EVRAZ

Analysis of Evraz share price

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Are you thinking about trading online in Evraz shares or planning to buy this asset to add to your stock market portfolio? If this is the case then we recommend you read our advice regarding an analysis of this company together with information and practical data that will enable you to better understand how this share price may vary with details on this company and its activities, its turnover and revenue, a presentation of its major competitors on the market and information on some of its major recent partnerships. We also examine the advantages and disadvantages of this asset and offer information regarding the data you should favour for your fundamental analysis of this asset.

Elements that can influence the price of this asset:

Analysis N°1

Firstly we would carefully monitor the economic health of the industry sector served by the major clients of Evraz. An economic recession or significant growth could greatly influence a rise or fall in the demand thereby influencing the development opportunities for this group.

Analysis N°2

Of course, you will also need to follow the price of the commodities that Evraz needs to create its products as these will obviously influence the profitability of this company’s operations.

Analysis N°3

The production optimisation and growth strategies that this group implements over the next few years should also be subject to your attention, particularly operations related to mergers, acquisitions and partnerships.

Analysis N°4

We would of course also monitor the competition in this sector through the publications and announcements of the Evraz Company’s major competitors relating to their news, financial results and events.

Analysis N°5

Finally, we would of course take into account the annual and intermediate financial results of this company as published by them.

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General presentation of Evraz

Let us now continue with some information about the Evraz Company which will enable you to better know and understand the different activities of this company and its sources of revenue. Here therefore is a detailed presentation of the company.

The Evraz Group is a Russian company specialised in the steel industry sector. It is in fact one of the major companies from this country that specialises in this sector.

To better understand the activities of this company it is possible to divide them into sectors depending on the turnover generated and how the company achieves this:

  • Firstly, the manufacture of steel products represents the major part of this group’s activities and enables it to achieve nearly 80.3% of its turnover. This particularly concerns construction related products, flat steel, tubular products and others.
  • The Evraz Group also exercises coal production activities which enable the company to generate 16.4% of its turnover.
  • Finally, the remainder of its turnover, around 3.3%, is from related activities.

It can also be advantageous to understand the geographical distribution of the activities and income of this company.  At present, the Evraz Group achieves around 35.5% of its turnover from Russia. 3.4% is from Taiwan, 2.7% from Indonesia, and 1.8% is from Thailand. A larger amount of its turnover, 13.3% to be exact is from other Asian countries, 17.3% is from the United States, 9.1% is from Europe, 4.2% from Canada and 10.7% from other countries around the world.

Analysis of Evraz share price
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The major competitors of Evraz

We now offer you the opportunity to learn more about the competitors of Evraz in its activity sector as this group faces serious competition from major corporations that you should know about in detail before making any decisions regarding the strategy to adopt on this asset.

U.S. Steel

This American company is also known under the name of the United Steel Corporation. It is a steel manufacturing company based in the United States that also undertakes major operations in Central Europe. This company was launched in 1901 by J P Morgan and Elbert H Gary following a merger of the Federal Steel Company and the Andrex Carnegie steelworks.

ArcelorMittal 

This French based international steel industry group is currently one of the largest steel manufacturers worldwide with a production of over 96 million tons in 2018. It is listed in the 156th position in the 2016 classification of the Fortune Global 500 Group which includes the largest companies worldwide.  The group came into being following a takeover bid in 2006 by the Mittal Steel Company of the Arcelor Group which was financed by large international investors.  Since 2009 the group launched a large disinvestment programme with the objective of reducing its interest rate with which it was financed close to the level of 9%. Arcelor Mittal currently employs around 198,500 employees of which over 41% are in Europe.

Corus Group

This subsidiary of the Indian group Tata Steel is specialised in the steel industry and the production of aluminium. It was created by the merger of Koninklijke Hoogivens NV and British Steel Plc in 1999. Corus is also known under the name Tata Steel Europe.

Hitachi Metals

Finally, the Japanese company, Hitachi Metals, is another major competitor of Evraz. This company also manufactures metal products and materials, electrical and technological components as well as functional components.  As a company that produces speciality steel products, it manufactures and sells high quality specialty steel as well as industrial equipment and materials, various laminating rollers, parts for injection moulding machines, structural ceramic parts, structural steel parts, soft magnetic products and their applications. The magnetic products are related to the sale of magnets and ceramic products. Finally, the company also produces moulding products including special products and sells moulded parts for the automobile sector such as aluminium wheels, other aluminium parts and plumbing equipment. This company also manufactures metal wiring and functional items and is also active in the real estate and software sectors.


The major partners of Evraz

The Evraz Group certainly needs to face strong competition in its activity sector however it can also count on the support of its strategic allies. We will therefore take the time now to introduce you to several prime examples of partnerships implemented by this company over the last few years that have strongly influenced its growth:

Enbridge

Firstly we will examine a partnership, or to be more precise a significant investment made by Evraz a few years ago.  This was a significant investment in its Regina factory of around 200 million dollars together with a partnership with the Enbridge Company in the form of a research agreement relating to the pipelines. The investment had the objective of financing the installation of a new large diameter pipe manufacturing machine and an increase in production of nearly 100,000 tons. The group also planned to improve its steel production procedure with top of the range technological tools that would mainly enable it to produce larger and thicker aluminium parts. In this way Evraz would be capable of supplying the industrial liquid gas market for the Kemerovo region in western Siberia. The Air Liquide Group would thereby be responsible for the long term supply of oxygen, argon and nitrogen to Enraz.

CGI

Another significant strategic partnership implemented by this company was that created with the CGI Company which is one of the leaders in the global IT and business procedure management sectors. The Evraz Group in fact chose this company with the objective of ensuring IT support services for its operations in North America for a number of years.  It should be remembered that the CGI Group has enjoyed a long collaborative relationship with the Evraz Group through several projects since 1999 when it was just starting to produce delegated management services to companies. In accordance with this long standing relationship and its concurrent procedures, CGI will continue to provide the Evraz employees with IT support services for call centres throughout Canada, 24/7.

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The factors in favour of a rise in the Evraz share price:

We shall now examine together if the Evraz shares are truly advantageous with a summary of this company’s major advantages and disadvantages, its strengths and weaknesses.

Let us start this analysis with a summary of the various advantages of the Evraz Company and therefore the strong points of this share on the stock market with the following factors:

  • Firstly we note the international expansion strategy of this company which has enabled it to develop throughout the world.
  • The group is also one of the most competitive in this market due to a significant cost control strategy.
  • It also implements numerous strategic partnerships that enable it to increase its growth.
  • Finally, the financial health of this group is stable with a treasury flow that enables various investments.
The factors in favour of a drop in the Evraz share price:

Concerning the disadvantages of this share and therefore the weak points of this company we note the following:

  • The increasingly high level of competition from other major companies worldwide.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Where are the major manufacturing sites for Evraz?

The principal steel manufacturing sites of Evraz are in Russia, Europe and North America with factories at Nizhny Tagil, Novokuznetsk, the province of Udine in Italy, the Strategic Minerals Corporation in the United States, the Evraz Consolidated West-Siberian Metallurgical Plant, Kachkanarsky Ore Mining and Processing Enterprise and the Sukha Balka Mines in the Ukraine.

Who are the principal shareholders in the Evraz Company?

The capital of the Evraz Company is divided among different private shareholder including Roman Abramovitch who holds 57.5% of the share capital, Alexander Abramov with 19.4%, Alexander Frolov with 9.69% of the share, Gennady Ivanovich Kozovov with a 5.77% shareholding, Eugene Shvidler with 2.79% of the capital, the National Depository Center with 1.97% of the capital, Union Bancaire Privée with 1.74% of the shares, Norges Bank Investment Management with 1.51% of the share capital, Arcadian Asset Management with 1.15% of the shares, and the Vanguard Group with 0.99% of the share capital.

Where is the Evraz share price currently quoted and in which indices is it included?

The Evraz share price is currently quoted on the Main Market of the London Stock Market, or LSE. It is therefore quoted in a continuous manner and in real time during the opening hours of this market. However this share price is also included in the British stock market Index, the FTSE 100, which includes the top 100 British companies in terms of stock market capital on this financial marketplace.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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