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Tel Aviv Stock Exchange Ltd. (IL:TASE)
:TASE
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Tase
(TASE)
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Rating:75Outperform
Price Target:
13,984.00
▲(43.43% Upside)
Score is supported primarily by strong financial performance and a very positive earnings call with record growth and margins. Technicals confirm a strong uptrend but are overheated (high RSI/Stoch), while valuation is the main drag due to the elevated P/E despite the dividend yield.
Positive Factors
High profit margins
Sustained high gross and net margins indicate durable pricing power and efficient cost structure for an exchange. This supports strong operating cash flow, funds for technology and product investment, and resilience to cyclical volume swings over the next several months.
Strong free cash flow
Nearly 20% FCF growth demonstrates robust cash generation from operations for reinvestment, dividends or strategic initiatives. Reliable FCF reduces reliance on external financing and underpins sustained investment in market infrastructure and product development.
Rising market liquidity and strategic initiatives
Sharp increases in trading volumes, foreign and retail inflows, and elevated IPO/bond issuance expand core fee pools and network effects. Coupled with market-making and TAL implementation, these structural gains should sustainably boost fee revenue and market relevance.
Negative Factors
Decline in government bond issuance
A sustained drop in government bond issuance reduces a historically stable revenue stream from bond trading and listing services. If persistent, this structural shift can lower fee diversification and make revenues more dependent on equity and corporate bond markets.
Rising operating expenses
Higher tech, communications and depreciation costs reflect needed investments but compress near-term operating leverage. If expense growth outpaces revenue gains, margin expansion may stall, forcing tighter capital allocation or slower product rollout pacing.
Reduced net financing income
Lower financing income from decreased deposits and securities gains reduces non-operational earnings and increases earnings volatility. Reliance on market-driven investment returns adds cyclical sensitivity to overall profitability and cash-generation profiles.
Tase (TASE) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪11.86B
Dividend Yield0.58%
Average Volume (3M)318.08K
Price to Earnings (P/E)76.0
Beta (1Y)0.70
Revenue Growth24.95%
EPS Growth61.05%
CountryIL
Employees275
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)54.70
Shares Outstanding92,605,350
10 Day Avg. Volume365,532
30 Day Avg. Volume318,085
Financial Highlights & Ratios
PEG Ratio1.44
Price to Book (P/B)5.41
Price to Sales (P/S)8.92
P/FCF Ratio35.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tase Business Overview & Revenue Model
Company DescriptionThe Tel-Aviv Stock Exchange Ltd. manages securities stock exchange and related activities in Israel. The company offers markets for the listing and trading of a range of securities and derivative instruments, including shares, corporate bonds, government bonds, treasury bills, ETFs, convertible securities, single stock options, options, and futures. It also engages in the clearing and settlement of securities; issuing of options and futures; and holding of securities for others, as well as provides securities registration services. The company was founded in 1935 and is headquartered in Tel Aviv, Israel.
How the Company Makes MoneyTase generates revenue through multiple key streams, including trading fees charged to participants for executing transactions on its platform, listing fees from companies that choose to list their securities on the exchange, and data services provided to market participants. Additionally, Tase earns income from clearing services, which involve the settlement and clearing of trades. Strategic partnerships with financial institutions and technology providers also contribute to its revenue, as these collaborations enhance its service offerings and market reach.
Tase Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment, with TASE achieving record-breaking financial results and substantial growth across all core business lines. Despite some challenges like a decline in government bond issuance and increased expenses, the significant achievements in revenue growth, market performance, and strategic initiatives indicate a robust overall performance.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
TASE concluded Q3 2025 with record results. Revenues for the quarter were ILS 147.1 million, up 35% year-on-year. Adjusted EBITDA reached ILS 79.5 million, up 76% year-on-year, with an EBITDA margin of 54.1%. Net profit reached ILS 50 million, up 29% year-on-year.
Strong Market Performance
TA-35 and TA-90 indices saw gains of 34% and 32% respectively, outperforming global indices like Dow Jones and S&P 500. The equity market cap increased to ILS 1.8 trillion, a 51% year-on-year growth.
Increased Trading Volume
Equity average daily trading volumes reached a new all-time high of ILS 3.8 billion in Q3, up 88% year-on-year. Net inflows from foreign investors totaled ILS 6.4 billion in the first 9 months of 2025.
Surge in IPO and Bond Market Activity
17 new companies joined TASE, raising ILS 3.8 billion, compared to 5 companies raising ILS 0.8 billion in 2024. Corporate bond issuance totaled ILS 148 billion, up from ILS 87 billion last year.
Successful Strategic Initiatives
TASE advanced its market-making program with the participation of all major banks and companies like Bezeq. The 'Trading At Last' phase was successfully implemented, and new indices were launched.
Negative Updates
Decline in Government Bond Issuance
Government bond issuance declined with ILS 115 billion raised by the Ministry of Finance in the first 9 months of 2025, down from ILS 142 billion in the same period last year.
Employee and Operational Expense Increase
Expenses increased by 7% year-on-year, primarily due to higher computer and communication expenses, and depreciation and amortization.
Reduced Net Financing Income
Net financing income decreased to ILS 2.6 million from ILS 4 million year-on-year, due to a decrease in deposits and gains from marketable securities.
Company Guidance
The Tel Aviv Stock Exchange's Q3 2025 results call highlighted a series of impressive financial metrics showcasing record-breaking performance across its core business lines. Revenues soared to ILS 147.1 million, marking a 35% year-on-year increase, while adjusted EBITDA surged by 76% to reach ILS 79.5 million, elevating the EBITDA margin to an unprecedented 54.1%. Net profit climbed 29% to a record ILS 50 million. The leading TASE indices, TA-35 and TA-90, achieved remarkable year-to-date returns of 34% and 32%, respectively, outperforming global indices like the Dow Jones and S&P 500. The domestic equity market cap grew by 51% year-on-year to ILS 1.8 trillion, with average daily trading volumes hitting an all-time high of ILS 3.8 billion, up 88% from the previous year. Notably, foreign investor net inflows reached ILS 6.4 billion, and retail net inflows totaled ILS 10.9 billion, a significant turnaround from the previous year's net outflows. Additionally, 17 new IPOs raised ILS 3.8 billion, while the bond market saw the issuance of ILS 148 billion in corporate bonds. Despite a decline in government bond issuance, the exchange's strategic initiatives, including partnerships and the implementation of the TAL trading phase, are set to further enhance liquidity and market accessibility.Tase Financial Statement Overview
Summary
Strong overall fundamentals: solid revenue growth and high profitability (TTM gross margin 47.62%, net margin 26.61%), low leverage (debt-to-equity 0.23) with strong ROE (21.26%), and healthy free cash flow growth (TTM +19.94%). Cash conversion is a relative watch-out (operating cash flow to net income 0.28).Income Statement
Tase demonstrates strong revenue growth with a TTM increase of 7.74% and consistent annual growth. The company maintains healthy profit margins, with a TTM gross profit margin of 47.62% and a net profit margin of 26.61%. EBIT and EBITDA margins are also robust, indicating efficient operations. Overall, the income statement reflects strong profitability and growth trends.85
Very Positive
Balance Sheet
The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.23 in the TTM, indicating low leverage. Return on equity is strong at 21.26%, showcasing effective use of equity to generate profits. However, the equity ratio has room for improvement. Overall, the balance sheet is stable with low financial risk.78
Positive
Cash Flow
Tase's cash flow statement reveals a healthy free cash flow growth rate of 19.94% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is 0.28, suggesting efficient cash conversion. The free cash flow to net income ratio of 0.71 further supports the company's strong cash flow position. Overall, the cash flow statement reflects robust cash management and growth.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 529.65M | 437.87M | 389.86M | 361.01M | 323.66M | 304.27M |
| Gross Profit | 279.97M | 198.29M | 165.41M | 150.35M | 117.20M | 108.39M |
| EBITDA | 272.60M | 199.87M | 162.43M | 121.62M | 107.00M | 93.14M |
| Net Income | 154.75M | 101.39M | 83.21M | 50.84M | 45.47M | 36.90M |
Balance Sheet | ||||||
| Total Assets | 1.62B | 1.83B | 2.69B | 1.81B | 1.56B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 429.18M | 531.41M | 498.67M | 388.63M | 390.06M | 346.71M |
| Total Debt | 113.87M | 118.15M | 163.58M | 15.04M | 23.14M | 13.39M |
| Total Liabilities | 1.02B | 1.10B | 2.29B | 1.13B | 897.56M | 557.02M |
| Stockholders Equity | 599.36M | 721.27M | 401.72M | 686.45M | 661.87M | 630.84M |
Cash Flow | ||||||
| Free Cash Flow | 193.04M | 110.25M | 109.71M | 71.32M | 70.73M | 57.54M |
| Operating Cash Flow | 257.31M | 165.21M | 160.27M | 119.58M | 106.38M | 95.43M |
| Investing Cash Flow | -64.82M | -55.68M | 57.02M | -52.89M | -40.22M | -42.09M |
| Financing Cash Flow | -263.86M | -79.67M | -1.35M | -54.65M | -28.38M | -14.98M |
Tase Technical Analysis
Positive
9750.00
Price Trends
10466.98
Positive
9230.66
Positive
7653.69
Positive
Market Momentum
647.45
Positive
65.23
Neutral
64.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TASE, the sentiment is Positive. The current price of 9750 is below the 20-day moving average (MA) of 11960.00, below the 50-day MA of 10466.98, and above the 200-day MA of 7653.69, indicating a bullish trend. The MACD of 647.45 indicates Positive momentum. The RSI at 65.23 is Neutral, neither overbought nor oversold. The STOCH value of 64.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TASE.
Tase Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₪11.86B | 76.01 | ― | 0.58% | 24.95% | 61.05% | |
74 Outperform | ₪5.08B | 33.60 | ― | 3.92% | 46.14% | -17.83% | |
71 Outperform | ₪10.58B | 12.26 | ― | 2.20% | 25.15% | 288.21% | |
70 Outperform | ₪18.73B | 13.44 | ― | 0.30% | 6.00% | 36.33% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
IL:TASE
Tase
12,630.00
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197.25%
IL:MGDL
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1,800.00
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IL:FIBIH
Fibi Holdings
34,060.00
14,804.69
76.89%
IL:IBI
Ibi Inv House
35,930.00
16,344.33
83.45%
IL:LAPD
Lapidoth Cap.
9,940.00
2,161.70
27.79%
IL:MTAV
Meitav Invest
12,740.00
8,884.46
230.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.