Magnitogorsk Iron & Steel Works (MISX:MAGN) - Share price, News & Analysis

MAGN fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	5/6
Dividends	5/6

MAGN Stock Overview

Rewards

Trading at 52.2% below our estimate of its fair value

Earnings grew by 417.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 19.9% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record

Magnitogorsk Iron & Steel Works Competitors

Severstal

MISX:CHMF

₽880.4b

ArcelorMittal

ENXTAM:MT

€25.0b

JFE Holdings

TSE:5411

JP¥882.8b

EVRAZ

LSE:EVR

UK£1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Magnitogorsk Iron & Steel Works
Historical stock prices
Current Share Price	₽40.88
52 Week High	₽79.78
52 Week Low	₽35.20
Beta	0.58
1 Month Change	-2.68%
3 Month Change	-27.15%
1 Year Change	-37.42%
3 Year Change	-8.82%
5 Year Change	29.60%
Change since IPO	38.32%

Shareholder Returns

	MAGN	RU Metals and Mining	RU Market
7D	-8.6%	-6.2%	-4.0%
1Y	-37.4%	-24.6%	-25.1%

Return vs Industry: MAGN underperformed the Russian Metals and Mining industry which returned -21.8% over the past year.

Return vs Market: MAGN underperformed the Russian Market which returned -22.6% over the past year.

Price Volatility

Is MAGN's price volatile compared to industry and market?
MAGN volatility
MAGN Average Weekly Movement	6.2%
Metals and Mining Industry Average Movement	8.6%
Market Average Movement	9.9%
10% most volatile stocks in RU Market	16.9%
10% least volatile stocks in RU Market	5.8%

Stable Share Price: MAGN is less volatile than 75% of Russian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MAGN's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1932	n/a	Pavel Shilyaev	https://www.mmk.ru

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, South Africa, Asia, Europe, North America, 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.

Magnitogorsk Iron & Steel Works Fundamentals Summary

How do Magnitogorsk Iron & Steel Works's earnings and revenue compare to its market cap?
MAGN fundamental statistics
Market Cap	US$7.71b
Earnings (TTM)	US$3.12b
Revenue (TTM)	US$11.87b

2.5x

P/E Ratio

0.6x

P/S Ratio

Is MAGN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAGN income statement (TTM)
Revenue	US$11.87b
Cost of Revenue	US$6.39b
Gross Profit	US$5.48b
Other Expenses	US$2.37b
Earnings	US$3.12b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	0.28
Gross Margin	46.20%
Net Profit Margin	26.27%
Debt/Equity Ratio	15.2%

How did MAGN perform over the long term?

See historical performance and comparison

Dividends

11.3%

Current Dividend Yield

45%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MAGN (RUB40.88) is trading below our estimate of fair value (RUB85.49)

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

Price To Earnings Ratio

PE vs Industry: MAGN is good value based on its PE Ratio (2.5x) compared to the Russian Metals and Mining industry average (5.2x).

PE vs Market: MAGN is good value based on its PE Ratio (2.5x) compared to the Russian market (6.8x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MAGN's PB Ratio (1.2x) is in line with the RU Metals and Mining industry average.

Future Growth

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

-19.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAGN's earnings are forecast to decline over the next 3 years (-19.9% per year).

Earnings vs Market: MAGN's earnings are forecast to decline over the next 3 years (-19.9% per year).

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

Revenue vs Market: MAGN's revenue is expected to decline over the next 3 years (-4.8% per year).

High Growth Revenue: MAGN's revenue is forecast to decline over the next 3 years (-4.8% 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 (30.7%)

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.3%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: MAGN's current net profit margins (26.3%) are higher than last year (9.4%).

Past Earnings Growth Analysis

Earnings Trend: MAGN's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: MAGN's earnings growth over the past year (417.1%) exceeds its 5-year average (10.3% per year).

Earnings vs Industry: MAGN earnings growth over the past year (417.1%) exceeded the Metals and Mining industry 96.2%.

Return on Equity

High ROE: MAGN's Return on Equity (49.3%) is considered outstanding.

Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAGN's short term assets ($4.2B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: MAGN's short term assets ($4.2B) exceed its long term liabilities ($1.1B).

Debt to Equity History and Analysis

Debt Level: MAGN has more cash than its total debt.

Reducing Debt: MAGN's debt to equity ratio has increased from 10.6% to 15.2% over the past 5 years.

Debt Coverage: MAGN's debt is well covered by operating cash flow (282.5%).

Interest Coverage: MAGN's interest payments on its debt are well covered by EBIT (417.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

11.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MAGN's dividend (11.26%) is higher than the bottom 25% of dividend payers in the Russian market (3.8%).

High Dividend: MAGN's dividend (11.26%) is in the top 25% of dividend payers in the Russian market (11.02%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.7%), MAGN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.9%), MAGN's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

6.8yrs

Average management tenure

CEO

Pavel Shilyaev (51 yo)

10yrs

Tenure

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

Leadership Team

Experienced Management: MAGN's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: MAGN's board of directors are considered experienced (3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31