Somoto Ltd. offers various solutions to software developers, publishers, advertisers, and Website owners for the distribution of software worldwide.
The last earnings update was 130 days ago.
Discounted Cash Flow Calculation for TASE:SMTO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
TASE:SMTO DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Somoto's share price is below the future cash flow value, and at a moderate discount (> 20%).
Somoto's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Somoto's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Somoto has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Software industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Somoto's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Somoto's earnings growth to the Israel market average as no estimate data is available.
Unable to compare Somoto's revenue growth to the Israel market average as no estimate data is available.
Unable to determine if Somoto is high growth as no earnings estimate data is available.
Unable to determine if Somoto is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Somoto's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Assaf Itshayek also known as Assi, serves as Chief Executive Officer at Somoto Ltd. and was its Chief Financial Officer until November 2019. Mr. Itshayek served as the Chief Financial Officer of Plimus, Inc. Mr. Itshayek has over 12 years of US and international finance experience. He served as the Chief Financial Officer of Digital Power Corp. from January 2010 to March 31, 2011 and served as its Secretary. He served as Vice President of Finance at Digital Power Corp. since June 2009. He served as Corporate Controller of Metalink Ltd. From 1998 to 2006, he served as a Telecommunication, Media and Technology Senior Audit Manager at Deloitte Brightman Almagor, the Israeli member firm of Deloitte. Mr. Itshayek is a Certified Public Accountant, holds a B.A. degree in Business Administration and Accountancy from the College for Management and an MBA in Financial Management, from the Tel-Aviv University.
Insufficient data for Assi to compare compensation growth.
Assi's remuneration is lower than average for companies of similar size in Israel.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Somoto management team is over 5 years, this suggests they are a seasoned and experienced team.
Chief Executive Officer
Chief Technology Officer
Chief Financial Officer
Internal General Counsel
Head of Human Resources
Head of Innovation
Chief Executive Officer -Tim
Co-Founder & CFO - Tim
Chief Marketing Officer of Somoto Israel Ltd
Head of Mobile - Tabatoo
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Somoto board of directors is about average.
Board of Directors
Eti Widevsky Gur
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Somoto Ltd. offers various solutions to software developers, publishers, advertisers, and Website owners for the distribution of software worldwide. The company provides its products and services through its installation management system for PC and Mac; and on a designated homepage, which is personalized for the user’s profile. It is also involved in the provision of online video advertising services for mobile devices and PC; and the rental of online advertising space, as well as the distribution of software. Somoto Ltd. was founded in 2009 and is headquartered in Tel Aviv, Israel.
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