NasdaqGM:OBAS

Stock Analysis Report

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Executive Summary

Optibase Ltd., together with its subsidiaries, operates in the fixed-income real estate sector in Luxemburg, Switzerland, Germany, and the United States. More Details


Snowflake Analysis

Mediocre balance sheet with questionable track record.

Share Price & News

How has Optibase's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.0%

OBAS

-0.3%

US Real Estate

-5.3%

US Market


1 Year Return

2.5%

OBAS

-16.9%

US Real Estate

10.4%

US Market

Return vs Industry: OBAS exceeded the US Real Estate industry which returned -14.8% over the past year.

Return vs Market: OBAS underperformed the US Market which returned 12% over the past year.


Shareholder returns

OBASIndustryMarket
7 Day4.0%-0.3%-5.3%
30 Day-1.7%8.7%-2.1%
90 Day-3.8%15.0%1.7%
1 Year2.5%2.5%-14.7%-16.9%12.9%10.4%
3 Year34.2%34.2%-10.5%-17.2%34.3%25.4%
5 Year54.1%54.1%-9.1%-19.2%73.7%54.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OBAS ($11.55) is trading below our estimate of fair value ($12.55)

Significantly Below Fair Value: OBAS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OBAS is poor value based on its PE Ratio (213.8x) compared to the US Real Estate industry average (34.9x).

PE vs Market: OBAS is poor value based on its PE Ratio (213.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OBAS's PB Ratio (1.1x) is in line with the US Real Estate industry average.


Next Steps

Future Growth

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

65.9%

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 Optibase 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.


Next Steps

Past Performance

How has Optibase performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OBAS has a large one-off gain of $2.3M impacting its June 30 2020 financial results.

Growing Profit Margin: OBAS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: OBAS has become profitable over the past 5 years, growing earnings by -38.3% per year.

Accelerating Growth: OBAS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OBAS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (16.8%).


Return on Equity

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


Next Steps

Financial Health

How is Optibase's financial position?


Financial Position Analysis

Short Term Liabilities: OBAS's short term assets ($44.8M) exceed its short term liabilities ($34.5M).

Long Term Liabilities: OBAS's short term assets ($44.8M) do not cover its long term liabilities ($128.6M).


Debt to Equity History and Analysis

Debt Level: OBAS's debt to equity ratio (152.2%) is considered high.

Reducing Debt: OBAS's debt to equity ratio has reduced from 178% to 152.2% over the past 5 years.

Debt Coverage: OBAS's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: OBAS's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Optibase current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OBAS'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 OBAS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Amir Philips (52 yo)

9.25yrs

Tenure

US$362,700

Compensation

Mr. Amir Philips has been the Chief Executive Officer of Optibase Ltd. since June 1, 2011. Mr. Philips served as the Chief Financial Officer of Optibase Ltd. since May 15, 2007 until June 2011 and served a ...


CEO Compensation Analysis

Compensation vs Market: Amir's total compensation ($USD362.70K) is below average for companies of similar size in the US market ($USD593.13K).

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


Board Members

NamePositionTenureCompensationOwnership
Alex Hilmann
Executive Chairman11yrsUS$78.80k0.40%
$ 240.9k
Danny Lustiger
Director11yrsUS$35.00k0.10%
$ 60.2k
Tali Yaron-Eldar
Independent External Director0.75yrno datano data
Reuwen Schwarz
Director6.25yrsUS$58.70kno data
Haim Ben-Simon
Independent External Director0.83yrno datano data

6.3yrs

Average Tenure

57yo

Average Age

Experienced Board: OBAS's board of directors are considered experienced (6.3 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.


Top Shareholders

Company Information

Optibase Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Optibase Ltd.
  • Ticker: OBAS
  • Exchange: NasdaqGM
  • Founded: 1990
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: US$60.015m
  • Shares outstanding: 5.20m
  • Website: https://www.optibase-holdings.com

Number of Employees


Location

  • Optibase Ltd.
  • 8 Hamenofim Street
  • Herzliya
  • 4672559
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OBASNasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDApr 1999
OP4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1999
OBASTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSApr 1999

Biography

Optibase Ltd., together with its subsidiaries, operates in the fixed-income real estate sector in Luxemburg, Switzerland, Germany, and the United States. It purchases and operates real estate properties in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:55
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.