Scope (SCOP) AI Stock Analysis

• Market Cap: 2.16B
• Dividend Yield: 2.82%
• Average Volume (3M): 10.94K
• Price to Earnings (P/E): 13.5
• 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): 11.72
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: 16,353.00 ▲(2.46% Upside)

The overall stock score of 69.5 reflects a balanced view of Scope's current position. The most significant factor is the company's mixed financial performance, with positive revenue growth but declining profit margins and cash flow challenges. Technical analysis suggests a neutral market sentiment, while the valuation indicates the stock is reasonably priced with a modest dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Scope's products and services, supporting long-term business expansion and market presence.

Improved Leverage Management

Improved leverage management enhances financial stability and reduces risk, providing a stronger foundation for future investments and growth.

Partnerships and Collaborations

Strategic partnerships expand market reach and credibility, enabling Scope to integrate advanced analytics and drive revenue growth.

Negative Factors

Declining Profit Margins

Declining profit margins may pressure profitability, necessitating cost management and efficiency improvements to sustain long-term financial health.

Cash Flow Challenges

Cash flow challenges can limit operational flexibility and investment capacity, impacting the company's ability to pursue growth opportunities.

Reduced Return on Equity

A reduced return on equity indicates declining profitability, which may affect investor confidence and the company's ability to generate shareholder value.

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	1.96B	1.80B	1.64B	1.65B	1.37B	1.10B
Gross Profit	629.87M	605.27M	577.63M	640.05M	544.25M	341.18M
EBITDA	284.56M	270.16M	276.60M	350.92M	301.76M	145.26M
Net Income	147.92M	142.90M	153.91M	214.42M	183.98M	64.51M
Balance Sheet
Total Assets	2.37B	2.23B	2.12B	2.12B	1.68B	1.60B
Cash, Cash Equivalents and Short-Term Investments	397.18M	350.78M	381.68M	536.13M	351.79M	364.71M
Total Debt	975.95M	897.97M	924.82M	1.08B	993.83M	1.06B
Total Liabilities	1.22B	1.13B	1.14B	1.31B	1.21B	1.22B
Stockholders Equity	1.15B	1.11B	984.83M	805.47M	472.77M	388.05M
Cash Flow
Free Cash Flow	-62.59M	-25.91M	2.73M	67.56M	109.08M	34.19M
Operating Cash Flow	-19.17M	32.60M	80.24M	147.27M	141.06M	92.20M
Investing Cash Flow	-91.60M	-54.80M	-77.58M	-144.99M	-34.84M	-61.75M
Financing Cash Flow	126.80M	-26.74M	-169.83M	122.81M	-136.82M	71.80M

Scope Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15960 is above the 20-day moving average (MA) of 15880.83, above the 50-day MA of 15448.02, and above the 200-day MA of 14368.01, indicating a bullish trend. The MACD of 118.60 indicates Positive momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 is Neutral, 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
NAWI	72 Outperform	1.72B	10.47	―	6.49%	33.06%	59.60%
SCOP	70 Neutral	2.16B	13.47	―	2.82%	15.05%	2.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LEVI	61 Neutral	2.24B	269.25	―	1.01%	―	―
RMON	59 Neutral	2.76B	42.77	―	1.09%	54.25%	-1.47%