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I previously wrote an article on investing in Eastern Europe which concluded that most ETF products essentially provided exposure to the Russian market. Hence it would be worthwhile to look a closer at some investing options in Russia. One of the major Russian stocks is Gazprom (OTC:OGZPY), which posts a $185 billion market capitalization and offers exposure to the Russian oil and gas market. The focus of this article though will be on the Russian ADRs listed below:

Russian ADRs on NYSE
Ticker Name Market Capitalization ($ Millions) Industry
MBTMobile TeleSystems20,350Telecom
VIPVimpelCom Ltd18,230Telecom
MTLMechel Steel Group OAO12,820Steel & Iron
WBDWimm-Bill-Dann Foods OJSC5,530Dairy Products

Source: Yahoo Finance

Unfortuntately, only these four are listed on the U.S. stock exchanges. However, there are many other options available over the counter.

Mobile TeleSystems. Telecom. Mobile Telesystems provides mobile and fixed-line voice and data telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Turkmenistan, Armenia, and Belarus. The company was founded in 1993 and is headquartered in Moscow. MBT has a market capitalization of $20.4 billion. MBT closed recently at $21.54 per share with a dividend yield of 3.79 percent. MBT has an enterprise value of $24.3 billion and shows some financial leverage. MBT shows a trailing P/E ratio of 17.2x, which decreases compared to its forward P/E, which is 10.5x. This suggests strong earnings per share growth. MBT just closed at $21.54 per share, which is 16.9% above its 52-week low of $18.43 and 9.3% below its 52-week high of $23.55 per share. MBT has a low valuation at 5x by Enterprise to EBITDA measures. MBT has a low price to sales ratio at 1.7x.
VimpelCom Ltd. Telecom. VimpelCom Ltd. provides telecommunications services through a variety of wireless, fixed, and broadband technologies. It offers its sevices primarily in the Russian Federation but also in southeast Asia, including Cambodia. It was founded in 2010. VIP is headquartered in the Netherlands. VIP has a market capitalization of $18.2 billion. VIP closed recently at $14.07 per share with a dividend yield of 3.65 percent. VIP has an enterprise value of $22.3 billion and shows some financial leverage. VIP shows a trailing P/E ratio of 10.7x, which decreases compared to its forward P/E, which is 7.1x. This suggests strong earnings per share growth. VIP just closed at $14.07 per share, which is 3% above its 52-week low of $13.66 and 24.8% below its 52-week high of $17.56 per share. VIP has a low valuation at 4.7x by Enterprise to EBITDA measures. VIP has a low price to sales ratio at 1.7x.
Mechel Steel Group OAO. Steel. Mechel OAO operates as a mining and steel company in the Russian Federation and internationally. The company operates in four segments: Mining, Steel, Ferroalloys, and Power. Mechel was founded in 2003. MTL has a market capitalization of $12.8 billion. MTL closed recently at $31.3 per share with a dividend yield of 0.1 percent. MTL has an enterprise value of $19.6 billion and shows a fair bit of financial leverage. MTL shows a trailing P/E ratio of 17.5x, which decreases compared to its forward P/E, which is 8.9x. This suggests strong earnings per share growth. MTL just closed at $31.3 per share, which is 79.4% above its 52-week low of $17.45 and 10.5% below its 52-week high of $34.59 per share. MTL has a medium valuation at 11.6x by Enterprise to EBITDA measures. MTL has a low price to sales ratio at 2.0x.
Wimm-Bill-Dann Foods OJSC. Dairy Products. Wimm-Bill-Dann Foods OJSC, with 16,000 employees, is focused on the dairy industry in the Russian Federation. Its primary products include dairy, beverages, and baby food. Its dairy products range from milk and butter to puddings, cottage cheese and processed cheeses. It was founded in 1992. WBD has a market capitalization of $5.5 billion. WBD closed recently at $33.35 per share with a dividend yield of 0 percent. WBD has an enterprise value of $6.3 billion and shows some financial leverage. WBD shows a trailing P/E ratio of 55.8x, which decreases compared to its forward P/E, which is 28.1x. This suggests strong earnings per share growth. Its low debt level should not be a challenge. WBD just closed at $33.35 per share which is 89.3% above its 52-week low of $17.62 and 3.9% below its 52-week high of $34.65 per share. WBD has a high valuation at 21.1x by Enterprise to EBITDA measures. WBD has a low price to sales ratio at 2.4x.
These represent the easiest Russian ADRs to pursue since they are traded on the NYSE. They would provide exposure to the Russian market.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: A Look at Russian ADRs