Rostelecom (ROSYY) AI Stock Analysis

• Market Cap: $2.92B
• Dividend Yield: N/A
• Average Volume (3M): 10.59K
• Price to Earnings (P/E): 15.7
• Beta (1Y): N/A
• Revenue Growth: 14.04%
• EPS Growth: 50.34%
• Country: US
• Employees: 9,613
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.07
• Shares Outstanding: 547,166,300
• 10 Day Avg. Volume: 10,586
• 30 Day Avg. Volume: 10,586
• PEG Ratio: -0.03
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 2.08
• Enterprise Value/Market Cap: 329.19
• Enterprise Value/Revenue: 140.03
• Enterprise Value/Gross Profit: 409.30
• Enterprise Value/Ebitda: 369.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $5.00 ▼(-2.91% Downside)

Rostelecom's overall stock score is primarily impacted by its financial performance, which shows significant challenges due to declining revenue and cash flow. Technical analysis indicates stability but highlights overbought conditions. The valuation is reasonable, but the lack of a dividend yield is a downside. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Position

Rostelecom's position as a leading telecom provider in Russia ensures a strong market presence and customer base, supporting long-term stability.

Business Model Strength

A diversified revenue model through subscriptions and service bundles provides a steady income stream, enhancing financial resilience.

Digital Transformation Focus

Investments in digital transformation and advanced technologies position Rostelecom for future growth in the evolving telecom landscape.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health and growth capacity.

Declining Revenue

A sharp decline in revenue growth undermines financial performance and may hinder the company's ability to invest in future opportunities.

Cash Flow Challenges

Declining free cash flow limits the company's ability to fund operations and investments, posing a risk to long-term sustainability.

Rostelecom Business Overview & Revenue Model

Company Description

Rostelecom (ROSYY) is a leading telecommunications company in Russia, providing a wide range of services in the telecommunications and IT sectors. The company offers fixed-line and mobile telephony, broadband internet access, digital TV services, and cloud solutions, catering to both residential and corporate customers. As one of the largest providers in the region, Rostelecom plays a crucial role in the development of the country's digital infrastructure, including the rollout of next-generation networks and innovative digital services.

How the Company Makes Money

Rostelecom generates revenue primarily through its diverse service offerings, which include fixed-line and mobile telephony, broadband internet services, and digital television. The company operates a robust revenue model based on subscription fees, usage charges, and service bundles. Key revenue streams include monthly subscriptions from residential customers for internet and TV services, as well as corporate contracts for telecommunications and IT solutions. Additionally, Rostelecom benefits from partnerships with various government entities and private sector companies, which enhance its service capabilities and expand its customer base. The company's focus on digital transformation and the deployment of advanced technologies, such as 5G and cloud computing, also contribute significantly to its earnings potential.

Rostelecom Financial Statement Overview

Summary

Rostelecom faces significant financial challenges with a sharp decline in revenue and free cash flow. High leverage and low profitability margins exacerbate the situation. While operational efficiency is stable, the company must address revenue and cash flow issues to improve its financial standing.

Income Statement

Rostelecom's income statement shows a significant decline in revenue growth, with a drastic drop of 98.86% in the latest year. The gross profit margin has slightly improved over the years, but the net profit margin remains low at 1.95%. The EBIT and EBITDA margins are relatively stable, indicating operational efficiency. However, the sharp revenue decline is a major concern.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 3.30, indicating significant reliance on debt financing. The return on equity has decreased to 8.21%, showing reduced profitability for shareholders. The equity ratio is low, suggesting potential financial instability. The company needs to manage its debt levels to improve financial health.

Cash Flow

Cash flow analysis reveals a concerning 101.73% decline in free cash flow growth. The operating cash flow to net income ratio is moderate at 0.44, but the free cash flow to net income ratio is low at 0.12, indicating limited cash generation relative to profits. The company faces challenges in maintaining healthy cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.87B	8.40B	707.80B	627.05B	580.09B	546.89B
Gross Profit	2.35B	1.92B	151.19B	126.88B	439.85B	411.03B
EBITDA	2.60B	3.23B	279.99B	248.67B	219.18B	188.45B
Net Income	142.60M	164.03M	34.42B	31.03B	28.55B	23.33B
Balance Sheet
Total Assets	17.93B	12.58B	1.24T	1.12T	1.10T	999.76B
Cash, Cash Equivalents and Short-Term Investments	475.06M	550.28M	58.65B	64.82B	61.79B	41.19B
Total Debt	9.77B	6.59B	624.93B	569.91B	568.73B	508.73B
Total Liabilities	14.28B	9.60B	915.72B	833.66B	875.49B	782.09B
Stockholders Equity	2.95B	2.00B	222.00B	199.99B	187.48B	180.13B
Cash Flow
Free Cash Flow	-219.38M	273.17M	27.84B	26.08B	4.63B	803.00M
Operating Cash Flow	1.32B	2.20B	175.04B	142.96B	152.47B	136.79B
Investing Cash Flow	-1.52B	-2.40B	-146.56B	-106.88B	-126.96B	-235.72B
Financing Cash Flow	181.33M	217.33M	-35.99B	-32.72B	-7.18B	110.55B

Rostelecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHI	77 Outperform	$4.97B	9.72	25.22%	7.78%	0.59%	8.86%
VEON	75 Outperform	$3.74B	5.79	53.38%	―	6.42%	―
TKC	74 Outperform	$5.64B	13.93	7.60%	5.57%	19.02%	9.26%
TEO	68 Neutral	$5.72B	-37.30	-2.95%	0.40%	15.38%	-292.52%
LBTYA	57 Neutral	$3.67B	-0.99	―	―	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ROSYY	51 Neutral	$2.92B	15.72	7.28%	―	14.04%	50.34%