MISX:MAGN

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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 Analysis

Flawless balance sheet average dividend payer.


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

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


Market Performance


7 Day Return

1.1%

MAGN

-0.5%

RU Metals and Mining

-3.1%

RU Market


1 Year Return

-11.9%

MAGN

29.2%

RU Metals and Mining

-3.7%

RU Market

Return vs Industry: MAGN underperformed the Russian Metals and Mining industry which returned 30% over the past year.

Return vs Market: MAGN underperformed the Russian Market which returned -3.1% over the past year.


Shareholder returns

MAGNIndustryMarket
7 Day1.1%-0.5%-3.1%
30 Day-6.1%7.7%-1.6%
90 Day1.7%7.4%6.9%
1 Year-3.2%-11.9%36.7%29.2%3.1%-3.7%
3 Year48.6%8.5%90.7%48.9%54.5%30.0%
5 Year217.5%108.6%241.5%146.1%110.5%63.6%

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?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAGN (RUB38.57) is trading below our estimate of fair value (RUB52.72)

Significantly Below Fair Value: MAGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MAGN is poor value based on its PE Ratio (8.1x) compared to the RU Metals and Mining industry average (7.7x).

PE vs Market: MAGN is poor value based on its PE Ratio (8.1x) compared to the Russian market (8x).


Price to Earnings Growth Ratio

PEG Ratio: MAGN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MAGN is overvalued based on its PB Ratio (1.3x) compared to the RU Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is Magnitogorsk Iron & Steel Works forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAGN's forecast earnings growth (14.6% per year) is above the savings rate (8.3%).

Earnings vs Market: MAGN's earnings (14.6% per year) are forecast to grow faster than the Russian market (3.2% per year).

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

Revenue vs Market: MAGN's revenue (5.7% per year) is forecast to grow faster than the Russian market (1.8% per year).

High Growth Revenue: MAGN's revenue (5.7% 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 low in 3 years time (19.2%).


Next Steps

Past Performance

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

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAGN has high quality earnings.

Growing Profit Margin: MAGN's current net profit margins (10.2%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: MAGN's earnings have grown by 18.9% per year over the past 5 years.

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 (-39.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (30.7%).


Return on Equity

High ROE: MAGN's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: MAGN's short term assets ($2.5B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: MAGN's short term assets ($2.5B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MAGN's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: MAGN's debt to equity ratio has reduced from 59.4% to 19.4% over the past 5 years.

Debt Coverage: MAGN's debt is well covered by operating cash flow (173%).

Interest Coverage: MAGN's interest payments on its debt are well covered by EBIT (79.9x coverage).


Balance Sheet


Next Steps

Dividend

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

13.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAGN's dividend (13.32%) is higher than the bottom 25% of dividend payers in the Russian market (4.04%).

High Dividend: MAGN's dividend (13.32%) is in the top 25% of dividend payers in the Russian market (8.99%)


Stability and Growth of Payments

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: With its high payout ratio (110.8%), MAGN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAGN's dividends in 3 years are forecast to be covered by earnings (77.3% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Pavel Shilyaev (50yo)

6.5yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Pavel Shilyaev
Chairman of Management Board6.5yrsno data0.0036% $15.5m
Oleg Shiryaev
Director of MRK LLC & Member of Management Board1.58yrsno datano data
Vladimir Rruga
Deputy General Director for External Communications & Member of Management Board8.17yrsno datano data
Oleg Kiykov
Director for Human Resources & Member of Management Board8.17yrsno data0.00050% $2.2m
Sergey Shepilov
Chief Legal Officer & Member of Management Board8.17yrsno data0.00060% $2.6m
Sergey Nenashev
Commercial Director & Member of Management Board5.42yrsno datano data
Andrey Eremin
Director for Economics1.17yrsno data0.0010% $4.3m
Sergej Krivoshchekov
Director for Corporate Matters & Social Programmes and Member of Management Board8.17yrsno datano data
Alexey Kuzmin
Head of Domestic Sales Department & Member of the Management Board4.42yrsno datano data
Pavel Kravchenko
Director for Security & Member of Management Board4.42yrsno datano data
Maria Nikulina
Head of Financial Resources & Member of Management Board3.67yrsno data0.000040% $172.4k
Grigory Schurov
Director of Occupational Health3.42yrsno data0.0010% $4.3m

6.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: MAGN's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pavel Shilyaev
Chairman of Management Board6.5yrsno data0.0036% $15.5m
Andrey Eremin
Director for Economics1.17yrsno data0.0010% $4.3m
Morgan Tavakolian
Independent Director5.17yrsno datano data
Zumrud Khandadashevna Rustamova
Independent Director14.25yrsno datano data
Victor Rashnikov
Chairman of the Board27.25yrsno datano data
Kirill Levin
Independent Director6.17yrsno datano data
Sergey Ushakov
Director3.5yrsno data0.0014% $6.0m
Olga Rashnikova
Non-Executive Director8.5yrsno datano data
Valeriy Martsinovich
Independent Director6.17yrsno datano data
Nikolay Nikiforov
Independent Director1.17yrsno datano data

6.2yrs

Average Tenure

50yo

Average Age

Experienced Board: MAGN's board of directors are considered experienced (6.2 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 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: ₽430.994b
  • Shares outstanding: 11.17b
  • Website: https://www.mmk.ru

Number of Employees


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 Africa. It offers rolled products made of high-strength steels; flat products, including hot rolled coils, hot rolled sheets, cold rolled coils and sheets, black plates, and cold rolled narrow strips; long products, such as wire rods, rebars, square bars, strips, and round bars; and coated products comprising color coated products, hot dip galvanized products, and tin plates. The company also provides cold formed sections; special hot rolled sections; shaped sections, such as U-beams, angles, and hot rolled beams; water and gas mains pipes; slabs; square and rectangular billets for re-rolling; products for the automotive industry; and miscellaneous products. In addition, it is also involved in the construction activities; production of metal hardware; maintenance of metallurgical equipment; production of cement and refractory materials; collection and processing of metal scrap; mining, refining, and sale of coal; and trading activities. The company was founded in 1932 and is based in Magnitogorsk, Russia. Public Joint Stock Company Magnitogorsk Iron & Steel Works is a subsidiary of Mintha Holding Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 20:51
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
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.