NasdaqGS:QIWI

Stock Analysis Report

Executive Summary

Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russia, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally.

Rewards

Trading at 54.3% below its fair value

Earnings are forecast to grow 20.38% per year

Earnings grew by 60.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Very undervalued with high growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

QIWI

2.1%

US IT

1.5%

US Market


1 Year Return

40.3%

QIWI

37.2%

US IT

20.1%

US Market

Return vs Industry: QIWI exceeded the US IT industry which returned 37.2% over the past year.

Return vs Market: QIWI exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

QIWIIndustryMarket
7 Day4.3%2.1%1.5%
30 Day1.0%4.4%1.4%
90 Day-0.2%13.9%8.7%
1 Year46.2%40.3%38.6%37.2%22.7%20.1%
3 Year39.0%29.5%112.3%103.1%50.1%40.5%
5 Year5.7%-9.7%148.0%125.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Qiwi 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: QIWI ($20.05) is trading below our estimate of fair value ($43.9)

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


Price To Earnings Ratio

PE vs Industry: QIWI is good value based on its PE Ratio (15.6x) compared to the IT industry average (33.1x).

PE vs Market: QIWI is good value based on its PE Ratio (15.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: QIWI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: QIWI is good value based on its PB Ratio (2.8x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Qiwi forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QIWI's forecast earnings growth (20.4% per year) is above the savings rate (1.7%).

Earnings vs Market: QIWI's earnings (20.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QIWI's revenue (10.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: QIWI's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QIWI's Return on Equity is forecast to be high in 3 years time (32.1%)


Next Steps

Past Performance

How has Qiwi performed over the past 5 years?

-7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QIWI has high quality earnings.

Growing Profit Margin: QIWI's current net profit margins (13.3%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: QIWI's earnings have declined by -7.1% per year over the past 5 years.

Accelerating Growth: QIWI's earnings growth over the past year (60.2%) exceeds its 5-year average (-7.1% per year).

Earnings vs Industry: QIWI earnings growth over the past year (60.2%) exceeded the IT industry 12%.


Return on Equity

High ROE: QIWI's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Qiwi's financial position?


Financial Position Analysis

Short Term Liabilities: QIWI's short term assets (RUB52.3B) exceed its short term liabilities (RUB40.4B).

Long Term Liabilities: QIWI's short term assets (RUB52.3B) exceed its long term liabilities (RUB2.1B).


Debt to Equity History and Analysis

Debt Level: QIWI's debt to equity ratio (4.5%) is considered satisfactory.

Reducing Debt: QIWI's debt to equity ratio has increased from 2.5% to 4.5% over the past 5 years.

Debt Coverage: QIWI's debt is well covered by operating cash flow (1092.8%).

Interest Coverage: QIWI's interest payments on its debt are well covered by EBIT (507.4x coverage).


Balance Sheet

Inventory Level: QIWI has a low level of unsold assets or inventory.

Debt Coverage by Assets: QIWI's debt is covered by short term assets (assets are 41.2x debt).


Next Steps

Dividend

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

5.36%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years11.4%

Current dividend yield vs market & industry

Notable Dividend: QIWI's dividend (5.36%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: QIWI's dividend (5.36%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

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

Growing Dividend: QIWI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.7%), QIWI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QIWI's dividends in 3 years are forecast to be covered by earnings (76.8% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Boris Kim (56yo)

0.08yrs

Tenure

0

Mr. Boris Kim serves as a Director of QIWI plc since May 2013 and served as Chairman of Board of Directors since June 2014 until January 15, 2020. Mr. Kim serves as Chief Executive Officer of QIWI plc sinc ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrey Protopopov
Head of IT & Product4.7yrsno datano data
Sergey Solonin
Executive Chairman0.08yrsno data17.15% RUB215.7m
Boris Kim
CEO & Director0.08yrsno data0.15% RUB1.9m
Varvara Kiseleva
Interim CFO & Head of Investor Relations0.3yrsno datano data
Yakov Barinskiy
Investment Director0yrsno datano data
Kirill Ermakov
Chief Technology Officer5.1yrsno datano data
Andrey Popkov
Head of Compliance6.1yrsno datano data
Maria Panferova
General Counsel16.8yrsno datano data
Alexander Agakov
Head of Payment Services & Sales3.1yrsno datano data
Elena Nikonova
Deputy CFO of Financial Reporting0.6yrsno datano data

3.1yrs

Average Tenure

45.5yo

Average Age

Experienced Management: QIWI's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sergey Solonin
Executive Chairman0.08yrsno data17.15% RUB215.7m
Boris Kim
CEO & Director0.08yrsno data0.15% RUB1.9m
Elena Titova
Independent Director0.7yrsno datano data
Alexey Marey
Independent Director0.7yrsno datano data
Marcus Rhodes
Independent Director6.8yrsno data0.00080% RUB10.1k
Alexander Karavaev
Director0.7yrsno datano data
Nadiya Cherkasova
Director2.1yrsno datano data

0.7yrs

Average Tenure

47yo

Average Age

Experienced Board: QIWI's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


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

Qiwi plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Qiwi plc
  • Ticker: QIWI
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.257b
  • Shares outstanding: 62.71m
  • Website: https://www.qiwi.com

Number of Employees


Location

  • Qiwi plc
  • Kennedy Business Centre
  • 2nd floor
  • Nicosia
  • 1087
  • Cyprus

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QIWINasdaqGS (Nasdaq Global Select)YesSPON ADR REPR ORD CL'B'(USD)USUSDMay 2013
QIWDB (Deutsche Boerse AG)YesSPON ADR REPR ORD CL'B'(USD)DEEURMay 2013
QIWIMISX (Micex - Rts)YesSPON ADR REPR ORD CL'B'(USD)RURUBMay 2013

Biography

Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russia, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally. It operates through Payment Services, Consumer Financial Services, Small and Medium Enterprises, and Rocketbank segments. The company offers payment services across online, mobile, and physical channels through a network of approximately 110,000 kiosks and 34,000 terminals that run its proprietary software. It also provides Qiwi Wallet, which is an online and mobile payment processing, and money transfer system that allows customers to pay for the products and services of merchants, as well as perform peer-to-peer money transfers through a virtual wallet; and Visa-branded prepaid cards. In addition, the company offers payment-by installments card systems under the SOVEST brand name; and value added services. Further, it provides digital banking services to retail customers under the Rocketbank name; and to small and medium businesses under the Tochka name. Qiwi plc was incorporated in 2007 and is based in Nicosia, Cyprus. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:53
End of Day Share Price2020/02/14 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.