YNDX
Yandex N.V.
TMT, Event Driven/Special Sit
02/24/2020
Presented
| Date | 02/20/2020 |
| Price | $46.67 |
| Market Cap | $15.34B |
| Ent Value | $13.93B |
| P/E Ratio | 77.17x |
| Book Value | $9.51 |
| Div Yield | 0% |
| Shares O/S | 328.69M |
| Ave Daily Vol | 2,194,976 |
| Short Int | 0.97% |
Current
| Price | $18.94 |
| Market Cap | $6.85B |
| Yandex NV operates as an investment holding company, which engages in the provision of search engines and online services. It operates through the following business segments: Search and Portal, E-commerce, Taxi, Media Services and Classifieds. The Search and Portal segment includes all the services offered in Russia, Belarus and Kazakhstan. The E-Commerce segment is comprised of the Yandex Market service. The Taxi Segment (including ride-sharing business, which consists of Yandex Taxi as well as Uber in Russia and other countries, Food Delivery business, which includes Yandex EATs, Uber. EATs and Food Party, meal kit subscription service and the Self-Driving Cars division). The Media Services Segment (including KinoPoisk, Yandex Music, Yandex Afisha, Yandex TV program, the Company's production center Yandex. Studio and subscription service Yandex. Plus launched in Q1 and Q2 2018 respectively) which derives revenue from online advertising and transaction revenues, including music and video content subscriptions as well as event tickets sales. The Classifieds Segment (including Auto ru, Yandex Realty and Yandex Jobs) which derives revenues from online advertising and listing fees. The company was founded by Elena Kolmanovskaya, Ilya Segalovich, Mikhail Fadeev, and Arkady Volozh in 2000 and is headquartered in Amsterdam, the Netherlands. |
Publicly traded companies mentioned herein: Uber Technologies Inc (UBER), Sberbank of Russia PJSC (SBER RM), Yandex NV (YNDX)
Highlights
The presenter remains long shares of Yandex NV (YNDX), the ~$15B company that he believes is commonly misunderstood by the investment community. He has looked past the perception of political risk over the last few years, which is due to YNDX’s exposure to Russia and Co-Founder & CEO Arkady Volozh’s Russian citizenship. The volatility has been substantial, and he still views the current valuation discount as attractive. The presenter remains confident in YNDX’s businesses, and expects full-year performance above consensus estimates. Management shared its 2020 guidance during the Q4’19 Earnings Call on February 14, and the presenter believes the best entry point occurs after YNDX gives its full-year guidance because these estimates are typically conservative. He also notes his view that YNDX’s taxi business, Yandex.Taxi, is incorrectly valued on a DCF basis, highlighting its upcoming IPO as a catalyst. Shares are currently trading at ~$45 and he models a price target of ~$60 using a SOTP valuation, with additional optionality around its e-commerce buildout. He will revisit his ownership post IPO, as this is the main catalyst for his SOTP target price.
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