Wesure Global Tech Ltd operates as a digital insurance company. It offers third party car, structure and contents, building, mortgage, and comprehensive insurance products. The company was founded in 2016 and is based in Kefar Sava, Israel.

Israel

Wesure Global Tech Ltd

Financial Services

The company pays dividends on rare occasions. There have only been a few years with dividend payments in 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. 

WESR.TA reported revenue of ILS 4 587mn in the last 12 months, up 21% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 59% from FY23 to ILS 0.55.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 23ppts and its growth accelerated by 3ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 7.5% in the last 12 months, up from 4.5% in FY23. 

Historically, WESR.TA has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 1.3%, a growth from 1.0% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 0.3%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 0.3% in the last 12 months, an increase from 0.2% in FY23. 

Wesure Global Tech Ltd reported a return on equity (RoE) of 9.7% in the last 12 months, up from 7.4% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.6 in the past several years. This ratio implies a good 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.

WESR.TA has above average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is relatively stable and remains favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 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 small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, and poor working capital management. We note resilient historical revenue growth and low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, WESR.TA is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, WESR.TA is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from large to immense. 

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

Wesure Global Tech Ltd

ILA 495.8

4

Wesure Global Tech Ltd

ILA 495.8

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

ILA 495.8

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