MISX:MRKC

Stock Analysis Report

Interregional Distribution Grid Company of Centre

Executive Summary

Interregional Distribution Grid Company of Centre, Public Joint Stock Company operates as an electric grid company of Russia.


Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has Interregional Distribution Grid Company of Centre's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRKC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

MRKC

-0.8%

RU Electric Utilities

-0.4%

RU Market


1 Year Return

1.6%

MRKC

43.9%

RU Electric Utilities

18.4%

RU Market

Return vs Industry: MRKC underperformed the Russian Electric Utilities industry which returned 43.9% over the past year.

Return vs Market: MRKC underperformed the Russian Market which returned 18.4% over the past year.


Shareholder returns

MRKCIndustryMarket
7 Day-4.1%-0.8%-0.4%
30 Day-1.4%6.4%-1.4%
90 Day3.8%27.8%5.6%
1 Year16.2%1.6%53.1%43.9%26.2%18.4%
3 Year-3.9%-28.2%43.6%23.6%70.2%43.4%
5 Year51.8%0.1%197.2%138.9%133.7%82.3%

Price Volatility Vs. Market

How volatile is Interregional Distribution Grid Company of Centre's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Interregional Distribution Grid Company of Centre undervalued compared to its fair value and its price relative to the market?

4.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRKC (RUB0.3) is trading above our estimate of fair value (RUB0.22)

Significantly Below Fair Value: MRKC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRKC is good value based on its PE Ratio (4.6x) compared to the Electric Utilities industry average (7.9x).

PE vs Market: MRKC is good value based on its PE Ratio (4.6x) compared to the Russian market (9.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRKC is good value based on its PB Ratio (0.3x) compared to the RU Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is Interregional Distribution Grid Company of Centre forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MRKC's forecast earnings growth is above the savings rate (6.4%).

Earnings vs Market: Insufficient data to determine if MRKC's earnings are forecast to grow faster than the Russian market

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

Revenue vs Market: MRKC's revenue (3.5% per year) is forecast to grow slower than the Russian market (3.8% per year).

High Growth Revenue: MRKC's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRKC's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Interregional Distribution Grid Company of Centre performed over the past 5 years?

39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRKC has a large one-off loss of RUB984.9M impacting its September 30 2019 financial results.

Growing Profit Margin: MRKC's current net profit margins (2.9%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: MRKC has become profitable over the past 5 years, growing earnings by 39.6% per year.

Accelerating Growth: MRKC's earnings growth over the past year (16.4%) is below its 5-year average (39.6% per year).

Earnings vs Industry: MRKC earnings growth over the past year (16.4%) exceeded the Electric Utilities industry -0.2%.


Return on Equity

High ROE: MRKC's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Interregional Distribution Grid Company of Centre's financial position?


Financial Position Analysis

Short Term Liabilities: MRKC's short term assets (RUB17.7B) do not cover its short term liabilities (RUB24.1B).

Long Term Liabilities: MRKC's short term assets (RUB17.7B) do not cover its long term liabilities (RUB40.0B).


Debt to Equity History and Analysis

Debt Level: MRKC's debt to equity ratio (90.8%) is considered high.

Reducing Debt: MRKC's debt to equity ratio has reduced from 95.8% to 90.8% over the past 5 years.

Debt Coverage: MRKC's debt is well covered by operating cash flow (27.7%).

Interest Coverage: MRKC's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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

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


Next Steps

Dividend

What is Interregional Distribution Grid Company of Centre's current dividend yield, its reliability and sustainability?

7.05%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%3.0%markettop25%7.2%industryaverage4.6%forecastin3Years6.8%

Current dividend yield vs market & industry

Notable Dividend: MRKC's dividend (6.89%) is higher than the bottom 25% of dividend payers in the Russian market (2.99%).

High Dividend: MRKC's dividend (6.89%) is low compared to the top 25% of dividend payers in the Russian market (7.16%).


Stability and Growth of Payments

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

Growing Dividend: MRKC'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 (31.5%), MRKC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRKC's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Igor Makovskiy 0

1.4yrs

Tenure

0

Mr.Igor Makovskiy has been General Director and Chairman of the Management Board at Interregional Distribution Grid Company of Centre, Public Joint Stock Company since September 19, 2018. Mr. Makovskiy had ...


Leadership Team

NamePositionTenureCompensationOwnership
Igor Makovskiy
General Director & Chairman of the Management Board1.4yrsno datano data
Alexander Pilyugin
Deputy Chairman of Management Board0yrsno data0.00035% RUB43.5k
Lyudmila Sklyarova
Chief Accountant0yrsno datano data
Mikhail Kachan
Head of Department Operational and Technological Management0yrsno datano data
Ivan Kleymenov
Deputy General Director & Member of Managementt Board10yrsno datano data
Sergey Rumyantsev
Adviser to the General Director & Member of Management Board6.7yrsno datano data
Konstantin Mikhailik
First Deputy General Director & Member of Management Board4.9yrsno datano data
Inna Gromova
Deputy GM of Human Resources Management & Organisational Design and Member of Management Board4.8yrsno datano data
Andrey Zemskov
Head of Investment Department0yrsno datano data
Lyudmila Naumenko
Chief of the Department - Administrative Activity Organization0yrsno datano data

4.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: MRKC's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roman Filkin
Non-Executive Director10.7yrs₽761.54kno data
Denis Spirin
Non-Executive Director10.7yrs₽692.31kno data
Lelekova Alekseevna
Chairman of Audit Commission0yrsno datano data
Maxim Saukh
Non-Executive Director7.7yrs₽761.54kno data
Alexander Shevchuk
Independent Director8.7yrs₽900.00kno data
Oleg Isaev
Non-Executive Director6.7yrsno datano data
Kim Anatolievna
Member of Audit Commission0yrsno datano data
Rakov Viktorovich
Non-Executive Director2.7yrs₽692.31kno data
Alexander Varvarin
Independent Director1.8yrsno datano data
Alexander Kazakov
Chairman of the Board0yrsno datano data

7.7yrs

Average Tenure

42yo

Average Age

Experienced Board: MRKC's board of directors are considered experienced (7.7 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

Interregional Distribution Grid Company of Centre, Public Joint Stock Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Interregional Distribution Grid Company of Centre, Public Joint Stock Company
  • Ticker: MRKC
  • Exchange: MISX
  • Founded: 2004
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₽12.429b
  • Shares outstanding: 42.22b
  • Website: https://www.mrsk-1.ru

Number of Employees


Location

  • Interregional Distribution Grid Company of Centre, Public Joint Stock Company
  • 4, 2nd Yamskaya street
  • Moscow
  • 127018
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRKCMISX (Micex - Rts)YesOrdinary SharesRURUBMay 2008

Biography

Interregional Distribution Grid Company of Centre, Public Joint Stock Company operates as an electric grid company of Russia. The company transmits and distributes electricity; and connects customers to the electric grid. It supplies electricity to the population, industrial companies, transport and agriculture enterprises, and socially important facilities. The company was founded in 2004 and is based in Moscow, Russia. Interregional Distribution Grid Company of Centre, Public Joint Stock Company 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 Analysis2020/02/25 21:48
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.