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STG

STG InternationalTASE:STG Stock Report

Market Cap

₪79.0m

7D

-0.3%

1Y

11.0%

Updated

25 Oct, 2021

Data

Company Financials
STG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

STG Overview

STG International Ltd. operates as a reseller of electronic components, equipment, and systems in Israel.

STG International Competitors

Telsys

TASE:TLSY

₪898.7m

Price History & Performance

Summary of all time highs, changes and price drops for STG International
Historical stock prices
Current Share Price₪18.19
52 Week High₪15.50
52 Week Low₪25.90
Beta0.53
1 Month Change0.83%
3 Month Change-12.80%
1 Year Change10.98%
3 Year Change102.13%
5 Year Change122.62%
Change since IPO-96.80%

Recent News & Updates

Oct 03
The Return Trends At STG International (TLV:STG) Look Promising

The Return Trends At STG International (TLV:STG) Look Promising

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

Jun 10
We Think STG International (TLV:STG) Can Stay On Top Of Its Debt

We Think STG International (TLV:STG) Can Stay On Top Of Its Debt

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

May 18
Returns Are Gaining Momentum At STG International (TLV:STG)

Returns Are Gaining Momentum At STG International (TLV:STG)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

Mar 19
With EPS Growth And More, STG International (TLV:STG) Is Interesting

With EPS Growth And More, STG International (TLV:STG) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Jan 21
Will The ROCE Trend At STG International (TLV:STG) Continue?

Will The ROCE Trend At STG International (TLV:STG) Continue?

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Shareholder Returns

STGIL ElectronicIL Market
7D-0.3%-1.8%1.3%
1Y11.0%25.8%47.3%

Return vs Industry: STG underperformed the IL Electronic industry which returned 25.8% over the past year.

Return vs Market: STG underperformed the IL Market which returned 47.3% over the past year.

Price Volatility

Is STG's price volatile compared to industry and market?
STG volatility
STG Beta0.53
Industry Beta0.58
Market Beta1

Stable Share Price: STG is more volatile than 75% of IL stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: STG's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of IL stocks.

About the Company

FoundedEmployeesCEOWebsite
196559Shlomo Barhttps://www.stggroup.co.il

STG International Ltd. operates as a reseller of electronic components, equipment, and systems in Israel. The company offers embedded, connectivity, power, RF and passive, imaging and motion, cooling, and other systems. It serves defense, communication, security, medical, industrial, and semiconductor sectors.

STG International Fundamentals Summary

How do STG International's earnings and revenue compare to its market cap?
STG fundamental statistics
Market Cap₪79.00m
Earnings (TTM)₪3.29m
Revenue (TTM)₪97.19m

24.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STG income statement (TTM)
Revenue₪97.19m
Cost of Revenue₪74.72m
Gross Profit₪22.46m
Expenses₪19.17m
Earnings₪3.29m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.76
Gross Margin23.11%
Net Profit Margin3.39%
Debt/Equity Ratio11.5%

How did STG perform over the long term?

See historical performance and comparison

Valuation

Is STG International undervalued compared to its fair value and its price relative to the market?

24.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate STG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate STG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: STG is poor value based on its PE Ratio (24x) compared to the IL Electronic industry average (23.3x).

PE vs Market: STG is poor value based on its PE Ratio (24x) compared to the IL market (15x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STG is good value based on its PB Ratio (1x) compared to the IL Electronic industry average (2.5x).


Future Growth

How is STG International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.9%

Forecasted Tech 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 STG International 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.


Past Performance

How has STG International performed over the past 5 years?

53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STG has high quality earnings.

Growing Profit Margin: STG's current net profit margins (3.4%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: STG has become profitable over the past 5 years, growing earnings by 53% per year.

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

Earnings vs Industry: STG had negative earnings growth (-47.9%) over the past year, making it difficult to compare to the Electronic industry average (-1.1%).


Return on Equity

High ROE: STG's Return on Equity (3.7%) is considered low.


Financial Health

How is STG International's financial position?


Financial Position Analysis

Short Term Liabilities: STG's short term assets (₪79.8M) exceed its short term liabilities (₪30.1M).

Long Term Liabilities: STG's short term assets (₪79.8M) exceed its long term liabilities (₪4.0M).


Debt to Equity History and Analysis

Debt Level: STG's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if STG's debt to equity ratio has reduced over the past 5 years.

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

Interest Coverage: STG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is STG International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate STG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: STG is not paying a notable dividend for the IL market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STG's dividend in 3 years as they are not forecast to pay a notable one for the IL market.


Next Steps

Management

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

7.7yrs

Average board tenure


CEO

Shlomo Bar (84 yo)

56.75yrs

Tenure

₪720,000

Compensation

Mr. Shlomo Bar has been the Chief Executive Officer of STG International Ltd., since 1965.


CEO Compensation Analysis

Compensation vs Market: Shlomo's total compensation ($USD224.49K) is below average for companies of similar size in the IL market ($USD414.68K).

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


Board Members

Experienced Board: STG's board of directors are considered experienced (7.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

STG International Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: STG International Ltd.
  • Ticker: STG
  • Exchange: TASE
  • Founded: 1965
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: ₪78.997m
  • Shares outstanding: 4.34m
  • Website: https://www.stggroup.co.il

Number of Employees


Location

  • STG International Ltd.
  • 53 Derech Hashalom Street
  • Givatayim
  • 53454
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:16
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.