The global equities markets plunged last week as Russian troops invaded Ukraine, causing several developed countries to impose harsh economic sanctions on Russia. Companies headquartered in or having operations in Russia have been the worst hit. The U.S. took unprecedented steps in imposing severe economic costs and sanctioning Russia’s top financial banks, institutions, and oligarchs. The moves are expected to adversely impact the Russian economy and financial system.

Also, the U.K., Canada, and many European countries have closed their airspace to Russian aircraft. Russia is also being isolated from the Global Financial and Trade System. As a result, the Russian currency, the ruble, hit a record low against the U.S. dollar last week.

Given the backdrop, we think it advisable to avoid underperforming Russian stocks Yandex N.V. (YNDX), QIWI plc (QIWI), and Cian PLC (CIAN).

Yandex N.V. (YNDX)

YNDX is a technology company that is headquartered in Schiphol, the Netherlands. The company operates in more than 46 cities across Russia, Ukraine, and bordering countries. It offers intelligent products and services powered by machine learning and other technologies and focuses on helping consumers and businesses navigate the online and offline world. The company operates through six segments: Search and Portal; Taxi; Yandex Market; Media Services; Classifieds; and Other Bets and Experiments.

Last January, YNDX and the Russian Fund for Information Technologies’ development established a joint program. This program will support Russian technology companies in promoting their products and services. YNDX will contribute RUB1.5 billion ($17.88 million) to the Fund to settle anti-monopoly claims. This move is expected to reduce its cash balance and restrict its working capital.

Last December, YNDX completed the restructuring of the ownership of MLU B.V., a joint venture with Uber Technologies, Inc. (UBER). YNDX paid RUB 14.9 billion (177.59 million) in cash, representing the remaining consideration to complete the joint venture. This cash outflow might affect XNDX’s cash balance.

In its fiscal 2021 fourth quarter, ended Dec. 31, 2021, YNDX’s income from operations decreased 163.4% year-over-year to a negative RUB 2.60 billion ($30.99 million). The company’s adjusted EBITDA declined 29.4% year-over-year to RUB 9.72 billion ($115.85 million). YNDX’s adjusted net income declined 54.8% year-over-year to RUB 2.65 billion ($31.58 million).

The $0.04 consensus EPS estimate for its fiscal year 2022 first quarter, ending March 31, 2022, represents a 47% year-over-year decline from the same period in 2021. The company has missed the consensus EPS estimates in three of the trailing four quarters.

YNDX has slumped 68.7% in price year-to-date and 71.9% over the past year. It closed Friday’s trading session at $18.94.

YNDX’s POWR Ratings are consistent with this bleak outlook. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

YNDX has a D grade for Momentum, Stability, and Quality. Within the F-rated Internet industry, it is ranked #36 of 74 stocks.

To see additional POWR Ratings (Value, Growth, and Sentiment) for YNDX, click here.

QIWI plc (QIWI)

Headquartered in Nicosia, Cyprus, QIWI operates electronic online payment systems primarily in Russia, Kazakhstan, Moldova, Romana, Belarus, Romania, the United Arab Emirates, and internationally. The company operates in three segments: Payment Services; Consumer Financial Services; and Rocketbank. It provides payment services across online and physical channels, Qiwi Wallet, and payment-by-installment-card systems.

QIWI’s total net revenue decreased 3.3% year-over-year to RUB6.42 billion ($76.52 million) in its fiscal year 2021 third quarter, ended Sept. 30, 2021. QIWI’s adjusted EBITDA declined 4.6% year-over-year to RUB3.83 billion ($45.65 million) for the third quarter. The company’s adjusted net profit fell 17.4% year-over-year to RUB 2.71 billion ($32.30 million).

Analysts expect QIWI’s revenue for its fiscal 2021 fourth quarter, ended December 31, 2021, to come in at $70.57 million, representing a 14.2% year-over-year decline. The Street expects QIWI’s EPS to be $0.39 in the to-be-reported fourth quarter, representing a 36.1% year-over-year decline versus the same period last year.

The stock has declined 29% in price year-to-date and 48.5% over the past year. QIWI closed Friday’s trading session at $5.67.

Within the Foreign Consumer Finance industry, QIWI is ranked #3 of 13 stocks. To see POWR Ratings for Growth, Quality, Stability, Value, Sentiment, and Momentum for QIWI, click here.

Cian PLC (CIAN)

CIAN operates an online real estate classifieds platform in Russia and is headquartered in Larnaca, Cyprus. The company’s real estate platform connects millions of users, real estate buyers, and renters to real estate listings of several types, such as residential and commercial, urban, and suburban, to sell and rent.

In its fiscal 2021 third quarter, ended Sept. 30, 2021, CIAN’s total operating expenses increased 41.5% year-over-year to $25 million. The company’s operating loss increased 29% year-over-year to $3.90 million. CIAN’s loss for the period rose 24.6% year-over-year to $4.10 million. In addition, the company’s loss per share increased 25% from the year-ago value to $0.10.

The Street expects CIAN’s loss per share to amount to $0.33 for its fiscal year 2022 ending Dec. 31, 2022.

Shares of CIAN have declined 72.4% in price year-to-date and 77.7% over the past three months. It closed Friday’s trading session at $3.40.

CIAN’s POWR Ratings reflect its poor prospects. It has a grade of D for Momentum. It is ranked #27 of 44 stocks in the Real Estate Services industry.

Click here to see CIAN’s POWR Ratings for Value, Quality, Stability, Sentiment, and Growth.

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