Today we will consider the metallurgical sector (TOP 3 Russian companies). How beneficial will invest in this sector?
💥 Severstal
💥NLMK
💥MMK
📈 Constructure of shareholders
💰 deliberate value
💰 Prebeat and margin of business
🚑 Financial health of the company
⚡ The results of production activities
💰 Separate
All companies under consideration abandoned dividends this year.
If the debt ratio/EBITDA-0.5-1 of the company will pay dividends in the amount of 100% of the free cash flow. If below 0.5 - then more than 100%, if higher - then 50%.
Severstal has stably paid dividends since 2005 (exclusion of 2009) and could well be considered a dividend aristocrat.
In 2021, the company paid 253 rubles. The forecast for dividends for the next 12 months is 35.23 rubles (5% per annum).
If the debt ratio/EBITDA is less or equal to 1, the company plans to pay 100% of the free cash flow. If above 1, then 50%.
The company has long been paying dividends. In 2021, NLMK paid 41.91 rubles.
The forecast for dividends for the next 12 months is 20.85 rubles (18% per annum).
If the debt ratio/EBITDA is below 1, the company plans to pay up to 100% of the free cash flow. If above 1, then at least 50%.
This company could also be called a dividend aristocrat. In 2021, MMK paid 8.93 rubles.
The forecast of dividends for the next 12 months is 3.04 rubles (11.3% per annum).
Sanctioned pressure
Russian steel giants were very vulnerable to sanctions. Even before the special operation, various restrictions were introduced on metallurgists.
Now all export channels are closed. It will take about 8 years to return to the pre -war numbers of production and sale of products.
All 3 leaders of companies fell under the sanctions, and therefore the metallurgists themselves. They own companies through foreign offshores. And, since, the Central Bank forbade paying dividends to foreign holders, they will not be able to get their own money.
Severstal was most affected (exports to Europe - 26%), and the smallest - MMK (exports to Europe - 5%)
I would not choose any one company, but simply would add each asset to a small share from the portfolio.
For today, thanks for your attention!
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