BIG Shopping Centers (TASE:BIG) - Share price, News & Analysis

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

BIG Stock Overview

BIG Shopping Centers Ltd invests in, develops, operates, and manages shopping centers and malls primarily in Israel, the United States, and Serbia.

Rewards

Trading at 39.1% below our estimate of its fair value

Earnings grew by 501.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year

BIG Shopping Centers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BIG Shopping Centers
Historical stock prices
Current Share Price	₪419.20
52 Week High	₪523.70
52 Week Low	₪374.60
Beta	0.51
1 Month Change	-6.39%
3 Month Change	-15.87%
1 Year Change	1.23%
3 Year Change	62.61%
5 Year Change	69.03%
Change since IPO	384.62%

Recent News & Updates

Jun 18

Here's Why BIG Shopping Centers (TLV:BIG) Has Caught The Eye Of Investors

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

May 31

BIG Shopping Centers (TLV:BIG) Takes On Some Risk With Its Use Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Feb 20

Here's Why BIG Shopping Centers (TLV:BIG) Has A Meaningful Debt Burden

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	BIG	IL Real Estate	IL Market
7D	10.9%	9.2%	4.0%
1Y	1.2%	6.5%	7.1%

Return vs Industry: BIG underperformed the IL Real Estate industry which returned 6.5% over the past year.

Return vs Market: BIG underperformed the IL Market which returned 7.1% over the past year.

Price Volatility

Is BIG's price volatile compared to industry and market?
BIG volatility
BIG Average Weekly Movement	4.9%
Real Estate Industry Average Movement	6.1%
Market Average Movement	5.7%
10% most volatile stocks in IL Market	8.8%
10% least volatile stocks in IL Market	3.7%

Stable Share Price: BIG is not significantly more volatile than the rest of IL stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BIG's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	n/a	Hay Galis	https://www.bigcenters.co.il

BIG Shopping Centers Ltd invests in, develops, operates, and manages shopping centers and malls primarily in Israel, the United States, and Serbia. The company also develops logistics, offices, energy, and residential projects. It owns and manages 26 shopping centers and malls in Israel, 25 shopping centers in the United States, and 11 shopping centers in Serbia, as well as 3 logistics centers in France.

BIG Shopping Centers Fundamentals Summary

How do BIG Shopping Centers's earnings and revenue compare to its market cap?
BIG fundamental statistics
Market Cap	₪8.87b
Earnings (TTM)	₪1.15b
Revenue (TTM)	₪2.21b

7.7x

P/E Ratio

4.0x

P/S Ratio

Is BIG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BIG income statement (TTM)
Revenue	₪2.21b
Cost of Revenue	₪663.06m
Gross Profit	₪1.54b
Other Expenses	₪394.47m
Earnings	₪1.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	54.33
Gross Margin	69.97%
Net Profit Margin	52.10%
Debt/Equity Ratio	183.2%

How did BIG perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

17%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BIG 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 BIG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BIG. This is calculated by dividing BIG's market cap by their current preferred multiple.
What is BIG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₪8.87b

BIG 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	11.6x
Enterprise Value/EBITDA	19.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

BIG PE Ratio vs Peers

The above table shows the PE ratio for BIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.7x

Forward PE

Price-To-Earnings vs Peers: BIG is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (6.7x).

Price to Earnings Ratio vs Industry

How does BIG's PE Ratio compare vs other companies in the Israeli Real Estate Industry?

Price-To-Earnings vs Industry: BIG is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the IL Real Estate industry average (7.7x)

Price to Earnings Ratio vs Fair Ratio

What is BIG'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.

BIG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.7x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: BIG (₪419.2) is trading below our estimate of fair value (₪688.16)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is BIG Shopping Centers 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

12.6%

Forecasted Real Estate 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 BIG Shopping Centers 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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Check out BIG Shopping Centers's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has BIG Shopping Centers performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BIG has a large one-off gain of ₪1.1B impacting its March 31 2022 financial results.

Growing Profit Margin: BIG's current net profit margins (52.1%) are higher than last year (19.6%).

Past Earnings Growth Analysis

Earnings Trend: BIG's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: BIG's earnings growth over the past year (501.6%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: BIG earnings growth over the past year (501.6%) exceeded the Real Estate industry 139.6%.

Return on Equity

High ROE: BIG's Return on Equity (16.6%) is considered low.

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Financial Health

How is BIG Shopping Centers's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

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

Financial Position Analysis

Short Term Liabilities: BIG's short term assets (₪2.4B) do not cover its short term liabilities (₪2.5B).

Long Term Liabilities: BIG's short term assets (₪2.4B) do not cover its long term liabilities (₪15.8B).

Debt to Equity History and Analysis

Debt Level: BIG's net debt to equity ratio (168%) is considered high.

Reducing Debt: BIG's debt to equity ratio has increased from 130% to 183.2% over the past 5 years.

Debt Coverage: BIG's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: BIG's interest payments on its debt are not well covered by EBIT (2.5x coverage).

Balance Sheet

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Dividend

What is BIG Shopping Centers's 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
Future Dividend Coverage

2.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BIG's dividend (2.26%) is higher than the bottom 25% of dividend payers in the IL market (2.06%).

High Dividend: BIG's dividend (2.26%) is low compared to the top 25% of dividend payers in the IL market (6.24%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.2%), BIG's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.3%), BIG's dividend payments are well covered by cash flows.

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Management

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

6.0yrs

Average management tenure

CEO

Hay Galis (45 yo)

2.92yrs

Tenure

₪3,110,000

Compensation

Mr. Hay Galis has been serves as Chief Executive Officer at BIG Shopping Centers Ltd since July 1, 2019. Mr. Galis served as Deputy Chief Executive Officer of Big Shopping Centers, Ltd. since July 2016 unt...

CEO Compensation Analysis

Compensation vs Market: Hay's total compensation ($USD900.64K) is below average for companies of similar size in the IL market ($USD1.35M).

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

Leadership Team

Experienced Management: BIG's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: BIG's board of directors are considered experienced (4.7 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 been diluted in the past year, with total shares outstanding growing by 3.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31