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Russian market: strong and weak reports of the season, where the ideas are

Almost the whole spread between strong and weak reports comes down to one factor: the high key rate. It squeezes cyclicals (steel, construction, leasing volume, oil cash flow) and, conversely, feeds rate-geared financials (the exchange, banks' interest income). A rate turn is the main re-rating trigger for the beaten-down names.

Where we expect strong reports

Financials and digital platforms keep the pace. Sberbank posted +16% revenue and profit in Q1 at a P/E near 3.2 and a ~11% yield — the market anchor. OZON — revenue +49%, EBITDA +79% and a swing to profit, fintech scaling. Yandex — revenue +22%, EBITDA +54%. The Moscow Exchange — June turnover +42.9% YoY on the high rate (which is also the risk when it turns). T-Technologies — revenue +29%, MTS — profit +33%.

Revenue YoY, latest reported period

OZON49T29YDEX22SBER15MTSS15MGNT15X511AFLT6.0PLZL3.0HEAD-2.0NVTK-6.0CHMF-9.0TATN-10ROSN-11LKOH-15NLMK-15PHOR-18MAGN-190−4949
%

Where we expect weak reports

Steel — the whole sector. Severstal already reported a weak Q2: revenue −9%, EBITDA −40%, profit −74%; MMK's Q1 EBITDA was −58%, NLMK's full-year −45%. A strong rouble, soft domestic demand and the high rate hit construction. Oil (LUKOIL, Rosneft, Tatneft, NOVATEK) already showed −30…−40% EBITDA for 2025 on the strong rouble and soft rouble-oil — the same drivers hold into H1. HeadHunter — revenue already −2% as the labour market cools (see the hh-index). PhosAgro, Aeroflot and Magnit — EBITDA under pressure, with Magnit's profit turning negative against a growing X5.

What looks interesting

X5 versus Magnit — X5 is clearly winning retail (revenue +11%, EBITDA +26% against a stalling Magnit), a cleaner pair than a blunt consumer bet. In gold the operating momentum favours UGC (output +13% in 2025) over Polyus (−16% by volume), though Polyus is cheaper (P/E 2.8) and its revenue is held up by the metal price. Steel (NLMK, MMK at EV/EBITDA 1.6–1.7) is a counter-cyclical bet: too early to buy into a weak H1 print, but the sharpest re-rating candidate on a rate cut. HeadHunter is cheap (P/E 3.0, 16% yield) but the cooling hiring market makes it a potential value trap until vacancy demand stabilises.

Data caveats

Astra looks like a collapse on paper (Q1 EBITDA and profit deep in the red), but that is seasonality: ~70% of annual shipments fall in H2 and Q1 is structurally the weakest. The real signal is H1 shipments +26%. A few source multiples are artefacts (Severstal's P/E and X5's yield are blanked in the table below); no conclusions rest on them.

CompanyP/EEV/EBITDADiv.yldPeriodRev YoYEBITDA YoY
Сбербанк3.210.8%Q1 2026-03+15%+16%
OZON7.33.4%Q1 2026-03+49%+79%
Яндекс10.74.64.7%Q1 2026-03+22%+54%
Мосбиржа4.814.9%Q1 2026-03+16%+32%
Т-Технологии3.15.8%Q1 2026-03+29%
МТС7.43.215.4%Q1 2026-03+15%+18%
X54.92.6Q1 2026-03+11%+26%
HeadHunter3.04.216.0%Q1 2026-03-2%-7%
Северсталь4.2Q2 2026-06-9%-40%
НЛМК5.51.7FY 2025-12-15%-45%
ММК1.6Q1 2026-03-19%-58%
ЛУКОЙЛ2.623.2%FY 2025-12-15%-36%
Роснефть7.43.16.5%Q1 2026-03-11%+24%
НОВАТЭК14.26.77.3%FY 2025-12-6%-7%
ФосАгро8.75.96.3%Q1 2026-03-18%-44%
Полюс2.83.17.8%FY 2025-12+3%-7%
ЮГК7.95.7FY 2025-12+43%+27%

This is analysis, not investment advice. Figures are from issuer reporting and the portal's market data.

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