Our analysis is based on comparing Marienergosbit OJSC with the following peers – INTER RAO UES OJSC, ENERGY AND ELECTRIFICATION JOINT-STOCK COMPANY SARATOVENERGO, Kaluga Power Sale Co. OJSC, Interregional Distribution Grid Co. of Volga, Quadra Power Generation JSC, Kuzbassenergo OAO, RAO Energy System of East JSC, Interregional Distribution Grid Co. of The North-West JSC, Interregional Distribution Grid Co. of the Center and ROSSETI JSC (IRAO-RU, SARE-RU, KLSB-RU, MRKV-RU, TGKD-RU, KZBE-RU, VRAO-RU, MRKZ-RU, MRKC-RU and RSTI-RU).
Marienergosbit OJSC’s price of RUB 2.41 is lower than CapitalCube’s implied price of RUB 3.39. CapitalCube believes that at these levels, Marienergosbit OJSC is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between RUB 1.51 and RUB 4.88.
- Relative underperformance over the last year has improved more recently.
- Marienergosbit OJSC currently trades at a higher Price/Book ratio (1.89) than its peer median (0.27).
- MISB-RU outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
- MISB-RU‘s median net profit margins and relatively high asset efficiency give it some operating leverage.
- Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
- Over the last five years, MISB-RU‘s return on assets has declined from above median to about median among its peers, indicating declining relative operating performance.
- Company appears to give away relatively high gross margins to relatively high operating costs suggesting a differentiated product portfolio with low pre-tax margins relative to peers.
- While MISB-RU‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median PE ratio and may be factoring in some sort of a strategic play.
- The company’s level of capital investment is relatively low and suggests it is milking the business.
- MISB-RU might have enough interest coverage to take-on additional debt prudently.
Marienergosbit OJSC has a fundamental score of 63 and has a relative valuation of UNDERVALUED.
Marienergosbit OJSC is on the top left quadrant of the CapitalCube Value – Price Matrix. We classify this space a ‘Value Play’. Here, Marienergosbit OJSC is potentially undervalued, since it trades below its CapitalCube Implied Price of 3.39. At the same time, Marienergosbit OJSC is also fundamentally strong with a score of 63. This is a classic value stock definition.
Drivers of Valuation
MISB-RU has an Outperforming profile relative to peers.
MISB-RU achieved a better operating performance than the median of its chosen peers (ROE of 5.01% compared to the peer median ROE of 2.23%) and the market still expects faster growth from it than from those peers (PE of 33.28 compared to peer median of 9.46).
The company currently trades at a higher Price/Book ratio of 1.89 compared to its peer median of 0.27.
MISB-RU has moved to an Outperforming from an Harvesting profile at the recent year-end.
A complete list of valuation metrics is available on the company page.
Marienergosbit OJSC engages in purchasing, sales, and distribution of electric energy. Its activities include purchasing of the electricity of the wholesale and retail markets of power and resale of it to the consumers. The company was founded on January 1, 1964 and is headquartered in Yoshkar-Ola, Russia.
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