MISX:GMKN

Stock Analysis Report

Mining and Metallurgical Company Norilsk Nickel

Executive Summary

Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel, together with its subsidiaries, operates as a metals and mining company in Europe, Asia, North and South America, Russia, and the CIS countries.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Mining and Metallurgical Company Norilsk Nickel's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.2%

GMKN

3.4%

RU Metals and Mining

-1.8%

RU Market


1 Year Return

49.5%

GMKN

16.0%

RU Metals and Mining

15.0%

RU Market

Return vs Industry: GMKN exceeded the Russian Metals and Mining industry which returned 16% over the past year.

Return vs Market: GMKN exceeded the Russian Market which returned 15% over the past year.


Shareholder returns

GMKNIndustryMarket
7 Day-1.2%3.4%-1.8%
30 Day1.7%2.8%-4.1%
90 Day25.2%18.3%2.8%
1 Year72.0%49.5%26.2%16.0%22.6%15.0%
3 Year225.0%131.5%65.5%29.0%66.9%40.7%
5 Year223.8%87.8%240.3%143.8%124.0%74.7%

Price Volatility Vs. Market

How volatile is Mining and Metallurgical Company Norilsk Nickel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mining and Metallurgical Company Norilsk Nickel undervalued compared to its fair value and its price relative to the market?

12.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GMKN (RUB21554) is trading above our estimate of fair value (RUB20078.44)

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


Price To Earnings Ratio

PE vs Industry: GMKN is poor value based on its PE Ratio (12.1x) compared to the Metals and Mining industry average (7.4x).

PE vs Market: GMKN is poor value based on its PE Ratio (12.1x) compared to the Russian market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: GMKN is poor value based on its PEG Ratio (6.8x)


Price to Book Ratio

PB vs Industry: GMKN is overvalued based on its PB Ratio (11.5x) compared to the RU Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is Mining and Metallurgical Company Norilsk Nickel forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMKN's forecast earnings growth (1.8% per year) is below the savings rate (6.4%).

Earnings vs Market: GMKN's earnings (1.8% per year) are forecast to grow slower than the Russian market (5.1% per year).

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

Revenue vs Market: GMKN's revenue (3% per year) is forecast to grow slower than the Russian market (3.8% per year).

High Growth Revenue: GMKN's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GMKN's Return on Equity is forecast to be very high in 3 years time (105.1%).


Next Steps

Past Performance

How has Mining and Metallurgical Company Norilsk Nickel performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMKN has high quality earnings.

Growing Profit Margin: GMKN's current net profit margins (35.4%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: GMKN's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: GMKN's earnings growth over the past year (48.7%) exceeds its 5-year average (15.7% per year).

Earnings vs Industry: GMKN earnings growth over the past year (48.7%) exceeded the Metals and Mining industry 21.1%.


Return on Equity

High ROE: Whilst GMKN's Return on Equity (89.55%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Mining and Metallurgical Company Norilsk Nickel's financial position?


Financial Position Analysis

Short Term Liabilities: GMKN's short term assets ($6.9B) exceed its short term liabilities ($4.3B).

Long Term Liabilities: GMKN's short term assets ($6.9B) do not cover its long term liabilities ($9.7B).


Debt to Equity History and Analysis

Debt Level: GMKN's debt to equity ratio (175.4%) is considered high.

Reducing Debt: GMKN's debt to equity ratio has increased from 62.2% to 175.4% over the past 5 years.

Debt Coverage: GMKN's debt is well covered by operating cash flow (68.8%).

Interest Coverage: GMKN's interest payments on its debt are well covered by EBIT (32.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: GMKN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Mining and Metallurgical Company Norilsk Nickel's current dividend yield, its reliability and sustainability?

8.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GMKN's dividend (8.11%) is higher than the bottom 25% of dividend payers in the Russian market (3.09%).

High Dividend: GMKN's dividend (8.11%) is in the top 25% of dividend payers in the Russian market (7.45%)


Stability and Growth of Payments

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

Growing Dividend: GMKN'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 (94.1%), GMKN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMKN's dividends in 3 years are not forecast to be well covered by earnings (93.5% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Vladimir Potanin (58yo)

Mr. Vladimir Olegovich Potanin has been President of PJSC MMC Norilsk Nickel since 2015 and has been its Chairman of the Management Board since 2012 and served as its CEO from 2012 to 2015. He graduated fr ...


Leadership Team

NamePositionTenureCompensationOwnership
Vladimir Potanin
President & Chairman of the Management Board0yrsno datano data
Andrey Bugrov
Deputy Chairman6.9yrsno datano data
Sergey Malyshev
Senior VP7.1yrsno datano data
Sergey Batekhin
Senior VP of Sales7.1yrsno datano data
Marianna Zakharova
First VP9.7yrsno datano data
Serguey Barbashev
Senior VP8.9yrsno datano data
Larisa Zelkova
Senior VP of the Personnel7.1yrsno datano data
Nina Plastinina
VP of Internal Control & Risk Management and Member of Management Board7.1yrsno datano data
Sergey Dyachenko
First VP6.6yrsno datano data
Elena Savitskaya
VP, Chief of Staff & Member of Management Board5.6yrsno datano data

7.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GMKN's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrey Bugrov
Deputy Chairman6.9yrsno datano data
Marianna Zakharova
First VP9.7yrsno datano data
Serguey Barbashev
Senior VP8.9yrsno datano data
Gareth Herbert Penny
Independent Chairman of the Board6.9yrsno datano data
Stalbek Mishakov
Non-Executive Director7.7yrsno datano data
Robert John Edwards
Independent Director6.7yrsno datano data
Roger Munnings
Independent Director1.7yrsno datano data
Alexey Bashkirov
Non-Executive Director6.9yrsno datano data
Sergey Bratukhin
Independent Director6.9yrsno datano data
Volk Nikolaevich
Independent Director1.1yrsno datano data

6.9yrs

Average Tenure

51.5yo

Average Age

Experienced Board: GMKN's board of directors are considered experienced (6.9 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 Mining and Metallurgical Company Norilsk Nickel's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel
  • Ticker: GMKN
  • Exchange: MISX
  • Founded: 1997
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: US$51.778b
  • Listing Market Cap: US$3.380t
  • Shares outstanding: 1.58b
  • Website: https://www.nornickel.com

Location

  • Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel
  • 15, 1st Krasnogvardeysky Drive
  • Moscow
  • 123100
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNODLSE (London Stock Exchange)ADR EACH REPR 1/10 SHARE (SPONS)GBUSDNo data
MNODLSE (London Stock Exchange)SPON ADR EACH REPR 1/10 ORD LVL IGBUSDNo data
NILS.YOTCPK (Pink Sheets LLC)YesSPON ADR EACH REPR 0.1 ORD SHSUSUSDJun 2001
MNODLSE (London Stock Exchange)YesSPON ADR EACH REPR 0.1 ORD SHSGBUSDJun 2001
NNICDB (Deutsche Boerse AG)YesSPON ADR EACH REPR 0.1 ORD SHSDEEURJun 2001
MNODLBATS-CHIXE (BATS 'Chi-X Europe')YesSPON ADR EACH REPR 0.1 ORD SHSGBUSDJun 2001
MNODWBAG (Wiener Boerse AG)YesSPON ADR EACH REPR 0.1 ORD SHSATEURJun 2001
GMKNMISX (Micex - Rts)Ordinary SharesRURUBOct 2001
RU_GMKNKAS (Kazakhstan Stock Exchange)Ordinary SharesKZKZTOct 2001

Biography

Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel, together with its subsidiaries, operates as a metals and mining company in Europe, Asia, North and South America, Russia, and the CIS countries. The company operates through GMK Group, KGMK Group, NN Harjavalta, GRK Bystrinskoye, Other Metallurgical, and Other Non-Metallurgical segments. It prospects, explores for, extracts, refines, and processes minerals; and produces, markets, and sells base and precious metals. The company’s products include nickel, palladium, copper, platinum, cobalt, rhodium, iridium, ruthenium, silver, gold, selenium, tellurium, sulfur, sodium sulfate, and sodium chloride. It is also involved in property and equipment rental, gas extraction and transportation, electricity production and distribution, construction, repairs, spare parts production, geological works, distribution, research, fuel supply, river shipping, and airport businesses, as well as acts as an air company. The company was formerly known as Open Joint Stock Company ‘Mining and Metallurgical Company Norilsk Nickel’ and changed its name to Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel in May 2015. Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel was incorporated in 1997 and is based in Moscow, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:05
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
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.