New Risk • Jun 16
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 38% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.1% net profit margin). New Risk • Jun 02
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: 1.1% Last year net profit margin: 5.4% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 31
Full year 2025 earnings released: EPS: ₪0.81 (vs ₪0.76 in FY 2024) Full year 2025 results: EPS: ₪0.81 (up from ₪0.76 in FY 2024). Revenue: ₪795.1m (up 5.4% from FY 2024). Net income: ₪12.5m (up 7.8% from FY 2024). Profit margin: 1.6% (up from 1.5% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. New Risk • Dec 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 32% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Dividend per share is over 24x earnings per share. Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 23
Second quarter 2025 earnings released: ₪0.55 loss per share (vs ₪0.02 loss in 2Q 2024) Second quarter 2025 results: ₪0.55 loss per share (further deteriorated from ₪0.02 loss in 2Q 2024). Revenue: ₪187.2m (up 10% from 2Q 2024). Net loss: ₪8.38m (loss widened ₪8.07m from 2Q 2024). Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₪56.06, the stock trades at a trailing P/E ratio of 21x. Average trailing P/E is 20x in the Construction industry in Israel. Total returns to shareholders of 76% over the past three years. Buy Or Sell Opportunity • Jun 26
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to ₪46.98. The fair value is estimated to be ₪38.53, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Meanwhile, the company has become profitable. New Risk • Jun 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 69% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Dividend per share is over 24x earnings per share. Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Reported Earnings • May 28
First quarter 2025 earnings released: EPS: ₪0.84 (vs ₪1.08 loss in 1Q 2024) First quarter 2025 results: EPS: ₪0.84 (up from ₪1.08 loss in 1Q 2024). Revenue: ₪181.0m (up 2.6% from 1Q 2024). Net income: ₪12.9m (up ₪29.4m from 1Q 2024). Profit margin: 7.1% (up from net loss in 1Q 2024). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 02
Full year 2024 earnings released Full year 2024 results: Revenue: ₪754.0m (up 30% from FY 2023). Net income: ₪11.6m (up ₪23.2m from FY 2023). Profit margin: 1.5% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Board Change • Feb 01
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. 6 experienced directors. 2 highly experienced directors. Deputy Chairman of Elmore Meir Serousi was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Buy Or Sell Opportunity • Jan 01
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to ₪29.31. The fair value is estimated to be ₪24.06, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Earnings per share has grown by 30%. Buy Or Sell Opportunity • Dec 10
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to ₪28.82. The fair value is estimated to be ₪23.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Earnings per share has grown by 30%. Reported Earnings • Dec 03
Third quarter 2024 earnings released: EPS: ₪1.32 (vs ₪1.78 loss in 3Q 2023) Third quarter 2024 results: EPS: ₪1.32 (up from ₪1.78 loss in 3Q 2023). Revenue: ₪200.5m (up 9.6% from 3Q 2023). Net income: ₪20.2m (up ₪47.5m from 3Q 2023). Profit margin: 10% (up from net loss in 3Q 2023). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Aug 31
Rapac Communication & Infrastructure Ltd, Annual General Meeting, Oct 08, 2024 Rapac Communication & Infrastructure Ltd, Annual General Meeting, Oct 08, 2024. Location: co. offices, Israel New Risk • May 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₪370.7m (US$100.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 34% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (₪370.7m market cap, or US$100.0m). New Risk • Apr 14
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 13% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 34% per year over the past 5 years. Minor Risk Paying a dividend despite being loss-making. Reported Earnings • Mar 24
Full year 2023 earnings released Full year 2023 results: Revenue: ₪707.1m (up 20% from FY 2022). Net income: ₪205.6m (up ₪233.4m from FY 2022). Profit margin: 29% (up from net loss in FY 2022). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Mar 13
Generation Capital Ltd entered into the sales agreement to acquire the remaining 50% stake in Rapac Energy Ltd. from Rapac Communication & Infrastructure Ltd. Generation Capital Ltd entered into the sales agreement to acquire the remaining 50% stake in Rapac Energy Ltd. from Rapac Communication & Infrastructure Ltd on January 14, 2024. The transaction constitute 50% of the issued share capital of Rapac Energy Ltd, as well as the owner's loans provided by it to Rapac Energy to Generation Capital Ltd, which holds the remaining shares in Rapac Energy. On March 12, 2024, all the conditions precedent were met required to complete the control purchase transaction, with the exception of the transfer of MRC shares to a corporation jointly controlled by the company and Generation (directly or indirectly), which, as agreed by the parties, will be transferred at the time of completion of the control purchase transaction. The date of completion of the control purchase transaction is expected to take place by the end of March 2024. Reported Earnings • Nov 30
Third quarter 2023 earnings released: ₪1.78 loss per share (vs ₪1.29 profit in 3Q 2022) Third quarter 2023 results: ₪1.78 loss per share (down from ₪1.29 profit in 3Q 2022). Revenue: ₪183.0m (down 57% from 3Q 2022). Net loss: ₪27.3m (down 238% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • Oct 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₪362.1m (US$92.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 56% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₪362.1m market cap, or US$92.5m). New Risk • Aug 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₪370.0m (US$97.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 56% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₪370.0m market cap, or US$97.6m). Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: ₪1.66 (vs ₪1.12 in 2Q 2022) Second quarter 2023 results: EPS: ₪1.66 (up from ₪1.12 in 2Q 2022). Revenue: ₪148.2m (down 59% from 2Q 2022). Net income: ₪25.4m (up 49% from 2Q 2022). Profit margin: 17% (up from 4.8% in 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Apr 02
Upcoming dividend of ₪0.22 per share at 2.6% yield Eligible shareholders must have bought the stock before 09 April 2023. Payment date: 23 April 2023. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Israeli dividend payers (7.9%). In line with average of industry peers (2.4%). Reported Earnings • Mar 29
Full year 2022 earnings released: ₪1.82 loss per share (vs ₪2.11 profit in FY 2021) Full year 2022 results: ₪1.82 loss per share (down from ₪2.11 profit in FY 2021). Revenue: ₪587.1m (down 51% from FY 2021). Net loss: ₪27.8m (down 186% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 27
Third quarter 2022 earnings released: EPS: ₪1.29 (vs ₪0.34 in 3Q 2021) Third quarter 2022 results: EPS: ₪1.29 (up from ₪0.34 in 3Q 2021). Revenue: ₪421.3m (up 34% from 3Q 2021). Net income: ₪19.7m (up 275% from 3Q 2021). Profit margin: 4.7% (up from 1.7% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 27
Third quarter 2021 earnings: Revenues and EPS in line with analyst expectations Third quarter 2021 results: EPS: ₪0.34 (down from ₪0.64 in 3Q 2020). Revenue: ₪313.9m (up 35% from 3Q 2020). Net income: ₪5.26m (down 46% from 3Q 2020). Profit margin: 1.7% (down from 4.2% in 3Q 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 47% per year, which means it is well ahead of earnings. Reported Earnings • Aug 29
Second quarter 2021 earnings released: ₪0.17 loss per share (vs ₪0.27 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: ₪285.3m (up 31% from 2Q 2020). Net loss: ₪2.64m (loss narrowed 36% from 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 117 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 28
Full year 2020 earnings released: EPS ₪0.56 (vs ₪0.57 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: ₪920.5m (up 41% from FY 2019). Net income: ₪8.66m (up 9.0% from FY 2019). Profit margin: 0.9% (down from 1.2% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 129 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Jan 04
New 90-day high: ₪29.20 The company is up 30% from its price of ₪22.51 on 06 October 2020. The Israeli market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 21% over the same period. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improved over the past week After last week's 15% share price gain to ₪28.82, the stock is trading at a trailing P/E ratio of 34x, up from the previous P/E ratio of 29.5x. This compares to an average P/E of 15x in the Construction industry in Israel. Total returns to shareholders over the past three years are 213%. Is New 90 Day High Low • Dec 14
New 90-day high: ₪26.01 The company is up 10.0% from its price of ₪23.75 on 15 September 2020. The Israeli market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 11% over the same period. Reported Earnings • Nov 26
Third quarter 2020 earnings released: EPS ₪0.64 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₪232.5m (up 51% from 3Q 2019). Net income: ₪9.77m (up ₪11.9m from 3Q 2019). Profit margin: 4.2% (up from net loss in 3Q 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 69% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Nov 25
New 90-day high: ₪24.46 The company is up 1.0% from its price of ₪24.17 on 27 August 2020. The Israeli market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 4.0% over the same period.