Israeli stock report - Bank Hapoalim B.M.

ISRAEL

Bank Hapoalim B.M. rises in 4 out of last 5 days January 18, 2018 17:30 IST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Bank Hapoalim B.M. (TASE:POLI), Israel's largest Bank by market cap, has increased 22.0 agorot (0.9%). Compared with the TA-25 Index which fell 0.2 points (0.01%) in the day, the relative price increase was 0.9%. The volume was 0.7 times the average daily trading volume of 2.7 million shares. The stock rose in four out of the last 5 trading days, for a 5-day rise of 2.3% to close at NIS25.78

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Technicals, High Performance Indicators, A positive finish to 2017

SECTION 2 BEARISH SIGNALS

Fundamentals, Technicals, Low Performance Indicator

SECTION 3 PRICE VOLUME DYNAMICS

Momentum, Moving Annual Return, Beta & Alpha, Turnover Rate & Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Quarterly Report ended September 30, 2017, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 BANK HAPOALIM B.M. BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 13.1 multiplied by the P/NTA of 1 is 13.1. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ The relative yield of the stock, defined by its yield of 2.5%, divided by average yield of dividend yielding stocks in the TA-25 Index of 1.8% is 142.9%. This suggests the stock is undervalued in dividend yield terms.

1.2 Technicals:

+ The price lifted 2.3% in the last week and jumped 6.7% in the last month.

+ Compared with the TA-25 Index which rose 0.6% for the week and 4.0% for the month, this represented a relative price increase for Bank Hapoalim B.M. stock of 1.7% for the week and 2.7% for the month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 25.47 minus the 26-day EMA of 25.2 is positive 0.27 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ Rises to Falls: in the past month the number of rises outnumbered falls 15:9 or 1.7:1.

+ The present value of NIS1,000 (PV1000) invested one year ago in Bank Hapoalim B.M. is NIS1,163, comprising a capital gain of NIS132 and dividend reinvested of NIS31.

PV10001-week1-month1-year
POLI.TASE1,0231,0671,163
TA-25 Index1,0061,0221,066

+ The present value of NIS1,000 (PV1000) invested ten years ago in Bank Hapoalim B.M. is NIS1,872, including a capital gain of NIS682 and dividend reinvested of NIS189.

+ 10 years Multiplier in NIS = 1.872x

+ Compound Annual Growth Rate (CAGR) in NIS = 6.5%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Bank Hapoalim B.M. is $US2,024, including a capital gain of $US819 and dividend reinvested of $US205.

+ 10 years ago USD 1 equalled NIS 3.7202

+ 10 years Multiplier in USD = 2.024x

+ Compound Annual Growth Rate (CAGR) in USD = 7.3%

Jan 18, 2018: USD 1 equals NIS 3.44

1.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverNIS51.3 million (US$14.9 million)In Top 1%
Volatility %0.7In Top Quartile
EBITDA Margin %48.6In Top Quartile
Price/MAP501.05In Top Quartile
Price/MAP2001.08In Top Quartile
Price Change %0.9In Top Quartile

1.4 A positive finish to 2017

The stock has soared NIS8.49 (or 49.6%) over the past three years, outperforming the TA-25 Index by 7.3% in FY2015, 20.6% in FY2016 and 12.1% in FY2017 to close at NIS25.60.

SECTION 2 BANK HAPOALIM B.M. BEARISH SIGNALS

2.1 Fundamentals:

+ Total Liabilities/EBITDA of 83.4 which compares unfavourably with the Joseph Piotroski benchmark of 5.

+ As per the Du Pont analysis, Return on Equity is less than stellar at 7.7%. This is computed as net profit margin of 25.5% times asset turnover [sales/assets] of 0.02 times leverage factor [total assets/shareholders' equity] of 13.2. Also, this has deteriorated from 9.3% last year.

Du Pont AnalysisROEProfit MarginAsset TurnoverEquity Multiplier
Current Year7.725.50.0213.2
Previous Year9.330.50.0213.1

+ Earnings per share growth rate has shown signs of deterioration in recent years. [Year ended, all figures in %]

YearRevenue GrowthEPS GrowthEBITDA Growth
Dec 163.7-14.7-2.8
Dec 15-13.2-30.3

2.2 Technicals:

+ The 1.0% discount to 12-month high of NIS26.05 against the 25.1% premium to 12-month low of NIS20.60 suggests the climb might be peaking.

2.3 Low Performance Indicator:

DescriptionValueRank In Market
Return on Assets [ROA] %0.6In Bottom Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 1,990,000 shares worth NIS51.3 million (US$14.9 million) traded today. In the past week, volume was 0.5 times average and the shares were up 2.3%. The volume was 0.7 times the average daily trading volume of 2.7 million shares.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in POLI would have produced a return of 16.0%.

POLIClose (NIS)Dividends (NIS)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 1825.780.6513.22.816.0
1 Yr ago22.780.5128.42.931.3
2 Yrs ago17.740.436.62.69.1
3 Yrs ago16.650.34(4.5)1.9(2.5)
4 Yrs ago17.420.2121.21.522.7

Close 5 years ago NIS14.37

3.3 Beta & Alpha:

+ Beta: the Beta of Bank Hapoalim B.M. stock is 0.7. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

+ Alpha: the Alpha of the stock is 5.8. The actual return of 9.66% exceeded the expected return of 3.9%, reflecting outperformance.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 47.1% (or a turnover period of 2 years 44 days). This average length of ownership of the stock at 0.7 times the average holding period of 3 years 51 days for stocks in the TA-25 Index suggests a slightly larger number of speculators on the share register, making it less safe for long-term investors.

SECTION 4 RANKING

4.1 Global Rank [out of 47,421 stocks] and Rank in the Asia Region [out of 22,532 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap (US$)9.9B1,602501
Total Assets (US$)130.6B426103
Revenue (US$)3B3,2871,225
Net Profit (US$)762.5M1,283370
Return on Equity %7.716,9689,309
Net Profit Margin %25.54,4231,713
Price to Book1.010,0575,716
Price/Earnings13.06,6223,255
Yield %2.59,7523,973
PV$1000 (1Year) US$*1,29815,9958,000
US$* Change (1Year) %24.316,1818,108

* 1 year ago USD 1 = NIS 3.82

Jan 18, 2018: USD 1 equals NIS 3.44

4.2 Independent Ratings

+ Brand Finance 500:

Bank Hapoalim B.M. was ranked 151 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; an improvement over a year from rank 154 in 2014. Brand Finance valued the brand at US$1,058 million and ranked it Number 151 in Middle East.

+ Forbes 2000:

It is the 1435th largest by revenue in the Forbes Global 2000.

+ BSS/News Bites:

It is placed 146/330 in BSS News Bites' ranking of Israel performers in the past year, a percentile ranking of 56.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 285,567 shares worth $US1,939,366 or 0.01% by value of the ETF's portfolio [Ranked 1210 out of 7457 by value and 3 out of 56 for Israel].

SECTION 5 BANK HAPOALIM B.M. FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)34.24.1
Pretax (USD B)1.41.51.3
Net (USD M)763.4881791.7
EPS (NIS)1.972.312.04

Net profit was down 13.3% from US$881 million in 2015 to US$763.4 million in 2016. Earnings Per Share (EPS) was down 14.7% from NIS2.31 to NIS1.97.

5.2 Quarterly Report ended September 30, 2017

+ Net profit of NIS469.0m ($US132.9m).

+ Total revenue of NIS2.5b ($US719.6m).

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (agorot)
18 Jan 201864.53
18 Jan 201751.43
18 Jan 201642.87
18 Jan 201533.83
18 Jan 201421

SECTION 6 BANK HAPOALIM B.M. PROFILE

6.1 Activities

Bank Hapoalim is an Israel-based banking and financial institution which has a network of 252 branches and eight regional business centres in Israel and a presence in many countries.

6.2 Industry & Sector

Classification LevelName of Sector
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials

6.3 Top Management

The chief executive officer is Ari Pinto and the chief financial officer is Yadin Antebi.

6.4 Issued Capital

Based on 1,320,573,814 issued shares the market capitalisation is NIS34 billion (US$9.9 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

December 12 2017: Bank Hapoalim B.M. announces dividend

Bank Hapoalim B.M. today announced a cash dividend of 14.08 agorot per share. The ex dividend date is Wednesday, December 06, 2017 and it is payable on Thursday, December 14.

August 22 2017: Bank Hapoalim B.M. announces dividend

Bank Hapoalim B.M. today announced a cash dividend of 24.37 agorot per share. The ex dividend date is Wednesday, August 23, 2017 and it is payable on Thursday, August 31.

June 06 2017: Bank Hapoalim B.M. announces dividend

Bank Hapoalim B.M. today announced a cash dividend of 22.98 agorot per share. The ex dividend date is Monday, June 05, 2017 and it is payable on Tuesday, June 13.

April 04 2017: Bank Hapoalim B.M. announces dividend

Bank Hapoalim B.M. today announced a cash dividend of 3.10 agorot per share. The ex dividend date is Wednesday, April 12, 2017 and it is payable on Tuesday, April 18.

March 30 2017: Bank Hapoalim Announces 2016 Financial Results

Tel Aviv, Israel -- Bank Hapoalim (TASE: POLI) (ADR: BKHYY), Israel's leading financial group today announced financial results for the full year ended December 31, 2016. Highlights of the 2016 financial statements:

 Net profit totaled NIS 2,628 million compared with a profit of NIS 3,082 million in 2015.

 Return on equity reached 7.7% in 2016, compared with 9.6% in 2015.

Contact: 972-3-5673333

Physical Address: 50 Rothschild Boulevard Tel Aviv, 66883 Israel

State/Province/Country: Israel

Country of Incorporation: Y

Exchange: Tel Aviv Stock Exchange

ISIN: IL0006625771

TV:POLI; TLV:POLI; TA:POLI; TA:POLI; IT:POLI; POLI.TA

PermID: 4295875283

Bank Hapoalim Bm

Source: www.BuySellSignals.com