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Menora Mivtachim Holdings Ltd (MMHD) Report Analysis

Corporate Events

Positive

Bookaway Ltd. announced that it has received $3...

2022-05-10 00:00:00

Bookaway Ltd. announced that it has received $35 million in a round of funding led by new investor Red Dot Capital Partners on May 10, 2022. T...

Positive

Clal Insurance Enterprises Holdings Ltd. (TASE:...

2022-04-11 00:00:00

Clal Insurance Enterprises Holdings Ltd. (TASE:CLIS) signed a memorandum of understanding to acquire remaining 91% stake in Max IT Finance Ltd...

Positive

StreamElements announced that it has received $...

2021-09-22 00:00:00

StreamElements announced that it has received $100 million in a round of funding led by new investor SoftBank Vision Fund 2, a fund managed by...

Positive

Kissterra Capital Limited announced that it has...

2021-07-23 00:00:00

Kissterra announced that it has received $66 million in a round of funding on July 23, 2021. The transaction included participation Menora Miv...

Positive

UVeye Ltd. announced that it has received $60 m...

2021-07-21 00:00:00

UVeye Ltd. announced that it has received $60 million in Series C round of funding on July 21, 2021. The transaction included participation fr...

Positive

NoTraffic Ltd. announced that it has received $...

2021-07-13 00:00:00

NoTraffic Ltd. announced that it has received $17.5 million in Series A round of funding co-led by new investor, Nielsen Ventures and Vektor P...

Positive

Silk Technologies Inc. announced that it has re...

2021-07-07 00:00:00

Silk Technologies Inc. announced that it has received $55 million in series B round of funding led by returning investor S Capital on July 7, ...

Positive

Bookaway Ltd. announced that it has received $35 million in funding from Red Dot Capital Partners, Menora Mivtachim Holdings Ltd, Tenere Capital, LLC, Aleph Venture Capital, Corner Ventures, Entrée Capital Limited

2022-05-10 00:00:00

Bookaway Ltd. announced that it has received $35 million in a round of funding led by new investor Red Dot Capital Partners on May 10, 2022. The transaction also included participation from new investors Menora Mivtachim Holdings Ltd, Tenere Capital, LLC and returning investors Aleph Venture Capital, Corner Ventures and Entrée Capital Limited. The company has raised $81 million in funding to date.

Positive

Clal Insurance Enterprises Holdings Ltd. (TASE:CLIS) signed a memorandum of understanding to acquire remaining 91% stake in Max IT Finance Ltd from Warburg Pincus LLC, Menora Mivtachim Holdings Ltd (TASE:MMHD), Allied Group and employees and various consultants for ILS 2.47 billion.

2022-04-11 00:00:00

Clal Insurance Enterprises Holdings Ltd. (TASE:CLIS) signed a memorandum of understanding to acquire remaining 91% stake in Max IT Finance Ltd from Warburg Pincus LLC, Menora Mivtachim Holdings Ltd (TASE:MMHD), Allied Group and employees and various consultants for ILS 2.47 billion on April 11, 2022. Of the total acquisition price, part will be paid as structured finance, so that the net consideration will be ILS 1.6 billion. The sides have also agreed that 30% of the consideration will be paid to the existing shareholders in Max in the form of an allocation of shares in Clal Insurance Enterprises Holdings. Alongside Warburg Pincus, which holds 70% of Max, Clal itself is the second largest shareholder together with Menorah Mivtachim, with 9% each. Allied holds 5%, and the remaining shares are held by the employees and various consultants. Clal Insurance has raised some ILS 500 million in an equity offering, and some of that cash will be used to acquire Max. Assuming that the deal is completed, Max will be a subsidiary of Clal Insurance Enterprise Holdings alongside insurance company Clal Insurance. The transaction is subject to the signing of a binding agreement and receipt of the requisite regulatory approvals from the Bank of Israel and the Competition Authority.

Positive

StreamElements announced that it has received $100 million in funding from a group of investors

2021-09-22 00:00:00

StreamElements announced that it has received $100 million in a round of funding led by new investor SoftBank Vision Fund 2, a fund managed by SoftBank Investment Advisers (UK) Limited on September 22, 2021. The transaction included participation from new investors PayPal Ventures, Inc., MoreTech Ventures, returning investors MoreTech Ventures, Pitango Venture Capital, Menora Mivtachim Holdings Ltd and Mivtach Shamir Holdings Ltd.

Positive

Kissterra Capital Limited announced that it has received $66 million in funding from Menora Mivtachim Holdings Ltd

2021-07-23 00:00:00

Kissterra announced that it has received $66 million in a round of funding on July 23, 2021. The transaction included participation Menora Mivtachim Holdings Ltd.

Positive

UVeye Ltd. announced that it has received $60 million in funding from a group of investors

2021-07-21 00:00:00

UVeye Ltd. announced that it has received $60 million in Series C round of funding on July 21, 2021. The transaction included participation from new investor, CarMax, Inc., existing investors, W. R. Berkley Corporation and F.I.T. Ventures L.P. and from a group of Israeli institutional investors, led by Epsilon Underwriting and Issuing Ltd., Meitav DASH Investments Ltd, Menora Mivtachim Holdings Ltd and Y.D. More Investments Ltd. The company has raised more than $90 million in funding till date.

Positive

NoTraffic Ltd. announced that it has received $17.5 million in funding from a group of investors

2021-07-13 00:00:00

NoTraffic Ltd. announced that it has received $17.5 million in Series A round of funding co-led by new investor, Nielsen Ventures and Vektor Partners LLP on July 13, 2021. The transaction included participation from Grove Ventures Capital, Menora Mivtachim Holdings Ltd, Meitav DASH Investments Ltd, existing investors, Lool Ventures L.P., Next Gear Ventures and North First Ventures. As part of the transaction, Lior Handelsman of Solar Edge will join the company’s board of directors.

Positive

Silk Technologies Inc. announced that it has received $55 million in funding from a group of investors

2021-07-07 00:00:00

Silk Technologies Inc. announced that it has received $55 million in series B round of funding led by returning investor S Capital on July 7, 2021. The transaction also involved participation from returning investors Pitango Venture Capital, Globespan Capital Management, LLC, Ibex Investors LLC, Sequoia Capital Israel Ltd., Vintage Ventures Advisors Ltd., and new investors, Clal Insurance Enterprises Holdings Ltd., Poalim Ventures Ltd., Meitav DASH Investments Ltd, and Menora Mivtachim Holdings Ltd.

Fundamental Summary

Menora Mivtachim's recently released results from Q1 indicate that Menora Mivtachim is performing reasonably well and on par with its peers. We do believe, though, that macro-related market conditions will influence its performance more significantly than its individual results. Therefore, they earned a total score of 72 out of 100 and a HOLD recommendation.

Menora Mivtachim reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported revenue was ILS 1,533.37 million compared to ILS 3,190.11 million a year ago. Net income was ILS 210.81 million compared to ILS 154.84 million a year ago. Basic earnings per share from continuing operations was ILS 3.33 compared to ILS 2.45 a year ago. Diluted earnings per share from continuing operations was ILS 3.33.

Business Description

Menora Mivtachim operates in insurance and finance sectors in Israel. The company offers life and health, and general insurance products, as well as automobile insurance products, such as compulsory automobile or property car insurance products; and pension and provident funds. It also engages in the mutual funds and portfolio management, securities underwriting, and real estate investment activities. The company was formerly known as General Liability Office Ltd. and changed its name to Menora Mivtachim in 2006. Menora Mivtachim was founded in 1935 and is based in Tel Aviv, Israel.

Sector Overview

Menora Mivtachim is included in the Insurance according to GICS (global industry classification standard). The Interactive Media & Services industry is part of the Communication Services sector. It includes companies that create or distribute content and information through proprietary platforms, with revenue generated primarily through pay-per-click ads (i.e. search engines, social media and networking platforms, online classifieds, and online review companies). Menora Mivtachim's industry and sector affiliation are expected to negatively affect their likelihood to overperform the market in the upcoming period, as other sectors appear more likely to benefit from the macroeconomic environment we see now.

Fundamental Highlights


Parameter Value Change Score
Assets 66,589.2 -0.3% 45
Liabilities 60,888.2 -0.5% 63
Price to Book 0.7 -12.5% 75
Cash & Equivalents 3,955.1 -12.0% 59
Equity 5,633.7 1.7% 51
EBITDA 1,274.6 9.8% 76
Total Revenues 11,286.2 -12.8% 95
Parameter Value Change Score
Return on Equity 13.9 4.9% 81
Net Cashflow -155.3 -135.2% 46
Capital Expenditure -56.6 -0.8% 60
Asset Turnover 0.2 -13.7% 40
Free Cashflow 4.0 -74.4% 92

* All values are TTM

The below chart reflects Menora Mivtachim'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 Menora Mivtachim's peer average final assessment score stands on 69.0, Menora Mivtachim's score is 72.

  •  MMHD
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
The Phoenix Holdings Ltd. 9.2B 60 85 51
Hold
69
69 0 1
Harel Insurance Investments & Financial Services Ltd 7.5B 60 86 68
Hold
74
74 1 1
Migdal Insurance and Financial Holdings Ltd. 5.6B 77 87 47
Buy
81
81 2 1
Clal Insurance Enterprises Holdings Ltd. 4.8B 67 80 49
Hold
71
71 3 1
I.D.I. Insurance Company Ltd. 1.4B 50 51 51
Underperform
43
43 4 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. Menora Mivtachim's stock is now priced below 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 weakening. Historically, this is a negative setup in the near, medium, and long-term. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Menora Mivtachim's stock doesn't strongly signal being overbought or oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 37.

Bearish 37
Close Price 66.87
52W Low 61.47
52W High 86.79
5D MA 67.27
50D MA 74.36
200D MA 74.53
MACD -2.22
RSI 42.5
STOCH 52.02

Balance Sheet Analysis

Overall, Menora Mivtachim's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. Menora Mivtachim publishes solid book value factor metrics in this report. Price to book ratio (P/B) now sits at 0.7 and represents a -12.5% change from the previous report. Their industry-leading book value factors momentum reinforces an expectation for future positive momentum for their stock price going forward. Therefore, its book value factors earned a score of 75. Also, Menora Mivtachim is doing a good job of keeping its liabilities under control and growing intelligently. At filing, their liabilities were 60888.2, representing -0.5% change from the previous period. This performance is all interesting relative to their peers and suggests that their stock price has room to grow to reflect a higher intrinsic value. The company's liabilities movement component, therefore, received a grade of 63. However, one discouraging result, Assets, stood out. Menora Mivtachim's management did not succeed in significantly improving the value of the assets on their balance sheet, which now sits at 66589.2 and represents a -0.3% change from the previous report. The lack of good news about assets momentum should be a cause for concern and is often met with downward pressure on the company's stock price. Therefore, their asset component earned a score of 45. Therefore, we scored its balance sheet a 68.

Parameter Value Change Score
Assets 66,589.2 -0.3% 45
Liabilities 60,888.2 -0.5% 63
Price to Book 0.7 -12.5% 75
Cash & Equivalents 3,955.1 -12.0% 59
Equity 5,633.7 1.7% 51
* All values are TTM

The below chart describes Menora Mivtachim's performance as reflected on its balance sheet with respect to its peers. While Menora Mivtachim received a balance sheet score of 68, the average of its peers stands on 71.0.

  •  MMHD
  •  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. 9.2B 73 41 47 75 59 60 0 1
Harel Insurance Investments & Financial Services Ltd 7.5B 72 71 44 55 62 60 1 1
Migdal Insurance and Financial Holdings Ltd. 5.6B 59 38 86 58 81 77 2 1
Clal Insurance Enterprises Holdings Ltd. 4.8B 63 70 40 65 74 67 3 1
I.D.I. Insurance Company Ltd. 1.4B 74 76 58 46 46 50 4 1

Income Statement Analysis

Two metrics jump up as the most significant positive drivers of the income statement's strength in Menora Mivtachim's recent report: Revenue Efficiency and Return Factors. Menora Mivtachim reported highly encouraging numbers for its revenue efficiency. This characteristic can affect companies in the same industry and market capitalization by up to 2.3%. Their industry-leading revenue efficiency makes a strong case for upward pressure on its's stock price. Consequently, their revenue efficiency received a grade of 95. Also, Menora Mivtachim's reported return on equity (ROE) ratio was 13.9, representing a change of 4.9%. These numbers show that management has successfully encouraged growth while managing ROE and ROA metrics, especially relative to their peers. Consequently, their return factors received a grade of 81. On the other hand, EBITDA, jumped out as looking problematic. Menora Mivtachim reported concerning EBITDA this period. At filing, EBITDA was reported as 1274.6, representing 9.8% change from the previous period. This metric might have a 7.9 percent impact on companies in the same industry and with the same market capitalization. Their EBITDA metrics are even more problematic when compared to their peers. Its EBITDA movement, therefore, received a grade of 76. Consequently, their income statement earned a rank of 80.

Parameter Value Change Score
EBITDA 1,274.6 9.8% 76
Total Revenues 11,286.2 -12.8% 95
Return on Equity 13.9 4.9% 81
* All values are TTM

The below chart describes Menora Mivtachim's performance as reflected on its income statement with respect to its peers. While Menora Mivtachim received a income statement score of 80 , the average of its peers stands on 66.0.

  •  MMHD
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
The Phoenix Holdings Ltd. 9.2B 96 77 91 85 0 1
Harel Insurance Investments & Financial Services Ltd 7.5B 95 77 93 86 1 1
Migdal Insurance and Financial Holdings Ltd. 5.6B 97 78 94 87 2 1
Clal Insurance Enterprises Holdings Ltd. 4.8B 96 76 81 80 3 1
I.D.I. Insurance Company Ltd. 1.4B 82 58 44 51 4 1

Cash Flow Analysis

Menora Mivtachim's cash flow factors had several troubling metrics this period. Menora Mivtachim's asset turnover metrics were concerning and highlighted potential issues management is having effectively turning assets into sales efficiently. At filing, their asset turnover metrics were 0.2, representing a -13.7% change from the previous period. Companies in the same industry and market capitalization are typically affected by this parameter by up to 2.8%. 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 40. Also, Menora Mivtachim's net cash flow metrics were -155.3 according to their current filing, which represents a -135.2% change from the previous report. Their net cash flow momentum should be a cause for concern and could bring negative momentum for Menora Mivtachim's stock price going forward. Its net cash flow, therefore, received a grade of 46. On the other hand, Free Cash flow, jumped out as looking rather positive. Menora Mivtachim's published free cash flow numbers were substantial and reflected management's focus on a healthy change strategy. Menora Mivtachim recorded free cash flow of 4.0, which represents a -74.4% change from the previous report. This parameter coud affect companies in the same industry and market capitalization by up to 9.3%. The company's free cash flow metrics are especially strong compared to its peers. Management seems to balance cash flow management, asset growth, and resource allocations in general. Consequently, their free cash flow movement received a grade of 92. Therefore, their cash flow earned a grade of 51.

Parameter Value Change Score
Net Cashflow -155.3 -135.2% 46
Capital Expenditure -56.6 -0.8% 60
Asset Turnover 0.2 -13.7% 40
Free Cashflow 4.0 -74.4% 92
* All values are TTM

The below chart describes Menora Mivtachim's performance as reflected on its cash flow with respect to its peers. While Menora Mivtachim received a cash flow score of 51, the average of its peers stands on 68.0.

  •  MMHD
  •  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. 9.2B 58 82 45 39 51 0 1
Harel Insurance Investments & Financial Services Ltd 7.5B 84 45 88 41 68 1 1
Migdal Insurance and Financial Holdings Ltd. 5.6B 49 89 48 39 47 2 1
Clal Insurance Enterprises Holdings Ltd. 4.8B 47 88 60 40 49 3 1
I.D.I. Insurance Company Ltd. 1.4B 45 94 51 54 51 4 1

This report 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 or considered as financial or investment advice, a solicitation of any offer, a recommendation, or an offer to sell or buy any securities or other form of a financial asset. For the full disclaimer, click here.