MISX:RTKM

Stock Analysis Report

Executive Summary

Public Joint Stock Company Rostelecom provides telecommunications services in Russia and Europe.


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

RTKM

1.7%

RU Telecom

1.4%

RU Market


1 Year Return

-7.3%

RTKM

9.9%

RU Telecom

-6.0%

RU Market

Return vs Industry: RTKM underperformed the Russian Telecom industry which returned 13.9% over the past year.

Return vs Market: RTKM underperformed the Russian Market which returned -2.4% over the past year.


Shareholder returns

RTKMIndustryMarket
7 Day1.2%1.7%1.4%
30 Day-22.3%-22.3%-22.0%
90 Day-14.9%1.7%-22.5%
1 Year-4.4%-7.3%17.3%9.9%0.5%-6.0%
3 Year8.1%-12.7%70.1%31.9%32.0%11.4%
5 Year14.4%-16.7%102.7%42.0%86.4%45.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rostelecom 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: RTKM (RUB67.19) is trading below our estimate of fair value (RUB464.07)

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


Price To Earnings Ratio

PE vs Industry: RTKM is good value based on its PE Ratio (10.5x) compared to the Telecom industry average (11x).

PE vs Market: RTKM is poor value based on its PE Ratio (10.5x) compared to the Russian market (7.3x).


Price to Earnings Growth Ratio

PEG Ratio: RTKM is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: RTKM is good value based on its PB Ratio (0.6x) compared to the RU Telecom industry average (0.8x).


Next Steps

Future Growth

How is Rostelecom forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTKM's forecast earnings growth (25.1% per year) is above the savings rate (6.4%).

Earnings vs Market: RTKM's earnings (25.1% per year) are forecast to grow faster than the Russian market (4.5% per year).

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

Revenue vs Market: RTKM's revenue (7.8% per year) is forecast to grow faster than the Russian market (4.8% per year).

High Growth Revenue: RTKM's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RTKM's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Rostelecom performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTKM has high quality earnings.

Growing Profit Margin: RTKM's current net profit margins (4.4%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: RTKM's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: RTKM's earnings growth over the past year (4.4%) is below its 5-year average (8% per year).

Earnings vs Industry: RTKM earnings growth over the past year (4.4%) underperformed the Telecom industry 145.9%.


Return on Equity

High ROE: RTKM's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is Rostelecom's financial position?


Financial Position Analysis

Short Term Liabilities: RTKM's short term assets (RUB100.3B) do not cover its short term liabilities (RUB141.8B).

Long Term Liabilities: RTKM's short term assets (RUB100.3B) do not cover its long term liabilities (RUB324.3B).


Debt to Equity History and Analysis

Debt Level: RTKM's debt to equity ratio (96.3%) is considered high.

Reducing Debt: RTKM's debt to equity ratio has increased from 77.4% to 96.3% over the past 5 years.

Debt Coverage: RTKM's debt is well covered by operating cash flow (39.4%).

Interest Coverage: RTKM's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: RTKM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

7.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RTKM's dividend (7.44%) is higher than the bottom 25% of dividend payers in the Russian market (4.04%).

High Dividend: RTKM's dividend (7.44%) is low compared to the top 25% of dividend payers in the Russian market (9.97%).


Stability and Growth of Payments

Stable Dividend: RTKM's dividend payments have been volatile in the past 10 years.

Growing Dividend: RTKM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.2%), RTKM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RTKM's dividends in 3 years are not forecast to be well covered by earnings (100.6% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Mikhail Oseevskiy (59yo)

3s

Tenure

Mr. Mikhail Eduardovich Oseevskiy has been the Chairman of The Management Board, CEO and President at Public Joint Stock Company Long-Distance and International Telecommunications Rostelecom (a/k/a Rostele ...


Leadership Team

NamePositionTenureCompensationOwnership
Mikhail Oseevskiy
Chairman of the Management Board3yrsno data0.12% RUB246.6m
Sergey Anokhin
CFO, Senior VP & Member of Management Board2yrsno data0.018% RUB36.2m
Galina Rysakova
Senior VP of Organizational Development & Human Resources and Member of Management Board13.67yrs₽7.07m0.052% RUB106.8m
Dmitry Proskura
Vice President for Industry Digitization & Member of Management Board2.83yrsno data0.027% RUB55.1m
Alexey Sapunov
Senior VP of Technical Infrastructure & Member of Management Board2.83yrsno data0.034% RUB68.9m
Vladimir Kirienko
First VP & Member of Management Board3.5yrsno data0.056% RUB113.7m
Anna Shumeyko
SVP, Chief of Staff of President & Member of Management Boardno datano data0.039% RUB79.2m
Kirill Menshov
Senior Vice President for IT & Member of Management Boardno datano data0.030% RUB62.0m
Dmitriy Peresvetov
Chief Accountant6.58yrsno datano data
Dmitry Sadkov
Chief Information Officer and Vice Presidentno datano datano data

3.0yrs

Average Tenure

42yo

Average Age

Experienced Management: RTKM's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mikhail Oseevskiy
Chairman of the Management Board3yrsno data0.12% RUB246.6m
Kirill Dmitriev
Non-Executive Director5.92yrs₽4.00mno data
Ruben Aganbegyan
Independent Director6.75yrs₽5.12mno data
Alexey Yakovizkiy
Independent Director2.75yrsno datano data
Sergey Ivanov
Chairman of the Board5.17yrsno datano data
Vadim Semenov
Independent Director9.17yrs₽5.14mno data
Anton Zlatopolsky
Non-Executive Director8.75yrsno datano data
Alexander Auzan
Senior Independent Directorno data₽5.01mno data
Nikolay Nikiforov
Director1.25yrsno datano data
Konstantin Noskov
Director1.25yrsno datano data

5.2yrs

Average Tenure

53.5yo

Average Age

Experienced Board: RTKM's board of directors are considered experienced (5.2 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 Rostelecom's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Rostelecom
  • Ticker: RTKM
  • Exchange: MISX
  • Founded: 1993
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₽204.064b
  • Shares outstanding: 3.05b
  • Website: https://moscow.rt.ru

Number of Employees


Location

  • Public Joint Stock Company Rostelecom
  • Building 1
  • 30, Goncharnaya Street
  • Moscow
  • 115172
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTKMMISX (Micex - Rts)YesOrdinary SharesRURUBJan 1996
RU_RTKMKAS (Kazakhstan Stock Exchange)YesOrdinary SharesKZKZTJan 1996
RTKMPMISX (Micex - Rts)Preferred SharesRURUBJun 1996
ROSY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 1998
RKMDLSE (London Stock Exchange)SPONSORED ADRGBUSDFeb 1998
RTLDB (Deutsche Boerse AG)SPONSORED ADRDEEURFeb 1998
RKMDLBATS-CHIXE (BATS 'Chi-X Europe')SPONSORED ADRGBUSDFeb 1998

Biography

Public Joint Stock Company Rostelecom provides telecommunications services in Russia and Europe. The company offers communication services, such as local, intra-zone, long-distance domestic and international fixed-line telephone, and mobile services, as well as data transmission, Internet, Pay TV, VPN, data center, and radio communication services; and rents communication channels. It operates the intercity network and the international telecommunications gateways of Russia, which carry voice and data traffic that originates in owned, and other national and international operators’ networks to national and international operators for termination. The company also operates government programs, including e-Government, unified communication service, and others, as well as offers solutions in the fields of cloud computing, healthcare, education, security, and housing and utility services. In addition, it manufactures communication equipment; and provides repair and maintenance, engineering design, recreational, IT consulting, and data storage services. Further, the company is involved in the provision of pension fund and equipment leasing activities. It serves approximately 13 million broadband subscribers; and approximately 10.1 million pay-TV subscribers, including 5.3 million IPTV subscribers. The company was founded in 1993 and is headquartered in Moscow, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:50
End of Day Share Price2020/03/27 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.