MISX:RSTI

Stock Analysis Report

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Executive Summary

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


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 is more volatile than 75% of Russian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RSTI's weekly volatility (4%) has been stable over the past year, but is still higher than 75% of Russian stocks.


Market Performance


7 Day Return

2.7%

RSTI

0.1%

RU Electric Utilities

0.6%

RU Market


1 Year Return

44.1%

RSTI

15.0%

RU Electric Utilities

-6.0%

RU Market

Return vs Industry: RSTI exceeded the Russian Electric Utilities industry which returned 15% over the past year.

Return vs Market: RSTI exceeded the Russian Market which returned -6% over the past year.


Shareholder returns

RSTIIndustryMarket
7 Day2.7%0.1%0.6%
30 Day15.1%3.6%7.6%
90 Day13.7%1.2%-1.5%
1 Year52.7%44.1%21.2%15.0%0.5%-6.0%
3 Year111.9%93.4%32.3%13.9%44.4%19.7%
5 Year333.0%287.7%195.2%133.6%107.3%58.2%

Long-Term 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 (RUB1.7) is trading below our estimate of fair value (RUB14.72)

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 (5.3x) compared to the RU Electric Utilities industry average (7.3x).

PE vs Market: RSTI is good value based on its PE Ratio (5.3x) compared to the Russian market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: RSTI is good value based on its PEG Ratio (0.6x)


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 (0.7x).


Next Steps

Future Growth

How is Rosseti forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSTI's forecast earnings growth (8.8% per year) is above the savings rate (8.3%).

Earnings vs Market: RSTI's earnings (8.8% per year) are forecast to grow slower than the Russian market (24.4% per year).

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

Revenue vs Market: RSTI's revenue (3.1% per year) is forecast to grow slower than the Russian market (8.4% per year).

High Growth Revenue: RSTI's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSTI's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Rosseti performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSTI has high quality earnings.

Growing Profit Margin: RSTI's current net profit margins (6.4%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: RSTI has become profitable over the past 5 years, growing earnings by 13% 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 (-33.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (-17.5%).


Return on Equity

High ROE: RSTI's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Rosseti's financial position?


Financial Position Analysis

Short Term Liabilities: RSTI's short term assets (RUB386.2B) do not cover its short term liabilities (RUB412.1B).

Long Term Liabilities: RSTI's short term assets (RUB386.2B) do not cover its long term liabilities (RUB706.6B).


Debt to Equity History and Analysis

Debt Level: RSTI's debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: RSTI's debt to equity ratio has reduced from 57.2% to 33.8% over the past 5 years.

Debt Coverage: RSTI's debt is well covered by operating cash flow (50.1%).

Interest Coverage: RSTI's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RSTI's dividend (6.66%) is higher than the bottom 25% of dividend payers in the Russian market (3.97%).

High Dividend: RSTI's dividend (6.66%) is low compared to the top 25% of dividend payers in the Russian market (8.17%).


Stability and Growth of Payments

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

Growing Dividend: RSTI's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), RSTI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Pavel Livinsky (40 yo)

3.17yrs

Tenure

Mr. Pavel Anatolyevich Livinsky 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, 2...


Leadership Team

NamePositionTenureCompensationOwnership
Pavel Livinsky
Chairman of the Management Board3.17yrsno datano data
Pavel Grebtsov
Member of the Management Board and Deputy Director General for Economic Affairs & Financeno datano datano data
Andrey Murov
Member of Management Boardno datano datano data
Konstantin Mikhailik
Deputy Director-General of Operation1.58yrsno datano data
Andrey Mayorov
Member of the Management Board0.50yrno datano data
Larisa Romanovskaya
Member of the Management Board & First Deputy Director General0.50yrno datano data
Aleksey Molsky
Member of the Mgmt Board and Dep. Director General for Investment0.50yrno datano data
Aleksandr Zaragatsky
Member of the Management Board & First Deputy Director General0.50yrno datano data
Svetlana Balaeva
Deputy Director General of Investmentno datano datano data
D. Nagovitsyn
Chief Accountant and Director for Accounting & Reportingno datano datano data
Alexander Popov
Deputy Director General & Head of Administrative Officeno datano datano data
Yulia Martynova
Head of Analyst & Investor Managementno datano datano data

0.5yrs

Average Tenure

48yo

Average Age

Experienced Management: RSTI's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pavel Livinsky
Chairman of the Management Board3.17yrsno datano data
Andrey Murov
Member of Management Boardno datano datano data
Boris Ayuyev
Director7.42yrsno data0.0045%
RUB 15.3m
Sergey Shmatko
Director7.42yrsno datano data
Nikolay Shulginov
Directorno datano datano data
Alexander Novak
Chairman of the Board5.33yrsno datano data
Stanislav Ashirov
Independent Director7.42yrsno datano data
Alexander Kalinin
Independent Directorno datano datano data
Vasily Belov
Independent Directorno datano datano data
Nikolay Rogalev
Directorno datano datano data
Oleg Dubnov
Independent Directorno datano datano data
Tatiana Zobkova
Chairperson of Internal Audit Commissionno datano datano data

7.4yrs

Average Tenure

49.5yo

Average Age

Experienced Board: RSTI's board of directors are considered experienced (7.4 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: ₽341.740b
  • 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)Preference SharesRURUBApr 2009
RSTIMISX (Micex - Rts)YesCommon SharesRURUBApr 2009
RSTILSE (London Stock Exchange)GDR EACH REPR 200 ORD REG S UNSPONGBUSDJun 2011
2M1GDB (Deutsche Boerse AG)GDR EACH REPR 200 ORD REG S UNSPONDEEURJun 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 o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 21:37
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
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.