Kurgan Generation (MISX:KGKC) - Share price, News & Analysis

KGKC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	1/6
Financial Health	5/6
Dividends	2/6

KGKC Stock Overview

Public Joint Stock Company Kurgan Generation Company produces electricity and heat in Russia.

Rewards

Trading at 65.2% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 14.7% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

Latest financial reports are more than 6 months old

+ 1 more risk

Kurgan Generation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kurgan Generation
Historical stock prices
Current Share Price	₽39.60
52 Week High	₽55.40
52 Week Low	₽25.60
Beta	-0.038
1 Month Change	-1.00%
3 Month Change	-10.41%
1 Year Change	-23.85%
3 Year Change	-22.35%
5 Year Change	-22.35%
Change since IPO	-22.40%

Recent News & Updates

Sep 07

We Think You Should Be Aware Of Some Concerning Factors In Kurgan Generation's (MCX:KGKC) Earnings

Public Joint Stock Company Kurgan Generation Company's ( MCX:KGKC ) robust recent earnings didn't do much to move the...

Jun 14

Kurgan Generation (MCX:KGKC) Is Doing The Right Things To Multiply Its Share Price

What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...

May 17

We Think Kurgan Generation (MCX:KGKC) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	KGKC	RU Water Utilities	RU Market
7D	2.6%	3.3%	2.8%
1Y	-23.8%	6.5%	-20.1%

Return vs Industry: KGKC underperformed the Russian Water Utilities industry which returned 6.5% over the past year.

Return vs Market: KGKC underperformed the Russian Market which returned -20.1% over the past year.

Price Volatility

Is KGKC's price volatile compared to industry and market?
KGKC volatility
KGKC Average Weekly Movement	12.8%
Water Utilities Industry Average Movement	3.9%
Market Average Movement	15.8%
10% most volatile stocks in RU Market	22.5%
10% least volatile stocks in RU Market	9.9%

Stable Share Price: KGKC is not significantly more volatile than the rest of Russian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: KGKC's weekly volatility has increased from 6% to 13% over the past year, but is still lower than 75% of Russian stocks.

About the Company

Founded	Employees	CEO	Website
2006	n/a	Sergey Dolgov	https://www.kgk-kurgan.ru

Public Joint Stock Company Kurgan Generation Company produces electricity and heat in Russia. It operates electric power generating facilities with a total installed capacity of 473 megawatts; and heat generating facilities with an installed capacity of 2093 gigacalories per hour. The company was founded in 2006 and is based in Kurgan, Russia.

Kurgan Generation Fundamentals Summary

How do Kurgan Generation's earnings and revenue compare to its market cap?
KGKC fundamental statistics
Market Cap	₽4.85b
Earnings (TTM)	₽630.47m
Revenue (TTM)	₽7.36b

7.7x

P/E Ratio

0.7x

P/S Ratio

Is KGKC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KGKC income statement (TTM)
Revenue	₽7.36b
Cost of Revenue	₽4.46b
Gross Profit	₽2.90b
Other Expenses	₽2.27b
Earnings	₽630.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	5.15
Gross Margin	39.41%
Net Profit Margin	8.56%
Debt/Equity Ratio	43.8%

How did KGKC perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is Kurgan Generation undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KGKC (RUB39.6) is trading below our estimate of fair value (RUB113.95)

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

Price To Earnings Ratio

PE vs Industry: KGKC is good value based on its PE Ratio (7.7x) compared to the European Water Utilities industry average (31x).

PE vs Market: KGKC is poor value based on its PE Ratio (7.7x) compared to the Russian market (6.9x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: KGKC is good value based on its PB Ratio (1.1x) compared to the XE Water Utilities industry average (1.4x).

Future Growth

How is Kurgan Generation forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

13.4%

Forecasted Utilities industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kurgan Generation has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Kurgan Generation performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-14.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KGKC has a large one-off gain of RUB216.0M impacting its June 30 2021 financial results.

Growing Profit Margin: KGKC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: KGKC's earnings have declined by 14.7% per year over the past 5 years.

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

Earnings vs Industry: KGKC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Water Utilities industry (-31.8%).

Return on Equity

High ROE: KGKC's Return on Equity (14%) is considered low.

Financial Health

How is Kurgan Generation's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: KGKC's short term assets (RUB4.3B) exceed its short term liabilities (RUB2.8B).

Long Term Liabilities: KGKC's short term assets (RUB4.3B) exceed its long term liabilities (RUB2.5B).

Debt to Equity History and Analysis

Debt Level: KGKC's net debt to equity ratio (27.8%) is considered satisfactory.

Reducing Debt: KGKC's debt to equity ratio has increased from 37.6% to 43.8% over the past 5 years.

Debt Coverage: KGKC's debt is well covered by operating cash flow (30.7%).

Interest Coverage: KGKC's interest payments on its debt are well covered by EBIT (3.7x coverage).

Balance Sheet

Dividend

What is Kurgan Generation current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KGKC's dividend (5.68%) is higher than the bottom 25% of dividend payers in the Russian market (3.76%).

High Dividend: KGKC's dividend (5.68%) is low compared to the top 25% of dividend payers in the Russian market (11.03%).

Stability and Growth of Payments

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

Growing Dividend: KGKC's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.7%), KGKC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

4.8yrs

Average board tenure

CEO

Sergey Dolgov (48 yo)

5.17yrs

Tenure

Mr. Sergey Nikolayevich Dolgov has been Director General since March 24, 2017 and serves as its Director of Public Joint Stock Company Kurgan Generation Company (formerly known as Kurgan Generation Company...

Board Members

Experienced Board: KGKC's board of directors are considered experienced (4.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31