MISX:MRKY

Stock Analysis Report

Interregional Distribution Grid Company of South

Executive Summary

Interregional Distribution Grid Company of South Public Joint Stock Company transmits and distributes electricity in Russia.

Snowflake

Fundamentals

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

MRKY

2.6%

RU Electric Utilities

2.7%

RU Market


1 Year Return

-26.2%

MRKY

20.0%

RU Electric Utilities

19.7%

RU Market

Return vs Industry: MRKY underperformed the Russian Electric Utilities industry which returned 20% over the past year.

Return vs Market: MRKY underperformed the Russian Market which returned 19.7% over the past year.


Shareholder returns

MRKYIndustryMarket
7 Day1.4%2.6%2.7%
30 Day-4.4%-2.1%0.9%
90 Day-12.2%0.1%5.7%
1 Year-18.8%-26.2%26.7%20.0%28.4%19.7%
3 Year39.4%16.1%27.9%11.5%67.4%41.2%
5 Year100.1%54.7%141.1%95.0%161.6%105.4%

Price Volatility Vs. Market

How volatile is Interregional Distribution Grid Company of South'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 South 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: MRKY (RUB0.06) is trading below our estimate of fair value (RUB0.15)

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


Price To Earnings Ratio

PE vs Industry: MRKY is poor value based on its PE Ratio (5.6x) compared to the Electric Utilities industry average (5.3x).

PE vs Market: MRKY is good value based on its PE Ratio (5.6x) compared to the Russian market (6.8x).


Price to Earnings Growth Ratio

PEG Ratio: MRKY is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: MRKY is overvalued based on its PB Ratio (3.8x) compared to the RU Electric Utilities industry average (0.7x).


Next Steps

Future Growth

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

33.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRKY's forecast earnings growth (33.4% per year) is above the savings rate (8.4%).

Earnings vs Market: MRKY's earnings (33.4% per year) are forecast to grow faster than the Russian market (4.6% per year).

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

Revenue vs Market: MRKY's revenue (3.9% per year) is forecast to grow slower than the Russian market (4.4% per year).

High Growth Revenue: MRKY's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRKY's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

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

62.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MRKY's earnings have grown significantly by 62.5% per year over the past 5 years.

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

Earnings vs Industry: MRKY had negative earnings growth (-51%) over the past year, making it difficult to compare to the Electric Utilities industry average (3.1%).


Return on Equity

High ROE: Whilst MRKY's Return on Equity (67.6%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MRKY has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: MRKY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: MRKY's short term assets (RUB14.9B) do not cover its short term liabilities (RUB15.9B)

Long Term Liabilities: MRKY's short term assets (14.9B) do not cover its long term liabilities (24.1B)


Debt to Equity History and Analysis

Debt Level: MRKY's debt to equity ratio (2415.2%) is considered high

Reducing Debt: MRKY's debt to equity ratio has increased from 587.4% to 2415.2% over the past 5 years.

Debt Coverage: MRKY's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: MRKY's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: MRKY's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

9.56%

Current Dividend Yield


Dividend Yield vs Market

company9.6%marketbottom25%3.2%markettop25%8.7%industryaverage5.9%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MRKY's dividend (9.56%) is higher than the bottom 25% of dividend payers in the Russian market (3.2%).

High Dividend: MRKY's dividend (9.56%) is in the top 25% of dividend payers in the Russian market (8.72%)

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

Growing Dividend: MRKY's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.8%), MRKY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRKY's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Utilities industry.

Management

What is the CEO of Interregional Distribution Grid Company of South's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Boris Ebzeev (44yo)

7.3yrs

Tenure

0

Mr. Boris Borisovich Ebzeev has been Director General at Interregional Distribution Grid Company of South Public Joint Stock Company since July 29, 2014 and has been its Chairperson of Management Board sin ...


Management Age and Tenure

7.0yrs

Average Tenure

48yo

Average Age

Experienced Management: MRKY's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

40.5yo

Average Age

Experienced Board: MRKY's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Grigory Savin (67yo)

    Chief Accountant

    • Tenure: 6.7yrs
  • Anatskiy Vladimirovich

    Head of Operations & Repair Department

    • Tenure: 0yrs
  • Natalya Bondar

    Head of Corporate Governance & Corporate Management Department

    • Tenure: 0yrs
  • Mikhail Reshetnikov

    Head of Legal Support Department

    • Tenure: 0yrs
  • Timur Alaev (48yo)

    Deputy Director General

    • Tenure: 8.1yrs
  • Goncharov Viktorovich (53yo)

    Deputy General Director for Technical Affairs

    • Tenure: 8.1yrs
  • Boris Ebzeev (44yo)

    Chairperson of Management Board

    • Tenure: 7.3yrs
  • Aleksandr Chasovskoy (62yo)

    Deputy General Director for Security & Member of Management Board

    • Tenure: 5.5yrs
  • Aleksey Rybin (47yo)

    Deputy General Director for Economy & Finance and Member of Management Board

    • Tenure: 0yrs
  • Yulianna Dzhabrailova (38yo)

    Deputy General Director

    • Tenure: 3.1yrs

Board Members

  • Andrey Morozov (41yo)

    Director

    • Tenure: 1.3yrs
  • Lelekova Alekseevna (58yo)

    Chairperson of Audit Commission

    • Tenure: 1.3yrs
  • Boris Ebzeev (44yo)

    Chairperson of Management Board

    • Tenure: 7.3yrs
  • Farit Shaydullin (64yo)

    Director

    • Tenure: 1.3yrs
  • Andrey Kolyada (35yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Sergeeva Andreevna (35yo)

    Chairman of the Board

    • Tenure: 1.3yrs
  • Andrey Meshcheryakov (40yo)

    Director

    • Tenure: 2.3yrs
  • Aleksey Perets (39yo)

    Director

    • Tenure: 1.3yrs
  • Aleksei Serov (40yo)

    Director

    • Tenure: 2.3yrs
  • Lyudmila Selivanova (61yo)

    Director

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: Interregional Distribution Grid Company of South Public Joint Stock Company
  • Ticker: MRKY
  • Exchange: MISX
  • Founded: 2007
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₽4.684b
  • Shares outstanding: 82.04b
  • Website: https://www.mrsk-yuga.ru

Number of Employees


Location

  • Interregional Distribution Grid Company of South Public Joint Stock Company
  • 49 Bolshaya Sadovaya Street
  • Rostov-on-Don
  • Rostovskaya obl.
  • 344002
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRKYMISX (Micex - Rts)YesOrdinary SharesRURUBJul 2008

Biography

Interregional Distribution Grid Company of South Public Joint Stock Company transmits and distributes electricity in Russia. It also engages in telephone service and commercial activities, as well as the p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:06
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.