MISX:RSTI

Stock Analysis Report

Executive Summary

Rosseti, Public Joint Stock Company, together with its subsidiaries, provides electricity transmission and distribution services in Russia.


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Rosseti's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

RSTI

0.9%

RU Electric Utilities

0.3%

RU Market


1 Year Return

62.9%

RSTI

44.9%

RU Electric Utilities

22.6%

RU Market

Return vs Industry: RSTI exceeded the Russian Electric Utilities industry which returned 44.9% over the past year.

Return vs Market: RSTI exceeded the Russian Market which returned 22.6% over the past year.


Shareholder returns

RSTIIndustryMarket
7 Day0.2%0.9%0.3%
30 Day4.9%7.6%-3.3%
90 Day41.6%27.9%5.3%
1 Year65.8%62.9%54.2%44.9%30.9%22.6%
3 Year66.9%60.3%31.9%13.2%67.1%40.8%
5 Year175.0%161.0%198.2%139.3%138.0%85.6%

Price Volatility Vs. Market

How volatile is Rosseti's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rosseti 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: RSTI (RUB1.68) is trading below our estimate of fair value (RUB13.22)

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


Price To Earnings Ratio

PE vs Industry: RSTI is good value based on its PE Ratio (3.4x) compared to the Electric Utilities industry average (8x).

PE vs Market: RSTI is good value based on its PE Ratio (3.4x) compared to the Russian market (9.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RSTI 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 Rosseti 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: RSTI's forecast earnings growth (7% per year) is above the savings rate (6.4%).

Earnings vs Market: RSTI's earnings (7% per year) are forecast to grow faster than the Russian market (5.2% per year).

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

Revenue vs Market: RSTI's revenue (2.8% per year) is forecast to grow slower than the Russian market (3.6% per year).

High Growth Revenue: RSTI's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RSTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rosseti performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSTI has high quality earnings.

Growing Profit Margin: RSTI's current net profit margins (9.4%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: RSTI has become profitable over the past 5 years, growing earnings by 36.3% per year.

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

Earnings vs Industry: RSTI had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (-0.2%).


Return on Equity

High ROE: RSTI's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rosseti's financial position?


Financial Position Analysis

Short Term Liabilities: RSTI's short term assets (RUB377.3B) do not cover its short term liabilities (RUB402.3B).

Long Term Liabilities: RSTI's short term assets (RUB377.3B) do not cover its long term liabilities (RUB655.7B).


Debt to Equity History and Analysis

Debt Level: RSTI's debt to equity ratio (34.4%) is considered satisfactory.

Reducing Debt: RSTI's debt to equity ratio has reduced from 55.6% to 34.4% over the past 5 years.

Debt Coverage: RSTI's debt is well covered by operating cash flow (48%).

Interest Coverage: RSTI's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: RSTI's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Rosseti's current dividend yield, its reliability and sustainability?

1.46%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%3.0%markettop25%7.4%industryaverage4.6%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: RSTI's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the Russian market (3.03%).

High Dividend: RSTI's dividend (1.46%) is low compared to the top 25% of dividend payers in the Russian market (7.37%).


Stability and Growth of Payments

Stable Dividend: RSTI is not paying a notable dividend for the Russian market, therefore no need to check if payments are stable.

Growing Dividend: RSTI is not paying a notable dividend for the Russian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Pavel Livinskiy (39yo)

2.4yrs

Tenure

0

Mr. Pavel Anatolyevich Livinskiy has been Chief Executive Officer and Director General at Rosseti, Public Joint Stock Company since September 11, 2017, Chairman of the Management Board since September 14,  ...


Leadership Team

NamePositionTenureCompensationOwnership
Pavel Livinskiy
Chairman of the Management Board2.4yrsno datano data
Andrey Dyomin
Member of Management Board6.6yrsno datano data
Sergeeva Andreevna
Member of Management Board2.1yrsno datano data
Dmitry Korotkov
Member of the Management Board & Deputy Director General for Legal Support1.2yrsno datano data
Alexander Pyatigor
Member of the Management Board & Deputy Director General for Sales of Services1.2yrsno datano data
Konstantin Mikhailik
Deputy Director-General of Operation0.8yrsno datano data
Svetlana Balaeva
Deputy Director General of Investment0yrsno datano data
D. Nagovitsyn
Chief Accountant and Director for Accounting & Reporting0yrsno datano data
Alexander Popov
Deputy Director General & Head of Administrative Office0yrsno datano data
Maria Stepanova
Head of Investor Relations0yrsno datano data

1.6yrs

Average Tenure

39yo

Average Age

Experienced Management: RSTI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pavel Livinskiy
Chairman of the Management Board2.4yrsno datano data
Boris Ayuyev
Director6.7yrsno data0.0045% RUB15.0m
Sergey Shmatko
Director6.7yrsno datano data
Nikolay Shulginov
Director0yrsno datano data
Alexander Novak
Chairman of the Board4.6yrsno datano data
Andrey Murov
Director0yrsno datano data
Alexander Kalinin
Independent Director0yrsno datano data
Vasily Belov
Independent Director0yrsno datano data
Oleg Dubnov
Independent Director0yrsno datano data
Tatiana Zobkova
Chairperson of Internal Audit Commission0yrsno datano data

6.7yrs

Average Tenure

48.5yo

Average Age

Experienced Board: RSTI's board of directors are considered experienced (6.7 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

Rosseti, Public Joint Stock Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rosseti, Public Joint Stock Company
  • Ticker: RSTI
  • Exchange: MISX
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₽333.032b
  • Shares outstanding: 198.82b
  • Website: https://www.rosseti.ru

Number of Employees


Location

  • Rosseti, Public Joint Stock Company
  • 4, Belovezhskaya Street
  • Moscow
  • 121353
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSTIPMISX (Micex - Rts)RUB1 PRF(RUB)RURUBApr 2009
RSTIMISX (Micex - Rts)YesCommon SharesRURUBApr 2009
RSTILSE (London Stock Exchange)GDR REG SGBUSDJun 2011
2M1GDB (Deutsche Boerse AG)GDR REG SDEEURJun 2011

Biography

Rosseti, Public Joint Stock Company, together with its subsidiaries, provides electricity transmission and distribution services in Russia. The company also provides technological connection services. It operates 2.3 million kilometers of power lines; and 503,000 substations with transformer capacity of 782 gigawatts. Rosseti, Public Joint Stock Company has strategic cooperation with PJSC Sberbank concerning a range of non-financial banking services. The company was formerly known as JSC Russian Grids and changed its name to Rosseti, Public Joint Stock Company in August 2014. Rosseti, Public Joint Stock Company is based in Moscow, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 22:07
End of Day Share Price2020/02/21 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.