Bank Hapoalim B.M. (POLI: NIS32.21) offers dividend yield of 5.3%; +71 agorot [2.3%] 08 June 2023

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Bank Hapoalim B.M. (TASE: POLI NIS32.21) ranks 5 in the Top 20 by dividend yielding stocks in the TA-25 Index of 20 stocks.

Bank Hapoalim B.M. is Israel's largest Banking & Investment Services company by market cap.

Past 12 months DPS: NIS1.70;

Last price: NIS32.21;

Dividend yield: 5.3%;

The dividend yield of 5.3% is 1.3 times the triple-A bond yield of 4.0%.;

BANK HAPOALIM B.M. (POLI) Stock Dashboard [traded in Israeli New Shekel, NIS] End-of-Day

ExchangeISRAEL [Tel Aviv]52-Week Price Range26.87 - 34.19
Currency1.000 USD = 3.65 New Israeli Shekel (NIS)SectorBanking & Investment Services
Jun 08, 2023NIS32.21Independent RatingRanked 785 in Forbes 2000
EPS (FY2022)NIS4.89Market CapNIS43 billion [US$12 billion]
DPS (past 12 months)70 agorotShares Outstanding1,336,859,593
EPS Growth (FY2022 vs FY2021)32.9%POLI in IndicesTA-25
Ave Daily Volume3,119,401 sharesPVNIS1000 (1 yr)
PVUS$1000 (1 yr)
NIS1,139
US$1,043*

*If You Invested $1,000 in Bank Hapoalim B.M. a year ago, This is How Much You Would Have Today: $1,043. USD1000 would have bought NIS3,327 for 111.4 shares (@the then price of 29.87) worth NIS1,139 @32.21 today. Dividends reinvested are worth $55.

INDEX

SECTION 1 RECENT NEWS AND RESEARCH

SECTION 2 TODAY'S BULLISH SIGNALS

SECTION 3 ONGOING BULLISH PARAMETERS

SECTION 4 TODAY'S BEARISH SIGNALS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 RECENT NEWS AND RESEARCH

ex-Dividend since Jun 1

BANK HAPOALIM B.M. EX-DIVIDENDS SINCE JUN 1

The shares gained 9.2% in the 5 trading sessions since the ex-dividend date of June 01. The company paid a dividend of 60.05 agorot per share. Based on dividends of NIS1.70 per share for the trailing twelve months and the last price of NIS32.21 the dividend yield is 5.3%.

Bearish Turning Point

Williams % R

The stock is overbought according to the Williams % R indicator of -0.9, suggesting the price is close to its 14-day high. The Williams % R was previously -21.3.

Press Releases and Corporate Wire

May 23: Bank Hapoalim B.M. announces dividend

Bank Hapoalim B.M. today announced a cash dividend of 60.05 agorot per share. The ex-dividend date is Thursday, June 01, 2023 and the record date is Thursday, June 01, 2023 and it is payable on Wednesday, June 14.

SECTION 2 TODAY'S BULLISH SIGNALS

2.1 Relative Value Indicators: Undervaluation compared with sector averages

Bank Hapoalim B.M. stock is the fifth highest dividend yielding stock in the TA-25 Index.

2.2 Relative Value Indicators: Undervaluation compared with Index averages and bond yield

Dividend Yield > Bond Yield of 3.95%:

The dividend yield of 5.26% is 1.33 times the triple-A bond yield of 3.95%. The times factor of 1.33 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield5.26
Bond Yield3.95
Spread1.31

The Dividend Yield of 5.3% is better than the Index average of 4.2%

- The relative yield of the stock, defined by its yield of 5.3%, divided by average yield of dividend yielding stocks in the TA-25 Index of 4.2% is 123.8%. This suggests the stock is undervalued in dividend yield terms.

SectorDividend Yield %
Forbes 2000Stock: 5.3; Sector: 0.9undervalued

2.3 PAST WEEK: MODERATE MOMENTUM UP - POLI lifts 9.2% on volume 1.1 times average

Week 23 of 2023: Up 9.2%; Bank Hapoalim B.M. (POLI) outperformed the TA-25 Index in 4 out of 5 days. The price ranged between a low of NIS30.24 on Tuesday Jun 06 and a high of NIS32.21 on Thursday Jun 08.

JunBank Hapoalim B.M.Close [NIS]Change %RPC % *Comment
Sun 04Up 3.3% in 2 days30.383.01.6Rises for a second consecutive day
Mon 05Offers dividend yield of 5.6%30.470.30.2Rises for a third consecutive day
Tue 06Drops on increasing volatility30.24-0.8-0.4Week-low of 30.24; Steepest Fall
Wed 07Offers dividend yield of 5.4%31.54.22.7Top Rise; VI*=1.8
Thu 08Rises to push past 32.032.212.31.8VI*=1.1

* RPC - Relative Price Change is % price change of stock less % change of the TA-25 Index.

[Volume Index (VI); 1 is average]

2.4 Rank in the top 24% by Price Performance in the Israel market

DescriptionValueRank
1-week Price Change %9.2In Top 17%
PV1000 [1 yr] $1,043In Top 24%

2.5 Uptrend

The stock traded at a 17-day high of NIS32.21 today.

Beta > 1 combined with price rise. The Beta of the stock is 1.2.

Price/Moving Average Price of 1.05 and positive MACD:

- The Price/MAP 200 for Bank Hapoalim B.M. is 1.05. Being higher than 1 is a bullish indicator. It is higher than the Price/MAP 200 for the TA-25 Index of 0.97, a second bullish indicator. The 200-day MAP has increased to NIS30.81, a third bullish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 30.83 minus the 26-day EMA of 30.72 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

Past Quarter:

The Best 3 weeks in the past quarter

In the past quarter the week beginning Sunday June 04 saw the highest weekly rise of 9.2% for a relative price increase of 5.8%.

Sun-ThuChange %TA-25 Index Change %RPC %Vol Ind [1 is avg]
Jun 04-089.23.45.81.1
Apr 23-274.92.52.41.9
Mar 19-234.43.60.81.2

Relative Strength (6 months) 74 percentile:

- The stock has a 6-month relative strength of 74 in the Israel market of 352 stocks indicating it has outperformed 74% of the market.

SECTION 3 ONGOING BULLISH PARAMETERS

3.1 EPS growth [FY2022 vs FY2021] of 32.9%:

FYEPS (ILS)Growth %
20224.8932.9
20213.68139.0

3.2 Past three-years

- Bank Hapoalim B.M. rose for a third consecutive year. In the past three years it has risen NIS12.15 (60.6%).

3.3 Rank in the top 2% by Size in the Israel market

DescriptionValueRank
Ave daily TurnoverNIS115 million ($31.5 million)In Top 2%
MCap$12 billionIn Top 2%

3.4 Present Value of NIS1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVNIS1000 > 1,075

PVNIS1,0003 mo ago1 yr ago3 yrs ago
POLI.TASENIS1,076NIS1,139NIS1,820
Banking & Investment Services sectorNIS1,002NIS926NIS1,792
TA-25 IndexNIS1,021NIS939NIS1,218

3.5 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 4.1

3-Year price change of 65.4% for Bank Hapoalim B.M. outperformed the change of 24.3% in the TA-25 Index for a relative price change of 41.2%.

Price Change %QuarterYear3 Years
Bank Hapoalim B.M.4.27.865.4
Banking & Investment Services sector0.2-7.385.8
TA-25 Index-0.5-5.924.3

3.6 Stock vs Index (Annual Percentage Change)

December 31Last price in NIS Annual ReturnReturn of TA-25 Index
202231.70.9-9.1
202131.451.732.1
202020.7-23.1-10.8
201926.924.314.8
201821.7--

Over 5 years Bank Hapoalim B.M. is up a total 46.3% at an annualized rate of 10.0% compared to the Index being up 22.9% at an annualized rate of 5.3%.

Bank Hapoalim B.M. has outperformed the TA-25 Index in 3 of the past 5

years: 2022, 2021, 2019.

3.7 Moving Annual Return of 13.5% in the past year:

Moving Annual Return was 13.5% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 11.8%. The Moving Annual Return has been positive in 4 of the last 5 years.

POLIClose (NIS)Dividends (NIS)Capital Gain / (Loss) %% YieldAnnual Return %
Jun 0832.211.77.85.713.5
1 Yr ago29.871.1118.54.422.8
2 Yrs ago25.21-29.5-29.5
3 Yrs ago19.470.75(13.8)3.3(10.5)
4 Yrs ago22.580.192.70.93.6

Close 5 years ago NIS21.99

3.8 MCap: 5-Year Increase of NIS10 B [$3B] (32%)

In the past 5 years Market Capitalization has increased by NIS10.3 billion (32%) from NIS32.7 billion to NIS43.1 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 3 out of 5 years.

PriceMCap (NIS B)MCap ($ B)
LastNIS32.2143.111.8
1 Year agoNIS29.8741.612.5
2 Years agoNIS25.2136.510.7
3 Years agoNIS19.4728.27.5
4 Years agoNIS22.5833.69
5 Years agoNIS21.9932.79.2

3.9 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 10.2%

TSR %1 yr3 yrs5 yrs10 yrs
POLI.TASE13.921.910.710.3

3.10 Increased Volume, up 43% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 42.6% to 3.1 million shares.

Avg. Daily Volume Traded 12 months ended Jun 08, million shares

YearADVT
20233.1
20223.2
20213.1
20203.1
20192.2

3.11 Increased VWAP, up 35% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 35.2% to NIS30.33.

Past five years, 12 months ended Jun 08 (NIS)

YearHigh PriceVWAPLow Price
202334.1930.3326.87
202234.2528.3622.89
202126.0320.5716.16
202027.1622.4715.37
201924.6422.4319.61

3.12 Increased share turnover, up 98% in 5 years

In the past five years, average daily share turnover has increased 98.5% to NIS94.6 million ($25.9 million). This suggests increased liquidity.

Past five years, 12 months ended Jun 08 (NIS million)

YearAverage Daily Turnover
202394.6
202288.2
202163.8
202065.1
201947.7

3.13 Satisfies two criteria of Benjamin Graham

-"Earnings growth over the most recent ten years of 7% compounded - that is a doubling of earnings in a five-year period"; the earnings per share have more than doubled in the last 5 years.

-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there has been only 1 decline in earnings in the last 5 years.

SECTION 4 TODAY'S BEARISH SIGNALS

4.1 Other Bearish Signals

- Total Liabilities/EBITDA of 36 is more than 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

4.2 Overbought/Bearish Signals:

- The stock is overbought according to the Williams % R indicator of -0.9, suggesting the price is close to its 14-day high of NIS32.24.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Rank in the bottom 11% by Productivity in the Israel market

DescriptionValueRank
Return on Capital Employed [ROCE] %2.4In Bottom 11%
Return on Assets [ROA] %1In Bottom 9%

5.2 Thin Interest Cover and Deteriorating

Interest cover of 2.7 is thin and under a safe benchmark figure of 3. Moreover, it has decreased from 5.1 a year ago.

YearsInterest cover
20222.74
20215.07

5.3 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Return on Assets improvement [from 0.8% to 1%].

But does not meet the following 6 criteria of Joseph Piotroski:

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets.

- Improvement in current ratio.

- Total shares on issue unchanged (or reduction in total shares on issue).

- Improvement in gross margin.

- Improvement in asset turnover.

SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS

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. It is Israel's largest Banking & Investment Services company by market capitalisation.

6.2 Independent Ratings and Relative Value Indicators

+ Brand Finance 500:

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.

6.3 Contact Details

Websitehttp://www.bankhapoalim.co.il
Physical Address50 Rothschild Boulevard Tel Aviv, 66883 Israel
Phone972-3-5673333
Fax972-3-5674576
EmailYORAM.WEISSBREM@MAILPOALIM.CO.IL

+ ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

POLI: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ FINANCIALS - 10-YEAR HISTORY [INCLUDING FY 2021]:

+ PEER COMPARISON - STOCK IN BANKING & INVESTMENT SERVICES SECTOR AND STOCK IN INDICES

POLI: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - POLI PAST 4 YEARS IN HTML:

+ PRICE VOLUME CHARTS IN HTML

+ BOARD OF DIRECTORS

APPENDIX II STOCK IDENTIFIERS

ISIN: IL0006625771

PermID: 4295875283

RIC: POLI.TA

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabilities (times)

Dividend Yield: Dividend Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Interest Cover: Earnings Before Interest and Tax/Interest (times)

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

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