MISX:MGNZ

Stock Analysis Report

Solikamsk magnesium works

Executive Summary

Open joint stock company Solikamsk magnesium works manufactures and sells magnesium, chemical, and rare metals products for use in high-tech industries in Russia and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Solikamsk magnesium works's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGNZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.9%

MGNZ

-0.9%

RU Metals and Mining

-4.9%

RU Market


1 Year Return

75.4%

MGNZ

13.3%

RU Metals and Mining

23.1%

RU Market

Return vs Industry: MGNZ exceeded the Russian Metals and Mining industry which returned 11.1% over the past year.

Return vs Market: MGNZ exceeded the Russian Market which returned 28.5% over the past year.


Shareholder returns

MGNZIndustryMarket
7 Day9.9%-0.9%-4.9%
30 Day31.1%8.1%0.9%
90 Day43.8%15.1%5.7%
1 Year83.4%75.4%23.4%13.3%31.7%23.1%
3 Year40.2%34.1%49.2%16.0%56.3%31.5%
5 Year92.9%84.5%243.9%144.1%158.8%101.6%

Price Volatility Vs. Market

How volatile is Solikamsk magnesium works's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Solikamsk magnesium works undervalued compared to its fair value and its price relative to the market?

31.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGNZ (RUB4460) is trading below our estimate of fair value (RUB7501.4)

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


Price To Earnings Ratio

PE vs Industry: MGNZ is poor value based on its PE Ratio (7.3x) compared to the Metals and Mining industry average (6.4x).

PE vs Market: MGNZ is good value based on its PE Ratio (7.3x) compared to the Russian market (8.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGNZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGNZ is overvalued based on its PB Ratio (0.6x) compared to the RU Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is Solikamsk magnesium works forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Solikamsk magnesium works has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Solikamsk magnesium works performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNZ has high quality earnings.

Growing Profit Margin: MGNZ's current net profit margins (2.9%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: MGNZ has become profitable over the past 5 years, growing earnings by -11.8% per year.

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

Earnings vs Industry: MGNZ had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (19%).


Return on Equity

High ROE: MGNZ's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Solikamsk magnesium works's financial position?


Financial Position Analysis

Short Term Liabilities: MGNZ's short term assets (RUB2.3B) exceed its short term liabilities (RUB575.2M).

Long Term Liabilities: MGNZ's short term assets (RUB2.3B) exceed its long term liabilities (RUB1.1B).


Debt to Equity History and Analysis

Debt Level: MGNZ's debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: MGNZ's debt to equity ratio has reduced from 24.2% to 9% over the past 5 years.

Debt Coverage: MGNZ's debt is well covered by operating cash flow (155.1%).

Interest Coverage: MGNZ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: MGNZ's debt is covered by short term assets (assets are 8x debt).


Next Steps

Dividend

What is Solikamsk magnesium works's current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%3.4%markettop25%8.0%industryaverage7.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MGNZ's dividend (3.36%) isn’t notable compared to the bottom 25% of dividend payers in the Russian market (3.39%).

High Dividend: MGNZ's dividend (3.36%) is low compared to the top 25% of dividend payers in the Russian market (8.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MGNZ's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MGNZ's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), MGNZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Solikamsk magnesium works's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average board tenure


CEO

Dmitriy Melnikov (58yo)

0.6yrs

Tenure

0

Dr. Dmitriy Leonodovich Melnikov has been General Director of Open joint stock company Solikamsk magnesium works since June 1, 2019. Dr. Melnikov served as Deputy Chairman of the Board and at Open joint st ...


Board Age and Tenure

3.8yrs

Average Tenure

53yo

Average Age

Experienced Board: MGNZ's board of directors are considered experienced (3.8 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Elena Shestakova

    Department Head of Economics

    • Dernov Aleksandr

      Deputy Chief Engineer and Head of Production & Technical Department

      • Dmitriy Melnikov (58yo)

        General Director

        • Tenure: 0.6yrs
      • Elena Remeslova

        Chief Accountant

        • Artem Nechaev (43yo)

          Director of Legal Affairs

          • Tenure: 5yrs

        Board Members

        • Timur Starostin (44yo)

          Director

          • Tenure: 3.8yrs
        • Luiza Yefimenko

          Member of Audit Commission

          • Sergei Shalaev (63yo)

            Deputy Chairman

            • Pavel Detkov (59yo)

              Independent Chairman

              • Tenure: 4.1yrs
            • Artem Nechaev (43yo)

              Director of Legal Affairs

              • Tenure: 5yrs
            • Tatiana Aflatonova (55yo)

              Independent Director

              • Tenure: 3.8yrs
            • Alexei Butenko (50yo)

              Director

              • Tenure: 3.8yrs
            • Alexander Lemiagov (55yo)

              Independent Director

              • Yuriy Savin (51yo)

                Independent Director

                Company Information

                Open joint stock company Solikamsk magnesium works's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Open joint stock company Solikamsk magnesium works
                • Ticker: MGNZ
                • Exchange: MISX
                • Founded: 1936
                • Industry: Diversified Metals and Mining
                • Sector: Materials
                • Market Cap: ₽2.127b
                • Shares outstanding: 398.27k
                • Website: https://www.smw.ru

                Location

                • Open joint stock company Solikamsk magnesium works
                • Building 9
                • Pravda Street
                • Solikamsk
                • Permskaya obl.
                • 618541
                • Russia

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                MGNZMISX (Micex - Rts)YesCommon SharesRURUBMar 1998

                Biography

                Open joint stock company Solikamsk magnesium works manufactures and sells magnesium, chemical, and rare metals products for use in high-tech industries in Russia and internationally. The company’s magnesium products include pure and alloy magnesium metals, potash, carnallite, calcium hypochlorite solution, and fluxes. It also provides chemical products, such as calcium chloride solution, liquid chlorine, lime, and lime slurry milk, as well as calcium strontium carbonate. In addition, the company offers carbonates and oxides of rare earths; chemical concentrates, pentachlorides, and pentoxides of niobium and tantalum; and titanium sponge and tetrachloride, as well as rare earths compounds and lithium niobates. Open joint stock company Solikamsk magnesium works was founded in 1936 and is based in Solikamsk, Russia. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/27 21:53
                End of Day Share Price2020/01/27 00:00
                Earnings2019/09/30
                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.