OTCPK:MFOY.Y

Stock Analysis Report

Executive Summary

Public Joint Stock Company MegaFon, together with its subsidiaries, provides telecommunication and digital services to retail customers, businesses, government clients, and telecommunication services providers in Russia, the Republic of Abkhazia, South Ossetia, Tajikistan, and internationally.

Snowflake

Fundamentals

Good value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

n/a

MFOY.Y

1.6%

US Wireless Telecom

1.8%

US Market


1 Year Return

-13.1%

MFOY.Y

3.2%

US Wireless Telecom

7.3%

US Market


Shareholder returns

MFOY.YIndustryMarket
7 Dayn/a1.6%1.8%
30 Dayn/a-0.9%-0.7%
90 Dayn/a-2.8%0.06%
1 Year-13.1%-13.1%4.5%3.2%9.7%7.3%
3 Yearn/a34.5%29.6%46.3%36.9%
5 Yearn/a51.5%37.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is MegaFon undervalued compared to its fair value and its price relative to the market?

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MFOY.Y ($9.25) is trading below our estimate of fair value ($16.37)

Significantly Undervalued: MFOY.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MFOY.Y is good value based on its PE Ratio (12.9x) compared to the Wireless Telecom industry average (22.1x).

PE vs Market: MFOY.Y is good value based on its PE Ratio (12.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MFOY.Y is overvalued based on its PB Ratio (4.3x) compared to the US Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is MegaFon forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-40.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFOY.Y's earnings are forecast to decline over the next 3 years (-40.5% per year).

Earnings vs Market: MFOY.Y's earnings are forecast to decline over the next 3 years (-40.5% per year).

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

Revenue vs Market: Insufficient data to determine if MFOY.Y's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MFOY.Y's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has MegaFon performed over the past 5 years?

-28.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MFOY.Y's earnings have declined by -28.3% per year over the past 5 years.

Accelerating Growth: MFOY.Y's earnings growth over the past year (792.2%) exceeds its 5-year average (-28.3% per year).

Earnings vs Industry: MFOY.Y earnings growth over the past year (792.2%) exceeded the Wireless Telecom industry 7.7%.


Return on Equity

High ROE: Whilst MFOY.Y's Return on Equity (33.84%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MFOY.Y has a higher Return on Assets than the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: MFOY.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MegaFon's financial position?


Financial Position Analysis

Short Term Liabilities: MFOY.Y's short term assets (RUB95.6B) do not cover its short term liabilities (RUB108.0B)

Long Term Liabilities: MFOY.Y's short term assets (95.6B) do not cover its long term liabilities (319.3B)


Debt to Equity History and Analysis

Debt Level: MFOY.Y's debt to equity ratio (457.7%) is considered high

Reducing Debt: MFOY.Y's debt to equity ratio has increased from 116.8% to 457.7% over the past 5 years.

Debt Coverage: MFOY.Y's debt is well covered by operating cash flow (39.8%).

Interest Coverage: MFOY.Y's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

10.33%

Current Dividend Yield


Dividend Yield vs Market

company10.3%marketbottom25%1.5%markettop25%3.7%industryaverage7.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MFOY.Y's dividend (10.33%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MFOY.Y's dividend (10.33%) is in the top 25% of dividend payers in the US market (3.72%)

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

Growing Dividend: MFOY.Y'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%), MFOY.Y's dividend payments are 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

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

1.8yrs

Average management tenure


CEO

Gevork Vermishyan (40yo)

0.3yrs

Tenure

0

Mr. Gevork Arutyunovich Vermishyan has been the Chief Executive Officer of Public Joint Stock Company MegaFon since November 14, 2018. Mr. Vermishyan serves as Executive Director of MegaFon OJSC and has be ...


Management Age and Tenure

1.8yrs

Average Tenure

45yo

Average Age

Experienced Management: MFOY.Y's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

44yo

Average Age

Experienced Board: MFOY.Y's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Dmitry Kononov (54yo)

    Director of Investor Relations

    • Tenure: 0yrs
  • Valentina Vatrak

    Member of the Management Board and Corporate Development & HR Director

    • Tenure: 1.1yrs
  • Goriainova Serebryanikova (44yo)

    COO & Member of Management Board

    • Tenure: 2.4yrs
  • Frederic Vanoosthuyze (45yo)

    Chief Technology & IT Officer of Russia and Director of Technological Innovation & Infrastructure

    • Tenure: 0.5yrs
  • Gevork Vermishyan (40yo)

    CEO, Member of Management Board & Executive Director

    • Tenure: 0.3yrs
  • Pavel Korchagin (58yo)

    Member of Management Board

    • Tenure: 7.3yrs
  • Lyubov Strelkina (45yo)

    Chief Accountant & Director of Shared Services Centre

    • Tenure: 0yrs
  • Vlad Wolfson (41yo)

    Chief Commercial Officer & Member of Management Board

    • Tenure: 0yrs
  • Alexander Sobolev (31yo)

    MD of Strategy & Organizational Development and Member of Management Board

    • Tenure: 2.8yrs
  • Alexandr Barunin (46yo)

    CFO & Member of the Management Board

    • Tenure: 0yrs

Board Members

  • Natalya Chumachenko (46yo)

    Director

    • Tenure: 1.2yrs
  • Yuri Zheimo (48yo)

    Director of Internal Audit & Member of Revision Commission

    • Tenure: 0.8yrs
  • Pavel Kaplun (37yo)

    Director

    • Tenure: 1.2yrs
  • Maxim Anipkin (37yo)

    Director

    • Tenure: 1.2yrs
  • Alexey Antonyuk (38yo)

    Director

    • Tenure: 1.2yrs
  • Evgeny Bystrykh (42yo)

    Chairman of the Board

    • Tenure: 1.2yrs
  • Jarkko Veijalainen (52yo)

    Director

    • Tenure: 1.2yrs
  • Harri Koponen (56yo)

    Director

    • Tenure: 1.2yrs
  • Alexander Ushkov (44yo)

    Director

    • Tenure: 1.2yrs

Company Information

Public Joint Stock Company MegaFon's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Joint Stock Company MegaFon
  • Ticker: MFOY.Y
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₽300.048b
  • Listing Market Cap: ₽4.544b
  • Shares outstanding: 480.38m
  • Website: https://moscow.megafon.ru

Location

  • Public Joint Stock Company MegaFon
  • 41 Oruzheyniy lane
  • Moscow
  • 127006
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFONMISX (Micex - Rts)YesCommon StockRURUBNov 2012
MF7GDB (Deutsche Boerse AG)GDR EACH REPR 1 ORD REG SDEEURNov 2012
MFOY.YOTCPK (Pink Sheets LLC)GDR EACH REPR 1 ORD REG SUSUSDNov 2012

Biography

Public Joint Stock Company MegaFon, together with its subsidiaries, provides integrated digital communications to retail customers, businesses, government clients, and other telecommunication services prov ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/12 00:26
End of Day Share Price2019/03/08 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.