OTCPK:NOVK.Y

Stock Analysis Report

Executive Summary

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

OTCPK:NOVK.Y

-2.0%

US Oil and Gas

-1.6%

US Market


1 Year Return

27.2%

OTCPK:NOVK.Y

-26.0%

US Oil and Gas

-3.0%

US Market

NOVK.Y outperformed the Oil and Gas industry which returned -26% over the past year.

NOVK.Y outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

NOVK.YIndustryMarket
7 Day4.3%-2.0%-1.6%
30 Day-4.2%-10.8%-5.7%
90 Day-3.5%-10.6%0.2%
1 Year29.5%27.2%-23.3%-26.0%-0.8%-3.0%
3 Yearn/a-9.5%-17.6%38.1%29.1%
5 Year90.3%78.8%-34.8%-43.8%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PAO NOVATEK undervalued based on future cash flows and its price relative to the stock market?

7.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

PAO NOVATEK's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

PAO NOVATEK's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

PAO NOVATEK is good value based on earnings compared to the US Oil and Gas industry average.

PAO NOVATEK is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

PAO NOVATEK earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

PAO NOVATEK is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is PAO NOVATEK expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

-18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PAO NOVATEK's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

PAO NOVATEK's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

PAO NOVATEK's revenue growth is positive but not above the United States of America market average.

PAO NOVATEK's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

PAO NOVATEK's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

PAO NOVATEK is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PAO NOVATEK performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PAO NOVATEK has delivered over 20% year on year earnings growth in the past 5 years.

PAO NOVATEK's 1-year earnings growth exceeds its 5-year average (243% vs 32.5%)

PAO NOVATEK's earnings growth has exceeded the US Oil and Gas industry average in the past year (243% vs 22.6%).


Return on Equity

PAO NOVATEK made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

PAO NOVATEK used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

PAO NOVATEK's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PAO NOVATEK's financial position?


Financial Position Analysis

PAO NOVATEK is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

PAO NOVATEK's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

PAO NOVATEK's level of debt (12.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (38.5% vs 12.3% today).

Debt is well covered by operating cash flow (177%, greater than 20% of total debt).

PAO NOVATEK earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

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

2.75%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PAO NOVATEK's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

PAO NOVATEK's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (10.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

What is the CEO of PAO NOVATEK's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Leonid Mikhelson (64yo)

0.0yrs

Tenure

0

Mr. Leonid Viktorovich Mikhelson has been the Chairman of Executive Management Board at Joint Stock Company NOVATEK (formerly known as OAO Novatek) since 2003 and serves as its General Director and Chief E ...


Management Age and Tenure

4.0yrs

Average Tenure

60.5yo

Average Age

The tenure for the PAO NOVATEK management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

70yo

Average Age

The tenure for the PAO NOVATEK board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Leonid Mikhelson (64yo)

    CEO, Chairman of the Management Board

    • Tenure: 0.0yrs
  • Mark Gyetvay (62yo)

    Deputy Chairman of the Management Board & CFO

    • Tenure: 9.1yrs
  • Alexander Fridman (68yo)

    First Deputy Chairman of Management Board

    • Tenure: 15.6yrs
  • Tatyana Kuznetsova (59yo)

    Deputy Chairman of Management Board & Director of Legal Department

    • Tenure: 0.0yrs
  • Vladimir Basko (59yo)

    Deputy Chairman of Management Board

    • Tenure: 14.6yrs
  • Lev Feodosyev

    First Deputy Chairman of the Management Board

    • Tenure: 4.5yrs
  • Ilya Tafintsev (34yo)

    Deputy Chairman of the Management Board

    • Tenure: 1.6yrs
  • Viktor Belyakov

    Deputy Chairman of Management Board

    • Tenure: 3.4yrs
  • Sergey Vasyunin

    Deputy Chairman of Management Board & Operations Director

    • Tenure: 2.3yrs
  • Eduard Gudkov

    Deputy Chairman of the Management Board

    • Tenure: 0.9yrs

Board Members

  • Robert Castaigne (73yo)

    Independent Director

    • Tenure: 4.3yrs
  • Burckhard Bergmann (76yo)

    Independent Director

    • Tenure: 10.8yrs
  • Andrey Akimov (66yo)

    Director

    • Tenure: 3.8yrs
  • Leonid Mikhelson (64yo)

    CEO, Chairman of the Management Board

    • Tenure: 0.0yrs
  • Alexander Natalenko (73yo)

    Chairman

    • Tenure: 15.6yrs
  • Michael Borrell (57yo)

    Director

    • Tenure: 4.3yrs
  • Gennady Timchenko (67yo)

    Director

    • Tenure: 3.8yrs
  • Viktor Orlov (79yo)

    Independent Director

    • Tenure: 5.3yrs
  • Arnaud Le Foll

    Director

    • Tenure: 0.6yrs
  • Sergey Soloviev

    Member of the Board

    • Tenure: 0.0yrs

Company Information

PAO NOVATEK's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PAO NOVATEK
  • Ticker: NOVK.Y
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$57.966b
  • Shares outstanding: 301.12m
  • Website: https://www.novatek.ru

Location

  • PAO NOVATEK
  • Ulitsa Pobedy 22a
  • Tarko-Sale
  • Yamalo-Nenetsky AO
  • 629850
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTKMISX (Micex - Rts)Ordinary SharesRURUBDec 2004
NVTKLSE (London Stock Exchange)YesSPON GDR REG SGBUSDJul 2005
N1ODB (Deutsche Boerse AG)YesSPON GDR REG SDEEURJul 2005
NOVK.YOTCPK (Pink Sheets LLC)YesSPON GDR REG SUSUSDJul 2005
NVTKLBATS-CHIXE (BATS 'Chi-X Europe')YesSPON GDR REG SGBUSDJul 2005
NVTKWBAG (Wiener Boerse AG)YesSPON GDR REG SATEURJul 2005

Biography

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons. It principally h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:57
End of Day Share Price2019/08/23 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.