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GMKN

Mining and Metallurgical Company Norilsk Nickel MISX:GMKN Stock Report

Last Price

₽16.72k

Market Cap

₽2.6t

7D

0%

1Y

-31.6%

Updated

14 Aug, 2022

Data

Company Financials +
GMKN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance1/6
Financial Health4/6
Dividends3/6

GMKN Stock Overview

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.

Mining and Metallurgical Company Norilsk Nickel Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mining and Metallurgical Company Norilsk Nickel
Historical stock prices
Current Share Price₽16,720.00
52 Week High₽24,786.00
52 Week Low₽14,500.00
Beta0.54
1 Month Change0%
3 Month Change-21.74%
1 Year Change-31.64%
3 Year Change14.11%
5 Year Change87.89%
Change since IPO4,468.18%

Recent News & Updates

Shareholder Returns

GMKNRU Metals and MiningRU Market
7D0%0%0%
1Y-31.6%-34.4%-32.9%

Return vs Industry: GMKN exceeded the Russian Metals and Mining industry which returned -34.4% over the past year.

Return vs Market: GMKN exceeded the Russian Market which returned -32.9% over the past year.

Price Volatility

Is GMKN's price volatile compared to industry and market?
GMKN volatility
GMKN Average Weekly Movement3.2%
Metals and Mining Industry Average Movement4.7%
Market Average Movement4.9%
10% most volatile stocks in RU Market8.5%
10% least volatile stocks in RU Market2.9%

Stable Share Price: GMKN is less volatile than 75% of Russian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GMKN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997n/aVladimir Potaninhttps://www.nornickel.com

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, South Cluster, KGMK Group, NN Harjavalta, GRK Bystrinskoye, Other Mining, and Other Non-Metallurgical segments. It explores for, extracts, and refines ore and nonmetallic minerals; and sale of base and precious metals produced from ore.

Mining and Metallurgical Company Norilsk Nickel Fundamentals Summary

How do Mining and Metallurgical Company Norilsk Nickel's earnings and revenue compare to its market cap?
GMKN fundamental statistics
Market CapUS$41.66b
Earnings (TTM)US$7.44b
Revenue (TTM)US$17.89b

5.6x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GMKN income statement (TTM)
RevenueUS$17.89b
Cost of RevenueUS$5.43b
Gross ProfitUS$12.46b
Other ExpensesUS$5.02b
EarningsUS$7.44b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)48.64
Gross Margin69.64%
Net Profit Margin41.57%
Debt/Equity Ratio114.1%

How did GMKN perform over the long term?

See historical performance and comparison

Dividends

22.5%

Current Dividend Yield

126%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GMKN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GMKN?

Other financial metrics that can be useful for relative valuation.

GMKN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.9x
Enterprise Value/EBITDA5.5x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does GMKN's PE Ratio compare to its peers?

GMKN PE Ratio vs Peers
The above table shows the PE ratio for GMKN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.5x
VSMO public stock company VSMPO-AVISMA
48.3xn/a₽658.3b
PLZL Polyus
8.1x-3.7%₽1.1t
ROLO Rusolovo
79xn/a₽20.2b
CHMF Severstal
2.8x-23.8%₽688.1b
GMKN Mining and Metallurgical Company Norilsk Nickel
5.6x-8.2%₽2.6t

Price-To-Earnings vs Peers: GMKN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (34.5x).


Price to Earnings Ratio vs Industry

How does GMKN's PE Ratio compare vs other companies in the European Metals and Mining Industry?

Price-To-Earnings vs Industry: GMKN is expensive based on its Price-To-Earnings Ratio (5.6x) compared to the Russian Metals and Mining industry average (3.9x)


Price to Earnings Ratio vs Fair Ratio

What is GMKN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GMKN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio8.5x

Price-To-Earnings vs Fair Ratio: GMKN is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.5x).


Share Price vs Fair Value

What is the Fair Price of GMKN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GMKN (RUB16720) is trading above our estimate of fair value (RUB15233.8)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Mining and Metallurgical Company Norilsk Nickel forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMKN's earnings are forecast to decline over the next 3 years (-8.2% per year).

Earnings vs Market: GMKN's earnings are forecast to decline over the next 3 years (-8.2% per year).

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

Revenue vs Market: GMKN's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: GMKN's revenue is forecast to decline over the next 3 years (-1.9% 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 (56.5%).


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GMKN has a high level of non-cash earnings.

Growing Profit Margin: GMKN's current net profit margins (41.6%) are lower than last year (42.1%).


Past Earnings Growth Analysis

Earnings Trend: GMKN's earnings have grown significantly by 23.8% per year over the past 5 years.

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

Earnings vs Industry: GMKN had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (243.6%).


Return on Equity

High ROE: Whilst GMKN's Return on Equity (72.57%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GMKN's short term assets ($9.3B) exceed its short term liabilities ($8.9B).

Long Term Liabilities: GMKN's short term assets ($9.3B) do not cover its long term liabilities ($11.3B).


Debt to Equity History and Analysis

Debt Level: GMKN's net debt to equity ratio (94.7%) is considered high.

Reducing Debt: GMKN's debt to equity ratio has reduced from 224.7% to 114.1% over the past 5 years.

Debt Coverage: GMKN's debt is well covered by operating cash flow (61.4%).

Interest Coverage: GMKN's interest payments on its debt are well covered by EBIT (62x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


22.49%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GMKN's dividend (22.49%) is higher than the bottom 25% of dividend payers in the Russian market (4.85%).

High Dividend: GMKN's dividend (22.49%) is in the top 25% of dividend payers in the Russian market (13.13%)


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (125.9%), GMKN's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (241.6%), GMKN's dividend payments are not well covered by cash flows.


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Management

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

8.8yrs

Average management tenure


CEO

Vladimir Potanin (61 yo)

10.58yrs

Tenure

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

Experienced Management: GMKN's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: GMKN's board of directors are not considered experienced ( 1.8 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 Mining and Metallurgical Company Norilsk Nickel's 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
  • Implied Market Cap: ₽2.556t
  • Shares outstanding: 152.86m
  • Website: https://www.nornickel.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/07/08 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.