MISX:FEES

Stock Analysis Report

Federal Grid Company of Unified Energy System

Executive Summary

Public Joint-Stock Company Federal Grid Company of Unified Energy System operates and manages electricity transmission grid infrastructure of Unified National Electric Grid in Russia.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Federal Grid Company of Unified Energy System's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.0%

FEES

7.1%

RU Electric Utilities

7.6%

RU Market


1 Year Return

1.4%

FEES

10.4%

RU Electric Utilities

0.1%

RU Market

Return vs Industry: FEES underperformed the Russian Electric Utilities industry which returned 9.5% over the past year.

Return vs Market: FEES exceeded the Russian Market which returned -1.3% over the past year.


Shareholder returns

FEESIndustryMarket
7 Day6.0%7.1%7.6%
30 Day-20.3%-14.5%-9.6%
90 Day-21.1%-9.4%-17.4%
1 Year14.9%1.4%17.4%10.4%7.0%0.1%
3 Year24.4%-7.7%9.6%-5.3%41.7%19.5%
5 Year274.4%152.6%151.0%102.0%101.8%57.8%

Price Volatility Vs. Market

How volatile is Federal Grid Company of Unified Energy System's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Federal Grid Company of Unified Energy System 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: FEES (RUB0.16) is trading below our estimate of fair value (RUB0.46)

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


Price To Earnings Ratio

PE vs Industry: FEES is good value based on its PE Ratio (2.4x) compared to the Electric Utilities industry average (6.6x).

PE vs Market: FEES is good value based on its PE Ratio (2.4x) compared to the Russian market (7.5x).


Price to Earnings Growth Ratio

PEG Ratio: FEES is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: FEES is good value based on its PB Ratio (0.2x) compared to the RU Electric Utilities industry average (0.7x).


Next Steps

Future Growth

How is Federal Grid Company of Unified Energy System forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FEES's forecast earnings growth (3.4% per year) is below the savings rate (6.4%).

Earnings vs Market: FEES's earnings (3.4% per year) are forecast to grow slower than the Russian market (6.5% per year).

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

Revenue vs Market: FEES's revenue (2.4% per year) is forecast to grow slower than the Russian market (5.4% per year).

High Growth Revenue: FEES's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FEES's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Federal Grid Company of Unified Energy System performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEES has high quality earnings.

Growing Profit Margin: FEES's current net profit margins (34.7%) are lower than last year (36.5%).


Past Earnings Growth Analysis

Earnings Trend: FEES has become profitable over the past 5 years, growing earnings by 36.3% per year.

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

Earnings vs Industry: FEES had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (-0.4%).


Return on Equity

High ROE: FEES's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Federal Grid Company of Unified Energy System's financial position?


Financial Position Analysis

Short Term Liabilities: FEES's short term assets (RUB124.6B) exceed its short term liabilities (RUB101.2B).

Long Term Liabilities: FEES's short term assets (RUB124.6B) do not cover its long term liabilities (RUB287.3B).


Debt to Equity History and Analysis

Debt Level: FEES's debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: FEES's debt to equity ratio has reduced from 45.8% to 25.2% over the past 5 years.

Debt Coverage: FEES's debt is well covered by operating cash flow (60%).

Interest Coverage: FEES's interest payments on its debt are well covered by EBIT (91.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: FEES's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Federal Grid Company of Unified Energy System's current dividend yield, its reliability and sustainability?

10.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FEES's dividend (10.72%) is higher than the bottom 25% of dividend payers in the Russian market (4.05%).

High Dividend: FEES's dividend (10.72%) is in the top 25% of dividend payers in the Russian market (9.54%)


Stability and Growth of Payments

Stable Dividend: FEES has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FEES's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.2%), FEES'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

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

3.5yrs

Average management tenure


CEO

Andrey Murov (49yo)

no data

Tenure

₽673,100

Compensation

Mr. Andrey Yevgenyevich Murov has been Chairman of the Management Board at Open Joint Stock Company “Federal Grid Company of Unified Energy System“ since November 11, 2013 and its Member of Management Boar ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrey Murov
Chairman of Management Board & Executive Directorno data₽673.10kno data
Sergey Terebulin
Deputy Chairman of the Management Board3.33yrs₽761.50kno data
Maria Tikhonova
Deputy Chairman of Management Board6.42yrsno datano data
Alexander Zaragatsky
First Deputy Chairman of Management Board3.5yrsno datano data
Aleksey Molskiy
Deputy Chairman of the Management Board3.5yrsno datano data
Dmitry Vodennikov
Deputy Chairman of the Management Board & Chief Engineer3.42yrsno datano data
A. Noskov
Head of Accounting & Financial Reporting and Chief Accountantno datano datano data
Georgy Reshetnikov
Interim Head of External Communications & Government Relations Departmentno datano datano data
Kovaleva Svetlana
Internal Audit Director0.83yrno datano data
Pavel Shpilevoy
Director for Strategic Development & Head of Strategic Development Departmentno datano datano data

3.5yrs

Average Tenure

42yo

Average Age

Experienced Management: FEES's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrey Murov
Chairman of Management Board & Executive Directorno data₽673.10kno data
Kovaleva Svetlana
Internal Audit Director0.83yrno datano data
Pavel Grachev
Independent Director6.83yrs₽830.80kno data
Ferlenghi Ernesto
Independent Director3.75yrs₽888.40kno data
Vladimir Furgalsky
Director0.83yrno datano data
Sergey Sergeev
Non-Executive Director1.83yrs₽745.00kno data
Pavel Livinskiy
Chairman of the Boardno datano datano data
Pavel Snikkars
Non-Executive Director3.75yrs₽725.00kno data
Igor Kamenskoy
Independent Director3.75yrs₽1.04mno data
Nikolai Roshchenko
Non-Executive Director3.75yrs₽576.90kno data

3.8yrs

Average Tenure

43yo

Average Age

Experienced Board: FEES's board of directors are considered experienced (3.8 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 Federal Grid Company of Unified Energy System's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint-Stock Company Federal Grid Company of Unified Energy System
  • Ticker: FEES
  • Exchange: MISX
  • Founded: 2002
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₽207.197b
  • Shares outstanding: 1.26t
  • Website: https://www.fsk-ees.ru

Location

  • Public Joint-Stock Company Federal Grid Company of Unified Energy System
  • 5A Akademika Chelomeya Street
  • Moscow
  • 117630
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FEESMISX (Micex - Rts)YesOrdinary Registered SharesRURUBJul 2008
FEESLSE (London Stock Exchange)GDR EACH REP 500 SHS 'REGS'GBUSDOct 2008
F9SABST (Boerse-Stuttgart)GDR EACH REP 500 SHS 'REGS'DEEUROct 2008
FEESLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REP 500 SHS 'REGS'GBUSDOct 2008

Biography

Public Joint-Stock Company Federal Grid Company of Unified Energy System operates and manages electricity transmission grid infrastructure of Unified National Electric Grid in Russia. The company offers electricity transmission services to regional distribution companies, electricity suppliers, and large industrial enterprises, as well as to participants of the wholesale energy market, retail suppliers, and providers of last resort; and maintains and develops the grid system and supervises grid facilities and infrastructure in 77 Russian regions. It also provides technological connection services, such as services for electric power consumption, and connection of consumers’ electric devices to the electric grid facilities for legal entities and individuals. The company’s assets include approximately 139,000 kilometers of transmission lines and 931 substations with approximately 334 GVA. The company was founded in 2002 and is based in Moscow, Russia. Public Joint-Stock Company Federal Grid Company of Unified Energy System operates as a subsidiary of Rosseti, Public Joint Stock Company 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 21:37
End of Day Share Price2020/04/03 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.