Israeli stock report - Israel Discount Bank

ISRAEL

Israel Discount Bank increases 1.3% on average volume August 16, 2018 17:30 IDT

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Israel Discount Bank Ltd. (TASE:DSCT), Israel's 4th largest Bank by market cap, has increased 15.0 agorot (1.3%) from its last trading session of August 15 to close at NIS11.89. Compared with the TA-25 Index which rose 17.6 points (1.1%) in the day, the relative price increase was 0.1%. The volume of 2.1 million shares was close to average trading. Its MCap is NIS13.8 billion (US$3.8 billion).

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

SECTION 2 BEARISH SIGNALS

SECTION 3 PRICE VOLUME DYNAMICS

SECTION 4 RELATED NEWS

SECTION 5 GLOBAL RANKING

SECTION 6 SUMMARY FINANCIALS

SECTION 7 PROFILE

SECTION 1 ISRAEL DISCOUNT BANK BULLISH SIGNALS

1.1 Technicals:

+ The price increased 1.4% in the last week and jumped 6.8% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 11.65 minus the 26-day EMA of 11.45 is positive 0.2 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 14:7 or 2:1.

+ The 2.3% discount to 12-month high of NIS12.17 against the 36.2% premium to 12-month low of NIS8.73 suggests the stock continues to push for new highs.

+ The present value of NIS1,000 (PV1000) invested one year ago in Israel Discount Bank is NIS1,291, comprising a capital gain of NIS287 and dividend reinvested of NIS3.

PV10001-week1-month1-year
DSCT.TASE1,0141,0681,291
TA-25 Index9961,0091,133

+ The present value of NIS1,000 (PV1000) invested ten years ago in Israel Discount Bank is NIS2,012, including a capital gain of NIS1,007 and dividend reinvested of NIS5.

+ 10 years Multiplier in NIS = 2.012x

+ Compound Annual Growth Rate (CAGR) in NIS = 7.2%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Israel Discount Bank is $US1,959, including a capital gain of $US954 and dividend reinvested of $US5.

+ 10 years ago USD 1 equalled NIS 3.5842

+ 10 years Multiplier in USD = 1.959x

+ Compound Annual Growth Rate (CAGR) in USD = 7.0%

Aug 16, 2018: USD 1 equals NIS 3.68

High Performance Indicators and rank of Israel Discount Bank in the Israel market:

DescriptionDSCT ValueRank In Market
EBITDA Margin %140.4In Top 3%
Today's Trading TurnoverNIS24.3 million (US$6.6 million)In Top 4%
Price/MAP2001.16In Top 10%
Price/MAP501.07In Top Quartile
Volatility %1.0In Top Quartile
P/E * P/NTA9.91In Top Quartile

1.2 Fundamentals:

+ The P/E of 11 multiplied by the P/NTA of 0.9 is 9.9. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ As per the Du Pont analysis, Return on Equity [ROE] of 8.1% is better than sector average of 7.7%. ROE is computed as net profit margin of 21.2% times asset turnover [sales/assets] of 0.03 times leverage factor [total assets/shareholders' equity] of 14.2.

1.3 Undervaluation [compared with sector average]:

+ Price/Earnings of 11 [12.7]. We estimate Israel Discount Bank stock is trading at a current year P/E of 8.5 and a forward year P/E of 6.5.

+ Year-on-Year Earnings Growth of 28.6% [6.4%].

+ Price/Earnings/Growth of 0.3 [2.0].

SECTION 2 ISRAEL DISCOUNT BANK BEARISH SIGNALS

Low Performance Indicator and rank of Israel Discount Bank in the Israel market:

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

Fundamentals:

+ The relative yield of DSCT, defined by its yield of 0.2%, divided by average yield of dividend yielding stocks in the TA-25 Index of 1.8% is 13.1%. This suggests Israel Discount Bank stock is overvalued in dividend yield terms.

+ Total Liabilities/EBITDA of 23.5 which compares unfavourably with the Joseph Piotroski benchmark of 5.

SECTION 3 ISRAEL DISCOUNT BANK PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 2,040,000 shares worth NIS24.3 million (US$6.6 million) traded today. In the past week, volume was 0.9 times average and the shares were up 1.4%.

3.2 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 39.5% (or a turnover period of 2 years 6 months). This average length of ownership of the stock at 0.7 times the average holding period of 3 years 8 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.

3.3 Moving Annual Return (Past 5 years)

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 DSCT would have produced a return of 29.0%.

DSCTClose (NIS)Dividends (NIS)Capital Gain / (Loss) %% YieldAnnual Return %
Aug 1611.890.0328.70.329.0
1 Yr ago9.24-35.1-35.1
2 Yrs ago6.84-(9.5)-(9.5)
3 Yrs ago7.56-25-25.0
4 Yrs ago6.05-1.5-1.5

Close 5 years ago NIS5.95

3.4 Beta:

+ Beta: the Beta of Israel Discount Bank 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.

3.5 The Past Five Years

+ Israel Discount Bank Ltd. (TASE:DSCT), has climbed NIS5.94 (or 99.7%) in the past five years to close at NIS11.89 today. Compared with the TA-25 Index which has risen 30.9% over the same period, this is a relative price increase of 68.7%.

SECTION 4 ISRAEL DISCOUNT BANK RELATED NEWS

Other News

+ BSS/News Bites:

Israel Discount Bank Ltd. is placed 43/326 in BSS News Bites' ranking of Israel performers in the past year, a percentile ranking of 87.

+ Vanguard Total World Stock ETF 2588:

The stock was one of 2588 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 403,740 shares in the period May 31, 2018 to Jun 30, 2018 worth $US-4,340,488 at an estimated Volume Weighted Average Price (VWAP) of $US10.7507. As at Jun 30, 2018, the Vanguard Total World Stock ETF held 0 shares worth $US0 or 403,740% by value of the ETF's portfolio [Ranked 2439 out of 2588 by value and 9 out of 9 for Israel].

SECTION 5 ISRAEL DISCOUNT BANK GLOBAL RANKING

Global Rank [out of 47,647 stocks] and Rank of Israel Discount Bank in the Asia Region [out of 22,905 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap (US$)3.8B3,3061,139
Total Assets (US$)60B784225
Revenue (US$)1.7B4,9212,006
Net Profit (US$)341.5M2,449834
Return on Equity %8.116,7609,193
Net Profit Margin %21.25,5582,325
Price to Book0.910,5626,412
Price/Earnings10.95,5223,018
Yield %0.222,62612,753
PV$1000 (1Year) US$*1,2588,8593,847
US$* Change (1Year) %21.78,1943,549

* 1 year ago USD 1 = NIS 3.63

Aug 16, 2018: USD 1 equals NIS 3.68

SECTION 6 ISRAEL DISCOUNT BANK SUMMARY FINANCIALS

Financials Summary (Past 3 years)

Year endedDec 2017Dec 2016Dec 2015
Sales (USD B)1.71.52
Pretax (USD M)560.1464.6370.5
Net (USD M)341.5245.5203.4
EPS (NIS)1.080.840.71

+ Net profit was up 39.1% from US$245.5 million in 2016 to US$341.5 million in 2017.

+ Earnings Per Share (EPS) was up 28.6% from 84.0 agorot to NIS1.08.

SECTION 7 ISRAEL DISCOUNT BANK PROFILE

7.1 Activities

Israel Discount Bank is a banking and financial services group in Israel with a presence in many other countries.

7.2 Top Management

The chairman is Joseph Bachar.

7.3 Issued Capital

Based on 1,164,016,993 issued shares the market capitalisation is NIS13.8 billion (US$3.8 billion).

COMPANY IDENTIFIERS

Contact: 972-3-5145582

Physical Address: 23 Yehuda Halevi Street Tel Aviv, 65136 Israel

State/Province/Country: Israel

Country of Incorporation: Y

Exchange: Tel Aviv Stock Exchange

Business Sector: Banking & Investment Services

Industry Group: Banking Services

Industry: Banks

Economic Sector: Financials

ISIN: IL0006912120

TV:DSCT; TLV:DSCT; TA:DSCT; TA:DSCT; IT:DSCT; DSCT.TA

PermID: 4295875063

RIC: DSCT.TA

Israel Discount Bank Ltd

Source: www.BuySellSignals.com