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DIFI

Direct Finance of Direct Group (2006) TASE:DIFI Stock Report

Last Price

₪751.20

Market Cap

₪2.2b

7D

2.9%

1Y

12.1%

Updated

24 Jun, 2022

Data

Company Financials
DIFI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends2/6

DIFI Stock Overview

Direct Finance of Direct Group (2006) Ltd provides finance products in Israel.

Rewards

Price-To-Earnings ratio (10.7x) is below the IL market (11.5x)

Earnings grew by 44% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 4.51% is not well covered by earnings

Shareholders have been diluted in the past year


Direct Finance of Direct Group (2006) Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Direct Finance of Direct Group (2006)
Historical stock prices
Current Share Price₪751.20
52 Week High₪928.50
52 Week Low₪635.50
Beta0
1 Month Change1.51%
3 Month Change0.48%
1 Year Change12.12%
3 Year Changen/a
5 Year Changen/a
Change since IPO21.95%

Recent News & Updates

Dec 19
Should You Be Adding Direct Finance of Direct Group (2006) (TLV:DIFI) To Your Watchlist Today?

Should You Be Adding Direct Finance of Direct Group (2006) (TLV:DIFI) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

DIFIIL Consumer FinanceIL Market
7D2.9%0.6%4.0%
1Y12.1%-3.3%7.1%

Return vs Industry: DIFI exceeded the IL Consumer Finance industry which returned -3.3% over the past year.

Return vs Market: DIFI exceeded the IL Market which returned 7.1% over the past year.

Price Volatility

Is DIFI's price volatile compared to industry and market?
DIFI volatility
DIFI Average Weekly Movement3.5%
Consumer Finance Industry Average Movement4.4%
Market Average Movement5.6%
10% most volatile stocks in IL Market8.8%
10% least volatile stocks in IL Market3.7%

Stable Share Price: DIFI is less volatile than 75% of IL stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DIFI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006600Eran Wolfhttps://www.5555.co.il

Direct Finance of Direct Group (2006) Ltd provides finance products in Israel. It provides personal loans, including car loans. The company was incorporated in 2006 and is based in Petah Tikva, Israel.

Direct Finance of Direct Group (2006) Fundamentals Summary

How do Direct Finance of Direct Group (2006)'s earnings and revenue compare to its market cap?
DIFI fundamental statistics
Market Cap₪2.22b
Earnings (TTM)₪208.51m
Revenue (TTM)₪551.13m

10.7x

P/E Ratio

4.0x

P/S Ratio

Is DIFI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DIFI income statement (TTM)
Revenue₪551.13m
Cost of Revenue₪115.96m
Gross Profit₪435.17m
Other Expenses₪226.67m
Earnings₪208.51m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)70.51
Gross Margin78.96%
Net Profit Margin37.83%
Debt/Equity Ratio307.6%

How did DIFI perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DIFI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does DIFI's PE Ratio compare to its peers?

DIFI PE Ratio vs Peers
The above table shows the PE ratio for DIFI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average166.6x

Price-To-Earnings vs Peers: DIFI is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (166.6x).

Price to Earnings Ratio vs Industry

How does DIFI's PE Ratio compare vs other companies in the Consumer Finance Industry?

Price-To-Earnings vs Industry: DIFI is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Asian Consumer Finance industry average (13.7x)

Price to Earnings Ratio vs Fair Ratio

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

DIFI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.7x
Fair PE Ration/a

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

Share Price vs Fair Value

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

Below Fair Value: DIFI (₪751.2) is trading above our estimate of fair value (₪686.11)

Significantly Below Fair Value: DIFI is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Direct Finance of Direct Group (2006) 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

21.3%

Forecasted Diversified Financials 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 Direct Finance of Direct Group (2006) 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.

Discover growth companies

  • Take a look at our analysis of DIFI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Direct Finance of Direct Group (2006) performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

30.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DIFI has a high level of non-cash earnings.

Growing Profit Margin: DIFI's current net profit margins (37.8%) are lower than last year (53%).

Past Earnings Growth Analysis

Earnings Trend: DIFI's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: DIFI's earnings growth over the past year (44%) exceeds its 5-year average (30.8% per year).

Earnings vs Industry: DIFI earnings growth over the past year (44%) exceeded the Consumer Finance industry 21.9%.

Return on Equity

High ROE: DIFI's Return on Equity (19%) is considered low.

Discover strong past performing companies

Financial Health

How is Direct Finance of Direct Group (2006)'s financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DIFI's short term assets (₪4.6B) exceed its short term liabilities (₪1.4B).

Long Term Liabilities: DIFI's short term assets (₪4.6B) exceed its long term liabilities (₪2.3B).

Debt to Equity History and Analysis

Debt Level: DIFI's net debt to equity ratio (306.3%) is considered high.

Reducing Debt: Insufficient data to determine if DIFI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DIFI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if DIFI's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Direct Finance of Direct Group (2006) 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

4.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DIFI's dividend (4.51%) is higher than the bottom 25% of dividend payers in the IL market (2.06%).

High Dividend: DIFI's dividend (4.51%) is low compared to the top 25% of dividend payers in the IL market (6.24%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether DIFI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DIFI's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.3%), DIFI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: DIFI is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

₪7m

CEO Compensation

CEO

Eran Wolf

no data

Tenure

₪7,455,000

Compensation

Mr. Eran Wolf serves as Chief Executive Officer of Direct Finance of Direct Group (2006) Ltd. Mr. Wolf serves as Chief Executive Officer of Direct Finance at Zur Shamir Holdings Ltd. and Direct Insurance -...

CEO Compensation Analysis

Compensation vs Market: Eran's total compensation ($USD2.16M) is above average for companies of similar size in the IL market ($USD899.48K).

Compensation vs Earnings: Eran's compensation has increased by more than 20% in the past year.

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 been diluted in the past year, with total shares outstanding growing by 17%.

Top Shareholders

Company Information

Direct Finance of Direct Group (2006) Ltd's employee growth, exchange listings and data sources

Key Information

  • Name: Direct Finance of Direct Group (2006) Ltd
  • Ticker: DIFI
  • Exchange: TASE
  • Founded: 2006
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: ₪2.221b
  • Shares outstanding: 2.96m
  • Website: https://www.5555.co.il

Number of Employees

Location

  • Direct Finance of Direct Group (2006) Ltd
  • 35 Efal Street
  • Petah Tikva
  • 4951132
  • Israel

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.