Spotlight: NLMK (NLMK)
Market capitalization: ₽1.43 trillion
Stock price on July 18: ₽238,5
Consensus forecast: ₽300
When the report: –
Expectations: EPS – ₽17.25 (earnings per share), revenue – ₽295.45 billion
- In the second half of June, shares of metallurgists, including NLMK, fell significantly. Such a sale was caused by the decision of the authorities to introduce export duties on ferrous and non-ferrous metals when they are exported outside the Customs Union. Experts from BCS World of Investments noted that the financial results for 2021 will suffer the most from those companies that have a high share of exports in the sales structure – in particular, from NLMK and Rusal.
- On July 13, NLMK published the Group’s operating results for the second quarter of 2021. Steel production increased by 5% qoq to 4.6 million tonnes, yoy growth of 19% due to the company reaching full capacity following the completion of the reconstruction. Sales on a quarterly basis increased by 11% – to 4.3 million tons, but decreased slightly compared to the second quarter of last year – by 1%.
- BCS analysts believe that against the backdrop of stable sales, the company will present strong results for the second quarter. However, it is noted that a decrease in export prices may lead to a slight slowdown in the growth of indicators. Experts have set a target price at around 300, which implies an increase of 25.78% from current quotes.
- The company’s P / E (11.3) is slightly above the industry average (9.87). At the same time, P / S (2.01) is sufficiently higher than the sector average (1.25). But given high profitability, such a situation may not mean that the stock is overvalued. Given that the EV / EBITDA (6.69) is even lower than the industry average (10.13), we can say that the stock is trading close to fair value. Profit growth could push the position towards undervalued stocks.
Other important reports on July 22nd:
Media: publication of financial results for the 2nd quarter of 2021
American Airlines: before the market opens, EPS forecast – – $ 2.41, revenue forecast – $ 7.02 billion.
Biogen: before the market opens, EPS forecast – $ 4.58, revenue forecast – $ 2.61 billion.
Intel: after market close, EPS forecast – $ 1.07, revenue forecast – $ 17.8 billion.
AT&T: before the market opens, EPS forecast – $ 0.8, revenue forecast – $ 42.67 billion.
Abbott: before the market opens, EPS forecast – $ 1.01, revenue forecast – $ 9.68 billion.
Blackstone: before the market opens, EPS forecast – $ 0.76, revenue forecast – $ 1.71 billion.
Twitter: after market close, EPS forecast – $ 0.08, revenue forecast – $ 1.06 billion.
Newmont: before the market opens, EPS forecast – $ 0.79, revenue forecast – $ 3.18 billion.
Snap: after the market close, EPS forecast – – $ 0.18, revenue forecast – $ 844.44 million.
Union Pacific: before the market opens, EPS forecast – $ 2.48, revenue forecast – $ 5.34 billion.