Ryazan Energy Retail Co.: Good fundamentals, is it catching up?

Ryazan Energy Retail Co. relative valuation is OVERVALUED and it has a fundamental analysis score of 64.

Our analysis is based on comparing Ryazan Energy Retail Co. with the following peers – Stavropolenergosbyt OJSC, Komi Energy Retail Co. OJSC, Federal Grid Co. of Unified Energy System OJSC, Kostroma Power Sale Co. OJSC, Interregional Distribution Grid Co. of Urals, Tomsk Trunk Grid Company JSC Pref., Novosibirskenergo OAO, Interregional Distribution Grid Co. of The South JSC, Volgogradenergosbyt OAO and Kubanenergo OAO (STSB-RU, KESK-RU, FEES-RU, KTSB-RU, MRKU-RU, TOMSP-RU, NVNG-RU, MRKY-RU, VGSB-RU and KUBE-RU).

Ryazan Energy Retail Co. has shown underwhelming performance overall, both over the last one year as well as over the last month. Ryazan Energy Retail Co.’s price performance over the last month at -10% has been better than its performance over the past year at -39.97%. In fact Ryazan Energy Retail Co.’s price performance over the past year has been poorer than its peer group over the same period.

Company Snapshot

  • Relative underperformance over the last year has improved more recently.
  • Ryazan Energy Retail Co. currently trades at a higher Price/Book ratio (0.59) than its peer median (0.42).
  • RZSB-RU‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • RZSB-RU has a successful operating model with relatively high net profit margins and asset turns.
  • 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.
  • RZSB-RU‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • 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 RZSB-RU‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a PE ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • RZSB-RU currently does not have any debt.
  • Our analysis rates Ryazan Energy Retail Co. as OVERVALUED relative to its peers.

Share Price Performance

Relative underperformance over the last year has improved more recently.

RZSB-RU‘s share price performance of -39.97% over the last 12 months is below its peer median. However, its 30-day trend of -10% is now around the peer median suggesting that the company’s recent performance has improved relative to peers.

Share Price Performance

Relative Valuation

Relative Valuation
Fundamental Score

Ryazan Energy Retail Co.’s price of RUB 1.26 is greater than CapitalCube’s implied price of RUB 1.100. At this level, CapitalCube believes that Ryazan Energy Retail Co. is overvalued. Over the last 52 week period, the stock has fluctuated between RUB 1.10 and RUB 2.10.

Valuation & Peer Metrics

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

Company Profile

Ryazan Energy Retail Co. engages in the transmission and wholesale distribution of electrical energy. It purchases electricity on the wholesale and retail markets from energy generating companies and distributes it to the private consumers and legal entities. The company was founded on June 29, 2004 and is headquartered in Ryazan, Russia.

Disclaimer

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