OTCPK:ISDA.Y

Stock Analysis Report

Executive Summary

Israel Discount Bank Limited, together with its subsidiaries, provides various banking and financial services in Israel, Europe, North America, and South America.

Rewards

PE ratio (10.8x) is below the US market (18.4x)

Earnings are forecast to grow 12.56% per year

Earnings have grown 23.3% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Israel Discount Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ISDA.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

ISDA.Y

2.7%

US Banks

1.1%

US Market


1 Year Return

40.9%

ISDA.Y

22.7%

US Banks

17.8%

US Market

Return vs Industry: ISDA.Y exceeded the US Banks industry which returned 22.7% over the past year.

Return vs Market: ISDA.Y exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

ISDA.YIndustryMarket
7 Day1.7%2.7%1.1%
30 Day5.4%0.9%1.4%
90 Day9.8%10.0%3.9%
1 Year42.0%40.9%26.3%22.7%20.3%17.8%
3 Yearn/a31.8%22.6%44.8%35.4%
5 Yearn/a80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is Israel Discount Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Israel Discount Bank undervalued compared to its fair value and its price relative to the market?

10.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISDA.Y ($46.29) is trading above our estimate of fair value ($41.4)

Significantly Below Fair Value: ISDA.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ISDA.Y is good value based on its PE Ratio (10.8x) compared to the Banks industry average (12.7x).

PE vs Market: ISDA.Y is good value based on its PE Ratio (10.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ISDA.Y is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ISDA.Y is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Israel Discount Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISDA.Y's forecast earnings growth (12.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ISDA.Y's earnings (12.6% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ISDA.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: ISDA.Y's revenue (9.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ISDA.Y's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISDA.Y's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Israel Discount Bank performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISDA.Y has high quality earnings.

Growing Profit Margin: ISDA.Y's current net profit margins (19.1%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: ISDA.Y's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: ISDA.Y's earnings growth over the past year (20.1%) is below its 5-year average (23.3% per year).

Earnings vs Industry: ISDA.Y earnings growth over the past year (20.1%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: ISDA.Y's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Israel Discount Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ISDA.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: ISDA.Y's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

Asset Level: ISDA.Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: ISDA.Y has a sufficient allowance for bad loans.

Low Risk Liabilities: ISDA.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: ISDA.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ISDA.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: ISDA.Y has an appropriate level of bad loans (0.63%)


Next Steps

Dividend

What is Israel Discount Bank's current dividend yield, its reliability and sustainability?

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: ISDA.Y's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ISDA.Y's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ISDA.Y has been paying a dividend for less than 10 years.

Growing Dividend: ISDA.Y's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.7%), ISDA.Y's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ISDA.Y's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

What is the CEO of Israel Discount Bank's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Uri Levin (47yo)

0yrs

Tenure

₪7,337,000

Compensation

Mr. Uri Levin has been Chief Executive Officer at Israel Discount Bank Ltd. since December 2, 2019. Mr. Levin brings years of experience in the Global Financial Industry to the role, including time as Chie ...


CEO Compensation Analysis

Compensation vs Market: Uri's total compensation ($USD2.11M) is below average for companies of similar size in the US market ($USD6.70M).

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


Management Age and Tenure

5.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: ISDA.Y's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

68yo

Average Age

Experienced Board: ISDA.Y's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Janet De Silva (59yo)

    President & CEO

    • Tenure: 1.2yrs
  • Yuval Gavish (61yo)

    Head of Banking Division & Senior EVP

    • Tenure: 8.9yrs
    • Compensation: ₪2.73m
  • Lilach Asher-Topilsky (49yo)

    President

    • Tenure: 5.8yrs
    • Compensation: ₪3.57m
  • Orit Alster (54yo)

    Head of Corporate Banking Division & Executive VP & Deputy CEO

    • Tenure: 8.8yrs
    • Compensation: ₪2.60m
  • Lissa Baum

    Head of the Corporate Division - IDB New York and Executive Vice President of IDB New York

    • Tenure: 0yrs
    • Compensation: ₪4.06m
  • Uri Levin (47yo)

    Chief Executive Officer

    • Tenure: 0yrs
    • Compensation: ₪7.34m
  • Yafit Gheriani (51yo)

    Head of Human Resources & Properties Division and Executive VP

    • Tenure: 5.7yrs
    • Compensation: ₪2.57m
  • Asaf Pasternak

    Executive VP & Head of the Financial Markets Division

    • Tenure: 1.9yrs
    • Compensation: ₪3.07m
  • Yakki Zano

    Executive VP and Head of the Technologies & Operations Division

    • Tenure: 1.2yrs
  • Dan Trister

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: ₪2.96m

Board Members

  • Ben-Zion Silverfarb (69yo)

    External Director

    • Tenure: 1.3yrs
  • Shalom-Yosef Hochman (72yo)

    External Director

    • Tenure: 1.3yrs
  • Yaakov Lifshitz (75yo)

    External Director

    • Tenure: 1.8yrs
  • Yodfat Buchris (47yo)

    Director

    • Tenure: 3.8yrs
  • Shaul Kobrinsky (67yo)

    Chairman

    • Tenure: 1yrs
    • Compensation: ₪8.27m
  • Iris Avner (54yo)

    External Director

    • Tenure: 1.8yrs
  • Baruch Lederman (67yo)

    External Director

    • Tenure: 5.1yrs
  • Miri Katz (68yo)

    Director

    • Tenure: 2.8yrs
  • Aharon Abramovich (68yo)

    External Director

    • Tenure: 2.2yrs
  • Reuven Adler (70yo)

    Director

    • Tenure: 1.3yrs

Company Information

Israel Discount Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Israel Discount Bank Limited
  • Ticker: ISDA.Y
  • Exchange: OTCPK
  • Founded: 1935
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₪18.473b
  • Listing Market Cap: ₪5.311b
  • Shares outstanding: 1.16b
  • Website: https://www.discountbank.co.il

Number of Employees


Location

  • Israel Discount Bank Limited
  • 23 Yehuda Halevi Street
  • Tel Aviv
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DSCTTASE (The Tel-Aviv Stock Exchange)YesOrdinary A SharesILILSApr 1996
ISDA.FOTCPK (Pink Sheets LLC)YesOrdinary A SharesUSUSDApr 1996
ISDA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Israel Discount Bank Limited, together with its subsidiaries, provides various banking and financial services in Israel, Europe, North America, and South America. The company operates through Retail Bankin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:21
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.