Israeli stock report - Bank Hapoalim B.M.
Bank Hapoalim B.M. increases July 20, 2017 17:30 IDT
NEWS BITES - MIDDLE EAST & NORTH AFRICA
Bank Hapoalim B.M. (TASE:POLI), Israel's largest Bank by market cap, has increased 1.0 agorot (0.04%) from its last trading session of July 19 to close at NIS25.11. Compared with the TA-25 Index which rose 2.9 points (0.2%) in the day, the relative price change was -0.2%. The volume was 0.6 times the average daily trading volume of 2.9 million shares.
BANK HAPOALIM B.M. BULLISH SIGNALS
+ The P/E of 12.8 multiplied by the P/NTA of 1 is 12.4. 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 2.3%, divided by average yield of dividend yielding stocks in the TA-25 Index of 1.7% is 140.4%. This suggests the stock is undervalued in dividend yield terms.
1.2 Undervaluation [compared with sector average]:
+ Dividend yield of 2.3% [1.6%].
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 24.85 minus the 26-day EMA of 24.41 is positive 0.44 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 14:8 or 1.8:1.
+ In the last three months the stock has hit a new 52-week high eight times, pointing to a significant uptrend.
+ The present value of NIS1,000 (PV1000) invested one year ago in Bank Hapoalim B.M. is NIS1,319, comprising a capital gain of NIS285 and dividend reinvested of NIS34.
+ The present value of NIS1,000 (PV1000) invested ten years ago in Bank Hapoalim B.M. is NIS1,456, including a capital gain of NIS332 and dividend reinvested of NIS125.
+ 10 years Multiplier in NIS = 1.456x
+ Compound Annual Growth Rate (CAGR) in NIS = 3.8%
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 $US1,740, including a capital gain of $US591 and dividend reinvested of $US149.
+ 10 years ago USD 1 equalled NIS 4.2717
+ 10 years Multiplier in USD = 1.74x
+ Compound Annual Growth Rate (CAGR) in USD = 5.7%
Jul 20, 2017: USD 1 equals NIS 3.58
1.4 High Performance Indicators:
|Description||Value||Rank In Market|
|Today's Turnover||NIS41.9 million (US$11.7 million)||In Top 1%|
|Price/MAP50||1.06||In Top Quartile|
|Volatility %||0.7||In Top Quartile|
|EBITDA Margin %||48.6||In Top Quartile|
|Price/MAP200||1.11||In Top Quartile|
BANK HAPOALIM B.M. BEARISH SIGNALS
+ 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 Analysis||ROE||Profit Margin||Asset Turnover||Equity Multiplier|
+ Earnings per share growth rate has shown signs of deterioration in recent years. [Year ended, all figures in %]
|Year||Revenue Growth||EPS Growth||EBITDA Growth|
2.2 Overvaluation [compared with sector average]:
+ Price/Earnings of 12.8 [11.1].
+ The price decreased 0.8% in the last week.
+ The 1.7% discount to 12-month high of NIS25.55 against the 33.3% premium to 12-month low of NIS18.83 suggests the climb might be peaking.
2.4 Overbought/Bearish/Resistance Signals:
+ The Relative Strength Index (RSI) of 81.4 has penetrated the overbought line of 70, suggesting the price gain of 5.3% in the last 14 days is unusually high.
+ The Money Flow Index [MFI] is 85.2 suggesting an overbought 14-day trend, being above 80. The Money Ratio of 5.8 suggests positive money flow was 5.8 times negative money flow.
2.5 Low Performance Indicator:
|Description||Value||Rank In Market|
|Return on Assets [ROA] %||0.6||In Bottom Quartile|
PRICE VOLUME DYNAMICS
+ Volume: there were 1,670,000 shares worth NIS41.9 million (US$11.7 million) traded today. In the past week, volume was 0.7 times average and the shares were down 0.8%.
3.2 Moving Annual Return
|POLI||Close (NIS)||Dividends (NIS)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||19.54||0.44||(2.9)||2.2||(0.7)|
|2 Yrs ago||20.12||0.35||5.9||1.9||7.7|
|3 Yrs ago||19||0.37||19.2||2.3||21.5|
|4 Yrs ago||15.94||0.07||50.1||0.7||50.8|
+ Beta: the Beta of Bank Hapoalim B.M. stock is 1.3. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.
3.4 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 49.3% (or a turnover period of 2 years 11 days). This average length of ownership of the stock at 0.7 times the average holding period of 2 years 10 months for stocks in the TA-25 Index suggests a slightly larger number of speculators on the share register, making it less safe for long-term investors.
4.1 Global Rank [out of 47,486 stocks] and Rank in the Asia Region [out of 22,000 stocks]
|Description||Value||Global Rank||In Asia Region|
|Total Assets (US$)||125.3B||404||101|
|Net Profit (US$)||731.7M||1,252||348|
|Return on Equity %||7.7||16,256||8,718|
|Net Profit Margin %||25.5||4,329||1,640|
|Price to Book||1.0||10,234||5,606|
|PV$1000 (1Year) US$*||1,425||9,133||4,288|
|US$* Change (1Year) %||45.3||8,117||3,897|
* 1 year ago USD 1 = NIS 3.87
Jul 20, 2017: USD 1 equals NIS 3.58
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$1,058 million and ranked it Number 151 in Middle East.
It is the 1435th largest by revenue in the Forbes Global 2000.
It is placed 127/323 in BSS News Bites' ranking of Israel performers in the past year, a percentile ranking of 61.
BANK HAPOALIM B.M. FINANCIALS
5.1 Financials Summary
|Year ended||Dec 2016||Dec 2015||Dec 2014|
|Sales (USD B)||2.9||4||3.9|
|Pretax (USD B)||1.4||1.4||1.2|
|Net (USD M)||737.5||851.1||764.8|
5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-
Bank Hapoalim B.M. Net Profit down 13.3%
+ Sales and marketing expenses to Sales down from 50.2% to 46.9%.
+ Debt to Equity down 4.8% from 1.1 to 1.0.
+ Cash to Total Assets up from 15.1% to 17.9%.
+ Net tangible assets per share up 2.9% from NIS24.77 ($US6.3) to NIS25.5 ($US6.6).
+ Net profit down 13.3% from NIS3.0b ($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.
+ 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 To||Value (agorot)|
|20 Jul 2017||58.6|
|20 Jul 2016||44.35|
|20 Jul 2015||35.27|
|20 Jul 2014||37|
|20 Jul 2013||7|
BANK HAPOALIM B.M. PROFILE
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 Level||Name of Sector|
|Business Sector||Banking & Investment Services|
|Industry Group||Banking Services|
6.3 Issued Capital
Based on 1,320,573,814 issued shares the market capitalisation is NIS33.2 billion (US$9.3 billion).
To view Recent Company Headlines, click here
June 06: Bank Hapoalim B.M. announces dividend
April 04: Bank Hapoalim B.M. announces dividend
March 30: Bank Hapoalim Announces 2016 Financial Results
March 08: Bank Hapoalim B.M. announces EGM
November 15 2016: Bank Hapoalim B.M. announces EGM
Physical Address: 50 Rothschild Boulevard Tel Aviv, 66883 Israel
Country of Incorporation: Y
Exchange: Tel Aviv Stock Exchange
TV:POLI; TLV:POLI; TA:POLI; TA:POLI; IT:POLI; POLI.TA
Bank Hapoalim Bm