Rostelecom (ROSYY) AI Stock Analysis

Rostelecom

(Other OTC:ROSYY)

Select Model

Rating:56Neutral

Price Target:$5.50▲(6.82% Upside)

Action:reiterated

Date:10/01/26

The overall score of 56 reflects a mature telecom with solid operating margins and cash generation but constrained by high leverage and weak net profitability, while neutral-to-soft technicals and a moderate earnings-based valuation offer limited immediate upside or downside signals.

Positive Factors

Diversified recurring servicesThe company combines recurring consumer subscriptions with contract-based enterprise and public-sector digital services. This diversified revenue model can support retention and visibility across customer groups, while bundled connectivity, cloud, cybersecurity, and managed services create multiple avenues for durable customer relationships.

Negative Factors

High leverageElevated and increasing debt relative to equity is a durable constraint on financial flexibility. High leverage raises the importance of maintaining operating cash flow, can increase financing sensitivity, and may limit the company’s ability to fund network modernization or digital expansion without additional balance-sheet pressure.

Rostelecom (ROSYY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.73B
Dividend Yield: ―
Average Volume (3M): 10.59K
Price to Earnings (P/E): 4.1
Beta (1Y): ―
Revenue Growth: 29.27%
EPS Growth: 184.91%
Country: US
Employees: 9,613
Sector: General
Sector Strength: 55
Industry: Telecommunications Services

Rostelecom Business Overview & Revenue Model

Company Description

Established in 1993 and headquartered in Moscow, Russia, PJSC Rostelecom is a leading provider of digital services and technological solutions throughout the nation. The company offers a wide array of services designed for residential customers, incl...

How the Company Makes Money

Rostelecom makes money primarily by selling connectivity and digital services on recurring subscription and contract bases to households, businesses, and government entities. Key revenue streams typically include: (1) Consumer telecom services: month...

Rostelecom Financial Statement Overview

Summary

Financial performance is mixed: strong scale, solid EBITDA and operating cash flow, and improving revenue, but high leverage, thin net margins, and subdued returns on equity constrain the score.

Income Statement

62Positive

Balance Sheet

48Neutral

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	890.18B	824.50B	921.58B	707.80B	627.05B	580.09B
Gross Profit	293.59B	196.43B	211.08B	151.19B	126.88B	439.85B
EBITDA	337.93B	298.00B	354.60B	279.99B	214.82B	218.75B
Net Income	11.02B	10.72B	18.00B	34.42B	31.03B	28.55B
Balance Sheet
Total Assets	1.43T	1.43T	1.38T	1.24T	1.12T	1.10T
Cash, Cash Equivalents and Short-Term Investments	18.23B	46.26B	60.38B	58.65B	64.82B	61.79B
Total Debt	747.25B	739.74B	723.47B	624.93B	569.91B	568.73B
Total Liabilities	1.14T	1.09T	1.05T	915.72B	833.66B	875.49B
Stockholders Equity	225.79B	222.39B	219.25B	222.00B	199.99B	187.48B
Cash Flow
Free Cash Flow	20.10B	10.07B	29.97B	27.84B	26.08B	4.63B
Operating Cash Flow	163.56B	159.37B	241.24B	175.04B	142.96B	152.47B
Investing Cash Flow	-132.92B	-136.25B	-263.78B	-149.18B	-110.72B	-126.96B
Financing Cash Flow	-38.06B	-42.93B	23.85B	-36.63B	-33.90B	-7.18B

Rostelecom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

ROSYY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	73Outperform	$8.43B	10.65	17.54%	7.85%	13.99%	29.93%
KYIV	67Neutral	$3.00B	19.01	12.39%	―	―	464.80%
KT	66Neutral	$8.31B	8.01	7.21%	4.85%	5.40%	39.37%
TKC	66Neutral	$3.94B	10.00	7.05%	4.81%	16.11%	2.15%
VEON	66Neutral	$5.26B	121.38	4.15%	―	14.60%	-94.13%
ROSYY	56Neutral	$2.73B	4.15	4.88%	―	29.27%	184.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

ROSYY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ROSYY	Rostelecom OAO	5.15	0.00	0.00%
KT	KT Corporation	17.28	-1.21	-6.54%
TIMB	Tim S.A.	17.68	-3.77	-17.57%
TKC	Turkcell Iletisim Hizmetleri As	4.58	-1.11	-19.54%
VEON	VEON Ltd	82.54	37.07	81.53%
KYIV	Kyivstar Group Ltd	12.93	-0.47	-3.51%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 01, 2026

Rostelecom AI Stock Analysis