Strauss Group (TASE:STRS) - Share price, News & Analysis

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

STRS (₪92.04) is trading below our estimate of [[fair value]] (₪95.35)

STRS fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	2/6
Financial Health	4/6
Dividends	4/6

STRS Stock Overview

Strauss Group Ltd., together with its subsidiaries, develops, manufactures, markets, and sells various food and beverage products in Israel, North America, Brazil, Europe, and internationally.

Rewards

Trading at 3.5% below our estimate of its fair value

Earnings are forecast to grow 49.18% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Profit margins (5.7%) are lower than last year (9.8%)

Strauss Group Competitors

Neto Malinda Trading

TASE:NTML

₪2.6b

Neto M.E Holdings

TASE:NTO

₪664.6m

Zanlakol

TASE:ZNKL

₪264.3m

Gan Shmuel Foods

TASE:GSFI

₪261.1m

Price History & Performance

Summary of all time highs, changes and price drops for Strauss Group
Historical stock prices
Current Share Price	₪92.04
52 Week High	₪109.50
52 Week Low	₪80.00
Beta	0.27
1 Month Change	1.48%
3 Month Change	8.50%
1 Year Change	0.92%
3 Year Change	-17.67%
5 Year Change	38.82%
Change since IPO	791.86%

Recent News & Updates

Aug 08

Here's What's Concerning About Strauss Group's (TLV:STRS) Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jun 12

Is Strauss Group (TLV:STRS) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 01

Returns On Capital Are Showing Encouraging Signs At Strauss Group (TLV:STRS)

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

	STRS	IL Food	IL Market
7D	-0.03%	-0.3%	0.2%
1Y	0.9%	10.6%	15.7%

Return vs Industry: STRS underperformed the IL Food industry which returned 10.4% over the past year.

Return vs Market: STRS underperformed the IL Market which returned 16.8% over the past year.

Price Volatility

Is STRS's price volatile compared to industry and market?
STRS volatility
STRS Average Weekly Movement	3.5%
Food Industry Average Movement	4.1%
Market Average Movement	5.3%
10% most volatile stocks in IL Market	8.9%
10% least volatile stocks in IL Market	3.5%

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

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

About the Company

Founded	Employees	CEO	Website
1933	17,400	Giora Bardea	https://www.strauss-group.com

Strauss Group Ltd., together with its subsidiaries, develops, manufactures, markets, and sells various food and beverage products in Israel, North America, Brazil, Europe, and internationally. The company operates through six segments: Health & Wellness; Fun & Indulgence; Israel Coffee; International Coffee; International Dips & Spreads; and Strauss Water. The Health & Wellness segment provides yogurts, dairy desserts, dairy-free tahini desserts, soft cheeses, flavored milk beverages, chilled salads, cut vegetables, fresh pasta products, cereal and granola bars, honey products, olive oils, fruit preserves, cooking sauces, lemon juices, and natural maple syrups.

Strauss Group Fundamentals Summary

How do Strauss Group's earnings and revenue compare to its market cap?
STRS fundamental statistics
Market Cap	₪10.70b
Earnings (TTM)	₪345.00m
Revenue (TTM)	₪6.04b

31.0x

P/E Ratio

1.8x

P/S Ratio

Is STRS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STRS income statement (TTM)
Revenue	₪6.04b
Cost of Revenue	₪3.88b
Gross Profit	₪2.16b
Other Expenses	₪1.81b
Earnings	₪345.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)	2.97
Gross Margin	35.73%
Net Profit Margin	5.71%
Debt/Equity Ratio	90.0%

How did STRS perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

69%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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 STRS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STRS. This is calculated by dividing STRS's market cap by their current preferred multiple.
What is STRS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₪10.70b

STRS 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	2.1x
Enterprise Value/EBITDA	20.2x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

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

STRS PE Ratio vs Peers

The above table shows the PE ratio for STRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12x
NTML Neto Malinda Trading	14.3x	n/a	₪2.6b
NTO Neto M.E Holdings	7.6x	n/a	₪664.6m
ZNKL Zanlakol	13x	n/a	₪264.3m
GSFI Gan Shmuel Foods	13.1x	n/a	₪261.1m
STRS Strauss Group	31x	49.2%	₪10.7b

Price-To-Earnings vs Peers: STRS is expensive based on its Price-To-Earnings Ratio (31x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does STRS's PE Ratio compare vs other companies in the Asian Food Industry?

Price-To-Earnings vs Industry: STRS is expensive based on its Price-To-Earnings Ratio (31x) compared to the IL Food industry average (13x)

Price to Earnings Ratio vs Fair Ratio

What is STRS'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.

STRS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: STRS (₪92.04) is trading below our estimate of fair value (₪95.35)

Significantly Below Fair Value: STRS 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: Target price is less than 20% higher than the current share price.

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Future Growth

How is Strauss Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

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

49.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRS's forecast earnings growth (49.2% per year) is above the savings rate (1.5%).

Earnings vs Market: STRS's earnings (49.2% per year) are forecast to grow faster than the IL market (3.3% per year).

High Growth Earnings: STRS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STRS's revenue (27.1% per year) is forecast to grow faster than the IL market (5.8% per year).

High Growth Revenue: STRS's revenue (27.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if STRS's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Strauss Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

8.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STRS has high quality earnings.

Growing Profit Margin: STRS's current net profit margins (5.7%) are lower than last year (9.8%).

Past Earnings Growth Analysis

Earnings Trend: STRS's earnings have grown by 8.1% per year over the past 5 years.

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

Earnings vs Industry: STRS had negative earnings growth (-40.9%) over the past year, making it difficult to compare to the Food industry average (14.1%).

Return on Equity

High ROE: STRS's Return on Equity (16.3%) is considered low.

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Financial Health

How is Strauss Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: STRS's short term assets (₪2.4B) do not cover its short term liabilities (₪2.4B).

Long Term Liabilities: STRS's short term assets (₪2.4B) exceed its long term liabilities (₪2.1B).

Debt to Equity History and Analysis

Debt Level: STRS's net debt to equity ratio (70.6%) is considered high.

Reducing Debt: STRS's debt to equity ratio has reduced from 131.5% to 90% over the past 5 years.

Debt Coverage: STRS's debt is well covered by operating cash flow (27.1%).

Interest Coverage: STRS's interest payments on its debt are well covered by EBIT (8.3x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

2.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: STRS's dividend (2.71%) is higher than the bottom 25% of dividend payers in the IL market (1.83%).

High Dividend: STRS's dividend (2.71%) is low compared to the top 25% of dividend payers in the IL market (6.17%).

Stability and Growth of Payments

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

Growing Dividend: STRS's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (69.1%), STRS's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (86.6%), STRS's dividend payments are covered by cash flows.

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Management

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

3.3yrs

Average management tenure

CEO

Giora Bardea (69 yo)

4.08yrs

Tenure

₪7,161,000

Compensation

Mr. Giora Bardea has been President and Chief Executive Officer at Strauss Group Ltd. since September 5, 2018. Mr. Bardea was Acting Chief Executive Officer of Strauss Group Ltd.since July 9, 2018 until S...

CEO Compensation Analysis

Compensation vs Market: Giora's total compensation ($USD2.20M) is about average for companies of similar size in the IL market ($USD1.75M).

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

Leadership Team

Experienced Management: STRS's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: STRS's board of directors are seasoned and experienced ( 10.1 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	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31