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Migdal Insurance and Financial Holdings Ltd. (MGDL) Report Analysis

Corporate Events

Positive

Virility Medical announced that it expects to r...

2022-07-21 00:00:00

Virility Medical has received $10 million of funding on July 21, 2022. This transaction serves as the first tranche of a $40 million round, sa...

Positive

Fu-Gen AG announced that it has received fundin...

2022-04-25 00:00:00

Fu-Gen AG announced that it has received more than €320 million in a round of funding on April 25, 2022. The transaction will include particip...

Positive

Rewire inc. announced that it has received $25 ...

2022-02-08 00:00:00

Rewire inc. announced that it has received $25,000,000 in a round of funding led by new investor Migdal Insurance and Financial Holdings Ltd. ...

Positive

tipa-corp ltd announced that it has received $7...

2022-01-02 00:00:00

tipa-corp ltd announced that it has raised $70 million in an equity round of funding co-led by returning investor Millennium Food Tech Limited...

Positive

RELOG announced that it has received €150 milli...

2021-11-29 00:00:00

RELOG announced that it has received €150 million in an equity round of funding on November 29, 2021. The transaction included participation f...

Positive

Nostromo Energy Limited announced that it has r...

2021-11-11 00:00:00

Nostromo Energy Limited announced that it has received 15.5 million in a round of funding on November 11, 2021. The company issued common shar...

Positive

Migdal Insurance and Financial Holdings Ltd., 0...

2021-10-01 00:00:00

Migdal Insurance and Financial Holdings Ltd., 0.0445959 (ILS), Cash Dividend, Oct-26-2021

Positive

Lightricks Ltd. announced that it has received ...

2021-09-19 00:00:00

Lightricks Ltd. announced that it has received $100,000,000 in its series D round of funding co-led by existing investor, Insight Venture Mana...

Positive

Keystone Dental, Inc. announced that it has rec...

2021-09-16 00:00:00

On September 16, 2021, Keystone Dental, Inc. closed the transaction. The company has received $1,106 in its second tranche. The transaction in...

Positive

Keystone Dental, Inc. announced that it expects...

2021-08-31 00:00:00

Keystone Dental, Inc. announced that it will receive $25,001,106 in funding on August 31, 2021. The company will issue common shares in the tr...

Positive

Virility Medical announced that it expects to receive $10 million in funding from Arkin Investments Ltd., Migdal Insurance and Financial Holdings Ltd.

2022-07-21 00:00:00

Virility Medical has received $10 million of funding on July 21, 2022. This transaction serves as the first tranche of a $40 million round, saw participation from Migdal Insurance and Financial Holdings Ltd. for $8 million and returning investor, Arkin Investments Ltd for $2 milion.

Positive

Fu-Gen AG announced that it has received funding from Migdal Insurance and Financial Holdings Ltd., Menora Mivtachim Insurance Ltd., Arkin Holdings

2022-04-25 00:00:00

Fu-Gen AG announced that it has received more than €320 million in a round of funding on April 25, 2022. The transaction will include participation from new investors, Migdal Insurance and Financial Holdings Ltd., Menora Mivtachim Insurance Ltd. and existing investor, Arkin Holdings. The investable capital is comprised of commitments to the newly established Fu-Gen Assets 4 Platform, direct equity investment in Fu-Gen AG as well as co-investment rights in projects held by Fu-Gen.

Positive

Rewire inc. announced that it has received $25 million in funding from a group of investors

2022-02-08 00:00:00

Rewire inc. announced that it has received $25,000,000 in a round of funding led by new investor Migdal Insurance and Financial Holdings Ltd. on February 8, 2022. The transaction also included participation from returning investors The Standard Bank of South Africa Limited, Glilot Capital Partners, Viola FinTech, Renegade Partners Group LLC, OurCrowd Ltd., BNP Paribas SA, Opera Tech Ventures SLP; a fund managed by BNPP Capital Partners, Moneta Capital Partners, individual investors Yehuda Zisapel, Jerry Yang and additional angel investors. The company has raised $62,000,000 in funding till date.

Positive

tipa-corp ltd announced that it has received $70 million in funding from Millennium Food Tech Limited Partnership, Meitav DASH Investments Ltd, Migdal Insurance and Financial Holdings Ltd. and other investors

2022-01-02 00:00:00

tipa-corp ltd announced that it has raised $70 million in an equity round of funding co-led by returning investor Millennium Food Tech Limited Partnership for $4 million for 3.3% stake after the transaction and Meitav DASH Investments Ltd for $26 million on January 2, 2022. The transaction included participation from other unnamed investors including Migdal Insurance and Financial Holdings Ltd. The company has raised $130 million in funding till date.

Positive

RELOG announced that it has received €150 million in funding from Teacher Retirement System of Texas, Migdal Insurance and Financial Holdings Ltd.

2021-11-29 00:00:00

RELOG announced that it has received €150 million in an equity round of funding on November 29, 2021. The transaction included participation from Teacher Retirement System of Texas and Migdal Insurance and Financial Holdings Ltd.

Positive

Nostromo Energy Limited announced that it has received $15.5 million in funding from Migdal Insurance and Financial Holdings Ltd., Freepoint Commodities LLC

2021-11-11 00:00:00

Nostromo Energy Limited announced that it has received 15.5 million in a round of funding on November 11, 2021. The company issued common shares at an issue price of 10.80 per share for the gross proceeds of $9.1 million and issued warrants at an issue price of $15.10 per warrants for the gross proceeds of $6.4 million. The warrants are non-tradable 30-months’ warrants. The transaction included participation from Migdal Insurance and Financial Holdings Ltd. which invested $7 million for common shares and $5 million for warrants and Freepoint Commodities LLC which invested $2 million for common shares and $1.4 million for warrants.

Positive

Migdal Insurance and Financial Holdings Ltd., 0.0445959 (ILS), Cash Dividend, Oct-26-2021

2021-10-01 00:00:00

Migdal Insurance and Financial Holdings Ltd., 0.0445959 (ILS), Cash Dividend, Oct-26-2021

Positive

Lightricks Ltd. announced that it has received $100 million in funding from a group of investors

2021-09-19 00:00:00

Lightricks Ltd. announced that it has received $100,000,000 in its series D round of funding co-led by existing investor, Insight Venture Management, LLC and Hanaco Venture Capital Ltd. on September 19, 2021. The transaction includes participation from new investors, Migdal Insurance and Financial Holdings Ltd., Altshuler Shaham Group, Shavit Capital, and existing investors, West Street Capital Partners, ClalTech, Harel Insurance Investments & Financial Services Ltd and Greycroft Partners LLC. The company has raised $335,000,000 in both primary and secondary funding till date. The round is raised at a post-money valuation of approximately $1,800,000,000.

Positive

Keystone Dental, Inc. announced that it has received $25.001106 million in funding from Accelmed Partners, Migdal Insurance and Financial Holdings Ltd. and other investors

2021-09-16 00:00:00

On September 16, 2021, Keystone Dental, Inc. closed the transaction. The company has received $1,106 in its second tranche. The transaction included participation from 13 investors. The company has raised $25,001,106 in funding so far in the transaction.

Positive

Keystone Dental, Inc. announced that it expects to receive $25.001106 million in funding

2021-08-31 00:00:00

Keystone Dental, Inc. announced that it will receive $25,001,106 in funding on August 31, 2021. The company will issue common shares in the transaction. The minimum investment accepted from any outside investor is $3,000,000. The company will issue securities pursuant to exemption provided under Regulation D.

Fundamental Summary

At a high level, the metrics from Migdal's Q3 financial report release were demonstrably positive. Specifically, their growth and value factors indicate a well-planned and balanced effort, which is generating exciting growth. These results lead us to believe that there should be significant upside potential for the stock. As such, Migdal received an overall score of 88 and a STRONG BUY recommendation.

Migdal reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported revenue was ILS 2,256.66 million compared to ILS 9,149.34 million a year ago. Net income was ILS 935.39 million compared to ILS 314.27 million a year ago. Basic earnings per share from continuing operations was ILS 0.89 compared to ILS 0.3 a year ago. Diluted earnings per share from continuing operations was ILS 0.89.

Business Description

Migdal, together with its subsidiaries, provides insurance, pension, and financial services for private and corporate customers in Israel. The company deals and manages pension plans, life and health insurance products, pensions, and financial business plans; and provides personal accident and mortgage insurance solutions, and savings, as well as insurance agency services. It also markets investments; operates nostro accounts; and manages financial assets, including mutual funds and portfolios, as well as engages in the investment banking and distribution activities. The company was founded in 1934 and is based in Petah Tikva, Israel. Migdal operates as a subsidiary of Eliahu Issues Ltd.

Sector Overview

Migdal is included in the Insurance according to GICS (global industry classification standard). The Insurance industry is part of the Financials sector. Relevant companies include Insurance Brokers, Life & Health Insurance Companies, Multi-line Insurance Companies, Property & Casualty Insurance Companies, and Reinsurance Companies. Migdal's industry and sector affiliation are not expected to particularly benefit, nor be weighed down by macroeconomic factors at this time.

Fundamental Highlights


Parameter Value Change Score
Assets 196.7B 2.1% 69
Liabilities 188.8B 2.0% 70
Price to Book 0.6 -1.4% 91
Cash & Equivalents 17.4B 1.7% 66
Equity 7.9B 5.6% 80
EBITDA 2.5B 15.8% 83
Total Revenues 38.3B -3.8% 94
Parameter Value Change Score
Return on Equity 18.1 14.9% 82
Net Cashflow 5.8B 130.0% 84
Capital Expenditure -38.6M -5.0% 57
Asset Turnover 0.2 -6.0% 42
Free Cashflow Per Share 5.2 105.7% 43

* All values are TTM

The below chart reflects Migdal's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Migdal's peer average final assessment score stands on 69.0, Migdal's score is 88.

  •  MGDL
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
The Phoenix Holdings Ltd. 10.0B 62 84 49
Hold
69
69 0 1
Harel Insurance Investments & Financial Services Ltd 8.4B 61 85 67
Hold
73
73 1 1
Clal Insurance Enterprises Holdings Ltd. 5.1B 68 79 46
Hold
70
70 2 1
Menora Mivtachim Holdings Ltd 5.1B 70 79 48
Hold
72
72 3 1
I.D.I. Insurance Company Ltd. 1.5B 50 53 51
Underperform
43
43 4 1
Zur Shamir Holdings Ltd 800.1M 65 53 60
Underperform
57
57 5 1
Ayalon Insurance Company Ltd 387.4M 51 44 81
Underperform
47
47 6 1
Libra Insurance Company Ltd 180.7M 92 46 79
Hold
73
73 7 1

Technical Analysis

When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Migdal's stock is now priced above its 5-day, 50-day, and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is strengthening. Historically, this is a positive setup in the near, medium, and long-term. In particular, many institutional investors keep close watch of the 200-day moving average. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Migdal's stock indicates that it's likely oversold. Overall, these technical indicators signal positive upward momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 78.

Bullish 78
Close Price 5.83
52W Low 4.2
52W High 6.19
5D MA 5.75
50D MA 5.28
200D MA 5.4
MACD 0.14
RSI 0.19
STOCH 100.0

Balance Sheet Analysis

Overall, Migdal's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. Migdal publishes solid book value factor metrics in this report. Price to book ratio (P/B) now sits at 0.6 and represents a -1.4% change from the previous report. The company's book value factor metrics are even more remarkable when compared to their peers. Consequently, their book value factors movement received a grade of 91. Also, Migdal did a great job related to equity this period, which stood at 7.9B, representing a 5.6% change. Companies in the same sector and market capitalization will usually be affected by up to 8.5 percent by this parameter. This performance is significantly more impressive than its peers and competitors. The company's equity movement component, therefore, received a grade of 80. At the same time, one critical balance sheet metric, Cash & Equivalents, was notably weak. Migdal reported concerning cash and cash equivalents metrics in this filing. Specifically, they reported that cash and cash equivalents were 17.4B, representing a 1.7% change from the last period. Their anemic growth in cash and cash equivalents, specifically in contrast to their industry peers' performance, should hurt their stock price. Its cash and cash equivalents movement, therefore, received a grade of 66. Consequently, their balance sheet earned a rank of 89.

Parameter Value Change Score
Assets 196.7B 2.1% 69
Liabilities 188.8B 2.0% 70
Price to Book 0.6 -1.4% 91
Cash & Equivalents 17.4B 1.7% 66
Equity 7.9B 5.6% 80
* All values are TTM

The below chart describes Migdal's performance as reflected on its balance sheet with respect to its peers. While Migdal received a balance sheet score of 89, the average of its peers stands on 70.0.

  •  MGDL
  •  Peers average
Name Market Cap Liabilities Movement Asset Change Equity/Intangibles Adjustments Cash & Equivalents Book Value Momentum Balance Sheet mc_sort Hidden
The Phoenix Holdings Ltd. 10.0B 74.0 54.0 51.0 74.0 59.0 62 0 1
Harel Insurance Investments & Financial Services Ltd 8.4B 72.0 69.0 47.0 53.0 63.0 61 1 1
Clal Insurance Enterprises Holdings Ltd. 5.1B 63.0 77.0 40.0 64.0 74.0 68 2 1
Menora Mivtachim Holdings Ltd 5.1B 64.0 68.0 52.0 57.0 76.0 70 3 1
I.D.I. Insurance Company Ltd. 1.5B 74.0 72.0 62.0 45.0 45.0 50 4 1
Zur Shamir Holdings Ltd 800.1M 81.0 67.0 44.0 59.0 68.0 65 5 1
Ayalon Insurance Company Ltd 387.4M 52.0 70.0 77.0 94.0 44.0 51 6 1
Libra Insurance Company Ltd 180.7M 72.0 58.0 88.0 46.0 89.0 92 7 1

Income Statement Analysis

Migdal seems to be balancing strong Revenue Efficiency and EBITDA along with an overall impressive positive income statement. Migdal's financials reveal an interesting trend for their revenue efficiency. This characteristic can affect companies in the same industry and market capitalization by up to 0.1%. Their revenue efficiency, specifically in contrast to their industry peers', should support a positive movement in the company's stock price. As a result, its revenue efficiency earned a score of 94. Also, Migdal's management did a remarkable job this period managing its EBITDA. In terms of the raw numbers, EBITDA was reported as 2.5B, which represents a 15.8% change from the last period. Companies in the same industry and market capitalization are typically affected by this parameter by up to 10.0%. Its EBITDA metrics highlight an impressive overall financial performance, which is expected to continue moving forward. Therefore, its EBITDA component earned a score of 83. However, one discouraging result, Return Factors, stood out. Migdal's reported return on equity (ROE) ratio was 18.1, representing a change of 14.9%. This metric might have a 10.7 percent impact on companies in the same industry and with the same market capitalization. These numbers show that management has been unsuccessful in fostering appropriate growth related to return on assets and return on equity momentum relative to their peers. Therefore, their return factors component earned a score of 82. Consequently, the companie's income statement earned a rank of 87.

Parameter Value Change Score
EBITDA 2.5B 15.8% 83
Total Revenues 38.3B -3.8% 94
Return on Equity 18.1 14.9% 82
* All values are TTM

The below chart describes Migdal's performance as reflected on its income statement with respect to its peers. While Migdal received a income statement score of 87 , the average of its peers stands on 69.0.

  •  MGDL
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
The Phoenix Holdings Ltd. 10.0B 96.0 76.0 89.0 84 0 1
Harel Insurance Investments & Financial Services Ltd 8.4B 95.0 77.0 91.0 85 1 1
Clal Insurance Enterprises Holdings Ltd. 5.1B 96.0 75.0 80.0 79 2 1
Menora Mivtachim Holdings Ltd 5.1B 95.0 75.0 79.0 79 3 1
I.D.I. Insurance Company Ltd. 1.5B 82.0 59.0 45.0 53 4 1
Zur Shamir Holdings Ltd 800.1M 75.0 57.0 52.0 53 5 1
Ayalon Insurance Company Ltd 387.4M 44.0 53.0 48.0 44 6 1
Libra Insurance Company Ltd 180.7M 89.0 54.0 38.0 46 7 1

Cash Flow Analysis

Results from Migdal's current financials were concerning, in two areas in particular: Asset Turnover and Free Cash flow. Migdal's asset turnover numbers were discouraging, reflecting significant concerns related to management's ability to leverage assets to generate sales effectively and efficiently. Migdal recorded asset turnover of 0.2, which represents a -6.0% change from the previous report. Companies in the same industry and market capitalization are typically affected by this parameter by up to 4.0%. Their lackluster asset turnover metrics, specifically in contrast to leading industry peers' performance, could present significant headwinds. Correspondingly, their asset turnover movement received a grade of 42. Also, Migdal's published free cash flow numbers were subpar and could mean that management has lost focus on achieving healthy growth. Migdal recorded free cash flow of 5.2, which represents 105.7% growth from the previous report. Companies in the same sector and market capitalization will usually be affected by up to 6.9 percent by this parameter. Their free cash flow situation is more concerning relative to their peers and competitors. Its free cash flow movement, therefore, received a grade of 43. However, we can we draw some encouragement from Migdal's momentum in cash flow generation. Migdal's management was effective in improving their net cash flow, which now sits at 5.8B and represents a 130.0% change from the previous report. The company is headed in the right direction regarding business priorities, exhibiting prudent net cash flow management and growth. Hence, its net cash flow earned a score of 84. Therefore, it received a cautionary score of 56.

Parameter Value Change Score
Net Cashflow 5.8B 130.0% 84
Capital Expenditure -38.6M -5.0% 57
Asset Turnover 0.2 -6.0% 42
Free Cashflow Per Share 5.2 105.7% 43
* All values are TTM

The below chart describes Migdal's performance as reflected on its cash flow with respect to its peers. While Migdal received a cash flow score of 56, the average of its peers stands on 68.0.

  •  MGDL
  •  Peers average
Name Market Cap Cashflow Momentum Free Cashflow Growth Capital Expenditure Growth Assets Factors Momentum Cash Flow mc_sort Hidden
The Phoenix Holdings Ltd. 10.0B 60.0 82.0 45.0 39.0 49 0 1
Harel Insurance Investments & Financial Services Ltd 8.4B 81.0 46.0 87.0 41.0 67 1 1
Clal Insurance Enterprises Holdings Ltd. 5.1B 47.0 88.0 60.0 39.0 46 2 1
Menora Mivtachim Holdings Ltd 5.1B 48.0 92.0 60.0 39.0 48 3 1
I.D.I. Insurance Company Ltd. 1.5B 46.0 94.0 51.0 54.0 51 4 1
Zur Shamir Holdings Ltd 800.1M 58.0 77.0 81.0 51.0 60 5 1
Ayalon Insurance Company Ltd 387.4M 88.0 40.0 42.0 91.0 81 6 1
Libra Insurance Company Ltd 180.7M 45.0 94.0 54.0 79.0 79 7 1

This report, prepared and provided by Deshe Labs Ltd ("Deshe"), is intended for general guidance and information purposes only and under no circumstances is tailored to a specific factor or variable related to its reader or intended to be used, construed, or considered as financial or investment advice, an offer, a solicitation of any offer, a recommendation, or an offer to invest in, sell or buy the securities mentioned in this report or other form of a financial asset or as a marketing communication under FCA Rules. For the full disclaimer, click here.