The average target price of TASE.TA is 5700 and suggests 6% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decrease one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 5700.0. This is lower than the current market price, meaning that even the most optimistic analyst does not see upside potential. On the other hand, the most pessimistic analyst has a target price of 5700.0. This is equivalent to 6% downside potential in the worst case. 

The Tel-Aviv Stock Exchange Ltd. manages securities stock exchange and related activities in Israel. The company offers markets for the listing and trading of a range of securities and derivative instruments, including shares, corporate bonds, government bonds, treasury bills, ETFs, convertible securities, single stock options, options, and futures. It also engages in the clearing and settlement of securities; issuing of options and futures; and holding of securities for others, as well as provides securities registration services. The company was founded in 1935 and is headquartered in Tel Aviv, Israel.

Israel

The Tel-Aviv Stock Exchange Ltd.

Financial Services

The company tries to pay dividends regularly but only sometimes does so. It has paid dividends in roughly half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. The company distributes nearly all its profit as dividends (payout ratio above 90%, a negative factor). It will not be easy to sustain such an extreme payout ratio. It may also indicate a company's lack of profitable growth opportunities, which suggests doubtful prospects. On average, the company pays dividends annually. 

TASE.TA reported revenue of ILS 461mn in the last 12 months, up 5% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 10% from FY24 to ILS 1.20. Market expects EPS to reach ILS 1.10 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 43ppts over past six months and grown 5ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 46.4% in the last 12 months, up from 41.7% in FY23. 

Historically, TASE.TA has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 24.2%, a growth from 21.3% in FY23. 

The Tel-Aviv Stock Exchange Ltd. reported a return on equity (RoE) of 24.6% in the last 12 months, up from 15.3% in FY23. The market consensus projects an RoE of -0.7% in FY24, however, this time below its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 17.4%, above the peers. The consensus estimate for FY24 for RoCE is -0.6%, however, this time below its peers. 

Another important profitability metric, return on assets (RoA), amounted to 5.3% in the last 12 months, an increase from 3.7% in FY23. The market analysts predict that RoA will be 0.0% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 3.6 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

TASE.TA has poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is minimal. We note robust profitability, solid return on capital, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, excessive margin volatility.

In highly turbulent market conditions, TASE.TA is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, TASE.TA is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to minimal. 

Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. In particular, the stock is reasonably priced on P/E, 'expensive' on EV/EBITDA, undervalued on P/FCF. 

The Tel-Aviv Stock Exchange Ltd.

ILA 6198

4

The Tel-Aviv Stock Exchange Ltd.

ILA 6198

4

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

ILA 6198

About

About

The Tel-Aviv Stock Exchange Ltd.

ILA 6198

4

The Tel-Aviv Stock Exchange Ltd.

ILA 6198

4

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

ILA 6198

About

About

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