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.

Rewards

PE ratio (3.1x) is below the US market (13.1x)

Revenue is forecast to grow 9.14% per year

Earnings grew by 428.6% over the past year

Pays a high and reliable dividend of 3.59%

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

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

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


Market Performance


7 Day Return

6.4%

NOVK.Y

4.2%

US Oil and Gas

5.3%

US Market


1 Year Return

-32.8%

NOVK.Y

-56.1%

US Oil and Gas

-10.7%

US Market

Return vs Industry: NOVK.Y exceeded the US Oil and Gas industry which returned -56.1% over the past year.

Return vs Market: NOVK.Y underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

NOVK.YIndustryMarket
7 Day6.4%4.2%5.3%
30 Day-21.6%-35.5%-13.6%
90 Day-43.3%-51.4%-19.8%
1 Year-31.4%-32.8%-54.3%-56.1%-8.9%-10.7%
3 Year-3.7%-8.7%-51.6%-56.3%15.5%8.0%
5 Year73.1%61.1%-54.7%-61.7%35.2%20.4%

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 compared to its fair value and its price relative to the market?

3.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOVK.Y ($116) is trading above our estimate of fair value ($89.96)

Significantly Below Fair Value: NOVK.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NOVK.Y is good value based on its PE Ratio (3.1x) compared to the Oil and Gas industry average (6.9x).

PE vs Market: NOVK.Y is good value based on its PE Ratio (3.1x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: NOVK.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NOVK.Y is overvalued based on its PB Ratio (1.6x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is PAO NOVATEK forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVK.Y's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: NOVK.Y's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: NOVK.Y's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NOVK.Y's revenue (9.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NOVK.Y's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOVK.Y's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has PAO NOVATEK performed over the past 5 years?

48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOVK.Y has a high level of non-cash earnings.

Growing Profit Margin: NOVK.Y's current net profit margins are higher than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: NOVK.Y's earnings have grown significantly by 48.7% per year over the past 5 years.

Accelerating Growth: NOVK.Y's earnings growth over the past year (428.6%) exceeds its 5-year average (48.7% per year).

Earnings vs Industry: NOVK.Y earnings growth over the past year (428.6%) exceeded the Oil and Gas industry -11.4%.


Return on Equity

High ROE: NOVK.Y's Return on Equity (53%) is considered outstanding.


Next Steps

Financial Health

How is PAO NOVATEK's financial position?


Financial Position Analysis

Short Term Liabilities: NOVK.Y's short term assets (RUB496.5B) exceed its short term liabilities (RUB117.1B).

Long Term Liabilities: NOVK.Y's short term assets (RUB496.5B) exceed its long term liabilities (RUB228.7B).


Debt to Equity History and Analysis

Debt Level: NOVK.Y's debt to equity ratio (9.1%) is considered satisfactory.

Reducing Debt: NOVK.Y's debt to equity ratio has reduced from 63.4% to 9.1% over the past 5 years.

Debt Coverage: NOVK.Y's debt is well covered by operating cash flow (202.1%).

Interest Coverage: NOVK.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: NOVK.Y's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

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

3.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NOVK.Y's dividend (3.59%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: NOVK.Y's dividend (3.59%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

Stable Dividend: NOVK.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: NOVK.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.2%), NOVK.Y's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NOVK.Y's dividends in 3 years are forecast to be well covered by earnings (48.4% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Leonid Mikhelson (64yo)

no data

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Leonid Mikhelson
CEO, Chairman of the Management Boardno datano datano data
Mark Gyetvay
Deputy Chairman of the Management Board & CFO9.75yrsno datano data
Alexander Fridman
First Deputy Chairman of Management Board16.25yrsno data0.083% RUB28.6m
Tatyana Kuznetsova
Deputy Chairman of Management Board & Director of Legal Departmentno datano data0.20% RUB68.1m
Vladimir Basko
Deputy Chairman of Management Board15.25yrsno data0.029% RUB10.1m
Lev Feodosyev
First Deputy Chairman of the Management Board5.17yrsno datano data
Viktor Belyakov
Deputy Chairman of Management Board4.08yrsno datano data
Ilya Tafintsev
Deputy Chairman of the Management Board2.25yrsno data0.00081% RUB280.5k
Sergey Vasyunin
Deputy Chairman of Management Board & Operations Director2.92yrsno data0.00030% RUB103.9k
Eduard Gudkov
Deputy Chairman of the Management Board1.58yrsno data0.00030% RUB103.9k

4.6yrs

Average Tenure

60.5yo

Average Age

Experienced Management: NOVK.Y's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leonid Mikhelson
CEO, Chairman of the Management Boardno datano datano data
Robert Castaigne
Independent Director5yrsno datano data
Burckhard Bergmann
Independent Director11.5yrsno datano data
Andrey Akimov
Director4.5yrsno data0.013% RUB4.7m
Alexander Natalenko
Chairman16.25yrsno datano data
Michael Borrell
Director5yrsno datano data
Gennady Timchenko
Director4.5yrsno datano data
Viktor Orlov
Independent Director6yrsno datano data
Arnaud Le Foll
Director1.25yrsno datano data
Sergey Soloviev
Member of the Boardno datano data0.00030% RUB103.9k

5.0yrs

Average Tenure

70yo

Average Age

Experienced Board: NOVK.Y's board of directors are considered experienced (5 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

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$34.627b
  • Shares outstanding: 300.32m
  • 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)YesGDR EACH REPR 10 ORD 'REG S'GBUSDJul 2005
N1ODB (Deutsche Boerse AG)YesGDR EACH REPR 10 ORD 'REG S'DEEURJul 2005
NOVK.YOTCPK (Pink Sheets LLC)YesGDR EACH REPR 10 ORD 'REG S'USUSDJul 2005
NVTKLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH REPR 10 ORD 'REG S'GBUSDJul 2005
NVTKWBAG (Wiener Boerse AG)YesGDR EACH REPR 10 ORD 'REG S'ATEURJul 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 holds interests in reserves located in the Yamal-Nenets Autonomous Region, Western Siberia. The company sells natural gas, stable gas condensate, gas condensate refined products, liquefied petroleum gas, crude oil and gas condensate refined products, naphtha, diesel fuel, and petrol. It is also involved in the wholesale and retail trading activities; and provision of transportation services. The company operates a network of refueling stations and wholesale stations under the NOVATEK-AZK name. It operates in Russia, rest of Europe, the Asia-Pacific region, the Middle East, and North America. The company was formerly known as OAO NOVATEK and changed its name to PAO NOVATEK in October 2016. PAO NOVATEK was founded in 1994 and is based in Tarko-Sale, Russia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 04:27
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.