NYSE:MTL

Stock Analysis Report

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Executive Summary

Mechel PAO, together with its subsidiaries, engages in mining, steel, and power businesses in Russia, Asia, Europe, the Commonwealth of Independent States, the Middle East, the United States, and internationally.

Rewards

Trading at 99.8% below our estimate of its fair value

Risk Analysis

No risks detected for MTL from our risk checks.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

MTL

0.9%

US Metals and Mining

1.7%

US Market


1 Year Return

-16.8%

MTL

5.8%

US Metals and Mining

6.0%

US Market

Return vs Industry: MTL underperformed the US Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: MTL underperformed the US Market which returned 7.4% over the past year.


Shareholder returns

MTLIndustryMarket
7 Day0.6%0.9%1.7%
30 Day-15.2%3.0%-0.5%
90 Day0%27.8%17.8%
1 Year-16.8%-16.8%8.4%5.8%8.2%6.0%
3 Year-63.9%-63.9%10.0%2.9%36.3%27.4%
5 Year-19.9%-19.9%43.8%31.7%63.0%45.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mechel PAO 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: MTL ($1.73) is trading below our estimate of fair value ($1145.01)

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


Price To Earnings Ratio

PE vs Industry: MTL is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: MTL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MTL has negative assets, so we can't compare its PB Ratio to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Mechel PAO forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

22.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mechel PAO has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Mechel PAO performed over the past 5 years?

66.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTL is currently unprofitable.

Growing Profit Margin: MTL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTL is unprofitable, but has reduced losses over the past 5 years at a rate of 66.2% per year.

Accelerating Growth: Unable to compare MTL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.3%).


Return on Equity

High ROE: MTL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Mechel PAO's financial position?


Financial Position Analysis

Short Term Liabilities: MTL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MTL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MTL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MTL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MTL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MTL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25.9% per year.


Next Steps

Dividend

What is Mechel PAO current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: MTL is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Oleg Korzhov (50yo)

6.5yrs

Tenure

Mr. Oleg V. Korzhov has been the Chairman of the Management Board and Chief Executive Officer of Mechel PAO (also known as: Mechel, OJSC) since January 1, 2014 and its Member of Management Board since Marc ...


Leadership Team

NamePositionTenureCompensationOwnership
Oleg Korzhov
Chairman of the Management Board6.5yrsno data0.0025% RUB8.8k
Nelli Galeeva
CFO & Member of Management Board2.5yrsno data0.00078% RUB2.8k
Irina Ipeeva
Director of Legal Department & Member of Management Board 12.83yrsno data0.00024% RUB862.1
Victor Trigubko
Senior VP of Government Relations4.08yrsno data0.00048% RUB1.7k
Valery Sheverdin
VP of Corporate Security & Member of Management Board5.92yrsno datano data
Natalia Trubkina
Human Resources Director & Member of Management Board4.42yrsno datano data
Dmitry Voytkus
Deputy CEO of Financial Control & Member of Management Board0.083yrno datano data
Tatiana Kalyadina
Chief Accountantno datano datano data
Alexey Lukashov
Director of Investor Relationsno datano datano data
Konstantin Panfilov
Executive VP - Kemerovo Region & Head of the Representative Office10.08yrsno datano data

5.2yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MTL's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oleg Korzhov
Chairman of the Management Board6.5yrsno data0.0025% RUB8.8k
Victor Trigubko
Senior VP of Government Relations4.08yrsno data0.00048% RUB1.7k
Igor Zyuzin
Chairman of the Board10yrsno data26.88% RUB96.5m
Tigran Khachaturov
Director4.33yrsno datano data
Alexander Starodubov
Chairman of the Board of Directors of Mecheltrans 8.58yrsno datano data
Alexander Orischin
Independent Director4.33yrsno datano data
Yuriy Malyshev
Independent Director7.08yrsno datano data
Alexander Nikolaevich Kotsky
Independent Director4.33yrsno data0.0097% RUB34.8k
Alexander Shokhin
Independent Deputy Chairman of the Board4.08yrsno datano data
Georgiy Petrov
Independent Director3.08yrsno datano data

4.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MTL's board of directors are considered experienced (4.3 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

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


Key Information

  • Name: Mechel PAO
  • Ticker: MTL
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$359.193m
  • Shares outstanding: 207.63m
  • Website: https://www.mechel.com

Number of Employees


Location

  • Mechel PAO
  • Krasnoarmeyskaya Street 1
  • Moscow
  • 125167
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTLNYSE (New York Stock Exchange)YesSPONSORED ADR NEUSUSDOct 2004
MHSGDB (Deutsche Boerse AG)YesSPONSORED ADR NEDEEUROct 2004
MTLRMISX (Micex - Rts)Common SharesRURUBFeb 2005
MTL.PRNYSE (New York Stock Exchange)SPON ADS EACH REP 0.5 PFD SHS RUB0.00USUSDMay 2010
MHSEDB (Deutsche Boerse AG)SPON ADS EACH REP 0.5 PFD SHS RUB0.00DEEURMay 2010
MTLRPMISX (Micex - Rts)PREF RUB10RURUBApr 2011

Biography

Mechel PAO, together with its subsidiaries, engages in mining, steel, and power businesses in Russia, Asia, Europe, the Commonwealth of Independent States, the Middle East, the United States, and internationally. Its Mining segment produces and sells coking, metallurgical, and steam coal; coke; chemical products, including coal tar, coal benzene, and other compounds; and iron ore and iron ore concentrates. The company’s Steel segment produces and sells semi-finished steel products, long steel products, and carbon and stainless flat products; ferrosilicon products; and pig iron, as well as metal products, including wire products, stampings and forgings, structural shapes, beams, and rails. Its Power segment generates and supplies electricity, heat energy, and other power resources to third parties. Mechel PAO also offers sea, rail, and motor transportation logistics services to third parties. The company was formerly known as Mechel OAO and changed its name to Mechel PAO in March 2016. Mechel PAO was founded in 2003 and 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 Analysis2020/07/07 23:51
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
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.