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Magnitogorsk Iron & Steel Works

MISX:MAGN
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MAGN
MISX
RUB521B
Market Cap
  1. Home
  2. RU
  3. Materials
Company description

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. The last earnings update was 47 days ago. More info.


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MAGN Share Price and Events
7 Day Returns
2.3%
MISX:MAGN
1.2%
RU Metals and Mining
0.2%
RU Market
1 Year Returns
-3.3%
MISX:MAGN
7.7%
RU Metals and Mining
16.8%
RU Market
MAGN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magnitogorsk Iron & Steel Works (MAGN) 2.3% 8.7% 0.7% -3.3% 86.4% 593.3%
RU Metals and Mining 1.2% 4.7% 0.6% 7.7% 33.2% 265.8%
RU Market 0.2% 6% 9.9% 16.8% 43.9% 93.1%
1 Year Return vs Industry and Market
  • MAGN underperformed the Metals and Mining industry which returned 7.7% over the past year.
  • MAGN underperformed the Market in Russian Federation which returned 16.8% over the past year.
Price Volatility
MAGN
Industry
5yr Volatility vs Market

Value

 Is Magnitogorsk Iron & Steel Works undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magnitogorsk Iron & Steel Works to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magnitogorsk Iron & Steel Works.

MISX:MAGN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.4%
Perpetual Growth Rate 10-Year RU Government Bond Rate 8.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for MISX:MAGN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year RU Govt Bond Rate 8.4%
Equity Risk Premium S&P Global 9.4%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.025 (1 + (1- 20%) (6.29%))
1.052
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 8.44% + (1.052 * 9.43%)
18.36%

Discounted Cash Flow Calculation for MISX:MAGN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magnitogorsk Iron & Steel Works is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

MISX:MAGN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 18.36%)
2019 690.00 Analyst x3 582.98
2020 823.33 Analyst x6 587.75
2021 832.00 Analyst x5 501.82
2022 1,467.00 Analyst x1 747.58
2023 1,491.00 Analyst x1 641.97
2024 1,545.70 Est @ 3.67% 562.30
2025 1,624.53 Est @ 5.1% 499.32
2026 1,723.66 Est @ 6.1% 447.62
2027 1,840.93 Est @ 6.8% 403.92
2028 1,975.21 Est @ 7.29% 366.17
Present value of next 10 years cash flows $5,341.41
MISX:MAGN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,975.21 × (1 + 8.44%) ÷ (18.36% – 8.44%)
$21,598.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $21,598.93 ÷ (1 + 18.36%)10
$4,004.06
MISX:MAGN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,341.41 + $4,004.06
$9,345.47
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,345.47 / 11,174.33
$0.84
MISX:MAGN Discount to Share Price
Calculation Result
Exchange Rate USD/RUB
(Reporting currency to currency of MISX:MAGN)
64.329
Value per Share
(RUB)
= Value per Share in USD x Exchange Rate (USD/RUB)
= $0.84 x 64.329
RUB53.8
Value per share (RUB) From above. RUB53.80
Current discount Discount to share price of RUB46.65
= -1 x (RUB46.65 - RUB53.80) / RUB53.80
13.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Magnitogorsk Iron & Steel Works is available for.
Intrinsic value
13%
Share price is RUB46.65 vs Future cash flow value of RUB53.8
Current Discount Checks
For Magnitogorsk Iron & Steel Works to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Magnitogorsk Iron & Steel Works's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Magnitogorsk Iron & Steel Works's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magnitogorsk Iron & Steel Works's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magnitogorsk Iron & Steel Works's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
MISX:MAGN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.11
MISX:MAGN Share Price ** MISX (2019-06-14) in RUB RUB46.65
MISX:MAGN Share Price converted to USD reporting currency Exchange rate (RUB/ USD) 0.016 $0.73
Russian Federation Metals and Mining Industry PE Ratio Median Figure of 19 Publicly-Listed Metals and Mining Companies 4.54x
Russian Federation Market PE Ratio Median Figure of 136 Publicly-Listed Companies 7.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magnitogorsk Iron & Steel Works.

MISX:MAGN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= MISX:MAGN Share Price ÷ EPS (both in USD)

= 0.73 ÷ 0.11

6.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnitogorsk Iron & Steel Works is overvalued based on earnings compared to the RU Metals and Mining industry average.
  • Magnitogorsk Iron & Steel Works is good value based on earnings compared to the Russian Federation market.
Price based on expected Growth
Does Magnitogorsk Iron & Steel Works's expected growth come at a high price?
Raw Data
MISX:MAGN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
9.3%per year
Europe Metals and Mining Industry PEG Ratio Median Figure of 63 Publicly-Listed Metals and Mining Companies 0.65x
Russian Federation Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 0.68x

*Line of best fit is calculated by linear regression .

MISX:MAGN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.43x ÷ 9.3%

0.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnitogorsk Iron & Steel Works is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Magnitogorsk Iron & Steel Works's assets?
Raw Data
MISX:MAGN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $0.50
MISX:MAGN Share Price * MISX (2019-06-14) in RUB RUB46.65
MISX:MAGN Share Price converted to USD reporting currency Exchange rate (RUB/ USD) 0.016 $0.73
Russian Federation Metals and Mining Industry PB Ratio Median Figure of 21 Publicly-Listed Metals and Mining Companies 0.44x
Russian Federation Market PB Ratio Median Figure of 153 Publicly-Listed Companies 0.79x
MISX:MAGN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= MISX:MAGN Share Price ÷ Book Value per Share (both in USD)

= 0.73 ÷ 0.50

1.46x

* Primary Listing of Magnitogorsk Iron & Steel Works.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnitogorsk Iron & Steel Works is overvalued based on assets compared to the RU Metals and Mining industry average.
X
Value checks
We assess Magnitogorsk Iron & Steel Works's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Magnitogorsk Iron & Steel Works has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magnitogorsk Iron & Steel Works expected to grow at an attractive rate?
  • Magnitogorsk Iron & Steel Works's earnings growth is expected to exceed the low risk savings rate of 8.4%.
Growth vs Market Checks
  • Magnitogorsk Iron & Steel Works's earnings growth is expected to exceed the Russian Federation market average.
  • Magnitogorsk Iron & Steel Works's revenue growth is positive but not above the Russian Federation market average.
Annual Growth Rates Comparison
Raw Data
MISX:MAGN Future Growth Rates Data Sources
Data Point Source Value (per year)
MISX:MAGN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 9.3%
MISX:MAGN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.3%
Russian Federation Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 4.4%
Europe Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Russian Federation Market Earnings Growth Rate Market Cap Weighted Average 2.8%
Russian Federation Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
MISX:MAGN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
MISX:MAGN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 8,679 1,695 1
2022-12-31 8,467 2,120 1,672 1
2021-12-31 7,501 1,663 1,123 7
2020-12-31 7,416 1,671 1,098 11
2019-12-31 7,694 1,509 1,002 6
MISX:MAGN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,995 1,939 1,261
2018-12-31 8,214 1,887 1,315
2018-09-30 8,200 1,797 1,444
2018-06-30 8,121 1,776 1,319
2018-03-31 7,941 1,588 1,221
2017-12-31 7,546 1,358 1,184
2017-09-30 7,148 1,314 1,019
2017-06-30 6,614 1,198 1,161
2017-03-31 6,240 1,153 1,195
2016-12-31 5,630 1,191 1,111
2016-09-30 5,261 1,058 778
2016-06-30 5,285 1,327 439

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magnitogorsk Iron & Steel Works's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
  • Magnitogorsk Iron & Steel Works's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
MISX:MAGN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Magnitogorsk Iron & Steel Works Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

MISX:MAGN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.10 0.10 0.10 1.00
2020-12-31 0.10 0.10 0.10 2.00
2019-12-31 0.10 0.11 0.10 2.00
MISX:MAGN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.11
2018-12-31 0.12
2018-09-30 0.13
2018-06-30 0.12
2018-03-31 0.11
2017-12-31 0.11
2017-09-30 0.09
2017-06-30 0.10
2017-03-31 0.11
2016-12-31 0.10
2016-09-30 0.07
2016-06-30 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Magnitogorsk Iron & Steel Works is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Magnitogorsk Iron & Steel Works's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Russian Federation market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magnitogorsk Iron & Steel Works has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magnitogorsk Iron & Steel Works's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magnitogorsk Iron & Steel Works has delivered over 20% year on year earnings growth in the past 5 years.
  • Magnitogorsk Iron & Steel Works's 1-year earnings growth is less than its 5-year average (3.3% vs 61.4%)
  • Magnitogorsk Iron & Steel Works's earnings growth has exceeded the RU Metals and Mining industry average in the past year (3.3% vs -6.5%).
Earnings and Revenue History
Magnitogorsk Iron & Steel Works's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magnitogorsk Iron & Steel Works Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

MISX:MAGN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,995.00 1,261.00 639.00
2018-12-31 8,214.00 1,315.00 655.00
2018-09-30 8,200.00 1,444.00 651.00
2018-06-30 8,121.00 1,319.00 658.00
2018-03-31 7,941.00 1,221.00 663.00
2017-12-31 7,546.00 1,184.00 615.00
2017-09-30 7,148.00 1,019.00 609.00
2017-06-30 6,614.00 1,161.00 567.00
2017-03-31 6,240.00 1,195.00 519.00
2016-12-31 5,630.00 1,111.00 488.00
2016-09-30 5,261.00 778.00 461.00
2016-06-30 5,285.00 439.00 456.00
2016-03-31 5,378.00 381.00 511.00
2015-12-31 5,839.00 420.00 498.00
2015-09-30 6,385.00 393.00 639.00
2015-06-30 7,018.00 343.00 681.00
2015-03-31 7,584.00 231.00 699.00
2014-12-31 7,952.00 -43.00 818.00
2014-09-30 8,094.00 -2,033.00 911.00
2014-06-30 7,836.00 -2,192.00 950.00
2014-03-31 7,786.00 -2,507.00 971.00
2013-12-31 8,190.00 -2,400.00 1,011.00
2013-09-30 8,389.00 -388.00 908.00
2013-06-30 8,831.00 -179.00 943.00
2013-03-31 9,186.00 -70.00 991.00
2012-12-31 9,328.00 -84.00 991.00
2012-09-30 9,503.00 -23.00 951.00
2012-06-30 9,614.00 -306.00 946.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magnitogorsk Iron & Steel Works has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Magnitogorsk Iron & Steel Works used its assets more efficiently than the RU Metals and Mining industry average last year based on Return on Assets.
  • Magnitogorsk Iron & Steel Works has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magnitogorsk Iron & Steel Works's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magnitogorsk Iron & Steel Works has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Magnitogorsk Iron & Steel Works's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magnitogorsk Iron & Steel Works's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magnitogorsk Iron & Steel Works is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magnitogorsk Iron & Steel Works's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magnitogorsk Iron & Steel Works's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magnitogorsk Iron & Steel Works Company Filings, last reported 2 months ago.

MISX:MAGN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,573.00 510.00 718.00
2018-12-31 5,009.00 536.00 746.00
2018-09-30 5,385.00 523.00 839.00
2018-06-30 5,462.00 521.00 608.00
2018-03-31 5,802.00 517.00 449.00
2017-12-31 5,497.00 544.00 564.00
2017-09-30 5,301.00 499.00 626.00
2017-06-30 5,105.00 506.00 275.00
2017-03-31 5,259.00 572.00 393.00
2016-12-31 4,711.00 500.00 316.00
2016-09-30 4,352.00 520.00 334.00
2016-06-30 4,121.00 1,568.00 1,049.00
2016-03-31 3,717.00 1,606.00 892.00
2015-12-31 3,320.00 1,847.00 728.00
2015-09-30 3,716.00 2,058.00 937.00
2015-06-30 4,343.00 2,336.00 685.00
2015-03-31 3,918.00 2,333.00 532.00
2014-12-31 3,942.00 2,587.00 557.00
2014-09-30 5,701.00 2,733.00 393.00
2014-06-30 6,631.00 3,194.00 506.00
2014-03-31 6,283.00 3,173.00 286.00
2013-12-31 6,861.00 3,180.00 171.00
2013-09-30 8,923.00 3,276.00 308.00
2013-06-30 8,776.00 3,333.00 255.00
2013-03-31 9,535.00 3,620.00 402.00
2012-12-31 9,820.00 3,880.00 424.00
2012-09-30 9,732.00 3,869.00 280.00
2012-06-30 9,355.00 3,681.00 240.00
  • Magnitogorsk Iron & Steel Works's level of debt (8.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (50.5% vs 8.9% today).
  • Debt is well covered by operating cash flow (390.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 173.6x coverage).
X
Financial health checks
We assess Magnitogorsk Iron & Steel Works's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magnitogorsk Iron & Steel Works has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
12.13%
Current annual income from Magnitogorsk Iron & Steel Works dividends. Estimated to be 15.39% next year.
If you bought RUB2,000 of Magnitogorsk Iron & Steel Works shares you are expected to receive RUB243 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Magnitogorsk Iron & Steel Works's pays a higher dividend yield than the bottom 25% of dividend payers in Russian Federation (3.24%).
  • Magnitogorsk Iron & Steel Works's dividend is above the markets top 25% of dividend payers in Russian Federation (8.6%).
Upcoming dividend payment

Purchase Magnitogorsk Iron & Steel Works before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
MISX:MAGN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 63 Stocks 6.2%
Russian Federation Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 6.7%
Russian Federation Minimum Threshold Dividend Yield 10th Percentile 1.7%
Russian Federation Bottom 25% Dividend Yield 25th Percentile 3.2%
Russian Federation Top 25% Dividend Yield 75th Percentile 8.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

MISX:MAGN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.14 1.00
2022-12-31 0.14 1.00
2021-12-31 0.13 1.00
2020-12-31 0.09 2.00
2019-12-31 0.07 1.00
MISX:MAGN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-11 0.088 13.274
2018-11-02 0.069 10.264
2018-06-01 0.040 5.905
2017-11-09 0.070 9.841
2017-10-03 0.036 4.722
2017-05-11 0.032 5.579
2017-04-24 0.034 5.611
2016-10-04 0.016 3.002
2016-04-25 0.009 2.268
2016-02-16 0.010 3.287
2015-11-06 0.020 7.490
2015-08-19 0.008 2.729
2015-03-17 0.010 3.523
2015-01-15 0.010 4.596
2014-12-15 0.009 4.868
2014-04-22 0.000 0.000
2013-04-12 0.010 4.602
2013-01-08 0.009 2.911
2012-04-18 0.010 3.070
2011-06-24 0.010 2.003
2011-03-31 0.010 1.048
2010-04-30 0.010 1.072
2010-03-22 0.010 0.972
2010-01-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnitogorsk Iron & Steel Works has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Magnitogorsk Iron & Steel Works only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Magnitogorsk Iron & Steel Works's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Magnitogorsk Iron & Steel Works's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magnitogorsk Iron & Steel Works afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magnitogorsk Iron & Steel Works has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pavel Shilyaev
AGE 48
TENURE AS CEO 5.4 years
CEO Bio

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, 2012 respectively and serves as its Chairman of Management Board also served as its Chief Executive Officer and General Director from February 26, 2014 to May 30, 2014 and its Member of Management Boart from May 25, 2012 to May 30, 2014. Mr. Shilyaev served as an Acting Chief Executive Officer of Open Joint Stock Company agnitogorsk Iron & Steel Works from January 17, 2014 to February 26, 2014 and also served as its Deputy Chief Executive Officer for Production until January 15, 2014 and Deputy General Director of Production and Acting Deputy General Director for Production. He serves as a Director of Open Joint Stock Company Magnitogorsk Iron & Steel Works. He is a graduate of Chelyabinsk State Technical University with a degree in electric drive and industrial automation in 1992. In 2006, he completed courses in performance management at the Stockholm School of Economics in Russia (St Petersburg).

CEO Compensation
  • Insufficient data for Pavel to compare compensation growth.
  • Insufficient data for Pavel to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Magnitogorsk Iron & Steel Works management team in years:

6.3
Average Tenure
48
Average Age
  • The average tenure for the Magnitogorsk Iron & Steel Works management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Pavel Shilyaev

TITLE
Chairman of Management Board
AGE
48
TENURE
5.4 yrs

Oleg Shiryaev

TITLE
Deputy General Director for Production & Member of Management Board
AGE
53
TENURE
0.5 yrs

Vladimir Rruga

TITLE
Deputy General Director for External Communications & Member of Management Board
AGE
48
TENURE
7.1 yrs

Oleg Kiykov

TITLE
Director for Human Resources & Member of Management Board
AGE
57
TENURE
7.1 yrs

Sergey Shepilov

TITLE
Chief Legal Officer & Member of Management Board
AGE
47
TENURE
7.1 yrs

Sergey Nenashev

TITLE
Commercial Director & Member of Management Board
AGE
39
TENURE
4.3 yrs

Andrey Yeryomin

TITLE
Director for Economics & Member of Management Board
AGE
46
TENURE
7.1 yrs

Sergej Krivoshchekov

TITLE
Director for Corporate Matters & Social Programmes and Member of Management Board
AGE
57
TENURE
7.1 yrs

Alexey Kuzmin

TITLE
Head of Sales in the Russian Federation & Member of the Management Board
AGE
41
TENURE
3.3 yrs

Sergei E. Kotzebue

TITLE
Director of Security & Member of Management Board
AGE
58
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Magnitogorsk Iron & Steel Works board of directors in years:

5.1
Average Tenure
49
Average Age
  • The tenure for the Magnitogorsk Iron & Steel Works board of directors is about average.
Board of Directors

Viktor Rashnikov

TITLE
Chairman of the Board
AGE
70
TENURE
26.2 yrs

Pavel Shilyaev

TITLE
Chairman of Management Board
AGE
48
TENURE
5.1 yrs

Yu Liovin

TITLE
Director
AGE
50
TENURE
5.1 yrs

Alexander Maslennikov

TITLE
Chairman of Audit Commission
AGE
49
TENURE
3.9 yrs

Valeriy Martsinovich

TITLE
Director
AGE
45
TENURE
5.1 yrs

Zumrud Khandadashevna Rustamova

TITLE
Director
AGE
48
TENURE
13.2 yrs

Sergey Ushakov

TITLE
Director
AGE
49
TENURE
2.4 yrs

Olga Rashnikova

TITLE
Non-Executive Director
AGE
41
TENURE
7.4 yrs

Tav Tavakolian

TITLE
Independent Director
AGE
50
TENURE
4.1 yrs

Nikolay Nikiforov

TITLE
Director
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (RUB) Value (RUB)
X
Management checks
We assess Magnitogorsk Iron & Steel Works's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magnitogorsk Iron & Steel Works has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should We Be Delighted With Public Joint Stock Company Magnitogorsk Iron & Steel Works's (MCX:MAGN) ROE Of 23%?

See our latest analysis for Magnitogorsk Iron &amp; Steel Works How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Magnitogorsk Iron &amp; Steel Works: 23% = US$1.3b ÷ US$5.6b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Magnitogorsk Iron &amp; Steel Works Have A Good Return On Equity?

Simply Wall St -

Why You Should Like Public Joint Stock Company Magnitogorsk Iron & Steel Works’s (MCX:MAGN) ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Magnitogorsk Iron &amp; Steel Works: 0.28 = US$1.7b ÷ (US$7.6b - US$1.4b) (Based on the trailing twelve months to March 2019.) Therefore, Magnitogorsk Iron &amp; Steel Works has an ROCE of 28%. … Do Magnitogorsk Iron &amp; Steel Works's Current Liabilities Skew Its ROCE? … The Bottom Line On Magnitogorsk Iron &amp; Steel Works's ROCE With low current liabilities and a high ROCE, Magnitogorsk Iron &amp; Steel Works could be worthy of further investigation.

Simply Wall St -

These Factors Make Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) An Interesting Investment

Help shape the future of investing tools and you could win a $250 gift card! … In the case of Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN), there's … is a company with great financial health as well as a

Simply Wall St -

Are Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) Investors Paying Above The Intrinsic Value?

This is done using the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model? … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN): Financial Strength Analysis

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN), with a market cap of RUруб504b, often get neglected by retail investors. … Don’t forget that this is a general and concentrated examination of Magnitogorsk Iron & Steel Works's financial health, so you should conduct further analysis. … See our latest analysis for Magnitogorsk Iron & Steel Works

Simply Wall St -

Despite Its High P/E Ratio, Is Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) Still Undervalued?

We'll look at Public Joint Stock Company Magnitogorsk Iron & Steel Works's (MCX:MAGN) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Magnitogorsk Iron & Steel Works's P/E ratio is 5.85. … How Do You Calculate Magnitogorsk Iron & Steel Works's P/E Ratio

Simply Wall St -

Should You Buy Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) When Prices Drop?

Today I want to bring to light the market's darling - Public Joint Stock Company Magnitogorsk Iron & Steel Works. … Looking at its size, financial health and track record, I believe there's an opportunity with Magnitogorsk Iron & Steel Works during these volatile times. … 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

Simply Wall St -

Introducing Magnitogorsk Iron & Steel Works, The Stock That Soared 601% In The Last Five Years

Then look at the Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) share price. … Indeed, the Magnitogorsk Iron & Steel Works share price has gained 130% in three years. … This EPS growth is higher than the 32% average annual increase in the share price over the same three years.

Simply Wall St -

What Should You Know About Public Joint Stock Company Magnitogorsk Iron & Steel Works's (MCX:MAGN) Long Term Outlook?

In December 2018, Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) announced its most recent earnings update, whicha … company

Simply Wall St -

Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) Earns A Nice Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

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.

Details
Name: Public Joint Stock Company Magnitogorsk Iron & Steel Works
MAGN
Exchange: MISX
Founded: 1932
RUB521,226,622,850
11,174,330,000
Website: http://www.mmk.ru
Address: Public Joint Stock Company Magnitogorsk Iron & Steel Works
93, Kirova Street,
Magnitogorsk,
Chelyabinskaya obl., 455000,
Russia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
MISX MAGN Common Stock Micex - Rts RU RUB 27. Apr 1995
LSE MMK GDR EACH REPR 13 ORD 'REGS' London Stock Exchange GB USD 24. Apr 2007
DB MHQ GDR EACH REPR 13 ORD 'REGS' Deutsche Boerse AG DE EUR 24. Apr 2007
BATS-CHIXE MMKL GDR EACH REPR 13 ORD 'REGS' BATS 'Chi-X Europe' GB USD 24. Apr 2007
Number of employees
Current staff
Staff numbers
0
Magnitogorsk Iron & Steel Works employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 21:25
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.