MISX:MRKV

Stock Analysis Report

Interregional Distribution Grid Company of Volga

Executive Summary

Public Joint-Stock Company Interregional Distribution Grid Company of Volga transmits and distributes electric power in Russia.


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.2%

MRKV

6.9%

RU Electric Utilities

6.1%

RU Market


1 Year Return

-31.1%

MRKV

13.7%

RU Electric Utilities

3.5%

RU Market

Return vs Industry: MRKV underperformed the Russian Electric Utilities industry which returned 13.2% over the past year.

Return vs Market: MRKV underperformed the Russian Market which returned 1.7% over the past year.


Shareholder returns

MRKVIndustryMarket
7 Day5.2%6.9%6.1%
30 Day0.3%3.1%4.9%
90 Day-20.9%-9.0%-15.1%
1 Year-16.6%-31.1%20.9%13.7%10.6%3.5%
3 Year78.6%18.0%20.2%3.8%53.1%29.2%
5 Year349.8%183.1%152.2%102.6%104.8%60.3%

Price Volatility Vs. Market

How volatile is Interregional Distribution Grid Company of Volga'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 Volga 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: MRKV (RUB0.07) is trading below our estimate of fair value (RUB0.23)

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


Price To Earnings Ratio

PE vs Industry: MRKV is good value based on its PE Ratio (3.4x) compared to the Electric Utilities industry average (6.4x).

PE vs Market: MRKV is good value based on its PE Ratio (3.4x) compared to the Russian market (7.7x).


Price to Earnings Growth Ratio

PEG Ratio: MRKV is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MRKV is good value based on its PB Ratio (0.3x) compared to the RU Electric Utilities industry average (0.7x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRKV's forecast earnings growth (7% per year) is above the savings rate (6.4%).

Earnings vs Market: MRKV's earnings (7% per year) are forecast to grow faster than the Russian market (6.2% per year).

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

Revenue vs Market: MRKV's revenue (4.2% per year) is forecast to grow slower than the Russian market (4.6% per year).

High Growth Revenue: MRKV's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRKV's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

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

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRKV has high quality earnings.

Growing Profit Margin: MRKV's current net profit margins (6.2%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: MRKV's earnings have grown significantly by 30% per year over the past 5 years.

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

Earnings vs Industry: MRKV had negative earnings growth (-31.5%) over the past year, making it difficult to compare to the Electric Utilities industry average (9.7%).


Return on Equity

High ROE: MRKV's Return on Equity (10.1%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: MRKV's short term assets (RUB9.2B) exceed its short term liabilities (RUB8.8B).

Long Term Liabilities: MRKV's short term assets (RUB9.2B) do not cover its long term liabilities (RUB11.0B).


Debt to Equity History and Analysis

Debt Level: MRKV's debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: MRKV's debt to equity ratio has reduced from 49.8% to 10.4% over the past 5 years.

Debt Coverage: MRKV's debt is well covered by operating cash flow (220.8%).

Interest Coverage: MRKV's interest payments on its debt are well covered by EBIT (153.3x coverage).


Balance Sheet


Next Steps

Dividend

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

15.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRKV's dividend (15.15%) is higher than the bottom 25% of dividend payers in the Russian market (3.71%).

High Dividend: MRKV's dividend (15.15%) is in the top 25% of dividend payers in the Russian market (9.26%)


Stability and Growth of Payments

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

Growing Dividend: MRKV's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), MRKV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRKV's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Vladimir Ryabikin (54yo)

11.33s

Tenure

Mr. Vladimir Anatolyevich Ryabikin serves as the Chairman of the Management Board and General Director at Open Joint-Stock Company Interregional Distribution Grid Company of Volga and has been its Director ...


Leadership Team

NamePositionTenureCompensationOwnership
Vladimir Ryabikin
Chairman of Management Board11.33yrsno datano data
Egor Prokhorov
Deputy General Director of Finances & Director6.83yrsno datano data
Irina Tamlenova
Chief Accountantno datano datano data
Sergey Frolov
Deputy General Directorno datano datano data
Vladimir Ponomarev
Deputy General Director of Safety & Member of Management Boardno datano datano data
Nataliya Rebrova
Deputy General Director of Corporate Governance & Member of Management Boardno datano data0.00010% RUB13.4k
Irina Puchkova
Deputy General Director of Economy & Financing and Member of Management Board9.08yrsno datano data
Dmitriy Zaretskiy
Deputy General Director of Capital Construction & Member of the Management Board no datano data0.00050% RUB67.0k
Vyacheslav Kuliev
Deputy General Director of Development & Services Realization and Member of Management Boardno datano datano data
Oleg Pavlov
Deputy General Director of Technical Issuesno datano datano data

9.1yrs

Average Tenure

54yo

Average Age

Experienced Management: MRKV's management team is seasoned and experienced (9.1 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 Interregional Distribution Grid Company of Volga's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint-Stock Company Interregional Distribution Grid Company of Volga
  • Ticker: MRKV
  • Exchange: MISX
  • Founded: 2007
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₽13.408b
  • Shares outstanding: 188.31b
  • Website: https://www.mrsk-volgi.ru

Number of Employees


Location

  • Public Joint-Stock Company Interregional Distribution Grid Company of Volga
  • 42/44 Pervomayskaya Street
  • Saratov
  • Saratovskaya obl.
  • 410031
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRKVMISX (Micex - Rts)YesOrdinary SharesRURUBJun 2008

Biography

Public Joint-Stock Company Interregional Distribution Grid Company of Volga transmits and distributes electric power in Russia. It is also involved in the technological connection of power receivers to power grids. In addition, the company offers hotel accommodation, sanatorium, and resort, as well as medical treatment and prophylactic services; produces and trades in foodstuff; organizes public catering; and engages in trading, trading-purchasing, intermediary, sale, and marketing operations. Further, it maintains working capacity of electric and thermal networks; undertakes design, and civil and knot works of the accounts of electric power, and hot and cold water supply; designs, installs, and adjusts the knots of the accounts of heat, gas, and process equipment; installs and adjusts process equipment, boiler installations, and auxiliaries; installs, adjusts, and aligns instrumentations and units fuel consuming units; organizes and carries out power audit; and engages in the civil repair works, assembly, specialized works on installation of systems of gas supply, and service of objects. Additionally, the company transports passengers by motor transport and cars, as well as cargoes by motor transport; rents motor transport, agricultural and construction machinery, and equipment to individuals and legal entities; and maintains and repairs motor vehicles. It also provides medical, advisory, expert, tourist, informational, organizational, and administrative services; conducts prophylactic, sanitary, and informational works; and offers institution's employee protection services, as well as organizes active rest and cultural leisure for patients, recreation events, physical training, sports, tourist, children's recreational camps, and other mass events. The company was founded in 2007 and is based in Saratov, Russia. Public Joint-Stock Company Interregional Distribution Grid Company of Volga is 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 Analysis2020/04/09 22:25
End of Day Share Price2020/04/09 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.