Auto Bank Serv (SHVA) AI Stock Analysis

• Market Cap: ₪981.40M
• Dividend Yield: 7.72%
• Average Volume (3M): 52.46K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.93
• 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: 40,040,900
• 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: 76 Outperform
• Price Target: 2,927.00 ▲(33.65% Upside)

The score is driven primarily by strong financial performance (high margins, rapid revenue growth, and low leverage). Valuation is supportive due to a reasonable P/E and strong dividend yield. Technicals are bullish but notably overbought (very high RSI/Stoch), which tempers the overall score due to increased near-term reversal risk.

Positive Factors

Strong balance sheet

Very low leverage and a high equity ratio provide durable financial stability for a lender. This conservative capital structure supports ongoing loan origination, absorbs credit losses during cycles, and preserves access to funding and securitization capacity over the medium term.

High profit margins

Exceptionally strong gross and net margins indicate durable pricing power and efficient loan servicing. High margins improve the firm's ability to generate retained earnings, fund growth initiatives, and sustain dividend distributions even through modest revenue slowdowns.

Solid cash generation

Operating cash flow well above reported income signals high cash quality from core lending operations. Reliable cash generation supports ongoing loan origination, servicing, securitization activity and shareholder returns without heavy reliance on external financing.

Negative Factors

Declining free cash flow growth

A persistent decline in free cash flow growth can constrain internal funding for loan book expansion, make dividend coverage less secure, and increase reliance on external funding. Over months this reduces flexibility to invest or buffer credit shocks.

Slight fall in shareholders' equity

A shrinking equity base, even if modest, limits capacity to grow risk-weighted assets and may raise regulatory or market scrutiny for a lender. Continued declines reduce capital buffers, potentially increasing funding costs and constraining long-term growth options.

Compressed operating margins

Eroding EBIT/EBITDA margins point to rising operating costs or lower efficiency. If this trend persists it will eat into the firm's margin cushion, reducing resilience to higher credit losses and limiting reinvestment capacity for technology, underwriting or distribution improvements.

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

Strong fundamentals supported by high profitability (TTM gross margin 94.24%, net margin 31.04%) and very strong latest revenue growth (+78.3%). Balance sheet is conservative (debt-to-equity 0.084; equity ratio 83.06%) with solid ROE (19.56%). Offsets include slightly weaker EBIT/EBITDA margins and a decline in free cash flow growth (-6.64% TTM).

Income Statement

Auto Bank Serv demonstrates strong financial performance with a high gross profit margin of 94.24% and a robust net profit margin of 31.04% in TTM. The company has shown impressive revenue growth, particularly in the latest period with a 78.3% increase, indicating a strong upward trajectory. However, there is a slight decline in EBIT and EBITDA margins compared to previous periods, which could suggest rising operational costs.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.084, indicating conservative leverage and financial stability. The return on equity is healthy at 19.56%, reflecting efficient use of equity capital. The equity ratio stands at a strong 83.06%, showcasing a robust capital structure. However, a slight decrease in stockholders' equity over the periods suggests potential challenges in equity growth.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow to net income ratio is strong at 2.45, indicating good cash generation relative to net income. However, free cash flow growth has declined by 6.64% in the TTM, which could be a concern if it persists. The free cash flow to net income ratio remains solid at 0.55, suggesting adequate free cash flow generation.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 2357.20, above the 50-day MA of 2141.12, and above the 200-day MA of 2140.84, indicating a bullish trend. The MACD of 87.77 indicates Positive momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 is Neutral, 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	76 Outperform	₪981.40M	20.28	―	7.72%	7.67%	0.89%
MCLL	58 Neutral	₪772.01M	14.00	―	1.53%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%