Rostelecom (ROSYY) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: N/A
• Average Volume (3M): 10.59K
• Price to Earnings (P/E): 25.4
• Beta (1Y): N/A
• Revenue Growth: -8.52%
• EPS Growth: -74.26%
• Country: US
• Employees: 9,613
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.29
• Shares Outstanding: 547,166,300
• 10 Day Avg. Volume: 10,586
• 30 Day Avg. Volume: 10,586
• PEG Ratio: 0.65
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ―

Rostelecom's stable financial performance with strong profitability and cash generation is offset by high leverage and lack of growth data. Technical indicators show a lack of momentum, and valuation is moderate with no dividend yield. Earnings calls provide limited insight, resulting in an average overall stock score.

Rostelecom Business Overview & Revenue Model

Company Description

Public Joint Stock Company Rostelecom provides digital services and solutions in Russia. The company provides Rostelecom Key, an ecosystem of services for households that offers smart intercom, smart gate bar, and smart meter solutions, as well as integrated video surveillance platform; Pay TV; Wink, a digital video services; and smart home services. It also offers antivirus solutions; Wi-Fi 2.0 platform; corporate TV's; virtual BX; toll-free calling 8-800; Game-RT-X routers; IT solutions for municipal solid waste management; video surveillance services; and VDI/VDC and cyber security services. In addition, the company offers NVIDIA, a cloud gaming service; Kapsula, a smart speaker; submarine cables; R&D; maintenance and recreational; engineering design; data and data storage; telecommunication and IT consulting; and engages in leasing of equipment, communication equipment manufacturing, retail, real estate, and venture and pension fund activities. Further, it provides solutions for electronic government, cybersecurity, data center and cloud-based services, biometrics, healthcare, education, house maintenance, and utility services. The company was incorporated in 1993 and is headquartered in Moscow, Russia.

How the Company Makes Money

Rostelecom primarily generates revenue through its diverse portfolio of telecommunications services. The company's key revenue streams include broadband internet subscriptions, mobile phone services, fixed-line telephony, and digital TV offerings. Additionally, Rostelecom capitalizes on its business-to-business (B2B) services, providing cloud-based solutions, data center services, and cybersecurity products to corporate clients. Significant partnerships with government bodies and enterprises further bolster its earnings, allowing the company to participate in large-scale digital transformation and infrastructure projects across Russia.

Rostelecom Financial Statement Overview

Summary

Rostelecom demonstrates solid profitability with healthy margins and strong cash flow generation. However, the high leverage poses financial risks, and missing revenue data limits growth analysis. Overall, the financial position is stable, but debt management and cash flow efficiency require attention.

Income Statement

Rostelecom shows strong profitability with a Gross Profit Margin of 21.4% and an EBIT Margin of 14.6% for 2023. The company achieved a Net Profit Margin of 4.9%, indicating solid bottom-line performance. However, revenue growth is not assessable due to missing prior year data, which limits a full growth trajectory analysis.

Balance Sheet

The Debt-to-Equity ratio is relatively high at 2.81, indicating significant leverage which could pose financial risk. With a Return on Equity of 15.5%, Rostelecom effectively utilizes equity to generate profits. The Equity Ratio stands at 17.8%, showing moderate shareholder investment relative to total assets. Overall, the balance sheet reflects a stable yet leveraged financial position.

Cash Flow

Operating Cash Flow to Net Income Ratio is robust at 5.1, indicating strong cash flow generation relative to net income. Free Cash Flow grew significantly over time, but the Free Cash Flow to Net Income Ratio is only 0.81, pointing to moderate cash flow efficiency. The company maintains healthy cash flow, albeit with some room for improvement in cash utilization.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
736.33B	707.80B	627.05B	580.09B	546.89B	337.42B
	Gross Profit
235.09B	151.19B	126.88B	439.85B	411.03B	254.10B
	EBIT
113.67B	103.24B	83.73B	73.71B	68.97B	33.85B
	EBITDA
283.70B	279.99B	233.25B	219.18B	188.45B	167.41B
	Net Income Common Stockholders
31.86B	34.42B	31.03B	28.55B	23.33B	14.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.41B	58.65B	64.82B	61.79B	41.19B	26.85B
	Total Assets
1.28T	1.24T	1.12T	1.10T	999.76B	728.28B
	Total Debt
640.89B	624.93B	569.91B	568.73B	508.73B	271.13B
	Net Debt
599.48B	580.29B	517.59B	519.16B	477.52B	251.58B
	Total Liabilities
982.15B	915.72B	833.66B	875.49B	782.09B	466.09B
	Stockholders Equity
244.58B	222.00B	199.99B	187.48B	180.13B	257.62B
Cash Flow		Free Cash Flow
-15.76B	27.84B	26.08B	4.63B	803.00M	-1.09B
	Operating Cash Flow
159.39B	175.04B	142.96B	152.47B	136.79B	99.42B
	Investing Cash Flow
-191.01B	-146.56B	-106.88B	-126.96B	-235.72B	-103.28B
	Financing Cash Flow
40.97B	-35.99B	-32.72B	-7.18B	110.55B	13.42B

Rostelecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	79 Outperform	$9.45B	15.35	13.18%	0.44%	-6.63%	2.46%
VIV	78 Outperform	$17.85B	17.44	7.95%	2.45%	-5.69%	-0.05%
SKM	74 Outperform	$8.54B	9.49	11.08%	6.24%	-4.13%	4.96%
KT	71 Outperform	$9.27B	21.55	3.81%	3.43%	-4.85%	-43.88%
VEON	63 Neutral	$2.83B	6.81	43.22%	―	8.27%	―
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
ROSYY	60 Neutral	$2.81B	25.43	4.42%	―	-8.52%	-74.26%