Hamama Meir Trading (1996) (TASE:HMAM) - Share price, News & Analysis

HMAM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

HMAM Stock Overview

Hamama Meir Trading (1996) Ltd. imports and distributes raw materials for the food industry in Israel.

Rewards

Trading at 82.1% below our estimate of its fair value

Earnings grew by 308% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Does not have a meaningful market cap (₪92M)

Hamama Meir Trading (1996) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hamama Meir Trading (1996)
Historical stock prices
Current Share Price	₪6.49
52 Week High	₪6.98
52 Week Low	₪3.31
Beta	0.15
1 Month Change	4.19%
3 Month Change	27.10%
1 Year Change	67.80%
3 Year Change	144.80%
5 Year Change	66.46%
Change since IPO	-11.20%

Recent News & Updates

Mar 31

Returns At Hamama Meir Trading (1996) (TLV:HMAM) Are On The Way Up

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Sep 06

There's Been No Shortage Of Growth Recently For Hamama Meir Trading (1996)'s (TLV:HMAM) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 21

We Think Hamama Meir Trading (1996) (TLV:HMAM) Is Taking Some Risk With Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	HMAM	IL Consumer Retailing	IL Market
7D	-4.4%	-3.8%	-2.0%
1Y	67.8%	-8.3%	11.5%

Return vs Industry: HMAM exceeded the IL Consumer Retailing industry which returned -8.2% over the past year.

Return vs Market: HMAM exceeded the IL Market which returned 10.7% over the past year.

Price Volatility

Is HMAM's price volatile compared to industry and market?
HMAM volatility
HMAM Average Weekly Movement	5.6%
Consumer Retailing Industry Average Movement	4.6%
Market Average Movement	5.4%
10% most volatile stocks in IL Market	9.0%
10% least volatile stocks in IL Market	3.6%

Stable Share Price: HMAM is not significantly more volatile than the rest of IL stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HMAM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	39	Eliyahu Hamama	https://hamama.biz

Hamama Meir Trading (1996) Ltd. imports and distributes raw materials for the food industry in Israel. The company offers grains, pulses, nuts, dried fruits, seeds and herbs, coffee, and animal feed.

Hamama Meir Trading (1996) Fundamentals Summary

How do Hamama Meir Trading (1996)'s earnings and revenue compare to its market cap?
HMAM fundamental statistics
Market Cap	₪92.10m
Earnings (TTM)	₪16.05m
Revenue (TTM)	₪277.42m

5.7x

P/E Ratio

0.3x

P/S Ratio

Is HMAM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HMAM income statement (TTM)
Revenue	₪277.42m
Cost of Revenue	₪245.29m
Gross Profit	₪32.13m
Other Expenses	₪16.08m
Earnings	₪16.05m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.13
Gross Margin	11.58%
Net Profit Margin	5.79%
Debt/Equity Ratio	55.0%

How did HMAM perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

12%

Payout Ratio

Valuation

Is Hamama Meir Trading (1996) undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HMAM (₪6.49) is trading below our estimate of fair value (₪36.2)

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

Price To Earnings Ratio

PE vs Industry: HMAM is good value based on its PE Ratio (5.7x) compared to the IL Consumer Retailing industry average (16x).

PE vs Market: HMAM is good value based on its PE Ratio (5.7x) compared to the IL market (11.4x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HMAM's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: HMAM is good value based on its PB Ratio (1x) compared to the IL Consumer Retailing industry average (2.1x).

Future Growth

How is Hamama Meir Trading (1996) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.1%

Forecasted Consumer Retailing industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hamama Meir Trading (1996) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Hamama Meir Trading (1996) performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

65.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HMAM has high quality earnings.

Growing Profit Margin: HMAM's current net profit margins (5.8%) are higher than last year (1.5%).

Past Earnings Growth Analysis

Earnings Trend: HMAM has become profitable over the past 5 years, growing earnings by 65.7% per year.

Accelerating Growth: HMAM's earnings growth over the past year (308%) exceeds its 5-year average (65.7% per year).

Earnings vs Industry: HMAM earnings growth over the past year (308%) exceeded the Consumer Retailing industry 14.2%.

Return on Equity

High ROE: HMAM's Return on Equity (18%) is considered low.

Financial Health

How is Hamama Meir Trading (1996)'s financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HMAM's short term assets (₪196.4M) exceed its short term liabilities (₪108.8M).

Long Term Liabilities: HMAM's short term assets (₪196.4M) exceed its long term liabilities (₪11.9M).

Debt to Equity History and Analysis

Debt Level: HMAM's net debt to equity ratio (41.9%) is considered high.

Reducing Debt: HMAM's debt to equity ratio has reduced from 208.7% to 55% over the past 5 years.

Debt Coverage: HMAM's debt is well covered by operating cash flow (49.3%).

Interest Coverage: HMAM's interest payments on its debt are well covered by EBIT (7.5x coverage).

Balance Sheet

Dividend

What is Hamama Meir Trading (1996) current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HMAM's dividend (2.17%) is higher than the bottom 25% of dividend payers in the IL market (1.97%).

High Dividend: HMAM's dividend (2.17%) is low compared to the top 25% of dividend payers in the IL market (6%).

Stability and Growth of Payments

Stable Dividend: HMAM's dividend payments have been volatile in the past 10 years.

Growing Dividend: HMAM's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.5%), HMAM's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.3%), HMAM's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

24.6yrs

Average management tenure

CEO

Eliyahu Hamama

24.92yrs

Tenure

₪1,146,000

Compensation

Mr. Eliyahu Hamama has been the Chief Executive Officer of Hamama Meir Trading (1996) Ltd. since June 1997.

CEO Compensation Analysis

Compensation vs Market: Eliyahu's total compensation ($USD343.47K) is about average for companies of similar size in the IL market ($USD393.86K).

Compensation vs Earnings: Eliyahu's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: HMAM's management team is seasoned and experienced (24.6 years average tenure).

Board Members

Experienced Board: HMAM's board of directors are seasoned and experienced ( 14.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31