Scope (SCOP) AI Stock Analysis

• Market Cap: ₪2.48B
• Dividend Yield: 2.79%
• Average Volume (3M): 10.94K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.12
• 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: 21,006.00 ▲(17.22% 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

Recurring & diversified revenue model

Scope’s mix of subscription fees and performance-based advertising creates recurring revenue plus variable performance upside. This diversified model supports predictability of cash inflows, aligns pricing with client ROI, and reduces reliance on single-channel sales — a durable foundation for multi-month growth planning and customer lifetime value expansion.

Sustained revenue growth

A mid-teens revenue growth rate indicates continued market adoption of Scope’s analytics and automation tools. Over a 2–6 month horizon this trend supports expanding customer penetration and upsell potential, underpinning reinvestment capacity for product development and sales while validating product-market fit in digital marketing.

Improved leverage and solid ROE

The balance sheet shows improved leverage and a balanced capital structure with mid-single-digit debt relative to equity and a near-13% ROE. That combination signals disciplined capital allocation and the ability to fund operations or strategic initiatives without excessive financial strain, supporting medium-term stability and optionality.

Negative Factors

Weak cash flow conversion

Despite accounting profits, Scope shows poor cash conversion with a steep negative free cash flow growth rate and operating cash flow trailing net income. This structural cash generation weakness constrains organic investment, increases reliance on financing or equity, and heightens risk if growth or margins slow over the coming months.

Margin erosion risks

Margins remain positive but show slight deterioration, implying rising cost pressure or pricing compression. If these trends persist, sustained margin erosion could reduce free cash flow and hamper reinvestment ability, making profitability more sensitive to customer churn, increased sales costs, or competitive pricing moves in the ad-tech market.

Dependence on partnerships in a competitive industry

Scope’s go-to-market leverages partnerships and ad-network integrations, which accelerate distribution but create dependency on third parties’ terms and technical compatibility. In a competitive, fast-evolving ad-tech landscape this reliance can expose Scope to partner repricing, API changes, or prioritized competitors, pressuring revenue continuity and strategic independence.

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 demonstrates strong revenue growth and profitability with effective operational management. The balance sheet shows improved leverage, enhancing financial stability. However, persistent cash flow challenges could impact future investments and growth.

Income Statement

Scope's income statement shows a solid performance with consistent revenue growth, particularly a 3.21% increase in the TTM period. The gross profit margin is healthy at 32.18%, although it has slightly decreased from previous years. Net profit margin remains stable at 7.56%, indicating good profitability. EBIT and EBITDA margins are also strong, reflecting efficient operational management. However, the slight decline in margins over time suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.85, which has improved from previous years, indicating better leverage management. The return on equity is solid at 12.98%, showing effective use of equity capital. The equity ratio stands at 52.23%, suggesting a balanced capital structure. However, the company needs to maintain this trajectory to avoid potential risks associated with high leverage.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -39.12% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Despite this, the free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income. The company should focus on improving cash flow generation to support future growth.

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: 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 17920 is below the 20-day moving average (MA) of 18573.50, above the 50-day MA of 17265.40, and above the 200-day MA of 15117.74, indicating a bullish trend. The MACD of 346.71 indicates Positive momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 64.85 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
SCOP	71 Outperform	₪2.48B	15.42	―	2.79%	15.05%	2.17%
NAWI	63 Neutral	₪1.82B	7.84	―	6.49%	33.06%	59.60%
RMON	63 Neutral	₪3.88B	61.89	―	0.97%	54.25%	-1.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LEVI	54 Neutral	₪2.86B	-764.73	―	0.96%	―	―