Auto Bank Serv (SHVA) AI Stock Analysis

• Market Cap: 876.40M
• Dividend Yield: 7.72%
• Average Volume (3M): 52.46K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.94
• Revenue Growth: 7.67%
• EPS Growth: 0.89%
• Country: IL
• Employees: 130
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 32,788
• 30 Day Avg. Volume: 52,462
• PEG Ratio: 0.60
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 6.50
• P/FCF Ratio: 24.04
• 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: 65 Neutral
• Price Target: 2,077.00 ▼(-5.16% Downside)

Auto Bank Serv's strong financial performance and attractive dividend yield are significant positives. However, bearish technical indicators and the decline in free cash flow growth present risks. The stock is fairly valued, but the technical analysis suggests caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Balance Sheet Health

A low debt-to-equity ratio reflects conservative leverage, enhancing financial stability and flexibility for future growth.

Profitability Margins

Strong profitability margins demonstrate efficient operations and pricing power, contributing to sustained financial success.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth can limit reinvestment opportunities and impact the company's ability to fund future expansion.

Stockholders' Equity Decrease

A decrease in stockholders' equity may indicate challenges in maintaining equity growth, affecting long-term capital structure.

EBIT and EBITDA Margin Decline

Decreasing EBIT and EBITDA margins suggest rising operational costs, which could pressure future profitability if not managed.

Auto Bank Serv Business Overview & Revenue Model

Company Description

Automatic Bank Services Limited operates payment systems for international debit cards in Israel. It serves as an infrastructure for credit card clearing; works with various credit companies as clearers and issuers; works with distributors and manufacturers; provides service to businesses; and activates the confirmation switch on the ATM devices. Automatic Bank Services Limited is based in Holon, Israel.

How the Company Makes Money

Auto Bank Serv generates revenue primarily through interest income from the loans and leases it provides to customers. Each loan or lease agreement typically includes an interest rate that varies based on the customer's credit profile and market conditions. Additionally, SHVA may charge origination fees, processing fees, and late payment penalties, which contribute to its overall revenue stream. The company also benefits from partnerships with automotive dealerships, which may provide referral bonuses for financing agreements secured through their networks. Furthermore, SHVA may engage in securitization of its loan portfolios, allowing the company to generate additional funds by selling portions of its receivables to investors while retaining servicing rights, thus enhancing liquidity and profitability.

Auto Bank Serv Financial Statement Overview

Summary

Auto Bank Serv exhibits strong financial health with consistent revenue growth, high profitability, and a solid balance sheet. The company's prudent financial management is evident in its low leverage and effective cash flow generation. Minor areas for improvement include enhancing cash conversion efficiency.

Income Statement

Auto Bank Serv demonstrates strong profitability with a consistent increase in revenue and net income over the years. The company maintains high gross and net profit margins, indicating efficient cost management and strong pricing power. However, the slight decline in gross profit margin from previous years suggests potential cost pressures or competitive pricing strategies.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio, reflecting conservative financial leverage and a strong equity base. Return on equity is healthy, showcasing effective utilization of shareholder funds. However, the equity ratio indicates a moderate reliance on equity financing, which could limit financial flexibility.

Cash Flow

Auto Bank Serv's cash flow position is solid, with positive free cash flow growth and a strong operating cash flow to net income ratio. The company effectively converts its earnings into cash, supporting its operational and investment activities. The free cash flow to net income ratio is slightly below optimal, suggesting room for improvement in cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.72M	151.46M	134.92M	117.28M	110.41M	85.20M
Gross Profit	146.75M	133.52M	120.88M	109.63M	104.97M	79.86M
EBITDA	77.82M	75.41M	58.14M	41.85M	64.64M	41.51M
Net Income	48.33M	50.91M	38.22M	24.09M	44.56M	27.12M
Balance Sheet
Total Assets	284.14M	306.18M	275.05M	253.93M	241.32M	218.63M
Cash, Cash Equivalents and Short-Term Investments	161.39M	191.91M	171.62M	175.58M	180.70M	160.85M
Total Debt	20.01M	19.75M	20.33M	21.37M	12.17M	9.30M
Total Liabilities	48.05M	47.01M	43.68M	41.48M	34.51M	31.83M
Stockholders Equity	236.09M	259.18M	231.37M	212.45M	206.81M	186.80M
Cash Flow
Free Cash Flow	35.66M	40.95M	15.44M	32.44M	41.36M	30.88M
Operating Cash Flow	64.69M	59.97M	31.70M	47.13M	43.08M	35.74M
Investing Cash Flow	4.32M	-6.51M	-27.49M	-29.11M	-22.04M	-18.18M
Financing Cash Flow	-62.31M	-27.24M	-24.32M	-23.91M	-26.56M	-904.00K

Auto Bank Serv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2190.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SHVA, the sentiment is Positive. The current price of 2190 is above the 20-day moving average (MA) of 2032.65, above the 50-day MA of 2042.70, and above the 200-day MA of 2140.49, indicating a bullish trend. The MACD of 38.32 indicates Negative momentum. The RSI at 67.38 is Neutral, neither overbought nor oversold. The STOCH value of 88.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:SHVA.

Auto Bank Serv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHVA	65 Neutral	876.40M	18.13	―	7.72%	7.67%	0.89%
MCLL	60 Neutral	722.80M	13.50	―	1.53%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%