Israeli stock report - Bank Hapoalim B.M.

ISRAEL

Bank Hapoalim B.M. decreases 1.5% October 17, 2017 17:30 IDT

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Bank Hapoalim B.M. (TASE:POLI), Israel's largest Bank by market cap, has decreased 37.0 agorot (1.5%) from its last trading session of October 16 to close at NIS24.61. Compared with the TA-25 Index which fell 1.4 points (0.1%) in the day, the relative price change was -1.4%. The volume was 0.9 times the average daily trading volume of 2.9 million shares.

Highlights in today's Report:

SECTION 1 BEARISH SIGNALS

Fundamentals, Technicals, Overbought/Bearish/Resistance Signals, Low Performance Indicators

SECTION 2 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 3 PRICE VOLUME DYNAMICS

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

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 BANK HAPOALIM B.M. BEARISH SIGNALS

1.1 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

1.2 Technicals:

Downtrend: The stock dropped 1.5% on high volatility today.

+ The price decreased 1.0% in the last week.

1.3 Overbought/Bearish/Resistance Signals:

+ The Stochastic indicator of 88.5 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

1.4 Low Performance Indicators:

DescriptionValueRank In Market
% Prem to Vol Wtd Price0.04In Bottom 1%
Return on Assets [ROA] %0.6In Bottom Quartile
Price Change %-1.5In Bottom Quartile

SECTION 2 BANK HAPOALIM B.M. BULLISH SIGNALS

2.1 Fundamentals:

+ The P/E of 12.5 multiplied by the P/NTA of 0.9 is 11.9. 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 2.7%, divided by average yield of dividend yielding stocks in the TA-25 Index of 1.7% is 158.2%. This suggests the stock is undervalued in dividend yield terms.

2.2 Undervaluation [compared with sector average]:

+ Dividend yield of 2.7% [2.0%].

2.3 Technicals:

+ The 2.8% discount to 12-month high of NIS25.30 against the 18.8% premium to 12-month low of NIS20.72 suggests the stock continues to push for new highs.

+ The present value of NIS1,000 (PV1000) invested one year ago in Bank Hapoalim B.M. is NIS1,166, comprising a capital gain of NIS134 and dividend reinvested of NIS32.

PV10001-week1-month1-year
POLI.TASE9901,0291,166
TA-25 Index1,0031,0181,020

+ The present value of NIS1,000 (PV1000) invested ten years ago in Bank Hapoalim B.M. is NIS1,485, including a capital gain of NIS344 and dividend reinvested of NIS141.

+ 10 years Multiplier in NIS = 1.485x

+ Compound Annual Growth Rate (CAGR) in NIS = 4.0%

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 $US1,709, including a capital gain of $US547 and dividend reinvested of $US162.

+ 10 years ago USD 1 equalled NIS 4.029

+ 10 years Multiplier in USD = 1.709x

+ Compound Annual Growth Rate (CAGR) in USD = 5.5%

Oct 17, 2017: USD 1 equals NIS 3.5

2.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverNIS62.3 million (US$17.8 million)In Top 1%
EBITDA Margin %48.6In Top Quartile
Price/MAP2001.06In Top Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 2,530,000 shares worth NIS62.3 million (US$17.8 million) traded today. In the past week, volume was 0.7 times average and the shares were down 1.0%.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 5%.

POLIClose (NIS)Dividends (NIS)Capital Gain %% YieldAnnual Return %
Oct 1724.610.6613.43.116.5
1 Yr ago21.690.4812.22.514.6
2 Yrs ago19.340.43.72.15.8
3 Yrs ago18.650.3281.99.8
4 Yrs ago17.270.1421122.0

Close 5 years ago NIS14.27

3.3 Beta:

+ Beta: the Beta of Bank Hapoalim B.M. stock is 0.6. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 50.95% (or a turnover period of 1 year 11 months). This average length of ownership of the stock at 0.8 times the average holding period of 2 years 5 months for stocks in the TA-25 Index suggests a 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 47,797 stocks] and Rank in the Asia Region [out of 22,252 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap (US$)9.3B1,568485
Total Assets (US$)128B427105
Revenue (US$)2.9B3,2981,217
Net Profit (US$)747.1M1,275361
Return on Equity %7.716,6258,952
Net Profit Margin %25.54,3821,662
Price to Book1.09,9635,463
Price/Earnings12.77,0953,642
Yield %2.69,3673,812
PV$1000 (1Year) US$*1,27513,6036,159
US$* Change (1Year) %25.613,8746,330

* 1 year ago USD 1 = NIS 3.83

Oct 17, 2017: USD 1 equals NIS 3.5

4.2 Independent Ratings

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.

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

It is placed 156/324 in BSS News Bites' ranking of Israel performers in the past year, a percentile ranking of 52.

SECTION 5 BANK HAPOALIM B.M. FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)2.94.14
Pretax (USD B)1.41.41.3
Net (USD M)744858.6771.6
EPS (NIS)1.972.312.04

Net profit was down 13.3% from US$858.6 million in 2015 to US$744 million in 2016. Earnings Per Share (EPS) was down 14.7% from NIS2.31 to NIS1.97.

5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ Sales and marketing expenses to Sales down from 50.2% to 46.9%.

+ Debt to Equity down 4.8% from 1.1 to 1.0.

+ Cash to Total Assets up from 15.1% to 17.9%.

+ Net tangible assets per share up 2.9% from NIS24.77 ($US6.3) to NIS25.5 ($US6.6).

Unfavourable Changes:

+ Net profit down 13.3% from NIS3.0b ($US773.4m) to NIS2.6b ($US680.3m)

+ EPS down 14.7% from NIS2.31 (US59.18c) to NIS1.97 (US51.23c).

+ EBIT Margin down from 51.8% to 48.6%.

+ EBIT to total assets down from 1.2% to 1.1%.

+ Profit before tax to Sales down from 51.8% to 48.6%.

+ Other non-current assets to Total Assets down from 69.5% to 65.2%.

+ Total Liabilities to EBITDA of 83.4 compares unfavourably with the Joseph Piotroski benchmark of <5. This ratio has deteriorated by 6.9% from the previous year's ratio of 78.1.

+ Total Liabilities to Operating Cash Flow of 21.6 compares unfavourably with the Joseph Piotroski benchmark of <4. However, it has improved by 34.3% from the previous year's ratio of 32.9.

Note:

+ Tax expenses to Sales up from 21.3% to 23.1%.

+ Short-term investments to Total Assets up from 14.6% to 16%.

+ Fixed Assets to Total Assets steady at 0.8%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (agorot)
17 Oct 201766.19
17 Oct 201647.77
17 Oct 201539.62
17 Oct 201432
17 Oct 201314

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 Issued Capital

Based on 1,320,573,814 issued shares the market capitalisation is NIS32.5 billion (US$9.3 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

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August 22: 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: 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: 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: 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.

March 08: Bank Hapoalim B.M. announces EGM

Bank Hapoalim B.M. has announced its Extra Ordinary General Meeting will take place on Tuesday, April 04.

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