Migdal Insurance and Financial Holdings Ltd. (TLV:MGDL) Might Not Be As Mispriced As It Looks
May 14
Israeli (TA) Financials Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies72
- 7D-2.3%
- 3M1.4%
- 1Y1.0%
- YTD-1.4%
Over the last 7 days, the Financials industry has dropped 2.3%, driven by pullbacks in Bank Hapoalim B.M and Mizrahi Tefahot Bank of 2.6% and 2.9%, respectively. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to decline by 1.1% per year.
Sector Valuation and Performance
Has the Israeli Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | ₪222.5b | ₪220.1b | ₪32.5b | 7.8x | 6.9x | 1x |
| Tue, 16 Apr 2024 | ₪221.0b | ₪218.2b | ₪32.3b | 7.9x | 6.8x | 1x |
| Thu, 14 Mar 2024 | ₪222.6b | ₪213.0b | ₪32.0b | 8x | 7x | 1x |
| Sat, 10 Feb 2024 | ₪215.2b | ₪214.1b | ₪32.1b | 7.9x | 6.7x | 1x |
| Mon, 08 Jan 2024 | ₪224.5b | ₪214.4b | ₪32.1b | 7.4x | 7x | 1x |
| Wed, 06 Dec 2023 | ₪216.2b | ₪214.2b | ₪32.1b | 6.8x | 6.7x | 1x |
| Fri, 03 Nov 2023 | ₪206.8b | ₪199.9b | ₪32.3b | 6.3x | 6.4x | 1x |
| Sun, 01 Oct 2023 | ₪233.3b | ₪199.9b | ₪32.3b | 7.2x | 7.2x | 1.2x |
| Tue, 29 Aug 2023 | ₪221.8b | ₪187.7b | ₪32.0b | 7.7x | 6.9x | 1.2x |
| Thu, 27 Jul 2023 | ₪221.7b | ₪152.6b | ₪29.1b | 7.5x | 7.6x | 1.5x |
| Sat, 24 Jun 2023 | ₪216.6b | ₪152.6b | ₪29.1b | 7.7x | 7.5x | 1.4x |
| Mon, 22 May 2023 | ₪221.4b | ₪142.0b | ₪31.8b | 7.9x | 7x | 1.6x |
| Wed, 19 Apr 2023 | ₪199.8b | ₪144.4b | ₪31.6b | 7.5x | 6.3x | 1.4x |
| Fri, 17 Mar 2023 | ₪203.1b | ₪148.0b | ₪31.3b | 7x | 6.5x | 1.4x |
| Sun, 12 Feb 2023 | ₪206.0b | ₪144.4b | ₪29.2b | 7.2x | 7.1x | 1.4x |
| Tue, 10 Jan 2023 | ₪215.4b | ₪144.3b | ₪29.2b | 7.5x | 7.4x | 1.5x |
| Thu, 08 Dec 2022 | ₪220.8b | ₪146.8b | ₪29.3b | 7.7x | 7.5x | 1.5x |
| Sat, 05 Nov 2022 | ₪234.7b | ₪156.2b | ₪27.3b | 8.7x | 8.6x | 1.5x |
| Mon, 03 Oct 2022 | ₪213.4b | ₪156.1b | ₪27.2b | 8.7x | 7.9x | 1.4x |
| Wed, 31 Aug 2022 | ₪247.6b | ₪196.1b | ₪30.1b | 9.3x | 8.2x | 1.3x |
| Fri, 29 Jul 2022 | ₪224.8b | ₪196.5b | ₪30.0b | 8.9x | 7.5x | 1.1x |
| Sun, 26 Jun 2022 | ₪212.8b | ₪196.3b | ₪29.9b | 9x | 7.1x | 1.1x |
| Tue, 24 May 2022 | ₪225.1b | ₪213.4b | ₪27.1b | 9x | 8.3x | 1.1x |
| Thu, 21 Apr 2022 | ₪249.0b | ₪214.7b | ₪27.3b | 10.2x | 9.1x | 1.2x |
| Sat, 19 Mar 2022 | ₪234.7b | ₪219.5b | ₪27.1b | 10.2x | 8.7x | 1.1x |
| Mon, 14 Feb 2022 | ₪237.4b | ₪217.8b | ₪25.9b | 9.9x | 9.2x | 1.1x |
| Wed, 12 Jan 2022 | ₪245.0b | ₪217.8b | ₪25.9b | 10.4x | 9.5x | 1.1x |
| Fri, 10 Dec 2021 | ₪224.6b | ₪217.7b | ₪25.9b | 9.7x | 8.7x | 1x |
| Sun, 07 Nov 2021 | ₪224.0b | ₪216.6b | ₪23.9b | 11.3x | 9.4x | 1x |
| Tue, 05 Oct 2021 | ₪204.5b | ₪216.4b | ₪23.8b | 9.8x | 8.6x | 0.9x |
| Thu, 02 Sep 2021 | ₪200.3b | ₪215.9b | ₪23.6b | 10.5x | 8.5x | 0.9x |
| Sat, 31 Jul 2021 | ₪186.9b | ₪215.9b | ₪23.6b | 9.6x | 7.9x | 0.9x |
Price to Earnings Ratio
10.2x
Current Industry PE
- Investors are pessimistic on the Israeli Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 6.9x which is lower than its 3-year average PE of 7.8x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 1.0x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 20% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Israeli Financials sector?
| IL Market | -2.67% | |
| Financials | -2.35% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Capital Markets | -1.38% | |
| Insurance | -2.14% | |
| Banks | -2.44% | |
| Diversified Financial | -2.53% | |
| Consumer Finance | -2.86% | |
Industry PE
- Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 10.3x.
- Analysts are expecting annual earnings growth of 24.4%, which is higher than its past year's earnings decline of 12.7% per year.
- Investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 7.6x.
Forecasted Growth
- Analysts are most optimistic on the Insurance industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 13% per year.
- In contrast, the Banks industry is expected to see its earnings decline by 5.2% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MTRD Meitav Trade Investments | ₪8.39 | 2.5% +₪8.2m | n/a | n/a | |
| MIA Mia Dynamics Motors | ₪0.34 | 13.0% +₪7.6m | -15.0% | PS9.4x | |
| MCLL Michlol Finance | ₪5.16 | 1.0% +₪2.1m | -19.4% | PE5.4x | |
| TNPV TechnoPlus Ventures | ₪8.47 | 6.7% +₪1.3m | -28.0% | PS80x | |
| AMDA Almeda Ventures Limited Partnership | ₪1.80 | 5.9% +₪1.2m | -16.0% | PS11.8x |
