Scope (SCOP) AI Stock Analysis

• Market Cap: 2.51B
• Dividend Yield: 2.79%
• Average Volume (3M): 10.94K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.14
• Revenue Growth: 15.05%
• EPS Growth: 2.17%
• Country: IL
• Employees: 739
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 13,232,266
• 10 Day Avg. Volume: 9,079
• 30 Day Avg. Volume: 10,944
• PEG Ratio: -1.73
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -68.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 20,929.00 ▲(16.79% Upside)

Scope's overall stock score is driven by strong financial performance and positive technical indicators. The stock's reasonable valuation further supports its attractiveness. However, cash flow challenges remain a concern that could affect future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and successful product offerings, supporting long-term business expansion.

Improved Leverage

Improved leverage management enhances financial stability, providing more flexibility for future investments and growth opportunities.

Strategic Partnerships

Strategic partnerships expand service offerings and customer base, driving revenue growth and strengthening market position.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues could limit the company's ability to invest in growth initiatives, potentially hindering long-term expansion.

Margin Pressure

Declining margins suggest potential cost pressures, which could impact profitability if not managed effectively over time.

Earnings Growth Concerns

Negative EPS growth indicates challenges in translating revenue growth into earnings, which may affect investor confidence and valuation.

Scope Business Overview & Revenue Model

Company Description

Scope Metals Group Ltd. stores, processes, and delivers metal and plastic worldwide. The company supplies stainless steel, aluminum, steel and steel alloys, magnesium, plastics, zinc, tungsten, brass, bronze, copper, lead and titanium. Its products include gate valves and globe valves, actuators, control and shut-off valves, pressure reducing valves, positioners, control instruments, check valves and strainers, measuring instruments, sanitary valves, valves for instrument pipework, steam traps, steam humidifiers, expansion vessel and pressure tanks, expansion joints, and plastic valves; and fire sprinkle systems, fire protection valves, fire fighting monitors and nozzels, fire suppression foams, industrial firefighting systems, fire protection pumps, fire cabinets, hydrants, and accessories, wildland apparatus, fire apparatus equipment, mobile compressed air foam systems, pipes and fittings, and water tanks. The company also offers clean water pumps / boosters, vacuum and industrial pumps, submercible pumps, mixers, sanitary pumps and mixing equipment, diaphragm pumps, fire protection pumps, and silukit; various pumps; pipes, fittings, and accessories; anchors, screws, nuts, washers and rings, threaded rods, pins and rivets, hose clamps, self clinching fasteners, and aviation; and welding equipment. The company was founded in 1968 and is headquartered in Bnei Ayish, Israel.

How the Company Makes Money

Scope generates revenue through multiple streams, primarily from the sale of its monitoring systems and software licenses. Additionally, the company earns income from subscription-based models for ongoing access to its data analytics platform, which provides clients with real-time insights and reports. Consulting services, where Scope advises clients on best practices in sustainability and resource management, also contribute to its earnings. Significant partnerships with governmental and environmental organizations enhance its credibility and expand its market reach, while collaborations with technology firms allow Scope to integrate advanced analytics capabilities into its offerings, further driving revenue growth.

Scope Financial Statement Overview

Summary

Scope shows a mixed financial performance. While revenue growth is positive, declining profit margins and cash flow challenges present concerns. The balance sheet shows improved leverage, but reduced return on equity indicates profitability issues. Overall, the company needs to address cash flow management and profitability to strengthen its financial position.

Income Statement

Scope has demonstrated consistent revenue growth, with a 4.4% increase in the TTM period. However, margins have slightly declined over time, with the gross profit margin decreasing from 39.87% in 2021 to 32.18% in the TTM period. The net profit margin has also decreased from 13.48% in 2021 to 7.56% in the TTM period. Despite these declines, the company maintains a positive EBIT and EBITDA margin, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.10 in 2021 to 0.85 in the TTM period, indicating better leverage management. However, the return on equity has decreased from 38.92% in 2021 to 12.98% in the TTM period, reflecting reduced profitability. The equity ratio has improved, suggesting a stronger financial position.

Cash Flow

Scope's cash flow performance is concerning, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. Despite this, the free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.02B	1.80B	1.64B	1.65B	1.37B	1.10B
Gross Profit	635.74M	605.27M	577.63M	640.05M	544.25M	341.18M
EBITDA	291.98M	270.16M	276.60M	350.92M	301.76M	145.26M
Net Income	150.96M	142.90M	153.91M	214.42M	183.98M	64.51M
Balance Sheet
Total Assets	2.47B	2.23B	2.12B	2.12B	1.68B	1.60B
Cash, Cash Equivalents and Short-Term Investments	473.01M	350.78M	381.68M	536.13M	351.79M	364.71M
Total Debt	919.31M	897.97M	924.82M	1.08B	993.83M	1.06B
Total Liabilities	1.18B	1.13B	1.14B	1.31B	1.21B	1.22B
Stockholders Equity	1.29B	1.11B	984.83M	805.47M	472.77M	388.05M
Cash Flow
Free Cash Flow	-38.11M	-25.91M	2.73M	67.56M	109.08M	34.19M
Operating Cash Flow	11.99M	32.60M	80.24M	147.27M	141.06M	92.20M
Investing Cash Flow	-152.81M	-54.80M	-77.58M	-144.99M	-34.84M	-61.75M
Financing Cash Flow	176.99M	-26.74M	-169.83M	122.81M	-136.82M	71.80M

Scope Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SCOP, the sentiment is Positive. The current price of 17920 is above the 20-day moving average (MA) of 17390.00, above the 50-day MA of 16492.49, and above the 200-day MA of 14676.64, indicating a bullish trend. The MACD of 821.52 indicates Negative momentum. The RSI at 76.45 is Negative, neither overbought nor oversold. The STOCH value of 85.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:SCOP.

Scope Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCOP	71 Outperform	2.51B	15.61	―	2.79%	15.05%	2.17%
NAWI	63 Neutral	1.79B	7.71	―	6.49%	33.06%	59.60%
RMON	63 Neutral	3.60B	58.29	―	0.97%	54.25%	-1.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LEVI	54 Neutral	2.74B	-745.81	―	0.96%	―	―