Peninsula Group (TASE:PEN) - Share price, News & Analysis

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

PEN (₪2.3) is trading below our estimate of [[fair value]] (₪2.45)

PEN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	1/6
Financial Health	3/6
Dividends	3/6

PEN Stock Overview

Peninsula Group Ltd provides credit and commercial finance solutions to small and medium-sized enterprises in Israel.

Rewards

Trading at 5.9% below our estimate of its fair value

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 7.97% is not well covered by earnings

Peninsula Group Competitors

S.R. Accord

TASE:SRAC

₪704.4m

Menif Financial Services

TASE:MNIF

₪673.1m

Michlol Finance

TASE:MCLL

₪387.9m

Michman Besd

TASE:MCMN

₪330.3m

Price History & Performance

Summary of all time highs, changes and price drops for Peninsula Group
Historical stock prices
Current Share Price	₪2.30
52 Week High	₪3.46
52 Week Low	₪2.16
Beta	0.60
1 Month Change	0.26%
3 Month Change	-7.22%
1 Year Change	-29.07%
3 Year Change	-19.94%
5 Year Change	6.83%
Change since IPO	161.78%

Recent News & Updates

Apr 06

Should You Be Adding Peninsula Group (TLV:PEN) 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

	PEN	IL Diversified Financial	IL Market
7D	2.9%	2.7%	0.9%
1Y	-29.1%	-16.6%	13.5%

Return vs Industry: PEN underperformed the IL Diversified Financial industry which returned -16.6% over the past year.

Return vs Market: PEN underperformed the IL Market which returned 13.5% over the past year.

Price Volatility

Is PEN's price volatile compared to industry and market?
PEN volatility
PEN Average Weekly Movement	4.2%
Diversified Financial Industry Average Movement	4.4%
Market Average Movement	5.4%
10% most volatile stocks in IL Market	8.9%
10% least volatile stocks in IL Market	3.7%

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

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

About the Company

Founded	Employees	CEO	Website
2004	53	Micah Avni	https://www.peninsula.co.il

Peninsula Group Ltd provides credit and commercial finance solutions to small and medium-sized enterprises in Israel. It serves customers in various fields, including industry, manufacturing, commerce, import, distribution, construction, infrastructure, retail, and services. The company was founded in 2004 and is based in Tel Aviv-Yafo, Israel.

Peninsula Group Fundamentals Summary

How do Peninsula Group's earnings and revenue compare to its market cap?
PEN fundamental statistics
Market Cap	₪540.32m
Earnings (TTM)	₪57.85m
Revenue (TTM)	₪114.11m

9.3x

P/E Ratio

4.7x

P/S Ratio

Is PEN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PEN income statement (TTM)
Revenue	₪114.11m
Cost of Revenue	₪195.00k
Gross Profit	₪113.92m
Other Expenses	₪56.07m
Earnings	₪57.85m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.25
Gross Margin	99.83%
Net Profit Margin	50.70%
Debt/Equity Ratio	188.0%

How did PEN perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

64%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PEN. This is calculated by dividing PEN's market cap by their current preferred multiple.
What is PEN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₪540.32m

PEN 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

PEN PE Ratio vs Peers

The above table shows the PE ratio for PEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.7x
SRAC S.R. Accord	9.5x	n/a	₪704.4m
MNIF Menif Financial Services	11.9x	n/a	₪673.1m
MCLL Michlol Finance	33.3x	n/a	₪387.9m
MCMN Michman Besd	16.2x	n/a	₪330.3m
PEN Peninsula Group	9.3x	n/a	₪540.3m

Price-To-Earnings vs Peers: PEN is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

How does PEN's PE Ratio compare vs other companies in the Asian Diversified Financial Industry?

Price-To-Earnings vs Industry: PEN is good value based on its Price-To-Earnings Ratio (9.3x) compared to the IL Diversified Financial industry average (11.9x)

Price to Earnings Ratio vs Fair Ratio

What is PEN'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.

PEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.3x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: PEN (₪2.3) is trading below our estimate of fair value (₪2.45)

Significantly Below Fair Value: PEN is trading below fair value, but not by a significant amount.

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.

Discover undervalued companies

Future Growth

How is Peninsula Group 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

12.0%

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 Peninsula Group 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

Examine whether Peninsula Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Peninsula Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

35.4%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: PEN's current net profit margins (50.7%) are lower than last year (54.9%).

Past Earnings Growth Analysis

Earnings Trend: PEN's earnings have grown significantly by 35.4% per year over the past 5 years.

Accelerating Growth: PEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PEN had negative earnings growth (-26.2%) over the past year, making it difficult to compare to the Diversified Financial industry average (21.3%).

Return on Equity

High ROE: PEN's Return on Equity (11.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Peninsula Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: PEN's short term assets (₪1.5B) exceed its short term liabilities (₪680.8M).

Long Term Liabilities: PEN's short term assets (₪1.5B) exceed its long term liabilities (₪296.8M).

Debt to Equity History and Analysis

Debt Level: PEN's net debt to equity ratio (167.9%) is considered high.

Reducing Debt: PEN's debt to equity ratio has reduced from 398.7% to 188% over the past 5 years.

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

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

Balance Sheet

Discover healthy companies

Dividend

What is Peninsula Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

7.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PEN's dividend (7.97%) is higher than the bottom 25% of dividend payers in the IL market (1.91%).

High Dividend: PEN's dividend (7.97%) is in the top 25% of dividend payers in the IL market (6.36%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PEN has been paying a dividend for less than 10 years.

Growing Dividend: PEN's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (63.8%), PEN's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: PEN 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?

5.0yrs

Average management tenure

CEO

Micah Avni (53 yo)

no data

Tenure

₪2,341,179

Compensation

Mr. Micah Lakin Avni serves as Chief Executive Officer of Peninsula Group Ltd and has been its Director since December 8, 2014. Mr. Avni served as a Venture Partner at Jerusalem Global Ventures. He began h...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Micah's total compensation is reasonable compared to companies of similar size in the IL market.

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

Leadership Team

Experienced Management: PEN's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: PEN's board of directors are considered experienced (6.8 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	2022/08/07 00:00
End of Day Share Price	2022/08/04 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31