Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₪84.88, the stock trades at a trailing P/E ratio of 23.4x. Average trailing P/E is 22x in the IT industry in Israel. Total returns to shareholders of 28% over the past three years. Buy Or Sell Opportunity • Jul 01
Now 21% overvalued Over the last 90 days, the stock has fallen 6.3% to ₪81.62. The fair value is estimated to be ₪67.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 7.3%. Upcoming Dividend • Jun 15
Upcoming dividend of ₪0.97 per share Eligible shareholders must have bought the stock before 22 June 2026. Payment date: 01 July 2026. Payout ratio is a comfortable 51% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of Israeli dividend payers (5.5%). Higher than average of industry peers (3.2%). Buy Or Sell Opportunity • Jun 12
Now 20% overvalued Over the last 90 days, the stock has fallen 16% to ₪83.02. The fair value is estimated to be ₪68.92, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 7.3%. Reported Earnings • May 24
First quarter 2026 earnings released: EPS: ₪1.30 (vs ₪1.19 in 1Q 2025) First quarter 2026 results: EPS: ₪1.30 (up from ₪1.19 in 1Q 2025). Revenue: ₪2.13b (up 38% from 1Q 2025). Net income: ₪120.7m (up 60% from 1Q 2025). Profit margin: 5.7% (up from 4.9% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 10% per year. Declared Dividend • May 22
Fourth quarter dividend increased to ₪0.97 Dividend of ₪0.97 is 9.0% higher than last year. Ex-date: 22nd June 2026 Payment date: 1st July 2026 Dividend yield will be 3.8%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (71% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 3.6% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Upcoming Dividend • Apr 08
Upcoming dividend of ₪0.79 per share Eligible shareholders must have bought the stock before 15 April 2026. Payment date: 05 May 2026. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Israeli dividend payers (5.5%). In line with average of industry peers (3.3%). Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₪87.48, the stock trades at a trailing P/E ratio of 27.3x. Average trailing P/E is 22x in the IT industry in Israel. Total returns to shareholders of 55% over the past three years. New Risk • Mar 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Israeli stocks, typically moving 8.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.3% average weekly change). Shareholders have been substantially diluted in the past year (46% increase in shares outstanding). New Risk • Feb 25
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 46% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (46% increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (6.9% average weekly change). Aankondiging • Feb 25
Matrix IT Ltd. (TASE:MTRX) completed the acquisition of Magic Software Enterprises Ltd. (NasdaqGS:MGIC) from Formula Systems (1985) Ltd. (TASE:FORTY) and others. Matrix IT Ltd. (TASE:MTRX) entered into memorandum of understanding to acquire Magic Software Enterprises Ltd. (NasdaqGS:MGIC) from Formula Systems (1985) Ltd. (TASE:FORTY) and others for ILS 2.6 billion on March 10, 2025. The consideration consists of issue of ordinary shares of Matrix IT Ltd. in exchange for Magic Software Enterprises Ltd shares, an aggregate of 28,861,563 ordinary shares of Matrix, representing 0.5878202 Matrix ordinary shares for each one (1) Magic Software Enterprises Ltd ordinary share. Upon completion, Eligible Shareholders of Magic Software Enterprises Ltd are expected to hold, 31.125% of the issued and paid-up share capital of Matrix on a fully diluted basis, and the shareholders of Matrix are expected to hold 68.875% of the issued and paid-up share capital of Matrix on a fully diluted basis. Upon completion of the Merger, Matrix will acquire the entire share capital of Magic on a fully diluted basis by way of a reverse triangular merger, and Magic will become a private wholly-owned of Matrix. On November 3, 2025, Magic Software Enterprises Ltd. entered into a definitive Agreement and Plan of Merger with Matrix IT Ltd.
The transaction is subject to approval by regulatory board / committee, consummation of due diligence investigation, definitive agreement, approval by shareholders of both Matrix and Magic Software and third party approval needed. The deal has been approved by the Magic Software board. Matrix board of directors appointed an independent committee to evaluate the transaction. As of December 10, 2025, the transaction has been approved by the shareholders of Magic Software Enterprises Ltd. As of February 5, 2026, the parties have satisfied the conditions precedent to the closing of the Merger, including the receipt of the Israel Tax Authority tax ruling, except the receipt of the merger certificate from the Israeli Registrar of Companies is still pending.
Value Base M&A Ltd. acted as financial advisor for Magic Software Enterprises Ltd. Gornitzky & Co. acted as legal advisor for Magic Software Enterprises Ltd. Guy Ben Ami, Steven Glusband and Melinda Fellner of Carter Ledyard & Milburn, LLP acted as legal advisor for Magic Software Enterprises Ltd. William Blair & Company, L.L.C. acted as financial advisor for Matrix IT Ltd. Jefferies LLC acted as financial advisor, KPMG acted as an accountant and Herzog Fox & Neeman acted as legal advisor for the independent committee of Matrix IT Ltd. Carter Ledyard & Milburn acted as U.S. securities counsel. Prometheus Financial Advisory acted as fairness opinion provider to Matrix IT Ltd.
Matrix IT Ltd. (TASE:MTRX) completed the acquisition of Magic Software Enterprises Ltd. (NasdaqGS:MGIC) from Formula Systems (1985) Ltd. (TASE:FORTY) and others on February 24, 2026. The transaction has received the merger certificate issued by the Israeli Registrar of Companies. Upon receipt of the Merger Certificate, all Conditions Precedent to completion of the Merger were satisfied. Following the completion of the Merger, the Magic Software Enterprises Ltd.'s ordinary shares will be delisted from trading on the TASE and from NASDAQ, and the Company will be a private company wholly owned by Matrix IT Ltd. New Risk • Feb 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Israeli stocks, typically moving 4.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₪118, the stock trades at a trailing P/E ratio of 25.2x. Average trailing P/E is 26x in the IT industry in Israel. Total returns to shareholders of 74% over the past three years. Aankondiging • Feb 04
Matrix IT Ltd. to Report Q4, 2025 Results on Mar 18, 2026 Matrix IT Ltd. announced that they will report Q4, 2025 results on Mar 18, 2026 Upcoming Dividend • Nov 30
Upcoming dividend of ₪0.91 per share Eligible shareholders must have bought the stock before 07 December 2025. Payment date: 30 December 2025. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Israeli dividend payers (5.3%). In line with average of industry peers (2.4%). Price Target Changed • Nov 19
Price target increased by 14% to ₪171 Up from ₪150, the current price target is provided by 1 analyst. New target price is 27% above last closing price of ₪135. Stock is up 67% over the past year. The company posted earnings per share of ₪4.29 last year. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: ₪1.23 (vs ₪1.01 in 3Q 2024) Third quarter 2025 results: EPS: ₪1.23 (up from ₪1.01 in 3Q 2024). Revenue: ₪1.64b (up 16% from 3Q 2024). Net income: ₪78.0m (up 21% from 3Q 2024). Profit margin: 4.7% (up from 4.5% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Declared Dividend • Nov 15
Second quarter dividend of ₪0.91 announced Shareholders will receive a dividend of ₪0.91. Ex-date: 7th December 2025 Payment date: 30th December 2025 Dividend yield will be 2.5%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (33% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Aankondiging • Nov 13
Matrix IT Ltd., Annual General Meeting, Dec 17, 2025 Matrix IT Ltd., Annual General Meeting, Dec 17, 2025. Location: co. offices, Israel Aankondiging • Oct 21
Matrix IT Ltd. to Report Q3, 2025 Results on Nov 12, 2025 Matrix IT Ltd. announced that they will report Q3, 2025 results on Nov 12, 2025 Upcoming Dividend • Sep 23
Upcoming dividend of ₪0.85 per share Eligible shareholders must have bought the stock before 30 September 2025. Payment date: 20 October 2025. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Israeli dividend payers (5.9%). In line with average of industry peers (2.7%). Declared Dividend • Aug 14
Second quarter dividend of ₪0.85 announced Shareholders will receive a dividend of ₪0.85. Ex-date: 30th September 2025 Payment date: 20th October 2025 Dividend yield will be 2.7%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (72% earnings payout ratio) and cash flows (33% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 13
Second quarter 2025 earnings released: EPS: ₪1.15 (vs ₪1.09 in 2Q 2024) Second quarter 2025 results: EPS: ₪1.15 (up from ₪1.09 in 2Q 2024). Revenue: ₪1.45b (up 8.9% from 2Q 2024). Net income: ₪72.9m (up 4.9% from 2Q 2024). Profit margin: 5.0% (down from 5.2% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the IT industry in Asia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Aankondiging • Jul 20
Matrix IT Ltd. to Report Q2, 2025 Results on Aug 12, 2025 Matrix IT Ltd. announced that they will report Q2, 2025 results on Aug 12, 2025 Upcoming Dividend • Jun 24
Upcoming dividend of ₪0.89 per share Eligible shareholders must have bought the stock before 01 July 2025. Payment date: 15 July 2025. Payout ratio is a comfortable 75% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Israeli dividend payers (5.8%). In line with average of industry peers (2.7%). New Risk • May 25
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 43% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Reported Earnings • May 20
First quarter 2025 earnings released: EPS: ₪1.20 (vs ₪1.09 in 1Q 2024) First quarter 2025 results: EPS: ₪1.20 (up from ₪1.09 in 1Q 2024). Revenue: ₪1.55b (up 6.3% from 1Q 2024). Net income: ₪76.0m (up 11% from 1Q 2024). Profit margin: 4.9% (up from 4.7% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Declared Dividend • May 15
Fourth quarter dividend increased to ₪0.89 Dividend of ₪0.89 is 9.9% higher than last year. Ex-date: 1st July 2025 Payment date: 15th July 2025 Dividend yield will be 3.3%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is covered by both earnings (75% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Aankondiging • Apr 28
Matrix IT Ltd. to Report Q1, 2025 Results on May 13, 2025 Matrix IT Ltd. announced that they will report Q1, 2025 results on May 13, 2025 Declared Dividend • Mar 15
Fourth quarter dividend of ₪0.82 announced Shareholders will receive a dividend of ₪0.82. Ex-date: 20th March 2025 Payment date: 8th April 2025 Dividend yield will be 3.5%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is not covered by earnings (124% earnings payout ratio). However, it is well covered by cash flows (26% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 38% to bring the payout ratio under control, which is more than the 11% EPS growth achieved over the last 5 years. Aankondiging • Mar 13
Matrix IT Ltd. (TASE:MTRX) entered into MOU to acquire Magic Software Enterprises Ltd. (NasdaqGS:MGIC). Matrix IT Ltd. (TASE:MTRX) entered into MOU to acquire Magic Software Enterprises Ltd. (NasdaqGS:MGIC) on March 10, 2025. The consideration consists of common equity of Matrix IT Ltd. to be issued for common equity of Magic Software Enterprises Ltd. As part of consideration, an undisclosed value is paid towards common equity of Magic Software Enterprises Ltd. Upon completion of the Merger, Matrix will acquire the entire share capital of Magic on a fully diluted basis by way of a reverse triangular merger, and Magic will become a private wholly-owned of Matrix. Magic's shareholders will receive merger consideration in Matrix shares, based on the relative valuations of both Companies presented by the Committees' financial advisors (which were adopted by the Committee, including in its capacity as Magic's Audit Committee, and by Magic’s Board of Directors) and the derived exchange ratio derived of 31.125%/68.875%.
The transaction is subject to approval by regulatory board / committee, consummation of due diligence investigation, definitive agreement and third party approval needed. The deal has been approved by the Magic Software board.
Value Base M&A Ltd. acted as financial advisor for Magic Software Enterprises Ltd. Gornitzky & Co. acted as legal advisor for Magic Software Enterprises Ltd. William Blair & Company, L.L.C acted as financial advisor for Matrix IT Ltd. Reported Earnings • Mar 13
Full year 2024 earnings released: EPS: ₪4.29 (vs ₪3.58 in FY 2023) Full year 2024 results: EPS: ₪4.29 (up from ₪3.58 in FY 2023). Revenue: ₪5.58b (up 6.6% from FY 2023). Net income: ₪272.4m (up 20% from FY 2023). Profit margin: 4.9% (up from 4.3% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Aankondiging • Feb 18
Matrix IT Ltd. to Report Fiscal Year 2024 Results on Mar 11, 2025 Matrix IT Ltd. announced that they will report fiscal year 2024 results on Mar 11, 2025 Aankondiging • Dec 21
Matrix IT Ltd. (TASE:MTRX) acquired The Alacer Group. Matrix IT Ltd. (TASE:MTRX) acquired The Alacer Group recently. Upcoming Dividend • Dec 12
Upcoming dividend of ₪0.76 per share Eligible shareholders must have bought the stock before 19 December 2024. Payment date: 06 January 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.3%. Lower than top quartile of Israeli dividend payers (5.9%). Higher than average of industry peers (2.5%). New Risk • Nov 24
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 55% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₪1.01 (vs ₪0.81 in 3Q 2023) Third quarter 2024 results: EPS: ₪1.01 (up from ₪0.81 in 3Q 2023). Revenue: ₪1.42b (up 6.4% from 3Q 2023). Net income: ₪64.4m (up 25% from 3Q 2023). Profit margin: 4.5% (up from 3.9% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 3% per year. Aankondiging • Nov 15
Matrix IT Ltd., Annual General Meeting, Dec 23, 2024 Matrix IT Ltd., Annual General Meeting, Dec 23, 2024. Location: co. offices, Israel Aankondiging • Oct 21
Matrix IT Ltd. to Report Q3, 2024 Results on Nov 14, 2024 Matrix IT Ltd. announced that they will report Q3, 2024 results on Nov 14, 2024 Upcoming Dividend • Sep 11
Upcoming dividend of ₪0.82 per share Eligible shareholders must have bought the stock before 18 September 2024. Payment date: 01 October 2024. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Israeli dividend payers (6.9%). Higher than average of industry peers (3.2%). Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: ₪1.09 (vs ₪0.92 in 2Q 2023) Second quarter 2024 results: EPS: ₪1.09 (up from ₪0.92 in 2Q 2023). Revenue: ₪1.33b (up 3.6% from 2Q 2023). Net income: ₪69.5m (up 19% from 2Q 2023). Profit margin: 5.2% (up from 4.6% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Aankondiging • Jul 18
Matrix IT Ltd. to Report Q2, 2024 Results on Aug 11, 2024 Matrix IT Ltd. announced that they will report Q2, 2024 results on Aug 11, 2024 Upcoming Dividend • Jun 20
Upcoming dividend of ₪0.81 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 25 July 2024. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Israeli dividend payers (7.2%). Higher than average of industry peers (3.3%). Reported Earnings • May 16
First quarter 2024 earnings released: EPS: ₪1.09 (vs ₪0.96 in 1Q 2023) First quarter 2024 results: EPS: ₪1.09 (up from ₪0.96 in 1Q 2023). Revenue: ₪1.45b (up 13% from 1Q 2023). Net income: ₪68.6m (up 13% from 1Q 2023). Profit margin: 4.7% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Aankondiging • May 03
Matrix IT Ltd. to Report Q1, 2024 Results on May 15, 2024 Matrix IT Ltd. announced that they will report Q1, 2024 results on May 15, 2024 Declared Dividend • Mar 14
Dividend of ₪1.27 announced Shareholders will receive a dividend of ₪1.27. Ex-date: 20th March 2024 Payment date: 15th April 2024 Dividend yield will be 3.4%, which is higher than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (41% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 8.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 10% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 11
Full year 2023 earnings released: EPS: ₪3.58 (vs ₪5.32 in FY 2022) Full year 2023 results: EPS: ₪3.58 (down from ₪5.32 in FY 2022). Revenue: ₪5.23b (up 12% from FY 2022). Net income: ₪227.3m (down 32% from FY 2022). Profit margin: 4.3% (down from 7.2% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Aankondiging • Feb 21
Matrix IT Ltd. to Report Q4, 2023 Results on Mar 11, 2024 Matrix IT Ltd. announced that they will report Q4, 2023 results on Mar 11, 2024 Reported Earnings • Nov 18
Third quarter 2023 earnings released: EPS: ₪0.81 (vs ₪0.74 in 3Q 2022) Third quarter 2023 results: EPS: ₪0.81 (up from ₪0.74 in 3Q 2022). Revenue: ₪1.33b (up 15% from 3Q 2022). Net income: ₪51.4m (up 11% from 3Q 2022). Profit margin: 3.9% (down from 4.0% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Aankondiging • Nov 12
Matrix IT Ltd., Annual General Meeting, Dec 17, 2023 Matrix IT Ltd., Annual General Meeting, Dec 17, 2023, at 12:00 Israel Standard Time. Aankondiging • Oct 30
Matrix IT Ltd. to Report Q3, 2023 Results on Nov 12, 2023 Matrix IT Ltd. announced that they will report Q3, 2023 results on Nov 12, 2023 New Risk • Aug 13
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.4% Last year net profit margin: 7.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks High level of debt (57% net debt to equity). Dividend is not well covered by cash flows (43% cash payout ratio). Profit margins are more than 30% lower than last year (4.4% net profit margin). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: ₪0.92 (vs ₪2.91 in 2Q 2022) Second quarter 2023 results: EPS: ₪0.92 (down from ₪2.91 in 2Q 2022). Revenue: ₪1.29b (up 8.0% from 2Q 2022). Net income: ₪58.6m (down 67% from 2Q 2022). Profit margin: 4.6% (down from 15% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Aankondiging • Jul 22
Matrix IT Ltd. to Report Q2, 2023 Results on Aug 10, 2023 Matrix IT Ltd. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • May 13
First quarter 2023 earnings released: EPS: ₪0.96 (vs ₪0.94 in 1Q 2022) First quarter 2023 results: EPS: ₪0.96 (up from ₪0.94 in 1Q 2022). Revenue: ₪1.29b (up 9.4% from 1Q 2022). Net income: ₪60.7m (up 2.7% from 1Q 2022). Profit margin: 4.7% (down from 5.0% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 22
Upcoming dividend of ₪0.59 per share at 7.0% yield Eligible shareholders must have bought the stock before 29 March 2023. Payment date: 16 April 2023. The company is paying out more than 100% of its profits and is paying out 82% of its cash flow. Trailing yield: 7.0%. Lower than top quartile of Israeli dividend payers (8.7%). Higher than average of industry peers (4.9%). Reported Earnings • Mar 15
Full year 2022 earnings released: EPS: ₪5.32 (vs ₪3.13 in FY 2021) Full year 2022 results: EPS: ₪5.32 (up from ₪3.13 in FY 2021). Revenue: ₪4.67b (up 7.2% from FY 2021). Net income: ₪334.7m (up 71% from FY 2021). Profit margin: 7.2% (up from 4.5% in FY 2021). Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: ₪0.74 (vs ₪0.69 in 3Q 2021) Third quarter 2022 results: EPS: ₪0.74 (up from ₪0.69 in 3Q 2021). Revenue: ₪1.16b (up 13% from 3Q 2021). Net income: ₪46.5m (up 7.4% from 3Q 2021). Profit margin: 4.0% (down from 4.2% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: ₪0.74 (vs ₪0.69 in 3Q 2021) Third quarter 2022 results: EPS: ₪0.74 (up from ₪0.69 in 3Q 2021). Revenue: ₪1.16b (up 13% from 3Q 2021). Net income: ₪46.5m (up 7.4% from 3Q 2021). Profit margin: 4.0% (down from 4.2% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Aankondiging • Oct 25
Matrix IT Ltd. to Report Q3, 2022 Results on Nov 10, 2022 Matrix IT Ltd. announced that they will report Q3, 2022 results on Nov 10, 2022 Reported Earnings • Aug 14
Second quarter 2022 earnings released: EPS: ₪2.91 (vs ₪0.79 in 2Q 2021) Second quarter 2022 results: EPS: ₪2.91 (up from ₪0.79 in 2Q 2021). Revenue: ₪1.19b (up 12% from 2Q 2021). Net income: ₪178.9m (up 261% from 2Q 2021). Profit margin: 15% (up from 4.7% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 17% per year. Aankondiging • Jul 26
Matrix IT Ltd. to Report Q2, 2022 Results on Aug 10, 2022 Matrix IT Ltd. announced that they will report Q2, 2022 results at 9:46 AM, Israel Standard Time on Aug 10, 2022 Upcoming Dividend • May 25
Upcoming dividend of ₪0.71 per share Eligible shareholders must have bought the stock before 01 June 2022. Payment date: 23 June 2022. Payout ratio and cash payout ratio are on the higher end at 75% and 80% respectively. Trailing yield: 3.1%. Lower than top quartile of Israeli dividend payers (6.1%). In line with average of industry peers (3.3%). Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. Independent Director Yafit Karet was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 15
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: ₪3.13 (up from ₪2.78 in FY 2020). Revenue: ₪4.36b (up 13% from FY 2020). Net income: ₪195.3m (up 13% from FY 2020). Profit margin: 4.5% (in line with FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • Feb 15
Matrix IT Ltd. to Report Q4, 2021 Results on Mar 13, 2022 Matrix IT Ltd. announced that they will report Q4, 2021 results on Mar 13, 2022 Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS ₪0.69 (vs ₪0.67 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: ₪1.03b (up 5.3% from 3Q 2020). Net income: ₪43.3m (up 5.0% from 3Q 2020). Profit margin: 4.2% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. 
