Russia's invasion allowed it to occupy several strategic locations in Crimea. The U.S. and other Western nations quickly denounced the encroachment and warned Russia to back off or face the consequences. In the wake of this news, several Russian companies fell in morning trading on Monday.
Yandex, a Russian Internet company that operates the largest search engine in the nation, was one of the biggest sufferers with a double-digit percentage drop. QIWI (QIWI), which provides payment services, also fell, as did VimpelCom (VIP) and Mobile TeleSystems (MBT), two Russian mobile telecommunications companies.
TheStreet Ratings team rates YANDEX NV as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate YANDEX NV (YNDX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- YNDX's revenue growth has slightly outpaced the industry average of 16.5%. Since the same quarter one year prior, revenues rose by 16.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.39% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for YANDEX NV is currently very high, coming in at 70.58%. Regardless of YNDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YNDX's net profit margin of 27.35% compares favorably to the industry average.
- Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 5.3% when compared to the same quarter one year prior, going from $92.55 million to $97.46 million.
- You can view the full analysis from the report here: YNDX Ratings Report