MISX:MTLRP

Stock Analysis Report

Executive Summary

Mechel PAO, together with its subsidiaries, engages in mining, steel, and power businesses in Russia, Asia, Europe, the Commonwealth of Independent States, the Middle East, the United States, and internationally.


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Mechel PAO's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.1%

MTLRP

7.3%

RU Metals and Mining

6.1%

RU Market


1 Year Return

-37.5%

MTLRP

28.3%

RU Metals and Mining

3.5%

RU Market

Return vs Industry: MTLRP underperformed the Russian Metals and Mining industry which returned 25.8% over the past year.

Return vs Market: MTLRP underperformed the Russian Market which returned 1.7% over the past year.


Shareholder returns

MTLRPIndustryMarket
7 Day7.1%7.3%6.1%
30 Day-25.8%9.3%4.9%
90 Day-33.0%11.9%-15.1%
1 Year-25.9%-37.5%39.7%28.3%10.6%3.5%
3 Year-13.2%-41.2%79.1%39.7%53.1%29.2%
5 Year118.6%47.7%291.7%181.5%104.8%60.3%

Price Volatility Vs. Market

How volatile is Mechel PAO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mechel PAO undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTLRP (RUB66.55) is trading below our estimate of fair value (RUB669.33)

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


Price To Earnings Ratio

PE vs Industry: MTLRP is poor value based on its PE Ratio (10.9x) compared to the Metals and Mining industry average (6.5x).

PE vs Market: MTLRP is poor value based on its PE Ratio (10.9x) compared to the Russian market (7.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MTLRP has negative assets, so we can't compare its PB Ratio to the RU Metals and Mining industry average.


Next Steps

Future Growth

How is Mechel PAO forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.0%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MTLRP's forecast earnings growth is above the savings rate (6.4%).

Earnings vs Market: Insufficient data to determine if MTLRP's earnings are forecast to grow faster than the Russian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if MTLRP's revenue is forecast to grow faster than the Russian market.

High Growth Revenue: Insufficient data to determine if MTLRP's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTLRP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mechel PAO performed over the past 5 years?

72.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTLRP has high quality earnings.

Growing Profit Margin: MTLRP's current net profit margins (0.8%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: MTLRP has become profitable over the past 5 years, growing earnings by 72.5% per year.

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

Earnings vs Industry: MTLRP had negative earnings growth (-80.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (24.5%).


Return on Equity

High ROE: MTLRP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Mechel PAO's financial position?


Financial Position Analysis

Short Term Liabilities: MTLRP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MTLRP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MTLRP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MTLRP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MTLRP's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: MTLRP's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Next Steps

Dividend

What is Mechel PAO's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTLRP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MTLRP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTLRP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTLRP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MTLRP is not paying a notable dividend for the Russian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTLRP's dividend in 3 years as they are not forecast to pay a notable one for the Russian market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Oleg Korzhov (49yo)

6.25s

Tenure

Mr. Oleg V. Korzhov had been the Chairman of the Management Board and General Director of Mechel PAO (also known as: Mechel, OJSC) since January 1, 2014 and its Member of Management Board since March 2009. ...


Leadership Team

NamePositionTenureCompensationOwnership
Oleg Korzhov
Chairman of the Management Board6.25yrsno data0.0025% RUB641.6k
Nelli Galeeva
CFO & Member of Management Board2.25yrsno datano data
Irina Ipeeva
Director of Legal Department & Member of Management Board 12.58yrsno data0.00024% RUB62.6k
Victor Trigubko
Senior VP of Government Relations3.83yrsno data0.00048% RUB125.2k
Valery Sheverdin
VP of Corporate Security & Member of Management Board5.67yrsno datano data
Minas Darbinyan
Deputy Chief Executive Officer of Financial Control & Member of Management Board4.75yrsno datano data
Natalia Trubkina
Human Resources Director & Member of Management Board4.17yrsno datano data
Tatiana Kalyadina
Chief Accountantno datano datano data
Alexey Lukashov
Director of Investor Relationsno datano datano data
Konstantin Panfilov
Executive VP - Kemerovo Region & Head of the Representative Office9.83yrsno datano data

5.2yrs

Average Tenure

55yo

Average Age

Experienced Management: MTLRP's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oleg Korzhov
Chairman of the Management Board6.25yrsno data0.0025% RUB641.6k
Victor Trigubko
Senior VP of Government Relations3.83yrsno data0.00048% RUB125.2k
Igor Zyuzin
Chairman of the Board9.75yrsno data0.69% RUB180.9m
Tigran Khachaturov
Director4.08yrsno datano data
Alexander Starodubov
Chairman of the Board of Directors of Mecheltrans 8.33yrsno datano data
Alexander Orishchin
Independent Director4.08yrsno datano data
Yuriy Malyshev
Independent Director6.83yrsno datano data
Alexander Nikolaevich Kotsky
Independent Director4.08yrsno data0.0097% RUB2.5m
Alexander Shokhin
Independent Deputy Chairman of the Board3.83yrsno datano data
Georgiy Petrov
Independent Director2.83yrsno datano data

4.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MTLRP's board of directors are considered experienced (4.1 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

Mechel PAO's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mechel PAO
  • Ticker: MTLRP
  • Exchange: MISX
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$355.040m
  • Listing Market Cap: US$26.083b
  • Shares outstanding: 207.63m
  • Website: https://www.mechel.com

Number of Employees


Location

  • Mechel PAO
  • Krasnoarmeyskaya Street 1
  • Moscow
  • 125167
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTLNYSE (New York Stock Exchange)YesADR EA REPR 2 ORD SPON (POST REV SPLIT)USUSDOct 2004
MHSGDB (Deutsche Boerse AG)YesADR EA REPR 2 ORD SPON (POST REV SPLIT)DEEUROct 2004
MTLRMISX (Micex - Rts)Common SharesRURUBFeb 2005
MTL.PRNYSE (New York Stock Exchange)SPON ADS EACH REP 0.5 PFD SHS RUB0.00USUSDMay 2010
MHSEDB (Deutsche Boerse AG)SPON ADS EACH REP 0.5 PFD SHS RUB0.00DEEURMay 2010
MTLRPMISX (Micex - Rts)PREF RUB10RURUBApr 2011

Biography

Mechel PAO, together with its subsidiaries, engages in mining, steel, and power businesses in Russia, Asia, Europe, the Commonwealth of Independent States, the Middle East, the United States, and internationally. Its Mining segment produces and sells coking, metallurgical, and steam coal; coke; chemical products, including coal tar, coal benzene, and other compounds; and iron ore and iron ore concentrates, as well as offers sea, rail, and motor transportation logistics services to third parties. The company’s Steel segment produces and sells semi-finished steel products, long steel products, and carbon and stainless flat products; ferrosilicon products; and pig iron, as well as metal products, including wire products, stampings and forgings, structural shapes, beams, and rails. Its Power segment generates and supplies electricity, heat energy, and other power resources to third parties. The company was formerly known as Mechel OAO and changed its name to Mechel PAO in March 2016. Mechel PAO was founded in 2003 and is based in Moscow, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:37
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.