Shapir Engineering and Industry Ltd

TASE:SPEN Stock Report

Market Cap: ₪9.3b

Shapir Engineering and Industry Valuation

Is SPEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SPEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPEN (₪25.92) is trading below our estimate of fair value (₪47.86)

Significantly Below Fair Value: SPEN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPEN?

Key metric: As SPEN is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SPEN. This is calculated by dividing SPEN's market cap by their current revenue.
What is SPEN's PS Ratio?
PS Ratio1.9x
Sales₪4.89b
Market Cap₪9.26b

Price to Sales Ratio vs Peers

How does SPEN's PS Ratio compare to its peers?

The above table shows the PS ratio for SPEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
ELTR Electra
0.6xn/a₪6.9b
SKBN Shikun & Binui
0.7xn/a₪5.9b
ASHG Ashtrom Group
1.3xn/a₪6.0b
ACRO Kvutzat Acro
3.8xn/a₪3.2b
SPEN Shapir Engineering and Industry
1.9xn/a₪9.3b

Price-To-Sales vs Peers: SPEN is expensive based on its Price-To-Sales Ratio (1.9x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does SPEN's PS Ratio compare vs other companies in the IL Construction Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
ELCO Elco
0.1xn/aUS$649.31m
No more companies available in this PS range
SPEN 1.9xIndustry Avg. 0.6xNo. of Companies5PS00.61.21.82.43+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SPEN is expensive based on its Price-To-Sales Ratio (1.9x) compared to the IL Construction industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is SPEN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPEN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SPEN's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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