Enel Russia (MISX:ENRU) - Share price, News & Analysis

Q: What is the Fair Price of ENRU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ENRU (RUB0.45) is trading below our estimate of [[fair value]] (RUB2.13)

ENRU fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

ENRU Stock Overview

Public Joint-Stock Company Enel Russia generates and sells electric power and heat in Russia.

Rewards

Trading at 78.7% below our estimate of its fair value

Earnings are forecast to grow 18.92% per year

Risk Analysis

Debt is not well covered by operating cash flow

Volatile share price over the past 3 months

Profit margins (5.8%) are lower than last year (8.5%)

Enel Russia Competitors

FAR-EASTERN ENERGY

MISX:DVEC

₽15.3b

Interregional Distribution Grid Company of Urals

MISX:MRKU

₽13.9b

Rosseti Centre and Volga region

MISX:MRKP

₽19.3b

Rosseti Kuban PJSC

MISX:KUBE

₽19.0b

Price History & Performance

Summary of all time highs, changes and price drops for Enel Russia
Historical stock prices
Current Share Price	₽0.45
52 Week High	₽0.89
52 Week Low	₽0.43
Beta	0.63
1 Month Change	3.23%
3 Month Change	-12.86%
1 Year Change	-44.50%
3 Year Change	-54.94%
5 Year Change	-60.88%
Change since IPO	-81.21%

Shareholder Returns

	ENRU	RU Electric Utilities	RU Market
7D	-9.6%	-4.9%	-11.7%
1Y	-44.5%	-28.4%	-33.4%

Return vs Industry: ENRU underperformed the Russian Electric Utilities industry which returned -28.4% over the past year.

Return vs Market: ENRU underperformed the Russian Market which returned -33.4% over the past year.

Price Volatility

Is ENRU's price volatile compared to industry and market?
ENRU volatility
ENRU Average Weekly Movement	8.8%
Electric Utilities Industry Average Movement	6.3%
Market Average Movement	5.9%
10% most volatile stocks in RU Market	10.5%
10% least volatile stocks in RU Market	3.9%

Stable Share Price: ENRU is more volatile than 75% of Russian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ENRU's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Russian stocks.

About the Company

Founded	Employees	CEO	Website
2004	n/a	Zh. Sedova	https://www.enelrussia.ru

Public Joint-Stock Company Enel Russia generates and sells electric power and heat in Russia. The company provides ancillary services, such as frequency regulation services. Its installed capacity consists of approximately 5,740 megawatts for power and 1,927 GCal/h for heat.

Enel Russia Fundamentals Summary

How do Enel Russia's earnings and revenue compare to its market cap?
ENRU fundamental statistics
Market Cap	₽15.91b
Earnings (TTM)	₽2.93b
Revenue (TTM)	₽50.61b

5.5x

P/E Ratio

0.3x

P/S Ratio

Is ENRU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENRU income statement (TTM)
Revenue	₽50.61b
Cost of Revenue	₽45.06b
Gross Profit	₽5.55b
Other Expenses	₽2.62b
Earnings	₽2.93b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	0.083
Gross Margin	10.96%
Net Profit Margin	5.79%
Debt/Equity Ratio	82.8%

How did ENRU perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ENRU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ENRU?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ENRU. This is calculated by dividing ENRU's market cap by their current preferred multiple.
What is ENRU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₽15.91b

ENRU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	5.5x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does ENRU's PE Ratio compare to its peers?

ENRU PE Ratio vs Peers

The above table shows the PE ratio for ENRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.9x
DVEC FAR-EASTERN ENERGY	9x	n/a	₽15.3b
MRKU Interregional Distribution Grid Company of Urals	2.6x	n/a	₽13.9b
MRKP Rosseti Centre and Volga region	2x	n/a	₽19.3b
KUBE Rosseti Kuban PJSC	46.2x	n/a	₽19.0b
ENRU Enel Russia	5.5x	18.9%	₽15.9b

Forward PE

Price-To-Earnings vs Peers: ENRU is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (14.9x).

Price to Earnings Ratio vs Industry

How does ENRU's PE Ratio compare vs other companies in the RU Electric Utilities Industry?

Price-To-Earnings vs Industry: ENRU is expensive based on its Price-To-Earnings Ratio (5.5x) compared to the Russian Electric Utilities industry average (5.4x)

Price to Earnings Ratio vs Fair Ratio

What is ENRU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ENRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.5x
Fair PE Ratio	8.4x

Price-To-Earnings vs Fair Ratio: ENRU is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.4x).

Share Price vs Fair Value

What is the Fair Price of ENRU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ENRU (RUB0.45) is trading below our estimate of fair value (RUB2.13)

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

Price to Earnings Growth Ratio

PEG Ratio: ENRU is good value based on its PEG Ratio (0.3x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENRU's forecast earnings growth (18.9% per year) is above the savings rate (7.5%).

Earnings vs Market: ENRU's earnings (18.9% per year) are forecast to grow faster than the Russian market (-1% per year).

High Growth Earnings: ENRU's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENRU's revenue (5.5% per year) is forecast to grow faster than the Russian market (3.1% per year).

High Growth Revenue: ENRU's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ENRU's Return on Equity is forecast to be low in 3 years time (12%).

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Past Performance

How has Enel Russia performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-26.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENRU has high quality earnings.

Growing Profit Margin: ENRU's current net profit margins (5.8%) are lower than last year (8.5%).

Past Earnings Growth Analysis

Earnings Trend: ENRU has become profitable over the past 5 years, growing earnings by -26.5% per year.

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

Earnings vs Industry: ENRU had negative earnings growth (-21.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (17.3%).

Return on Equity

High ROE: ENRU's Return on Equity (6.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Enel Russia's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ENRU's short term assets (RUB20.1B) exceed its short term liabilities (RUB17.4B).

Long Term Liabilities: ENRU's short term assets (RUB20.1B) do not cover its long term liabilities (RUB32.2B).

Debt to Equity History and Analysis

Debt Level: ENRU's net debt to equity ratio (55.3%) is considered high.

Reducing Debt: ENRU's debt to equity ratio has increased from 64.4% to 82.8% over the past 5 years.

Debt Coverage: ENRU's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: ENRU's interest payments on its debt are well covered by EBIT (10x coverage).

Balance Sheet

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Dividend

What is Enel Russia current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

21.17%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: ENRU is not paying a notable dividend for the Russian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ENRU has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.0yrs

Average management tenure

CEO

Zh. Sedova (49 yo)

0.17

Tenure

Ms. Zhanna Igorevna Sedova, also known as Zh., serves as Chief Executive Officer of Public Joint-Stock Company Enel Russia since May 01, 2022 and served as its Head of Legal & Corporate Affairs until May 0...

Leadership Team

Experienced Management: ENRU's management team is not considered experienced ( 1 years average tenure), which suggests a new team.

Board Members

Experienced Board: ENRU's board of directors are not considered experienced ( 0.1 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31