OTCPK:ROSY.Y

Stock Analysis Report

Executive Summary

Public Joint Stock Company Rostelecom provides telecommunications services in Russia and Europe.

Snowflake

Fundamentals

Very undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

ROSY.Y

-0.0001%

US Telecom

-0.6%

US Market


1 Year Return

8.6%

ROSY.Y

8.1%

US Telecom

0.7%

US Market

ROSY.Y outperformed the Telecom industry which returned 7.1% over the past year.

ROSY.Y outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

ROSY.YIndustryMarket
7 Day-3.7%-0.0001%-0.6%
30 Day-4.3%6.3%2.9%
90 Day-3.0%10.0%1.3%
1 Year14.3%8.6%13.9%8.1%2.9%0.7%
3 Year12.3%-5.2%15.7%-1.1%44.6%35.2%
5 Year-45.1%-57.3%36.3%5.1%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rostelecom's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rostelecom's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rostelecom is good value based on earnings compared to the US Telecom industry average.

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


Price Based on Expected Growth

Rostelecom is good value based on expected growth next year.


Price Based on Value of Assets

Rostelecom is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Rostelecom expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rostelecom's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Rostelecom's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

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

Rostelecom's earnings growth is positive but not above the United States of America market average.

Rostelecom's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Rostelecom performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rostelecom's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Rostelecom's 1-year earnings growth exceeds its 5-year average (16.1% vs 1%)

Rostelecom's earnings growth has exceeded the US Telecom industry average in the past year (16.1% vs -18%).


Return on Equity

Rostelecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rostelecom used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Rostelecom's financial position?


Financial Position Analysis

Rostelecom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Rostelecom's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Rostelecom's level of debt (84.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (85% vs 84.4% today).

Debt is well covered by operating cash flow (40.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

6.85%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Rostelecom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Rostelecom's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Mikhail Oseevskiy (59yo)

2.5yrs

Tenure

0

Mr. Mikhail Eduardovich Oseevskiy has been the Chairman of The Management Board, CEO and President at Public Joint Stock Company Long-Distance and International Telecommunications Rostelecom (a/k/a Rostele ...


Management Age and Tenure

2.8yrs

Average Tenure

42yo

Average Age

The tenure for the Rostelecom management team is about average.


Board Age and Tenure

4.7yrs

Average Tenure

53.5yo

Average Age

The tenure for the Rostelecom board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Galina Rysakova (52yo)

    Senior VP of Organizational Development & Human Resources and Member of Management Board

    • Tenure: 13.2yrs
    • Compensation: RUруб7.07m
  • Alexander Abramkov (42yo)

    Member of Management Board & Advisor to the President

    • Tenure: 6.2yrs
  • Dmitry Sadkov (53yo)

    Chief Information Officer and Vice President

    • Tenure: 0yrs
  • Dmitry Proskura (49yo)

    VP, Director of the Volga Macroregional Branch & Member of Management Board

    • Tenure: 2.3yrs
  • Mikhail Oseevskiy (59yo)

    Chairman of the Management Board

    • Tenure: 2.5yrs
  • Dmitriy Peresvetov (38yo)

    Chief Accountant

    • Tenure: 6.1yrs
  • Alexey Sapunov (42yo)

    Senior VP of Technical Infrastructure & Member of Management Board

    • Tenure: 2.3yrs
  • Vladimir Kirienko (36yo)

    First VP & Member of Management Board

    • Tenure: 3yrs
  • Anna Shumeyko

    SVP, Chief of Staff of President & Member of Management Board

    • Tenure: 0yrs
  • Sergey Anokhin (40yo)

    CFO, Senior VP & Member of Management Board

    • Tenure: 1.5yrs

Board Members

  • Kirill Dmitriev (44yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: RUруб4.00m
  • Ruben Aganbegyan (47yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: RUруб5.12m
  • Alexey Yakovizkiy (44yo)

    Independent Director

    • Tenure: 2.3yrs
  • Vadim Semenov (54yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: RUруб5.14m
  • Anton Zlatopolsky (53yo)

    Non-Executive Director

    • Tenure: 8.3yrs
  • Sergey Ivanov (66yo)

    Chairman of the Board

    • Tenure: 4.7yrs
  • Mikhail Oseevskiy (59yo)

    Chairman of the Management Board

    • Tenure: 2.5yrs
  • Alexander Auzan (65yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: RUруб5.01m
  • Nikolay Nikiforov

    Director

    • Tenure: 0.8yrs
  • Konstantin Noskov

    Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Public Joint Stock Company Rostelecom
  • Ticker: ROSY.Y
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: RUруб178.698b
  • Listing Market Cap: RUруб2.795b
  • Shares outstanding: 2.29b
  • Website: https://moscow.rt.ru

Number of Employees


Location

  • Public Joint Stock Company Rostelecom
  • Goncharnaya Street, 30
  • Building 1
  • Moscow
  • 115172
  • Russia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTKMMISX (Micex - Rts)YesOrdinary SharesRURUBJan 1996
RU_RTKMKAS (Kazakhstan Stock Exchange)YesOrdinary SharesKZKZTJan 1996
RTKMPMISX (Micex - Rts)Preferred SharesRURUBJun 1996
ROSY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 1998
RKMDLSE (London Stock Exchange)SPONSORED ADRGBUSDFeb 1998
RTLDB (Deutsche Boerse AG)SPONSORED ADRDEEURFeb 1998
RKMDLBATS-CHIXE (BATS 'Chi-X Europe')SPONSORED ADRGBUSDFeb 1998

Biography

Public Joint Stock Company Rostelecom provides telecommunications services in Russia and Europe. The company offers communication services, such as local, intra-zone, long-distance domestic and internation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:39
End of Day Share Price2019/09/20 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.