Rostelecom (ROSYY) AI Stock Analysis

• Market Cap: $2.83B
• 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: 87
• Industry: Telecommunications Services
• EPS (TTM): -0.17
• 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

Rostelecom (ROSYY) is a leading telecommunications provider in Russia, offering a comprehensive range of digital services to both consumer and corporate clients. The company operates in several sectors, including broadband internet, mobile communications, digital TV, and cloud computing. Rostelecom is renowned for its extensive telecommunications infrastructure, providing nationwide coverage and facilitating advanced digital solutions across the country.

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
EBITDA	283.70B	279.99B	233.25B	219.18B	188.45B	167.41B
Net Income	31.86B	34.42B	31.03B	28.55B	23.33B	14.78B
Balance Sheet
Total Assets	1.28T	1.24T	1.12T	1.10T	999.76B	728.28B
Cash, Cash Equivalents and Short-Term Investments	41.41B	58.65B	64.82B	61.79B	41.19B	26.85B
Total Debt	640.89B	624.93B	569.91B	568.73B	508.73B	271.13B
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
VZ	78 Outperform	$175.48B	9.89	18.23%	6.51%	0.93%	56.97%
TMUS	76 Outperform	$258.61B	22.20	19.35%	1.54%	5.31%	38.46%
T	70 Outperform	$194.07B	16.56	11.38%	4.12%	0.50%	-12.66%
SHEN	64 Neutral	$810.79M	―	-4.30%	0.68%	21.68%	-1010.29%
Sector *	61 Neutral	$40.74B	-1.35	-12.05%	3.97%	2.04%	-69.68%
ROSYY	60 Neutral	$2.83B	25.43	4.42%	―	-8.52%	-74.26%
LUMN	51 Neutral	$4.59B	―	-78.94%	―	-7.86%	97.11%