S.R. Accord (TASE:SRAC) - Share price, News & Analysis

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

SRAC (₪52) is trading below our estimate of [[fair value]] (₪80.74)

SRAC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	2/6
Dividends	2/6

SRAC Stock Overview

S.R. Accord Ltd. provides credit and non-bank financing services in Israel.

Rewards

Trading at 35.6% below our estimate of its fair value

Earnings have grown 23.8% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 4.54% is not well covered by earnings

S.R. Accord Competitors

Menif Financial Services

TASE:MNIF

₪673.1m

Peninsula Group

TASE:PEN

₪540.3m

Michlol Finance

TASE:MCLL

₪387.9m

Opal Balance Investments

TASE:OPAL

₪282.4m

Price History & Performance

Summary of all time highs, changes and price drops for S.R. Accord
Historical stock prices
Current Share Price	₪52.00
52 Week High	₪63.35
52 Week Low	₪48.35
Beta	0.31
1 Month Change	0.68%
3 Month Change	-5.09%
1 Year Change	-14.19%
3 Year Change	51.12%
5 Year Change	180.48%
Change since IPO	-99.99%

Recent News & Updates

May 10

Is Now The Time To Put S.R. Accord (TLV:SRAC) On Your Watchlist?

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

Jan 28

Do Institutions Own S.R. Accord Ltd. (TLV:SRAC) Shares?

The big shareholder groups in S.R. Accord Ltd. ( TLV:SRAC ) have power over the company. Generally speaking, as a...

Shareholder Returns

	SRAC	IL Diversified Financial	IL Market
7D	5.0%	2.7%	0.9%
1Y	-14.2%	-16.6%	13.5%

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

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

Price Volatility

Is SRAC's price volatile compared to industry and market?
SRAC volatility
SRAC Average Weekly Movement	4.0%
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: SRAC is less volatile than 75% of IL stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
n/a	44	Gil Hochboim	https://www.sr-accord.com

S.R. Accord Ltd. provides credit and non-bank financing services in Israel. The company offers check discounting, real estate financing, bridging loans, and line of credit; funding for infrastructure projects, renewal and growth, and public companies; guarantees for project execution; currency services; and financing the evacuation of construction, as well as business financial support services. It serves corporations, licensed dealers, partnerships, and businessmen.

S.R. Accord Fundamentals Summary

How do S.R. Accord's earnings and revenue compare to its market cap?
SRAC fundamental statistics
Market Cap	₪704.38m
Earnings (TTM)	₪74.50m
Revenue (TTM)	₪117.84m

9.5x

P/E Ratio

6.0x

P/S Ratio

Is SRAC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRAC income statement (TTM)
Revenue	₪117.84m
Cost of Revenue	₪0
Gross Profit	₪117.84m
Other Expenses	₪43.35m
Earnings	₪74.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.50
Gross Margin	100.00%
Net Profit Margin	63.22%
Debt/Equity Ratio	357.5%

How did SRAC perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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 SRAC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SRAC. This is calculated by dividing SRAC's market cap by their current preferred multiple.
What is SRAC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₪704.38m

SRAC 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 SRAC's PE Ratio compare to its peers?

SRAC PE Ratio vs Peers

The above table shows the PE ratio for SRAC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.1x
MNIF Menif Financial Services	11.9x	n/a	₪673.1m
PEN Peninsula Group	9.3x	n/a	₪540.3m
MCLL Michlol Finance	33.3x	n/a	₪387.9m
OPAL Opal Balance Investments	9.9x	n/a	₪282.4m
SRAC S.R. Accord	9.5x	n/a	₪704.4m

Price-To-Earnings vs Peers: SRAC is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: SRAC is good value based on its Price-To-Earnings Ratio (9.5x) compared to the IL Diversified Financial industry average (11.9x)

Price to Earnings Ratio vs Fair Ratio

What is SRAC'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.

SRAC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.5x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: SRAC (₪52) is trading below our estimate of fair value (₪80.74)

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

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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Future Growth

How is S.R. Accord 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

12.1%

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 S.R. Accord 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.

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Examine whether S.R. Accord 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 S.R. Accord 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

23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SRAC has high quality earnings.

Growing Profit Margin: SRAC's current net profit margins (63.2%) are higher than last year (62%).

Past Earnings Growth Analysis

Earnings Trend: SRAC's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: SRAC's earnings growth over the past year (21.3%) is below its 5-year average (23.8% per year).

Earnings vs Industry: SRAC earnings growth over the past year (21.3%) underperformed the Diversified Financial industry 21.3%.

Return on Equity

High ROE: Whilst SRAC's Return on Equity (25.18%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is S.R. Accord'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: SRAC's short term assets (₪1.4B) exceed its short term liabilities (₪914.2M).

Long Term Liabilities: SRAC's short term assets (₪1.4B) exceed its long term liabilities (₪197.4M).

Debt to Equity History and Analysis

Debt Level: SRAC's net debt to equity ratio (334.1%) is considered high.

Reducing Debt: SRAC's debt to equity ratio has increased from 158.5% to 357.5% over the past 5 years.

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

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

Balance Sheet

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Dividend

What is S.R. Accord 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
Cash Flow Coverage

4.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SRAC's dividend (4.54%) is higher than the bottom 25% of dividend payers in the IL market (1.91%).

High Dividend: SRAC's dividend (4.54%) is low compared to the top 25% of dividend payers in the IL market (6.36%).

Stability and Growth of Payments

Stable Dividend: SRAC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SRAC's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.6%), SRAC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

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

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Management

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

2.3yrs

Average management tenure

CEO

Gil Hochboim (53 yo)

2.25yrs

Tenure

₪1,085,000

Compensation

Mr. Gil Hochboim serves as Chief Executive Officer and Director of S.R. Accord Ltd. since May 19, 2020.Mr. Hochboim served as the Chief Financial Officer of S.R. Accord Ltd. Mr. Hochboim serves as Company...

CEO Compensation Analysis

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

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

Leadership Team

Experienced Management: SRAC's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: SRAC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

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	2022/08/06 00:00
End of Day Share Price	2022/08/04 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31