N.R. Spuntech Industries (TASE:SPNTC) - Share price, News & Analysis

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

SPNTC (₪4.97) is trading below our estimate of [[fair value]] (₪21.52)

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

SPNTC Stock Overview

N.R. Spuntech Industries Ltd. produces non-woven fabrics in Israel.

Rewards

Trading at 76.9% below our estimate of its fair value

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 24.15% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (3.2%) are lower than last year (14.1%)

Does not have a meaningful market cap (₪330M)

N.R. Spuntech Industries Competitors

Shalag Industries

TASE:SALG

₪405.8m

TopGum Industries

TASE:TPGM

₪881.8m

Primotec Group

TASE:PRMG

₪290.8m

Kohinoor Chemical Company (Bangladesh)

DSE:KOHINOOR

৳9.5b

Price History & Performance

Summary of all time highs, changes and price drops for N.R. Spuntech Industries
Historical stock prices
Current Share Price	₪4.97
52 Week High	₪9.50
52 Week Low	₪4.90
Beta	0.25
1 Month Change	-11.80%
3 Month Change	-16.22%
1 Year Change	-43.52%
3 Year Change	-45.10%
5 Year Change	-53.65%
Change since IPO	44.74%

Recent News & Updates

Nov 17

N.R. Spuntech Industries (TLV:SPNTC) Is Investing Its Capital With Increasing Efficiency

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

	SPNTC	IL Personal Products	IL Market
7D	0.6%	3.3%	1.6%
1Y	-43.5%	-21.6%	9.5%

Return vs Industry: SPNTC underperformed the IL Personal Products industry which returned -21.1% over the past year.

Return vs Market: SPNTC underperformed the IL Market which returned 9.5% over the past year.

Price Volatility

Is SPNTC's price volatile compared to industry and market?
SPNTC volatility
SPNTC Average Weekly Movement	3.5%
Personal Products Industry Average Movement	6.1%
Market Average Movement	5.6%
10% most volatile stocks in IL Market	9.0%
10% least volatile stocks in IL Market	3.6%

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

Volatility Over Time: SPNTC's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	402	Hezi Nissan	https://www.spuntech.com

N.R. Spuntech Industries Ltd. produces non-woven fabrics in Israel. The company offers dry, disinfecting, hard surface scrubbing, window, bathroom, automobile, and glass wipes for use in household applications; medical swabs and gauzes, bleach wipes, bandages and tapes, germicidal wipes, and medicated wipes for medical applications; pads, face masks, make-up removal, soap impregnated facial, and feminine hygiene wipes for cosmetic and feminine care applications; baby wipes; commercial multipurpose wipes for use in industrial facilities and restaurants; and HVAC filters and hard surface scrubbing wipes for industrial applications. The company markets its products in approximately 30 countries worldwide.

N.R. Spuntech Industries Fundamentals Summary

How do N.R. Spuntech Industries's earnings and revenue compare to its market cap?
SPNTC fundamental statistics
Market Cap	₪329.92m
Earnings (TTM)	₪21.52m
Revenue (TTM)	₪672.73m

15.3x

P/E Ratio

0.5x

P/S Ratio

Is SPNTC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPNTC income statement (TTM)
Revenue	₪672.73m
Cost of Revenue	₪557.91m
Gross Profit	₪114.83m
Other Expenses	₪93.31m
Earnings	₪21.52m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.32
Gross Margin	17.07%
Net Profit Margin	3.20%
Debt/Equity Ratio	89.8%

How did SPNTC perform over the long term?

See historical performance and comparison

Dividends

24.1%

Current Dividend Yield

181%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SPNTC 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
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SPNTC. This is calculated by dividing SPNTC's market cap by their current preferred multiple.
What is SPNTC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₪329.92m

SPNTC 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	0.8x
Enterprise Value/EBITDA	9.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

SPNTC PE Ratio vs Peers

The above table shows the PE ratio for SPNTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	51.7x
SALG Shalag Industries	21.9x	n/a	₪405.8m
TPGM TopGum Industries	135.4x	n/a	₪881.8m
PRMG Primotec Group	11.2x	n/a	₪290.8m
KOHINOOR Kohinoor Chemical Company (Bangladesh)	38.3x	n/a	৳9.5b
SPNTC N.R. Spuntech Industries	15.3x	n/a	₪329.9m

Forward PE

Price-To-Earnings vs Peers: SPNTC is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (51.7x).

Price to Earnings Ratio vs Industry

How does SPNTC's PE Ratio compare vs other companies in the Asian Personal Products Industry?

Price-To-Earnings vs Industry: SPNTC is good value based on its Price-To-Earnings Ratio (15.3x) compared to the Asian Personal Products industry average (24.4x)

Price to Earnings Ratio vs Fair Ratio

What is SPNTC'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.

SPNTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.3x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: SPNTC (₪4.97) is trading below our estimate of fair value (₪21.52)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is N.R. Spuntech Industries 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

14.5%

Forecasted Household 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 N.R. Spuntech Industries 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 N.R. Spuntech Industries 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 N.R. Spuntech Industries 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

23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPNTC has high quality earnings.

Growing Profit Margin: SPNTC's current net profit margins (3.2%) are lower than last year (14.1%).

Past Earnings Growth Analysis

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

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

Earnings vs Industry: SPNTC had negative earnings growth (-78.7%) over the past year, making it difficult to compare to the Personal Products industry average (10.6%).

Return on Equity

High ROE: SPNTC's Return on Equity (8.2%) is considered low.

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Financial Health

How is N.R. Spuntech Industries'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: SPNTC's short term assets (₪288.7M) exceed its short term liabilities (₪202.0M).

Long Term Liabilities: SPNTC's short term assets (₪288.7M) exceed its long term liabilities (₪206.5M).

Debt to Equity History and Analysis

Debt Level: SPNTC's net debt to equity ratio (72.7%) is considered high.

Reducing Debt: SPNTC's debt to equity ratio has reduced from 185.6% to 89.8% over the past 5 years.

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

Interest Coverage: SPNTC's interest payments on its debt are well covered by EBIT (4.9x coverage).

Balance Sheet

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Dividend

What is N.R. Spuntech Industries's 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

24.15%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SPNTC's dividend (24.15%) is higher than the bottom 25% of dividend payers in the IL market (2.03%).

High Dividend: SPNTC's dividend (24.15%) is in the top 25% of dividend payers in the IL market (6.18%)

Stability and Growth of Payments

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

Growing Dividend: SPNTC's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (181%), SPNTC's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SPNTC 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?

8.4yrs

Average management tenure

CEO

Hezi Nissan (64 yo)

3.42yrs

Tenure

₪1,422,000

Compensation

Mr. Hezi Yeheskel Nissan serves as Chief Executive Officer of Nissan Medical Industries Ltd. Mr. Nissan served as the Chairman of N.R. Spuntech Industries Ltd.since 1996 until August 2019 and also serves...

CEO Compensation Analysis

Compensation vs Market: Hezi's total compensation ($USD410.92K) is about average for companies of similar size in the IL market ($USD405.85K).

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

Leadership Team

Experienced Management: SPNTC's management team is seasoned and experienced (8.4 years average tenure).

Board Members

Experienced Board: SPNTC's board of directors are seasoned and experienced ( 10.3 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	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31