Scope (SCOP) AI Stock Analysis

• Market Cap: ₪2.64B
• Dividend Yield: 2.79%
• Average Volume (3M): 10.94K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.03
• 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: 4.00
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -150.73
• 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: 60 Neutral
• Price Target: 21,000.00 ▲(17.19% Upside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is held back primarily by deteriorating cash generation (sharp operating cash flow decline and negative free cash flow) and margin compression despite continued profitability. Offsetting factors include a materially improved leverage profile, generally constructive longer-term technical trend signals, and a relatively attractive valuation with a modest dividend yield.

Positive Factors

Improved leverage and balance sheet stability

Debt-to-equity has fallen materially, creating a more stable balance sheet and greater financial flexibility. This improved leverage reduces solvency risk and gives management capacity to fund strategic investments or absorb shocks over the next several quarters to years without immediate refinancing pressure.

Recurring subscription and diversified revenue streams

A subscription-first business model combined with performance fees and partnerships delivers recurring, multi-tenant cash inflows and distribution scale. This revenue mix supports predictable topline over months, increases customer stickiness, and helps smooth volatility from campaign-driven demand.

Sustained multi-year revenue growth

Scope has expanded revenue across the 2020–2025 period, reflecting enduring market demand for marketing analytics and automation. Even with slower recent growth, the multi-year upward trend indicates product-market fit and a structural opportunity from digital advertising tech adoption that should support mid-term revenue resilience.

Negative Factors

Deteriorating operating cash flow and negative FCF

Operating cash generation has collapsed and free cash flow is negative, meaning reported profits are not converting into cash. Persistent weak cash conversion increases reliance on external funding, limits capacity to self-fund growth or dividends, and raises long-term reinvestment and liquidity risk.

Material margin compression and weaker profitability

Significant gross- and net-margin erosion reduces earnings resilience and free cash capacity. Lower margins suggest cost pressure or competitive pricing dynamics that, if structural, will constrain the company's ability to invest in product development and defend market share over the medium term.

Sizable absolute debt despite improved ratios

Although leverage ratios improved, absolute debt levels remain meaningful. With diminished cash generation and negative FCF, those nominal debt obligations raise refinancing and interest coverage risk, potentially forcing priority on debt service over strategic investments if cash flow recovery lags.

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

Revenue growth remains positive but has slowed recently, and profitability has weakened with notable margin compression versus 2021–2022. Balance-sheet leverage has improved meaningfully, but operating cash flow has dropped sharply and free cash flow has been negative in 2024–2025, indicating weak cash conversion and higher funding/reinvestment risk.

Income Statement

Revenue has grown over the period (2020–2025), with a strong rebound in 2021–2022 and more modest growth recently (2025: 2.49%). Profitability has weakened versus the 2021–2022 peak: gross margin fell to ~29.1% in 2025 from ~39.9% in 2021, and net margin declined to ~7.4% in 2025 from ~13.5% in 2021. Earnings remain positive, but the margin compression and slower growth temper the quality of the recent income statement.

Balance Sheet

Leverage has improved meaningfully: debt relative to equity declined from ~2.73x (2020) to ~0.79x (2025), supported by a larger equity base. Returns on equity are still healthy but have stepped down from very high levels in 2021–2022 to ~12.2% in 2025. Overall, the balance sheet looks more stable than earlier years, though debt remains sizable in absolute terms.

Cash Flow

Cash generation has deteriorated materially. Operating cash flow dropped to ~30.7m in 2025 from ~141–147m in 2021–2022, and free cash flow turned negative in 2024–2025 (2025: about -14.7m). Cash flow conversion is weak, with operating cash flow at only ~5.5% of net income in 2025, indicating profits are not translating well into cash and raising reinvestment/funding risk if the trend persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.07B	1.80B	1.64B	1.65B	1.37B
Gross Profit	601.74M	605.27M	577.63M	640.05M	544.25M
EBITDA	279.28M	270.16M	276.60M	350.92M	301.76M
Net Income	154.03M	142.90M	153.91M	214.42M	183.98M
Balance Sheet
Total Assets	2.51B	2.23B	2.12B	2.12B	1.68B
Cash, Cash Equivalents and Short-Term Investments	510.48M	350.78M	381.68M	536.13M	351.79M
Total Debt	991.46M	897.97M	924.82M	1.08B	993.83M
Total Liabilities	1.25B	1.13B	1.14B	1.31B	1.21B
Stockholders Equity	1.26B	1.11B	984.83M	805.47M	472.77M
Cash Flow
Free Cash Flow	-14.70M	-25.91M	2.73M	67.56M	109.08M
Operating Cash Flow	30.66M	32.60M	80.24M	147.27M	141.06M
Investing Cash Flow	-25.24M	-54.80M	-77.58M	-144.99M	-34.84M
Financing Cash Flow	199.79M	-26.74M	-169.83M	122.81M	-136.82M

Scope Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SCOP, the sentiment is Neutral. The current price of 17920 is below the 20-day moving average (MA) of 20377.00, below the 50-day MA of 19188.00, and above the 200-day MA of 16053.09, indicating a neutral trend. The MACD of 367.20 indicates Positive momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:SCOP.

Scope Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAWI	63 Neutral	₪1.79B	3.99	―	6.49%	33.06%	59.60%
RMON	63 Neutral	₪4.12B	33.59	―	0.97%	54.25%	-1.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCOP	60 Neutral	₪2.64B	14.38	―	2.79%	15.05%	2.17%
LEVI	54 Neutral	₪2.62B	96.73	―	0.96%	―	―