Russia Stocks — Valuations, P/E & Dividends

This season's Russian earnings painted a picture of extremes: while healthcare and mining companies sprinted ahead with revenue growth north of 30%, the metals and construction sectors stumbled, with median revenue declines of 13% and 4.5%, respectively. The standout twist: despite a 33% revenue drop, Alrosa's valuation (P/E 4.2x) suggests investors see a diamond in the rough, while Severstal's 15% revenue decline and 74% EBITDA collapse signal deeper trouble. The real story, however, is the divergence within sectors—where savvy operators like Nornickel (+12.6% revenue, +49.9% EBITDA) and Polyus (+13.8% revenue) thrived, while laggards like MMK (-1.1% revenue, -27.8% EBITDA) and TMK (-36.9% revenue) were left in the dust.

Revenue growth by industry (median YoY)

Healthcare and mining lead the pack with double-digit growth and margin expansion

The healthcare sector posted the strongest median revenue growth at +34.6%, driven by standout performers like Promomed (+75.7% revenue, +86.4% EBITDA) and United Medical Group (+40.4% revenue, +24.6% EBITDA). Mining followed closely at +30.1%, with Rusolovo (+91.8% revenue, +356.2% EBITDA) and Yuzhuralzoloto (+90.5% revenue, +197.2% EBITDA) delivering exceptional results. Even in the face of Alrosa's 33% revenue decline, the sector's overall strength underscores robust demand for resources and medical services, with companies like Seligdar (+46.5% revenue, +145.6% EBITDA) proving that operational leverage can drive outsized profit growth.

Metals and construction are the season's laggards, with revenue declines and margin compression

The metals sector was the clear loser, with median revenue down 13.2%, and the pain was widespread: Severstal (-14.9% revenue, -73.7% EBITDA), NLMK (-11.5% revenue, -17.3% EBITDA), and TMK (-36.9% revenue, -78.0% EBITDA) all suffered double-digit revenue declines and sharp profit drops. Construction also struggled, with median revenue down 4.5%, as Samolet (-31.3% revenue, -39.9% EBITDA) and Etalon (-9.6% revenue, -92.2% EBITDA) faced severe headwinds. Even Mechel, despite a 22.9% revenue decline, managed a 25.5% EBITDA increase, but that was the exception in a sector where falling prices and weak demand took a heavy toll.

Sovcombank's 225% revenue surge and VTB's 122% jump redefine the financial landscape

The biggest plot twist came from the financial sector, where Sovcombank's revenue exploded +225.5% year over year, and VTB followed with a +121.7% surge, both accelerating from already strong prior periods (Sovcombank had grown +59.2% previously). This dramatic acceleration—Sovcombank went from +59.2% to +225.5%—signals a consolidation wave and market share gains, while Sberbank (+26.7% revenue) and TBank (+30.3% revenue) also posted robust growth. Yet, the sector's median growth of +22.2% masks a stark divide: Europlan saw revenue fall 29.6%, and SPB Exchange dropped 16.1%, showing that not all financial players are benefiting from the same tailwinds.

Valuations reveal bargains in high-growth tech and financials, while metals look cheap for a reason

For value investors, the standout is ArenaData: growing revenue 85.8% with a P/E of just 5.8x—a rare combination of hypergrowth and low valuation. Similarly, Astra (+17.4% revenue) trades at 7.0x earnings, and Positive (+38.9% revenue) at 6.5x, both offering growth at reasonable prices. In contrast, OZON, despite impressive +47.8% revenue growth, trades at a steep 67.0x P/E, pricing in perfection. Among the laggards, Severstal's 9.9x P/E and NLMK's 7.1x P/E may look tempting, but with EBITDA down 74% and 17% respectively, these are classic value traps unless commodity prices recover.

Dividend yields are a bright spot, with FGC UES and Rushydro offering outsized income

Income investors have plenty to cheer: FGC UES trades at a P/E of 0.5x with an EV/EBITDA of 1.8x, implying a dividend yield that could exceed 20% if payouts follow earnings. Rushydro (P/E 1.1x) and Inter RAO (EV/EBITDA 0.9x) similarly offer yields in the high single digits to low teens. Even in the troubled metals sector, Severstal's 9.9x P/E suggests a potential yield above 10% if the company maintains its payout ratio, though the 74% EBITDA drop raises sustainability questions. For yield seekers, the electricity sector—with median revenue growth of 16.3%—provides both growth and income, a rare combination in today's market.

Three-year CAGRs highlight the long-term winners: APRI, ArenaData, and OZON stand out

Looking beyond the quarter, APRI's 157.5% three-year revenue CAGR is extraordinary, even if recent net profit fell 87.7%. ArenaData (52.0% CAGR) and OZON (53.3% CAGR) have compounded growth at remarkable rates, and both continue to deliver—ArenaData with +85.8% revenue and OZON with +47.8% this season. These companies have proven business models that are scaling efficiently, and their current valuations (ArenaData P/E 5.8x, OZON P/E 67.0x) reflect vastly different expectations for future growth. The key for investors is to distinguish between those with sustainable momentum and those priced for perfection.

As the season wraps, the clear takeaway is that sector averages hide as much as they reveal. The divergence within industries—from healthcare's 34.6% median growth to metals' -13.2%—demands stock-specific analysis. Watch for continued acceleration in financials, where Sovcombank and VTB are reshaping the competitive landscape, and monitor whether metals can stabilize as global demand recovers. The next quarter will test whether high-growth tech names like ArenaData and Positive can sustain their momentum, and whether the value traps in metals become genuine opportunities. For now, the smart money is on sectors with pricing power and operational leverage—healthcare, mining, and selective financials—while avoiding the commodity-driven declines in metals and construction.

Players: growth & yield (no absolute levels)

The latest operational data reveal a mixed picture across sectors. In Metals, CHMF and MAGN show robust steel output growth in Q2 2026 (+11.8% and +7.3% y/y respectively), while NLMK and RUAL report H1 volumes without comparable growth rates, leaving trend assessment incomplete. In Mining, PLZL gold production declined 1.8% y/y in H1, contrasting with UGLD's FY2025 increase of 13.2%; GMKN's nickel output lacks a comparative base. In IT, OZON's GMV surged 36.8% y/y in Q2, while ASTR and DELI provide no y/y figures, making sector momentum hard to gauge.

Operating momentum, latest reported period (YoY)

Consumer and transport sectors show slower but positive trends. X5's retail revenue grew 9.4% y/y in Q2, while MGNT's LFL sales increased 6.4% y/y in H1, indicating steady demand. In Transport, AFLT passenger traffic rose only 0.3% y/y in H1, suggesting near-stagnation. Among IT-related mobility, WUSH trips were flat (+0.0% y/y) in H1, while DELI's sold minutes in Q2 lack a comparative base. These figures point to mature or saturated markets where growth is increasingly hard to achieve.

Financial and construction segments exhibit divergent signals. MOEX's total trading volume grew 20.5% y/y in August, and LEAS's new business rose 13.1% y/y in H1, reflecting robust activity in capital markets and leasing. In contrast, ETLN's contract value in Q2 has no y/y comparison, leaving construction demand unclear. In Chemicals, PHOR's agrochemical output for 9M 2025 lacks a growth rate, while in Agriculture, AQUA's biomass increased 32.5% y/y in H1, suggesting strong operational expansion.

In the upcoming earnings reports, focus should be on companies with missing y/y data to assess underlying momentum. For NLMK, RUAL, GMKN, NVTK, ASTR, DELI, ETLN, and PHOR, the absence of comparative growth rates makes it difficult to judge whether volumes are expanding or contracting. Additionally, monitor whether PLZL's decline reverses, whether UGLD's FY growth sustains into 2026, and whether OZON's high GMV growth translates into profitability. For metals and mining, watch steel and nickel output trends relative to capacity; for IT, check if ASTR's shipments and DELI's minutes show acceleration in H2.

On August 21, 2026, Renessans reported Q2 2026 results: revenue grew 9.2% YoY to RUB 28,247.3 million, but net profit fell 123.7% to a loss of RUB 701.0 million. This review examines what happened to profitability, the dividend policy, and why the stock trades at a P/E of 3.5.

Key takeaways

— Revenue grew 9.2% in Q2, but net profit fell to a loss of RUB 701.0 million.

— Net margin collapsed from 11.4% to -2.5% in the quarter.

— Dividend yield of 6.0% versus a fair 10.5% leaves little room for growth.

— P/E of 3.5 reflects unprofitability, not cheapness.

— Operating cash flow of RUB 29,000 million over 12 months is not a result metric for an insurer.

Key figures, RUB bn

Revenue grew 9.2% in Q2, but net profit fell to a loss of RUB 701.0 million.

In Q2 2026, Renessans's revenue reached RUB 28,247.3 million, up 9.2% YoY. However, net profit for the quarter was negative – minus RUB 701.0 million versus a profit of RUB 2,958.1 million a year earlier.

The main reason for the loss was finance expenses from insurance and reinsurance contracts, which for H1 2026 totaled RUB 14,267.3 million, and a negative result from investment and finance activities of RUB 3,470.4 million for the half-year. This outweighed the positive insurance service result of RUB 4,811.1 million.

Net margin collapsed from 11.4% to -2.5% in the quarter.

In Q2 2026, net margin was minus 2.5%, versus 11.4% a year earlier. This means the company earns less on every ruble of revenue, and in the reporting quarter it operates at a loss.

The decline in margin is due to faster growth in insurance service expenses: for H1 they rose from RUB 43,501.3 million to RUB 51,907.7 million, or 19.3%, while insurance revenue grew only 9.2%.

Dividend yield of 6.0% versus a fair 10.5% leaves little room for growth.

Over the last 12 months, Renessans paid dividends of RUB 4.1 per share, providing a yield of 6.0%. Our model estimates the next payout also at RUB 4.1 per share, implying a forward yield of 6.0%.

However, the fair yield for this name, in our view, is 10.5%. This means that at the current share price, the investor receives insufficient compensation for risk, and to achieve a fair yield, the price would need to be significantly lower.

P/E of 3.5 reflects unprofitability, not cheapness.

Renessans trades at a P/E of 3.5 based on trailing twelve months profit of RUB 11,041.6 million. This seems like a very low multiple, but it is calculated on profit that includes one-off effects and does not reflect current unprofitability.

In Q2 2026, the company posted a net loss, and if this trend continues, profit over the next twelve months will be significantly lower, and the P/E will rise. Therefore, the current low P/E is not a sign of cheapness but a consequence of falling profit.

Operating cash flow of RUB 29,000 million over 12 months is not a result metric for an insurer.

Over the last 12 months, Renessans's operating cash flow was RUB 29,000 million, but for an insurance company this metric does not reflect business efficiency. It depends on client balances and central counterparty positions, not on operating profit.

Therefore, we deliberately do not use operating cash flow in assessing results and do not build an investment thesis on it. For an insurer, the key metrics remain insurance service result, investment income, and net profit.

Valuation on the latest reported figures

Bottom line

In Q2 2026, Renessans showed revenue growth of 9.2%, but this growth did not convert into profit: net loss was RUB 701.0 million versus a profit a year earlier. The main reason is a sharp increase in insurance service expenses and a negative investment result. A dividend yield of 6.0% looks attractive, but it is below fair and does not offset the loss. For shareholders, the key question is whether the company can return to profitability in the coming quarters; otherwise, the low P/E of 3.5 will become a trap.

On August 25, MTS reported Q2 2026 results: revenue grew 9.2% YoY to RUB 213.5 bn, OIBDA rose 16.3% to RUB 84.6 bn, and net profit surged 1817.4% to RUB 66.9 bn. The review shows that the main contribution to profit came from the sale of towers, while operating cash flow turned negative in the quarter.

Key takeaways

— Net profit of RUB 66.9 bn was almost entirely driven by the sale of towers, not by the operating business

— OIBDA grew 16.3% on revenue growth and cost control, with margin reaching 39.6%

— Operating cash flow turned negative at RUB 32.8 bn in Q2 due to working capital buildup

— Capex of RUB 31.6 bn in Q2 exceeded operating cash flow, increasing reliance on debt

— Net debt rose by RUB 29.7 bn in the quarter and by RUB 98.4 bn over the year, to RUB 651.9 bn

— Dividend of RUB 35 per share yields 19%, well above the fair yield of 12.4% for the stock

— EV/EBITDA multiple of 3.3 is below the three-year average of 4.1, trading at a discount to its own history

Key figures, RUB bn

Net profit of RUB 66.9 bn was almost entirely driven by the sale of towers, not by the operating business

In Q2 2026, MTS net profit reached RUB 66.9 bn versus RUB 3.5 bn a year earlier – a 24-fold increase. The main contribution came from the sale of a stake in tower infrastructure: without this one-off effect, profit would have been an order of magnitude lower, as seen in operating profit dynamics – it grew only 22.4% to RUB 48.2 bn.

The tower sale is a one-off event that does not create recurring cash flow. Investors should focus on operating metrics: revenue grew 9.2%, OIBDA – 16.3%, but it was the asset sale that generated almost all of the quarter's net profit.

OIBDA grew 16.3% on revenue growth and cost control, with margin reaching 39.6%

OIBDA in Q2 amounted to RUB 84.6 bn, up 16.3% YoY. The OIBDA margin reached 39.6% versus 37.2% a year earlier – an improvement of 2.4 percentage points. Growth was driven by higher revenue in telecom and fintech, as well as moderate growth in operating expenses.

In Q1 2026, OIBDA grew faster than revenue (+18.0% vs +14.7%), indicating sustained operating leverage. However, in Q2 the pace slowed: revenue added 9.2% and OIBDA – 16.3%, still higher but the gap narrowed.

Operating cash flow turned negative at RUB 32.8 bn in Q2 due to working capital buildup

Operating cash flow in Q2 was minus RUB 32.8 bn versus plus RUB 79.4 bn a year earlier. The negative value is due to working capital buildup – the company increased inventories and advances, requiring additional financing.

Over the last twelve months, operating cash flow totaled RUB 274.4 bn, covering capex, but in Q2 the dynamics were negative. This is an important signal: even with growing profit, the company faces a liquidity deficit in its operating cycle.

Capex of RUB 31.6 bn in Q2 exceeded operating cash flow, increasing reliance on debt

Capex in Q2 reached RUB 31.6 bn, exceeding operating cash flow (minus RUB 32.8 bn). In Q1, capex was even higher at RUB 44.3 bn, also exceeding operating cash flow (RUB 31.2 bn).

In total for H1, capex amounted to RUB 75.9 bn, while operating cash flow was minus RUB 1.6 bn. This means the company finances investments through debt, as confirmed by net debt growth of RUB 29.7 bn in the quarter.

Net debt rose by RUB 29.7 bn in the quarter and by RUB 98.4 bn over the year, to RUB 651.9 bn

At the end of Q2, MTS net debt stood at RUB 651.9 bn, up RUB 29.7 bn from the previous reporting date and RUB 98.4 bn over the last 12 months. Debt growth is related to financing capex and negative operating cash flow.

Net debt to EBITDA for the last twelve months stands at 2.14 – a level the company has maintained in recent years. However, given rising debt and unstable operating cash flow, this metric could deteriorate if the company does not restore cash generation.

Dividend of RUB 35 per share yields 19%, well above the fair yield of 12.4% for the stock

The board recommended a dividend of RUB 35 per share for 2025, providing a yield of 19% at the current price. This is significantly above the 12.4% level we consider fair for this stock – the market is pricing either sustainability of payments or expectations of rate cuts.

The dividend payment of RUB 69.9 bn is comparable to operating cash flow over the last twelve months (RUB 274.4 bn), but given capex and debt growth, the company may face a shortage of funds to maintain payments at the current level.

EV/EBITDA multiple of 3.3 is below the three-year average of 4.1, trading at a discount to its own history

EV/EBITDA for the last twelve months is 3.3, below the three-year average of 4.1. This means the market values the company cheaper than on average over the past three years, despite profit and revenue growth.

P/E for the last twelve months is 3.4, which also looks low, but given one-off factors in profit (tower sale), this metric may be overstated. Investors should focus on EV/EBITDA, which is adjusted for one-off effects and reflects operating efficiency.

Valuation on the latest reported figures

Bottom line

In Q2 2026, MTS showed strong revenue and OIBDA growth, and net profit was record-high thanks to the tower sale. However, operating cash flow turned negative, and capex exceeded cash generation, leading to higher debt. Dividend yield remains high, but its sustainability is questionable if the company does not restore operating cash flow. The key question for shareholders is whether MTS can return to positive free cash flow without new one-off deals.

On August 25, GLORAX reported H1 2026 results: revenue grew 44.6% YoY, but EBITDA fell 3.3% and net profit dropped 31.6%. This review examines why sales growth is not converting into profit and how it affects leverage.

Key takeaways

— H1 revenue grew 44.6%, but EBITDA fell 3.3% — margin compressed from 36.7% to 24.5%

— Net profit declined 31.6%, and net margin dropped from 12.5% to 5.9%

— Operating cash flow over the last 12 months is negative — minus 19.0 billion RUB

— Net debt rose by 17.1 billion RUB over the year, reaching 78.5 billion RUB

— Net debt to EBITDA for the last 12 months stands at 6.86 — a high level

— P/E for the last 12 months is 5.4, EV/EBITDA is 8.0, below the three-year average

— ROE is 40.5% — high return on capital, but amid rising debt

Key figures, RUB bn

H1 revenue grew 44.6%, but EBITDA fell 3.3% — margin compressed from 36.7% to 24.5%

In H1 2026, GLORAX's revenue reached 49.6 billion RUB, up 44.6% year-on-year. However, EBITDA for the same period declined by 3.3%, and the EBITDA margin fell from 36.7% to 24.5%. This indicates that sales growth was accompanied by a disproportionate increase in operating costs.

The margin compression of 12.2 percentage points is a key signal for shareholders. The company is growing revenue but cannot maintain profitability at previous levels, raising questions about the efficiency of its operating model.

Net profit declined 31.6%, and net margin dropped from 12.5% to 5.9%

Net profit for H1 2026 amounted to 2.4 billion RUB (calculated as 5.9% of revenue), down 31.6% from the same period last year. Net margin fell from 12.5% to 5.9%.

The decline in profit amid rising revenue points to pressure on operational efficiency and possibly higher financial expenses. Shareholders should pay attention to the cost structure and debt burden.

Operating cash flow over the last 12 months is negative — minus 19.0 billion RUB

For the trailing twelve months (as of June 30, 2026), GLORAX's operating cash flow was minus 19.0 billion RUB. This means the company spends more cash on operating activities than it generates from them.

Negative operating cash flow is a worrying signal, especially combined with rising debt. It may be related to working capital buildup or expenses not reflected in EBITDA, and warrants close attention.

Net debt rose by 17.1 billion RUB over the year, reaching 78.5 billion RUB

As of the latest reporting date, GLORAX's net debt stood at 78.5 billion RUB, up 17.1 billion RUB over the last 12 months. The change from the previous reporting date is zero.

Rising debt amid negative operating cash flow indicates that the company is financing its operations with borrowed funds. This increases interest expenses and adds pressure on profit.

Net debt to EBITDA for the last 12 months stands at 6.86 — a high level

Net debt to EBITDA for the trailing twelve months stands at 6.86. This is a high level, typically associated with elevated risk for creditors and shareholders.

At this level of leverage, the company becomes vulnerable to rising interest rates and deteriorating operational performance. Further debt accumulation could lead to a credit rating downgrade.

P/E for the last 12 months is 5.4, EV/EBITDA is 8.0, below the three-year average

GLORAX's market capitalization is 12.8 billion RUB, resulting in a trailing twelve-month P/E of 5.4 and EV/EBITDA of 8.0. Both multiples are below the three-year average, indicating a relatively cheap valuation.

Low multiples may reflect market skepticism about earnings quality and cash flow sustainability. Investors should consider that the cheap valuation may be justified by high debt and negative operating cash flow.

ROE is 40.5% — high return on capital, but amid rising debt

Return on equity (ROE) stands at 40.5%, which is a high figure. However, such profitability is achieved amid significant debt, which increases financial leverage.

High ROE may be partly due to the financial leverage effect, not just operational efficiency. If profit declines and debt rises, this metric could deteriorate quickly.

Valuation on the latest reported figures

Bottom line

Bottom line: GLORAX shows strong revenue growth (+44.6%), but it does not convert into profit: EBITDA and net profit are declining, margins are compressing. Negative operating cash flow and rising debt (78.5 billion RUB) create significant strain. The stock trades cheaply (P/E 5.4), but this may be justified by high risk. The key question for shareholders is whether the company can restore margins and cash flow, or the debt spiral will continue.

On August 25, KuybyshevAzot released its results for the first half of 2026: revenue fell 4.7% year on year, EBITDA rose 31.5%, and net profit jumped 59.6%. This review looks at what drove the margin expansion, why operating cash flow is well below profit, and what it means for dividends.

Key takeaways

— EBITDA margin rose to 27.1% from 19.7% a year earlier, despite lower revenue

— Net profit for the half-year grew 59.6%, but operating cash flow for the trailing twelve months is only RUB 9.4 bn

— Debt leverage stands at 0.81 EBITDA – a moderate level, but absolute debt fell by RUB 11.1 bn over the year

— Dividend yield of 1.2% over 12 months is far from the 10.5% considered fair for the stock

— Shares rose 1.0% after the report – the market saw no reason for a re-rating

— P/E LTM of 7.2 and EV/EBITDA LTM of 3.3 – valuation below historical levels, but cash flow does not confirm profit

Key figures, RUB bn

EBITDA margin rose to 27.1% from 19.7% a year earlier, despite lower revenue

In the first half of 2026, KuybyshevAzot's revenue fell 4.7% year on year, but EBITDA rose 31.5%. As a result, EBITDA margin climbed to 27.1% from 19.7% in the same period a year earlier.

Margin expansion despite falling revenue points to a significant reduction in cost of sales or operating expenses. The exact reason is not disclosed in the available data, but the effect is clear: the company has become noticeably more efficient at converting revenue into operating profit.

Net profit for the half-year grew 59.6%, but operating cash flow for the trailing twelve months is only RUB 9.4 bn

Net profit for the first half of 2026 grew 59.6% year on year, and net margin reached 13.2% versus 7.9% a year earlier. However, operating cash flow for the trailing twelve months was only RUB 9.4 bn – noticeably less than net profit for the same period (RUB 8,989 m).

The gap between profit and cash flow signals that part of the profit may be non-cash or that working capital is consuming funds. For shareholders this matters: dividends are paid from cash, not paper profit.

Debt leverage stands at 0.81 EBITDA – a moderate level, but absolute debt fell by RUB 11.1 bn over the year

As of the latest balance sheet date, KuybyshevAzot's net debt stood at RUB 21,283 m, equivalent to 0.81 EBITDA for the trailing twelve months. This is a moderate level that does not threaten financial stability.

Over the year, net debt fell by RUB 11.1 bn – the company is actively repaying liabilities, which supports its credit profile. However, with such a decline in debt and modest operating cash flow, the question remains: what sources financed the repayment?

Dividend yield of 1.2% over 12 months is far from the 10.5% considered fair for the stock

Over the last 12 months, KuybyshevAzot paid RUB 4.0 per share, giving a yield of 1.2% at the current price. Our model estimates the next payout at RUB 4.56 per share, corresponding to a forward yield of 1.3%.

The fair yield for this stock, in our view, is 10.5%. The current level of payments is many times lower, and this is the main argument against buying for dividend-oriented investors. The payout ratio is only 0.14 of profit, meaning the company retains almost all earnings in the business.

Shares rose 1.0% after the report – the market saw no reason for a re-rating

The share price before the release was RUB 362.2. On the release day, the stock rose 0.2%, and by August 17, 2026, it had gained another 1.0%. This dynamics suggests investors took the results neutrally.

The rise in profit and margin did not cause a stir, probably due to weak cash flow and low dividend yield. The market has already priced in moderate expectations, and stronger signals are needed for a re-rating.

P/E LTM of 7.2 and EV/EBITDA LTM of 3.3 – valuation below historical levels, but cash flow does not confirm profit

For the trailing twelve months, the shares trade at a P/E of 7.2 and EV/EBITDA of 3.3. These are low multiples, especially given the profit growth in the reported half-year.

However, the valuation discount is justified: operating cash flow for the twelve months (RUB 9.4 bn) is significantly lower than net profit (RUB 8,989 m), which casts doubt on the quality of earned profit. Until cash generation confirms reported profit, the market is unlikely to pay more.

Valuation on the latest reported figures

Bottom line

KuybyshevAzot showed strong growth in EBITDA and net profit in the first half of 2026, with margin reaching 27.1% – the main positive of the report. However, operating cash flow for the trailing twelve months (RUB 9.4 bn) is noticeably below net profit, casting doubt on the quality of earnings. Debt leverage is moderate, and net debt fell by RUB 11.1 bn over the year, but dividends remain symbolic – a yield of 1.2% versus a fair 10.5%. For shareholders, the key question is whether the company can convert profit into cash; otherwise, the low valuation (P/E 7.2) may persist for a long time.

On August 25, ArenaData reported H1 2026 results: revenue grew 85.8% YoY, but EBITDA margin was -17.4% and net margin -13.8%. This review examines what drives the growth and why profitability has not yet recovered.

Key takeaways

— H1 revenue grew 85.8% – to RUB 3,900 million over the last 12 months

— H1 EBITDA margin was -17.4% – improved from -87.8% a year earlier, but still deeply negative

— H1 net margin -13.8% – versus -67.8% a year earlier, loss narrowing

— Net debt is negative: -RUB 1,159 million, the company sits on cash

— Dividend over the last 12 months – RUB 6.43 per share, yield 7.7% – above our fair yield of 7.0%

— Shares rose 22.7% from the release to August 17 – the market reacted positively

Key figures, RUB bn

H1 revenue grew 85.8% – to RUB 3,900 million over the last 12 months

In H1 2026, ArenaData's revenue grew 85.8% YoY. This is a strong pace, indicating high demand for the company's products. Over the last 12 months, revenue reached RUB 3,900 million – a level that the market is pricing in.

Revenue growth is the main driver for the stock: from the release to August 17, shares gained 22.7%. Investors see the company scaling up, even if profit is not yet following revenue.

H1 EBITDA margin was -17.4% – improved from -87.8% a year earlier, but still deeply negative

EBITDA margin for H1 2026 was -17.4%. A year earlier it was -87.8% – meaning the company cut operating losses more than fivefold. This is a significant improvement, but it does not mean the business is profitable.

Negative EBITDA indicates that operating expenses still exceed revenue. The company is likely investing in growth, but it is not yet generating operating profit. The question is when the margin will turn positive – this will be a key indicator for investors.

H1 net margin -13.8% – versus -67.8% a year earlier, loss narrowing

Net margin for H1 2026 was -13.8%, versus -67.8% a year earlier. The loss is narrowing, but the company is still not profitable on a net level. Over the last 12 months, net profit was RUB 1,938.4 million – a positive figure, likely driven by one-off income or revaluation.

The narrowing net loss is a positive signal, but it should not obscure the fact that operating activities remain loss-making. Investors should watch the net margin trend in upcoming reports – if it continues to improve, it will confirm the sustainability of the trend.

Net debt is negative: -RUB 1,159 million, the company sits on cash

On the latest balance sheet, ArenaData's net debt was -RUB 1,159 million. This means cash exceeds debt, and the company is financially stable. Over the last 12 months, net debt decreased by RUB 1.1 billion, although it increased by RUB 0.9 billion in the previous reporting period.

Negative net debt is a safety cushion. The company can finance growth without borrowing, reducing risks. However, operating cash flow over the last 12 months was RUB 3,300 million – a good figure, but it may be related to working capital changes.

Dividend over the last 12 months – RUB 6.43 per share, yield 7.7% – above our fair yield of 7.0%

Over the last 12 months, ArenaData paid RUB 6.43 per share, giving a dividend yield of 7.7%. Our model estimates the next payout also at RUB 6.43 per share, corresponding to a forward yield of 7.7%. We consider a fair yield of 7.0% for this company.

The current yield is above our fair estimate, making the shares attractive for dividend investors. The payout ratio is 0.3 of profit – a moderate level that leaves room for dividend growth if profit increases.

Shares rose 22.7% from the release to August 17 – the market reacted positively

The share price before the release was RUB 67.6. On the release day, shares rose 5.8%, and by August 17 they had gained another 22.7%. This indicates that the market appreciated the acceleration in revenue growth and narrowing losses.

Current market capitalization is RUB 18,466.4 million, and P/E over the last 12 months is 9.5. This is a low valuation for a fast-growing company, which may explain investor interest. However, it is worth remembering that profit over the last 12 months may include one-off items.

Valuation on the latest reported figures

Bottom line

ArenaData showed strong revenue growth – 85.8% for H1, confirming high demand for its products. The improvement in margins, albeit from deeply negative levels, is a positive trend, but profitability is still far away. Negative net debt and a dividend yield above fair make the stock attractive for conservative investors, but the sustainability of these factors depends on the company's ability to turn operating activities positive. The key question for holders is when EBITDA and net margins will become positive, and whether additional capital injections will be needed to sustain growth.

25 августа FESCO раскрыла результаты за первое полугодие 2026 года: выручка выросла на 5,0% до 175,9 млрд руб., EBITDA упала на 32,5%, а чистая прибыль сократилась на 94,9% до нуля. Разбор показывает, что операционный денежный поток за последние 12 месяцев достиг 25,4 млрд руб., а долговая нагрузка осталась умеренной — 1,23 EBITDA. Главный вопрос для акционера — куда пойдут эти деньги.

Key takeaways

— Revenue grew 5.0%, but EBITDA fell 32.5% — margin compressed from 22.6% to 14.5%

— Net profit nearly vanished: down 94.9%, margin 0.0% versus 0.8% a year earlier

— Operating cash flow over 12 months — RUB 25.4bn, higher than EBITDA

— Leverage at 1.23 EBITDA, but this is a level, not a trend

— EV/EBITDA of 9.1 — almost double its own three-year average of 4.6

— ROE of 0.05% — equity works at nearly zero return

— Net debt fell RUB 3.4bn over the half-year and RUB 3.1bn over the year

Key figures, RUB bn

Revenue grew 5.0%, but EBITDA fell 32.5% — margin compressed from 22.6% to 14.5%

For H1 2026, FESCO's revenue reached RUB 175.9bn, up 5.0% from the same period a year earlier. Growth is there, but it did not compensate for the decline in operating profitability: EBITDA for the half-year fell 32.5%, and the EBITDA margin contracted from 22.6% to 14.5%.

This means the company earns noticeably less per ruble of revenue than a year ago. The reasons for such compression are not disclosed in the report, but the fact remains: operating efficiency has deteriorated, and this is the main driver of the profit decline.

Net profit nearly vanished: down 94.9%, margin 0.0% versus 0.8% a year earlier

Net profit for H1 2026 fell 94.9% compared to the same period last year, and the net margin was 0.0% versus 0.8% a year earlier. In effect, the company broke even.

Such a decline amid growing revenue suggests that most of the operating profit was consumed either by rising costs or by financial items. The report does not specify the exact cause, but for a shareholder this is a signal: there is almost nothing to earn per share.

Operating cash flow over 12 months — RUB 25.4bn, higher than EBITDA

Over the trailing twelve months, FESCO's operating cash flow amounted to RUB 25.4bn — higher than EBITDA for the same period (RUB 22.6bn). This ratio suggests that the company generates sufficient cash from core operations despite the profit decline.

This is an important contrast to the reported half-year: operating cash flow over 12 months exceeds EBITDA, which usually indicates high-quality revenue and efficient working capital management. The question is how these funds are allocated — to investments, dividends, or debt repayment.

Leverage at 1.23 EBITDA, but this is a level, not a trend

As of the latest balance sheet date, FESCO's net debt stood at RUB 27.7bn, and the net debt to EBITDA ratio over the trailing twelve months was 1.23. This is a moderate level that does not threaten financial stability.

At the same time, net debt decreased by RUB 3.4bn over the half-year and by RUB 3.1bn over the year. That is, the company is reducing debt, but we do not know how the ratio changed — that would require data from previous periods, which is not in the facts.

EV/EBITDA of 9.1 — almost double its own three-year average of 4.6

The current EV/EBITDA multiple is 9.1, while the three-year average is 4.6. This means the market values the company twice as high as its average over the past three years, relative to its operating profit.

Such a premium may be justified by expectations of margin recovery, but the report so far shows the opposite: EBITDA is falling, and the valuation remains high. If profitability does not recover, the multiple will weigh on the share price.

ROE of 0.05% — equity works at nearly zero return

Return on equity over the trailing twelve months was 0.05%. This means that for every ruble of equity, the company earns less than a kopeck — effectively, equity generates no income.

Such a level of ROE, with zero net profit for the half-year, raises the question of whether it makes sense to retain earnings in the company. For a shareholder, this means that investments in FESCO are currently barely paying off.

Net debt fell RUB 3.4bn over the half-year and RUB 3.1bn over the year

The reduction of net debt by RUB 3.4bn in H1 2026 and by RUB 3.1bn over the trailing twelve months is a positive signal. The company is using part of its operating cash flow to reduce debt.

However, at this level of profit, further debt reduction may slow down. If EBITDA continues to fall, the debt/EBITDA ratio could rise even if absolute debt declines.

Valuation on the latest reported figures

Bottom line

The strength of the report remains operating cash flow: RUB 25.4bn over 12 months — higher than EBITDA and sufficient to service debt. The weakness is profit: a 94.9% decline and ROE of 0.05% mean the business earns almost nothing for shareholders. The debt reduction can be seen as a one-off factor, but it does not compensate for the loss of margin. The key question for a holder is whether the company can restore EBITDA to levels that justify the current valuation, or whether the market will have to revise the multiple downward.

On August 31, EuroElTech released its results for the first half of 2026. Revenue grew 46.9% year on year to RUB 4,850.7 million, but net profit fell 14.6% to RUB 120.8 million. The report shows that growth was driven by the engineering systems segment, while margins contracted due to operating expenses and finance costs.

Key takeaways

— Revenue +46.9% driven by the engineering systems segment, which grew 42.6%

— EBITDA rose only 2.0%: margin contracted from 11.7% to 8.1%

— Operating profit barely changed despite revenue adding RUB 1.5 billion

— Net profit fell 14.6% due to higher finance costs of RUB 170.7 million

— Operating cash flow turned negative at RUB -1,317.9 million due to outflows in advances and payables

— Debt rose by RUB 1.7 billion over six months to RUB 392.4 million, with net debt/EBITDA at 0.37

— Dividends over 12 months at RUB 0.85 per share, yield 11.4%, above our fair yield of 7.0%

Key figures, RUB bn

Revenue +46.9% driven by the engineering systems segment, which grew 42.6%

For the first half of 2026, EuroElTech's revenue reached RUB 4,850.7 million, up 46.9% year on year. The main contribution came from the Engineering Systems segment – its revenue grew 42.6% to RUB 3,842.9 million. The Technological Systems segment added 65.7% to RUB 1,007.7 million, but its share of total revenue remains below a quarter.

The report notes that one largest customer accounted for 34% of revenue (RUB 1,635.9 million) – a notable increase in concentration from 25% a year earlier. Such dependence on a single client raises sensitivity to their procurement cycles.

EBITDA rose only 2.0%: margin contracted from 11.7% to 8.1%

Despite revenue growing 46.9%, EBITDA for the half-year increased only 2.0% to RUB 394.8 million (per segment report). EBITDA margin fell from 11.7% to 8.1%. This means that revenue growth barely converted into operating results.

The main reason lies in the cost structure: cost of sales rose 47.4% (to RUB 3,934.2 million), selling expenses more than doubled (to RUB 237.6 million), and administrative expenses grew 39.2% (to RUB 308.4 million). As a result, operating profit remained almost flat year on year – RUB 317.3 million versus RUB 310.9 million.

Operating profit barely changed despite revenue adding RUB 1.5 billion

For the first half of 2026, operating profit was RUB 317.3 million – just 2.0% higher than a year earlier. Meanwhile, revenue grew by RUB 1,548.1 million. This divergence is explained by the fact that almost all revenue growth was absorbed by higher cost of sales and selling expenses.

The report also shows other operating loss of RUB 53.2 million versus income of RUB 14.1 million a year earlier. This further compressed the operating result, although its nature is not disclosed in the report.

Net profit fell 14.6% due to higher finance costs of RUB 170.7 million

Net profit for the first half of 2026 was RUB 120.8 million, down 14.6% year on year. Pressure came from finance costs, which rose from RUB 149.9 million to RUB 170.7 million – partly related to raising loans and borrowings, including from the parent company.

Finance income grew from RUB 20.1 million to RUB 27.3 million, but did not offset the increase in expenses. As a result, net margin fell from 4.3% to 2.5%.

Operating cash flow turned negative at RUB -1,317.9 million due to outflows in advances and payables

Operating cash flow for the first half of 2026 was minus RUB 1,317.9 million versus plus RUB 74.4 million a year earlier. The main outflows were changes in advances received (minus RUB 1,179.5 million) and accounts payable (minus RUB 434.6 million).

At the same time, the company increased inventories by RUB 121.7 million and accounts receivable by RUB 493.1 million. As a result, operating cash flow not only failed to cover investments but also required debt financing.

Debt rose by RUB 1.7 billion over six months to RUB 392.4 million, with net debt/EBITDA at 0.37

Net debt as of June 30, 2026 stood at RUB 392.4 million versus minus RUB 306.1 million at the end of 2023 (per Q4 2023 data). Over the last 12 months, debt increased by RUB 1.2 billion. Net debt to EBITDA for the last 12 months is 0.37.

The debt increase is related to raising loans and borrowings of RUB 3,639.0 million and issuing digital financial assets of RUB 200.0 million, partially offset by repayments of RUB 2,464.6 million. The company also paid dividends of RUB 134.5 million for the half-year.

Dividends over 12 months at RUB 0.85 per share, yield 11.4%, above our fair yield of 7.0%

Over the last 12 months, the company paid dividends of RUB 0.85 per share, implying a yield of 11.4% at the current price. Our model estimates a fair yield for this name at 7.0%, so the current yield is notably higher.

Based on trailing twelve-month profit of RUB 811.6 million, the payout ratio is 0.43. This means the company allocates less than half of profit to dividends, retaining resources for investments and debt service.

Valuation on the latest reported figures

Bottom line

EuroElTech showed strong revenue growth, but it did not convert into profit: EBITDA and operating profit barely changed, while net profit declined. Operating cash flow turned deeply negative, requiring increased debt. At the same time, the dividend yield remains high at 11.4%, which supports the shares. The key question for a holder is whether the company can restore margins and cash flow, or whether the current growth model requires constant external financing.

31 августа 2026 года Роснефть раскрыла результаты за второй квартал 2026 года. Выручка выросла на 14,0% год к году, до 2 257,0 млрд руб., EBITDA – на 27,4%, до 576,0 млрд руб., но чистая прибыль сократилась на 14,3%, до 120,0 млрд руб. Разбор показывает, что рост операционных показателей не транслировался в чистую прибыль из-за прочих расходов, и оценивает, что это значит для акционеров.

Key takeaways

— Revenue grew 14.0% in Q2 – first growth in four quarters

— EBITDA up 27.4% – margin expanded to 25.5% from 22.8%

— Net profit fell 14.3% – other expenses ate the operating growth

— Debt burden – 1.54 EBITDA: a level, not a trend

— Dividend yield 4.5% – below our fair 10.5%

— Capex and dividends: free cash flow under question

Key figures, RUB bn