MISX:MAGN

Stock Analysis Report

Magnitogorsk Iron & Steel Works

Executive Summary

Public Joint Stock Company Magnitogorsk Iron & Steel Works, together with its subsidiaries, produces and sells ferrous metal products in Russia and the CIS countries, the Middle East, Asia, Europe, and Africa.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Magnitogorsk Iron & Steel Works's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

MAGN

1.2%

RU Metals and Mining

1.5%

RU Market


1 Year Return

-22.8%

MAGN

3.7%

RU Metals and Mining

16.2%

RU Market

Return vs Industry: MAGN underperformed the Russian Metals and Mining industry which returned 3.7% over the past year.

Return vs Market: MAGN underperformed the Russian Market which returned 16.2% over the past year.


Shareholder returns

MAGNIndustryMarket
7 Day-1.7%1.2%1.5%
30 Day-11.3%-4.5%-0.3%
90 Day-19.3%-1.3%4.2%
1 Year-12.2%-22.8%13.4%3.7%24.6%16.2%
3 Year67.7%26.7%51.4%18.7%66.9%40.9%
5 Year521.2%320.0%435.8%279.3%164.7%107.9%

Price Volatility Vs. Market

How volatile is Magnitogorsk Iron & Steel Works's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magnitogorsk Iron & Steel Works undervalued compared to its fair value and its price relative to the market?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAGN (RUB36) is trading below our estimate of fair value (RUB56.6)

Significantly Below Fair Value: MAGN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MAGN is poor value based on its PE Ratio (5.5x) compared to the Metals and Mining industry average (4.5x).

PE vs Market: MAGN is good value based on its PE Ratio (5.5x) compared to the Russian market (6.6x).


Price to Earnings Growth Ratio

PEG Ratio: MAGN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MAGN is overvalued based on its PB Ratio (1.2x) compared to the RU Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is Magnitogorsk Iron & Steel Works forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAGN's forecast earnings growth (7.1% per year) is below the savings rate (8.4%).

Earnings vs Market: MAGN's earnings (7.1% per year) are forecast to grow faster than the Russian market (4.7% per year).

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

Revenue vs Market: MAGN's revenue (1.1% per year) is forecast to grow slower than the Russian market (4.2% per year).

High Growth Revenue: MAGN's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAGN's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Magnitogorsk Iron & Steel Works performed over the past 5 years?

52.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MAGN has become profitable over the past 5 years, growing earnings by 52.5% per year.

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

Earnings vs Industry: MAGN had negative earnings growth (-13.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (16.9%).


Return on Equity

High ROE: MAGN's Return on Equity (20.9%) is considered high.


Return on Assets

ROA vs Industry: MAGN has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: MAGN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Magnitogorsk Iron & Steel Works's financial position?


Financial Position Analysis

Short Term Liabilities: MAGN's short term assets ($3.1B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: MAGN's short term assets (3.1B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: MAGN's debt to equity ratio (15.8%) is considered satisfactory

Reducing Debt: MAGN's debt to equity ratio has reduced from 48.2% to 15.8% over the past 5 years.

Debt Coverage: MAGN's debt is well covered by operating cash flow (195.2%).

Interest Coverage: MAGN's interest payments on its debt are well covered by EBIT (200.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: MAGN's debt is covered by short term assets (assets are 3.550170x debt).


Next Steps

Dividend

What is Magnitogorsk Iron & Steel Works's current dividend yield, its reliability and sustainability?

15.58%

Current Dividend Yield


Dividend Yield vs Market

company15.6%marketbottom25%3.2%markettop25%8.6%industryaverage8.4%forecastin3Years18.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MAGN's dividend (15.58%) is higher than the bottom 25% of dividend payers in the Russian market (3.24%).

High Dividend: MAGN's dividend (15.58%) is in the top 25% of dividend payers in the Russian market (8.62%)

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81%), MAGN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAGN's dividends in 3 years are not forecast to be well covered by earnings (108.7% payout ratio).


Next Steps

Management

What is the CEO of Magnitogorsk Iron & Steel Works's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Pavel Shilyaev (49yo)

5.8yrs

Tenure

0

Mr. Pavel V. Shilyaev has been the Chief Executive Officer, General Director and Member of Management Board at Open Joint Stock Company Magnitogorsk Iron & Steel Works since February 26, 2014 and May 25, 2 ...


Management Age and Tenure

6.6yrs

Average Tenure

49yo

Average Age

Experienced Management: MAGN's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

49.5yo

Average Age

Experienced Board: MAGN's board of directors are considered experienced (5.4 years average tenure).


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


Management Team

  • Vladimir Rruga (49yo)

    Deputy General Director for External Communications & Member of Management Board

    • Tenure: 7.4yrs
  • Oleg Shiryaev (54yo)

    Deputy General Director for Production & Member of Management Board

    • Tenure: 0.8yrs
  • Pavel Shilyaev (49yo)

    Chairman of Management Board

    • Tenure: 5.8yrs
  • Oleg Kiykov (58yo)

    Director for Human Resources & Member of Management Board

    • Tenure: 7.4yrs
  • Sergey Shepilov (48yo)

    Chief Legal Officer & Member of Management Board

    • Tenure: 7.4yrs
  • Sergey Nenashev (40yo)

    Commercial Director & Member of Management Board

    • Tenure: 4.7yrs
  • Andrey Eremin (47yo)

    Director for Economics

    • Tenure: 0yrs
  • Sergej Krivoshchekov (58yo)

    Director for Corporate Matters & Social Programmes and Member of Management Board

    • Tenure: 7.4yrs
  • Alexey Kuzmin (42yo)

    Head of Domestic Sales Department & Member of the Management Board

    • Tenure: 3.7yrs
  • Sergei E. Kotzebue (59yo)

    Director of Security & Member of Management Board

    • Tenure: 3.7yrs

Board Members

  • Tav Tavakolian (51yo)

    Independent Director

    • Tenure: 4.4yrs
  • Zumrud Khandadashevna Rustamova (49yo)

    Independent Director

    • Tenure: 13.5yrs
  • Victor Rashnikov (71yo)

    Chairman of the Board

    • Tenure: 26.5yrs
  • Yu Liovin (51yo)

    Independent Director

    • Tenure: 5.4yrs
  • Sergey Ushakov (50yo)

    Director

    • Tenure: 2.8yrs
  • Pavel Shilyaev (49yo)

    Chairman of Management Board

    • Tenure: 5.8yrs
  • Olga Rashnikova (42yo)

    Non-Executive Director

    • Tenure: 7.8yrs
  • Alexander Maslennikov (50yo)

    Chairman of Audit Commission

    • Tenure: 4.3yrs
  • Valeriy Martsinovich (46yo)

    Independent Director

    • Tenure: 5.4yrs
  • Andrey Eremin (47yo)

    Director for Economics

    • Tenure: 0yrs

Company Information

Public Joint Stock Company Magnitogorsk Iron & Steel Works's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Magnitogorsk Iron & Steel Works
  • Ticker: MAGN
  • Exchange: MISX
  • Founded: 1932
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₽402.220b
  • Shares outstanding: 11.17b
  • Website: https://www.mmk.ru

Location

  • Public Joint Stock Company Magnitogorsk Iron & Steel Works
  • 93, Kirova Street
  • Magnitogorsk
  • Chelyabinskaya obl.
  • 455000
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAGNMISX (Micex - Rts)YesCommon StockRURUBApr 1995
MMKLSE (London Stock Exchange)GDR EACH REPR 13 ORD 'REGS'GBUSDApr 2007
MHQDB (Deutsche Boerse AG)GDR EACH REPR 13 ORD 'REGS'DEEURApr 2007
MMKLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REPR 13 ORD 'REGS'GBUSDApr 2007

Biography

Public Joint Stock Company Magnitogorsk Iron & Steel Works, together with its subsidiaries, produces and sells ferrous metal products in Russia and the CIS countries, the Middle East, Asia, Europe, and Afr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:16
End of Day Share Price2019/10/21 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.