Qiwi Plc: Strong price momentum but will it sustain?

Qiwi Plc relative valuation is UNDERVALUED and it has a fundamental analysis score of 53.

Our analysis is based on comparing Qiwi Plc with the following peers – EVERTEC, Inc., Euronet Worldwide, Inc., Mobile TeleSystems PJSC Sponsored ADR, Western Union Company, eBay Inc., Visa Inc. Class A and VEON Ltd. Sponsored ADR (EVTC-US, EEFT-US, MBT-US, WU-US, EBAY-US, V-US and VEON-US).

Qiwi Plc has shown good performance overall, both over the last one year (at 34.97%) as well as over the last month (at 11.02%). Share price performance over the last month, though has been lower than that over the last year. But Qiwi Plc’s stock has done better than its overall peer group whose performance was -2.33% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It trades at a lower Price/Book multiple (2.18) than its peer median (4.19).
  • The market expects QIWI-US’s earnings to grow at about the same rate as its chosen peers and also does not seem to expect much improvement in its below peer median returns.
  • QIWI-US’s relative asset efficiency and net profit margins are both around the median level.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • Over the last five years, QIWI-US’s return on assets has declined from above median to about median among its peers, indicating declining relative operating performance.
  • The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
  • While QIWI-US’s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • QIWI-US has the financial and operating capacity to borrow quickly.
  • Our analysis rates Qiwi Plc as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

QIWI-US’s share price performance of 34.97% over the last 12 months is above peer median of 14.03%. The 30-day trend in its share price performance of 11.02% is also above the peer median of -2.33% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Qiwi Plc’s price of USD 17.33 is lower than CapitalCube’s implied price of USD 22.73. CapitalCube believes that at these levels, Qiwi Plc is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 11.60 and USD 26.55.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Qiwi Plc provides payment services through physical, online, and mobile channels. Its consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or online environments interchangeably. The company was founded on February 26, 2007 and is headquartered in Nicosia, Cyprus.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.