MISX:MRKZ

Stock Analysis Report

Interregional Distribution Grid Company of the North-West

Executive Summary

Public Joint-Stock Company Interregional Distribution Grid Company of the North-West owns and operates electric power transmission and distribution grids in the North-Western region of Russia.

Rewards

Trading at 72.3% below its fair value

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (RUB5B)



Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.3%

MRKZ

3.1%

RU Electric Utilities

2.0%

RU Market


1 Year Return

-4.2%

MRKZ

25.1%

RU Electric Utilities

24.5%

RU Market

Return vs Industry: MRKZ underperformed the Russian Electric Utilities industry which returned 25.1% over the past year.

Return vs Market: MRKZ underperformed the Russian Market which returned 24.5% over the past year.


Shareholder returns

MRKZIndustryMarket
7 Day1.3%3.1%2.0%
30 Day1.4%3.7%1.4%
90 Day-18.7%-1.4%5.7%
1 Year1.7%-4.2%31.9%25.1%33.6%24.5%
3 Year-2.8%-11.1%8.3%-5.7%54.1%30.2%
5 Year148.0%106.2%191.9%135.3%172.7%113.3%

Price Volatility Vs. Market

How volatile is Interregional Distribution Grid Company of the North-West'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 the North-West 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: MRKZ (RUB0.05) is trading below our estimate of fair value (RUB0.19)

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


Price To Earnings Ratio

PE vs Industry: MRKZ is good value based on its PE Ratio (4.3x) compared to the Electric Utilities industry average (7.3x).

PE vs Market: MRKZ is good value based on its PE Ratio (4.3x) compared to the Russian market (7.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRKZ is good value based on its PB Ratio (0.3x) compared to the RU Electric Utilities industry average (0.6x).


Next Steps

Future Growth

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

-0.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if MRKZ'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: MRKZ's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: MRKZ's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRKZ's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Interregional Distribution Grid Company of the North-West performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRKZ has high quality earnings.

Growing Profit Margin: MRKZ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MRKZ has become profitable over the past 5 years, growing earnings by 22.4% per year.

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

Earnings vs Industry: MRKZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (-3.3%).


Return on Equity

High ROE: MRKZ's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Interregional Distribution Grid Company of the North-West's financial position?


Financial Position Analysis

Short Term Liabilities: MRKZ's short term assets (RUB8.0B) do not cover its short term liabilities (RUB11.5B).

Long Term Liabilities: MRKZ's short term assets (RUB8.0B) do not cover its long term liabilities (RUB19.2B).


Debt to Equity History and Analysis

Debt Level: MRKZ's debt to equity ratio (79.6%) is considered high.

Reducing Debt: MRKZ's debt to equity ratio has reduced from 79.7% to 79.6% over the past 5 years.

Debt Coverage: MRKZ's debt is well covered by operating cash flow (35.9%).

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


Balance Sheet

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

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


Next Steps

Dividend

What is Interregional Distribution Grid Company of the North-West's current dividend yield, its reliability and sustainability?

2.42%

Forecast Dividend Yield


Upcoming Dividend Payment

Purchase Interregional Distribution Grid Company of the North-West before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0%marketbottom25%3.6%markettop25%8.4%industryaverage5.7%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MRKZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MRKZ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MRKZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MRKZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MRKZ is not paying a notable dividend for the Russian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MRKZ's dividend in 3 years as they are not forecast to pay a notable one for the Russian market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Artyom Pidnik (36yo)

1.2yrs

Tenure

0

Mr. Artem Yurievich Pidnik has been Chairman of the Management Board at Public Joint Stock Company Interregional Distribution Grid Company of North-West since 2018. He has been General Director at Public J ...


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

Experienced Management: MRKZ's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

43yo

Average Age

Experienced Board: MRKZ's board of directors are considered experienced (3.5 years average tenure).


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Vladimir Gusev (69yo)

    Member of Management Board & Adviser of Administration Department

    • Tenure: 4.7yrs
  • Irina Zhdanova (56yo)

    Chief Accountant and Head of the Department for Financial & Fiscal Accounting

    • Tenure: 3.8yrs
  • Denis Yagodka (40yo)

    First Deputy Director General of Chief Engineer & Member of Management Board

    • Tenure: 0yrs
  • Artyom Pidnik (36yo)

    Chairman of the Management Board & General Director

    • Tenure: 1.2yrs
  • Nikolay Savin

    Member of the management board & Deputy General Director for Investment Activities

    • Tenure: 0.9yrs
  • Ludmila Shadrina

    Member of the management board and Deputy General Director for Economics & Finance

    • Tenure: 1.9yrs
  • Ludmila Vasinuyk

    Head of the Shareholders & Investors Relations Department

    • Tenure: 0yrs
  • Trofimova Mikhaylovna

    Deputy General Director

    • Tenure: 0.3yrs
  • Rudakov Stanislavovich

    Deputy General Director of Corporate Governance & Member of Management Board

    • Tenure: 0.3yrs
  • Svetlana Filatova

    Member of Management Board and Deputy General Director for Development & Marketing of Services

    • Tenure: 0.2yrs

Board Members

  • Roman Filkin (36yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: ₽761.54k
  • Lelekova Alekseevna (58yo)

    Chairman of Audit Commission

    • Tenure: 0yrs
  • Alexander Shevchuk (36yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: ₽900.00k
  • Alexey Zharikov (49yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: ₽761.54k
  • Maria Stepanova (37yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₽761.54k
  • Oleg Fedorov (51yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: ₽830.77k
  • Maria Shvankova (37yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: ₽761.54k
  • Dmitry Akopyan (52yo)

    Deputy Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₽659.34k
  • Olga Sergeeva (35yo)

    Chairman of the Board

    • Tenure: 1.5yrs
  • Leonid Akimov (54yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: ₽830.77k

Company Information

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


Key Information

  • Name: Public Joint-Stock Company Interregional Distribution Grid Company of the North-West
  • Ticker: MRKZ
  • Exchange: MISX
  • Founded: 2004
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₽4.938b
  • Shares outstanding: 95.79b
  • Website: https://www.mrsksevzap.ru

Location

  • Public Joint-Stock Company Interregional Distribution Grid Company of the North-West
  • Constitution Square, 3A
  • Office 16N
  • Saint Petersburg
  • 196247
  • Russia

Listings

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

Biography

Public Joint-Stock Company Interregional Distribution Grid Company of the North-West owns and operates electric power transmission and distribution grids in the North-Western region of Russia. It operates  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 21:27
End of Day Share Price2019/12/13 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.