Monday 11 May 2020

EVRAZ plc (LON:EVR) stock went up 12% in the last month

EVRAZ plc (Russian: ЕВРАЗ) is a multinational vertically integrated steel making and mining company. Its headquarters are in London, United Kingdom. The company operations are mainly in Russia. However, they are also in Ukraine, Kazakhstan, Italy, Czech Republic, the United States, Canada and South Africa. The company is listed on the London Stock Exchange. It is a constituent of the FTSE 100 Index. The stock of the company is EVR (LON). The company revenue was 11.57 billion USD in 2019. The number of employees was 70,000 in 2019.

Evraz has high self-sufficiency in iron ore and excess coking coal production. This enables the company to be one of the largest participants on the domestic coking coal market through its affiliates. EVRAZ also controls some metal trading and logistic assets.

Coking coal or Metallurgical coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking. The demand for metallurgical coal is highly related to the demand for steel.

Investors should be careful becasue the (LON:EVR) stock decreased by roughly 50% over a year period. However, EVRAZ plc (LON:EVR) shareholders should be satisfied to see the share price go up 12% in the last month.

The returns over the last year have been disappointing. The stock price slipped by 58% in that time period. Some analysts think that the fall was an overreaction. They expect the stock rise back up.

You can compare earnings per share (EPS) and share price changes over time. You can see how investor attitudes to a company have changed over time.

Unfortunately, EVRAZ reported a 87% decline in EPS over the last year. This fall in the EPS is much worse than the 58% the share price fall. Take a look at the detailed balance sheet of the company to get more information. EVRAZ has improved its bottom line over the last three years.

Also think about the company's dividends, value of any spin-offs and discounted capital raisings. Consider the total shareholder return (TSR), as well as the share price return. EVRAZ’s TSR for the last year was -51%.

It is unfortunate that EVRAZ shares are down 51% for the year (including dividends). That is much worse than the broader market decline of 15%.

The history of Evraz is interesting. The company was founded as a small metal-trading business in 1992. On 2 June 2005 Evraz Group floated some 8.3 percent of its shares in the form of GDR in London. The company was priced at $14.50 per GDR implying an equity value of $5.15 billion. An additional 6% stake was placed in January 2006. This resulted in a total free-float of 14.3%. The company acquired Claymont Steel from H.I.G. Capital in 2008 for US$564.8 million. The mill was closed in December 2013.

Here are the Subsidiaries of Evraz:

EVRAZ North America, Inc.
West-Siberian Metal Plant
East Metals AG
Industrial Union of Donbas
Oregon Steel Mills
Evraz Inc. NA Canada
EVRAZ Stratcor, Inc.
Evraz Claymont Steel
EVRAZ East Metals
EVRAZ Calgary Works
General Scrap Inc.
Evraz North America PLC
Mastercroft Limited
Carbofer Metall
OOO GBRU-Yuzhnaya
Chantusos Holdings Ltd
Dnepropetrovsky Metal Works
EVRAZ Caspian Steel LLC
Evrazenergotrans, Ooo
Evraz Kachkanarsky Mining-And-Processing Integrated Works
Vanston Limited
Trade House EvrazResource
OOO Cheremshanka
OOO Evrazteknika
OAO West Siberian Heat and Power Plant
Yuzhkuzbassugol Joint Stock Company
OOO Ekont
III Kuznetsky Metallurgical Plant
Evraz Ob'edinennyy Zapadno-Sibirskiy Metallurgicheskiy Kombinat, OaO
OOO Mine 12
Evraz Nikom, A.S.
Mastercroft Finance Limited
Laybridge Limited
OOO Sibmetinvest
Fegilton Limited
Cybridge Ltd.
OJSC Mining and Metallurgical Company Timir
Evraz Group S.A.
Ferrotrade Ltd.
Petrovskyi Metallurgical Plant
OJSC EVRAZ Vanady Tula
Evraz United West-siberian Iron and Steel Plant
JSC Evrazruda
Evraz Dnepropetrovsk Iron And Steel Works
Sinano Ship Management Ltd
Corber Enterprises Limited
Dashuria Limited

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