Israeli stock alert

ISRAEL

Morning Alert: Sella Capital Real Estate hits 52-week high eighth time in one month 21 January 2018 11:10 IST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Sella Capital Real Estate Ltd. (TASE:SLARL) hit a 52-week high of NIS7.38 today for the eighth time in the past one month and last traded at NIS7.38. Trading volume was 55% of average so far today.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Sella Capital Real Estate increases January 18, 2018 17:30 IST

Sella Capital Real Estate Ltd. (TASE:SLARL), Israel's 26th largest Real Estate and Construction company by market cap, has increased 1.90 agorot (or 0.3%) in the past week to close at NIS7.34. Compared with the TA-25 Index which rose 9.1 points (or 0.6%) in the week, this represented a relative price change of -0.3%. The volume was 0.4 times average trading per week of 2.1 million shares. The stock rose for a fourth consecutive week on Thursday bringing its a four-week rise to 21.20 agorot or 3.0%. In the past week the market cap has risen NIS16.3 million.

SECTION 2: Technical indicators

Bullish:

The positive 0.05 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.

In the last one month the stock has hit a new 52-week high eight times and in the last three months fourteen times, pointing to a significant uptrend.

The price increased 1.0% in the last week and lifted 3.0% in the last month.

The present value of NIS1,000 invested one year ago is NIS1,202 [vs NIS1,081 for the TA-25 Index], including a capital gain of NIS184 and dividend reinvested of NIS18. The total return to shareholders for 1 year is 20.1%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price to Book of 1.3 [1.3]

Return on Capital Employed 1.2% [1.2%]

Undervaluation:

Return on Equity 2.6% [0.9%]

Return on Assets 1.1% [0.2%]

Overvaluation:

Dividend yield of 1.5% [2.6%]

Note

The stock has underperformed 50% of the Israel market over the past 6 months.

SECTION 3: Ranking

DescriptionValueRank In Market
Today's Volatility %0.3In Top Quartile
MCap $US million366.5In 2nd Quartile
52-week Range (in NIS)6.1-7.4
1-month Range (in NIS)7.1-7.4

SECTION 4: Earnings

FY2017 Annual Report: Sella Capital Real Estate Net Profit up 18.0%

Sella Capital Real Estate (TASE:SLARL) reported net profit for the year-ended 31 March 2017 of NIS24.3m ($US6.7m), up 18% from NIS20.6m ($US5.4m) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Net profit up 18% from NIS20.6m ($US5.4m) to NIS24.3m ($US6.7m)

- EPS up 13.3% from 15.0agorot (US3.97c) to 17.0agorot (US4.7c)

- Total non-current assets to Total Assets up from 92.4% to 97.1%

Unfavourable Changes:

- EBIT Margin down from 58.0% to 56.2%

- Profit before tax to Sales down from 58% to 56.2%

- Total liabilities to Total assets up 14% from 0.5 to 0.6

- Current ratio down 83.4% from 2.2 to 0.4

- Total current assets to Total Assets down from 7.6% to 2.9%

- Total Liabilities to EBITDA of 52.0 compares unfavourably with the Joseph Piotroski benchmark of less than 5. This ratio has deteriorated by 13.8% from the previous year's ratio of 45.7.

- Total Liabilities to Operating Cash Flow of 52.6 compares unfavourably with the Joseph Piotroski benchmark of less than 4. However, it has improved by 2.2% from the previous year's ratio of 53.8.

Note:

- EBIT to total assets steady at 1.1%

Sella Capital Real Estate Ltd. (TV:SLARL; TLV:SLARL; TA:SLARL; TA:SLARL; IT:SLARL)

ISIN: IL0011096448

PermID: 4297867629

Source: www.BuySellSignals.com