Israeli stock report - Israel Discount Bank

ISRAEL

Israel Discount Bank rises on high volatility July 26, 2017 17:30 IDT

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Israel Discount Bank Ltd. (TASE:DSCT), Israel's 4th largest Bank by market cap, traded between an intraday low of NIS9.11 and a high of NIS9.25. The price range has expanded in the last two days (from 9.60 agorot two days ago to 13.50 agorot today) which, accompanied by a price rise, is a bullish signal. The average daily volatility of 1.5% places the stock in the 4th quartile in the market, meaning it is the least volatile. Today its volatility (highest price minus lowest price/lowest price) of 1.5% equalled the average daily volatility, up from 1.4% on Tuesday and 1.1% on Monday. The stock price has increased 6.70 agorot (0.7%) from its last trading session of July 25 to close at NIS9.20. Compared with the TA-25 Index which rose 0.2 points (0.01%) in the day, the relative price increase was 0.7%. The volume was 0.4 times the average daily trading volume of 4.4 million shares.

SECTION 1

ISRAEL DISCOUNT BANK BULLISH SIGNALS

1.1 Technicals:

+ In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend.

+ The present value of NIS1,000 (PV1000) invested one year ago in Israel Discount Bank is NIS1,363, for a capital gain of NIS363.

PV10001-week1-month1-year
DSCT.TASE9961,0101,363
TA-25 Index9991,013995

+ The present value of NIS1,000 (PV1000) invested ten years ago in Israel Discount Bank is NIS1,103, including a capital gain of NIS43 and dividend reinvested of NIS60.

+ 10 years Multiplier in NIS = 1.103x

+ Compound Annual Growth Rate (CAGR) in NIS = 1.0%

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 $US1,295, including a capital gain of $US224 and dividend reinvested of $US71.

+ 10 years ago USD 1 equalled NIS 4.1999

+ 10 years Multiplier in USD = 1.295x

+ Compound Annual Growth Rate (CAGR) in USD = 2.6%

Jul 26, 2017: USD 1 equals NIS 3.58

1.2 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverNIS16.8 million (US$4.7 million)In Top 3%
Price/MAP2001.11In Top Quartile

SECTION 2

ISRAEL DISCOUNT BANK BEARISH SIGNALS

2.1 Technicals:

+ The price decreased 0.4% in the last week.

+ Compared with the TA-25 Index which fell 0.1% for the week, this represented a relative price decrease for Israel Discount Bank stock of 0.3% for the week.

+ The 1.9% discount to 12-month high of NIS9.38 against the 41.5% premium to 12-month low of NIS6.50 suggests the climb might be peaking.

2.2 Low Performance Indicator:

DescriptionValueRank In Market
% Prem to Vol Wtd Price0.1In Bottom 2%

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 1,830,000 shares worth NIS16.8 million (US$4.7 million) traded today. In the past week, volume was 0.6 times average and the shares were down 0.4%.

3.2 Beta:

+ Beta: the Beta of Israel Discount Bank stock is 0.8. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 72.97% (or a turnover period of 1 year 4 months). This average length of ownership of the stock at 0.5 times the average holding period of 2 years 10 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.

3.4 Month-on-Month Comparison (Trailing Month - ended 25th)

25 Jul25 Jun25 May25 Apr23 Mar23 Feb
Price 25 Jul (NIS)9.139.239.038.778.098
% Price Change-1.12.5310.11.21.9
Avg Daily Volume4,357,2634,553,3324,599,8764,353,6674,285,2494,220,837
VWP (NIS)9.068.838.548.218.047.94
Price Range (NIS)9 - 9.388.81 - 9.298.65 - 9.27.94 - 8.847.88 - 8.457.75 - 8.11
Relative Price Change %-2.21.51.5113.1-0.7
Volatility %4.25.46.411.47.24.7

SECTION 4

PEER GROUP ANALYSIS & RANKING

4.1 Global Peer Group Analysis (all figures in USD)

NameRelative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Bnk Financial793.1B1,209.83.1B426.3M79.3B
Abu Dhabi Islamic Bank513.1B1,083.21.6B530.6M33.2B
Bank Albilad633.1B1,168.3690.5M215M14.3B
Guaranty Trust Bank903.1B1,423.0868.9M367.8M8.7B
Israel Discount Bank743B1,466.72.1B213.8M58.5B
Close Brothers173B1,330.1717.4M243.2M11.4B
BancorpSouth512.9B1,350.5732.5M132.7M14.7B
The Saudi Investment Bank582.8B1,308.61B280.3M25.1B
Credito Emiliano842.8B1,384.02B189M42.6B

Global Peer Group Analysis (continued)

CodeCountryLast PriceP/ETurnover Rate (%)% Disc to 52-w Hi
A138930KRKRW11,100.058.43.6
ADIBAEAED3.616.96.25.2
1140SASAR19.4614.419.78.1
GUARANTYNGNGN37.5011.4
DSCTILNIS9.1373.51.1
CBGGBGBX1,514.012.247.014.6
BXSUS$US31.2519.8137.75.4
1030SASAR14.096.64.4
CEITEUR7.1912.74.0

4.2 Global Rank [out of 47,594 stocks] and Rank in the Asia Region [out of 22,102 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap (US$)3B3,8771,437
Total Assets (US$)58.5B727214
Revenue (US$)2.1B4,0871,546
Net Profit (US$)213.8M3,0021,017
Return on Equity %5.619,41910,631
Price to Book0.87,9924,415
Price/Earnings13.06,6123,034
PV$1000 (1Year) US$*1,4679,2254,309
US$* Change (1Year) %54.86,5133,149

* 1 year ago USD 1 = NIS 3.86

Jul 26, 2017: USD 1 equals NIS 3.58

4.3 Rank in the TA-25 Index [out of 21 stocks], Rank in the Total Israel Market [out of 401 stocks] and Rank in the Bank sector [out of 9 stocks]

DescriptionValueIn TA-25 IndexIn Total Israel MarketIn Bank sector
MCap (NIS)10.7B14154
Total Assets (NIS)205.3B444
Revenue (NIS)7.3B8143
Net Profit (NIS)750M994
Return on Equity %5.6171368
Price to Book0.82766
Price/Earnings13.07946
PV1000 (1Year)1,36331104

4.4 Independent Ratings

Israel Discount Bank Ltd. was ranked 233 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; a deterioration over a year from rank 226 in 2014. Brand Finance valued the brand at US$531 million.

It is the 1692nd largest by revenue in the Forbes Global 2000.

It is placed 90/323 in BSS News Bites' ranking of Israel performers in the past year, a percentile ranking of 72.

SECTION 5

ISRAEL DISCOUNT BANK PROFILE

5.1 Activities

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

5.2 Industry & Sector

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

5.3 Top Management

The chairman is Joseph Bachar.

5.4 Issued Capital

Based on 1,164,016,993 issued shares the market capitalisation is NIS10.7 billion (US$3 billion).

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

ISIN: IL0006912120

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

PermID: 4295875063

Israel Discount Bank Ltd

Source: www.BuySellSignals.com