD SHARE'REGS'ATEURNov 2006

Biography

PAO Severstal, together with its subsidiaries, operates as an integrated steel and steel-related mining company in Russia, Europe, CIS, the Middle East, North America, Africa, Central and South America, and Asia. The company operates through two divisions, Severstal Resources and Severstal Russian Steel. It produces iron ore pellets, iron ore concentrates, crushed stones, and ferrite strontium powder; and coking and steam coal, and coking coal concentrates; blast furnace unfluxed and fluxed pellets, as well as iron ore to steel producers. The company also provides flat and long-rolled products, hot and cold-rolled flat products, galvanized and color coated products, and long-steel applications for use in automotive and construction industry; pipes for use in oil and gas pipeline projects; and cold-drawn steel products, steel shapes, railway fasteners, low carbon and high carbon wires, nails, steel fiber products, steel wire ropes, wire strands, and steel meshes and fasteners. In addition, it engages in repair and steel construction, air transport, scrap processing, steel machining, and shipping operations. The company offers metal products for construction and service processing, oil and gas, tube and pipe, machinery, automotive, and other companies. PAO Severstal sells its products to regional and national distributors, and directly to end-users, as well as through a network of metal centers. The company was formerly known as Open Joint-Stock Company Severstal and changed its name to PAO Severstal in December 2014. PAO Severstal was founded in 1955 and 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 Analysis2020/02/17 21:57
End of Day Share Price2020/02/17 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.