MISX:AFLT

Stock Analysis Report

Aeroflot - Russian Airlines

Executive Summary

Public Joint Stock Company Aeroflot - Russian Airlines, together with its subsidiaries, provides passenger and cargo air transportation services in Russia and internationally.


Snowflake Analysis

High growth potential and good value.


Similar Companies

Share Price & News

How has Aeroflot - Russian Airlines's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.4%

AFLT

4.1%

RU Airlines

6.1%

RU Market


1 Year Return

-33.0%

AFLT

-44.2%

RU Airlines

-5.9%

RU Market

Return vs Industry: AFLT exceeded the Russian Airlines industry which returned -43.7% over the past year.

Return vs Market: AFLT underperformed the Russian Market which returned -6% over the past year.


Shareholder returns

AFLTIndustryMarket
7 Day4.4%4.1%6.1%
30 Day-29.5%-38.3%-14.2%
90 Day-36.7%-52.1%-21.7%
1 Year-31.3%-33.0%-42.2%-44.2%0.6%-5.9%
3 Year-52.3%-61.1%-41.4%-47.0%32.7%11.9%
5 Year119.7%79.4%-37.8%-45.8%85.4%44.9%

Price Volatility Vs. Market

How volatile is Aeroflot - Russian Airlines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aeroflot - Russian Airlines 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: AFLT (RUB65.48) is trading below our estimate of fair value (RUB285.18)

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


Price To Earnings Ratio

PE vs Industry: AFLT is poor value based on its PE Ratio (6.5x) compared to the Airlines industry average (5.6x).

PE vs Market: AFLT is good value based on its PE Ratio (6.5x) compared to the Russian market (7.2x).


Price to Earnings Growth Ratio

PEG Ratio: AFLT is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: AFLT has negative assets, so we can't compare its PB Ratio to the XE Airlines industry average.


Next Steps

Future Growth

How is Aeroflot - Russian Airlines forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFLT's forecast earnings growth (27.6% per year) is above the savings rate (6.4%).

Earnings vs Market: AFLT's earnings (27.6% per year) are forecast to grow faster than the Russian market (4.8% per year).

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

Revenue vs Market: AFLT's revenue (10.8% per year) is forecast to grow faster than the Russian market (5% per year).

High Growth Revenue: AFLT's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFLT's Return on Equity is forecast to be high in 3 years time (29.7%)


Next Steps

Past Performance

How has Aeroflot - Russian Airlines performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFLT has a large one-off gain of RUB4.6B impacting its December 31 2019 financial results.

Growing Profit Margin: AFLT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AFLT has become profitable over the past 5 years, growing earnings by 16.9% per year.

Accelerating Growth: AFLT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AFLT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Airlines industry (-17%).


Return on Equity

High ROE: Whilst AFLT's Return on Equity (692.92%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Aeroflot - Russian Airlines's financial position?


Financial Position Analysis

Short Term Liabilities: AFLT's short term assets (RUB146.9B) do not cover its short term liabilities (RUB237.4B).

Long Term Liabilities: AFLT's short term assets (RUB146.9B) do not cover its long term liabilities (RUB694.0B).


Debt to Equity History and Analysis

Debt Level: AFLT's debt to equity ratio (809.8%) is considered high.

Reducing Debt: AFLT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AFLT's debt is well covered by operating cash flow (963.9%).

Interest Coverage: AFLT's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: AFLT's debt is covered by short term assets (assets are 9.3x debt).


Next Steps

Dividend

What is Aeroflot - Russian Airlines's current dividend yield, its reliability and sustainability?

4.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFLT's dividend (4.1%) isn’t notable compared to the bottom 25% of dividend payers in the Russian market (4.31%).

High Dividend: AFLT's dividend (4.1%) is low compared to the top 25% of dividend payers in the Russian market (10.26%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), AFLT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFLT's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

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

5.3yrs

Average board tenure


CEO

Vitaly Saveliev (65yo)

10.92s

Tenure

₽3,618,907

Compensation

• 2009 – Present: General Manager, JSC “Aeroflot-Russian Airlines”, Moscow. 10 April 2009 – serves as Chief Executive Officer at OAO Aeroflot-Russian Airlines and serves as its Executive Director since 20 ...


Board Members

NamePositionTenureCompensationOwnership
Vitaly Saveliev
Chairman of Management Board10.92yrs₽3.62m0.13% RUB88.0m
Vasiliy Sidorov
Independent Director7.17yrs₽7.11mno data
Mikhail Poluboyarinov
Director2.75yrsno datano data
Sergey Chemezov
Non-Executive Director8.75yrs₽5.88mno data
Igor Kamenskoy
Independent Director5.75yrs₽7.52mno data
Dmitry Peskov
Non-Executive Director5.75yrs₽6.45mno data
Yury Slyusar
Non-Executive Director4.75yrs₽2.07mno data
Maxim Sokolov
Independent Director2.17yrsno datano data
Yevgeny Ditrikh
Director1.42yrsno datano data
Evgeny Ditrich
Chairman of the Board1.25yrsno datano data

5.3yrs

Average Tenure

51yo

Average Age

Experienced Board: AFLT's board of directors are considered experienced (5.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Public Joint Stock Company Aeroflot - Russian Airlines's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company Aeroflot - Russian Airlines
  • Ticker: AFLT
  • Exchange: MISX
  • Founded: 1923
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: ₽69.592b
  • Shares outstanding: 1.06b
  • Website: https://www.aeroflot.ru

Number of Employees


Location

  • Public Joint Stock Company Aeroflot - Russian Airlines
  • 10 Arbat Street
  • Moscow
  • 119002
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFLTMISX (Micex - Rts)YesOrdinary SharesRURUBMay 1997
RU_AFLTKAS (Kazakhstan Stock Exchange)YesOrdinary SharesKZKZTMay 1997
AETGDB (Deutsche Boerse AG)GDR EA REPR 100 ORD 144ADEEURApr 2001

Biography

Public Joint Stock Company Aeroflot - Russian Airlines, together with its subsidiaries, provides passenger and cargo air transportation services in Russia and internationally. It also offers other aviation-related services from Moscow Sheremetyevo Airport. In addition, the company provides airline catering, finance, and technical maintenance services, as well as operates a hotel. As of December 31, 2018, it operated a fleet of 366 aircraft. The company was founded in 1923 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 Analysis2020/03/30 22:22
End of Day Share Price2020/03/30 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.