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Optibase

Nasdaq:OBAS
Snowflake Description

Overvalued with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OBAS
Nasdaq
$57M
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Optibase Ltd., together with its subsidiaries, operates in the fixed-income real estate sector in Luxemburg, Switzerland, Germany, and the United States. The last earnings update was 126 days ago. More info.


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OBAS Share Price and Events
7 Day Returns
0%
NasdaqGM:OBAS
19%
US Real Estate
7.2%
US Market
1 Year Returns
7.3%
NasdaqGM:OBAS
-30.9%
US Real Estate
-10.4%
US Market
OBAS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Optibase (OBAS) 0% -1.6% 2.9% 7.3% 25% 76%
US Real Estate 19% -30.3% -37.8% -30.9% -17.4% -33.2%
US Market 7.2% -12.6% -19.4% -10.4% 8.3% 21%
1 Year Return vs Industry and Market
  • OBAS outperformed the Real Estate industry which returned -30.9% over the past year.
  • OBAS outperformed the Market in United States of America which returned -10.4% over the past year.
Price Volatility
OBAS
Industry
5yr Volatility vs Market

Value

 Is Optibase undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Optibase to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Optibase.

NasdaqGM:OBAS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:OBAS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.003 (1 + (1- 23%) (254.55%))
2.319
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (2 * 6.33%)
14.4%

Discounted Cash Flow Calculation for NasdaqGM:OBAS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Optibase 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.

NasdaqGM:OBAS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.4%)
2020 7.16 Est @ 4.3% 6.26
2021 7.42 Est @ 3.53% 5.67
2022 7.64 Est @ 3% 5.10
2023 7.84 Est @ 2.62% 4.58
2024 8.02 Est @ 2.36% 4.09
2025 8.20 Est @ 2.17% 3.66
2026 8.36 Est @ 2.04% 3.26
2027 8.53 Est @ 1.95% 2.91
2028 8.69 Est @ 1.89% 2.59
2029 8.85 Est @ 1.84% 2.30
Present value of next 10 years cash flows $40.00
NasdaqGM:OBAS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $8.85 × (1 + 1.74%) ÷ (14.4% – 1.74%)
$71.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $71.11 ÷ (1 + 14.4%)10
$18.52
NasdaqGM:OBAS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $40.00 + $18.52
$58.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $58.52 / 5.22
$11.22
NasdaqGM:OBAS Discount to Share Price
Calculation Result
Value per share (USD) From above. $11.22
Current discount Discount to share price of $11.00
= -1 x ($11.00 - $11.22) / $11.22
2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Optibase is available for.
Intrinsic value
2%
Share price is $11 vs Future cash flow value of $11.22
Current Discount Checks
For Optibase to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Optibase's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Optibase's share price is below the future cash flow value, but not 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 Optibase's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Optibase's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:OBAS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-0.32
NasdaqGM:OBAS Share Price ** NasdaqGM (2020-03-31) in USD $11
United States of America Real Estate Industry PE Ratio Median Figure of 25 Publicly-Listed Real Estate Companies 15.76x
United States of America Market PE Ratio Median Figure of 2,938 Publicly-Listed Companies 13.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Optibase.

NasdaqGM:OBAS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:OBAS Share Price ÷ EPS (both in USD)

= 11 ÷ -0.32

-33.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Optibase is loss making, we can't compare its value to the US Real Estate industry average.
  • Optibase is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Optibase's expected growth come at a high price?
Raw Data
NasdaqGM:OBAS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -33.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Real Estate Industry PEG Ratio Median Figure of 11 Publicly-Listed Real Estate Companies 0.54x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 1.01x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Optibase, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Optibase's assets?
Raw Data
NasdaqGM:OBAS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $10.05
NasdaqGM:OBAS Share Price * NasdaqGM (2020-03-31) in USD $11
United States of America Real Estate Industry PB Ratio Median Figure of 49 Publicly-Listed Real Estate Companies 1.1x
United States of America Market PB Ratio Median Figure of 5,134 Publicly-Listed Companies 1.27x
NasdaqGM:OBAS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:OBAS Share Price ÷ Book Value per Share (both in USD)

= 11 ÷ 10.05

1.09x

* Primary Listing of Optibase.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Optibase is good value based on assets compared to the US Real Estate industry average.
X
Value checks
We assess Optibase's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Optibase has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Optibase expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Optibase 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 growth 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 it right!
Annual Growth Rate
11.9%
Expected Real Estate industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Optibase expected to grow at an attractive rate?
  • Unable to compare Optibase's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Optibase's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Optibase's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:OBAS Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:OBAS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:OBAS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 16 -2
2019-06-30 16 -1
2019-03-31 16 -2
2018-12-31 17 7 -3
2018-09-30 17 -2
2018-06-30 17 -2
2018-03-31 17 -1
2017-12-31 17 8 -1
2017-09-30 16 -2
2017-06-30 16 -2
2017-03-31 16 -1
2016-12-31 16 7 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Optibase is high growth as no earnings estimate data is available.
  • Unable to determine if Optibase 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.
Raw Data
NasdaqGM:OBAS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Optibase Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:OBAS Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -0.32
2019-06-30 -0.27
2019-03-31 -0.44
2018-12-31 -0.54
2018-09-30 -0.48
2018-06-30 -0.45
2018-03-31 -0.25
2017-12-31 -0.22
2017-09-30 -0.42
2017-06-30 -0.39
2017-03-31 -0.20
2016-12-31 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Optibase will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of OBAS’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Optibase's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Real Estate companies here
  3. Optibase's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Optibase's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Optibase has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Optibase performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Optibase's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Optibase does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Optibase's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Optibase's 1-year growth to the US Real Estate industry average as it is not currently profitable.
Earnings and Revenue History
Optibase's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Optibase Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:OBAS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 16.20 -1.68 2.94
2019-06-30 16.30 -1.40 3.01
2019-03-31 16.38 -2.30 3.42
2018-12-31 16.61 -2.78 3.50
2018-09-30 16.67 -2.50 3.31
2018-06-30 16.83 -2.33 3.30
2018-03-31 16.87 -1.28 2.85
2017-12-31 16.59 -1.12 2.70
2017-09-30 16.44 -2.18 2.83
2017-06-30 16.30 -2.01 2.64
2017-03-31 16.32 -1.04 2.64
2016-12-31 16.34 0.20 2.62
2016-09-30 16.41 1.88 2.17
2016-06-30 16.49 2.23 2.04
2016-03-31 16.01 -0.21 2.05
2015-12-31 15.27 -1.07 1.85
2015-09-30 14.39 1.58 1.93
2015-06-30 13.64 1.32 1.95
2015-03-31 13.52 2.99 2.09
2014-12-31 13.94 3.34 2.17
2014-09-30 13.85 0.82 2.37
2014-06-30 13.81 0.94 2.32
2014-03-31 13.69 1.40 1.95
2013-12-31 13.71 1.47 1.87
2013-09-30 13.59 1.72 1.66
2013-06-30 13.52 1.86 1.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Optibase has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Optibase used its assets less efficiently than the US Real Estate industry average last year based on Return on Assets.
  • It is difficult to establish if Optibase improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Optibase's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Optibase has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Optibase's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Optibase's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Optibase is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Optibase's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Optibase's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Optibase Company Filings, last reported 6 months ago.

NasdaqGM:OBAS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 73.47 140.05 15.80
2019-06-30 75.67 142.98 14.52
2019-03-31 74.25 142.79 15.10
2018-12-31 73.39 144.52 13.84
2018-09-30 77.18 147.47 17.66
2018-06-30 75.29 147.09 16.89
2018-03-31 78.29 157.66 21.01
2017-12-31 77.07 155.48 20.27
2017-09-30 76.67 158.20 20.72
2017-06-30 77.01 159.59 18.05
2017-03-31 76.28 158.00 22.25
2016-12-31 74.13 150.19 16.02
2016-09-30 77.77 161.22 19.47
2016-06-30 78.59 160.09 20.38
2016-03-31 78.19 165.22 24.00
2015-12-31 75.58 161.36 23.81
2015-09-30 76.24 164.85 41.23
2015-06-30 79.24 140.36 18.27
2015-03-31 78.69 115.20 22.32
2014-12-31 77.08 113.02 22.90
2014-09-30 75.70 117.99 18.31
2014-06-30 80.35 126.41 20.84
2014-03-31 80.02 127.89 19.43
2013-12-31 78.92 127.74 18.81
2013-09-30 70.16 126.28 18.16
2013-06-30 67.39 121.82 17.43
  • Optibase's level of debt (190.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (155.8% vs 190.6% today).
  • Debt is not well covered by operating cash flow (4.9%, less than 20% of total debt).
  • Optibase is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Optibase's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Optibase has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Optibase's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Optibase dividends.
If you bought $2,000 of Optibase shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Optibase's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Optibase's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:OBAS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Optibase has not reported any payouts.
  • Unable to verify if Optibase's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Optibase's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Optibase has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Optibase's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Optibase afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Optibase has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Optibase's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Amir Philips
COMPENSATION $344,700
AGE 51
TENURE AS CEO 8.8 years
CEO Bio

Mr. Amir Philips has been the Chief Executive Officer of Optibase Ltd. since June 1, 2011. Mr. Philips served as the Chief Financial Officer of Optibase Ltd. since May 15, 2007 until June 2011 and served as its Vice President of Finance since July 2004. He joined Optibase seven years ago and has served in a number of capacities, include controller. He served as a Vice President of Finance at Optibase, Inc. since July 2004. He served as an Accountant and Auditor at Lotker Stein Toledano and Co., and serves as a Member of BDO Ziv Haft. He is a Certified Public Accountant in Israel. Mr. Philips holds a B.B. degree in Accounting and Business Management from the Israeli College of Management.

CEO Compensation
  • Amir's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Amir's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Alex Hilmann

TITLE
Executive Chairman
COMPENSATION
$78K
AGE
67

Amir Philips

TITLE
Chief Executive Officer
COMPENSATION
$345K
AGE
51
TENURE
8.8 yrs

Yakir Ben-Naim

TITLE
Chief Financial Officer
COMPENSATION
$176K
AGE
47
TENURE
8.8 yrs

Tom Wyler

TITLE
Chief Executive Officer of Optibase Inc
COMPENSATION
$211K
AGE
68
Board of Directors Tenure

Average tenure and age of the Optibase board of directors in years:

9.3
Average Tenure
57
Average Age
  • The tenure for the Optibase board of directors is about average.
Board of Directors

Chaim Labenski

TITLE
External Director
AGE
71
TENURE
9.3 yrs

Alex Hilmann

TITLE
Executive Chairman
COMPENSATION
$78K
AGE
67
TENURE
10.5 yrs

Danny Lustiger

TITLE
Director
COMPENSATION
$35K
AGE
52
TENURE
10.4 yrs

Orli Seroussi

TITLE
External Director
AGE
59
TENURE
12.2 yrs

Reuwen Schwarz

TITLE
Director
COMPENSATION
$67K
AGE
43
TENURE
5.7 yrs

Haim Ben-Simon

TITLE
External Director
TENURE
0.3 yrs

Tali Yaron-Eldar

TITLE
External Director
AGE
55
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Jun 19 Buy The Capri Family Foundation Company 29. May 19 29. May 19 255,240 $10.46 $2,670,831
X
Management checks
We assess Optibase's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Optibase has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's Why Optibase (NASDAQ:OBAS) Has A Meaningful Debt Burden

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. … Over the last three years, Optibase actually produced more free cash flow than EBIT.

Simply Wall St -

How Much Did Optibase Ltd.'s (NASDAQ:OBAS) CEO Pocket Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Optibase How Does Amir Philips's Compensation Compare With Similar Sized Companies? … Remuneration for Amir Philips is close enough to the median pay for a CEO of a similar sized company.

Simply Wall St -

Estimating The Fair Value Of Optibase Ltd. (NASDAQ:OBAS)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $8.1m $8.5m $8.8m $9.1m $9.5m $9.8m $10.1m $10.4m $10.7m $11.0m Growth Rate Estimate Source Est @ 5.64% Est @ 4.76% Est @ 4.15% Est @ 3.73% Est @ 3.43% Est @ 3.22% Est @ 3.07% Est @ 2.97% Est @ 2.9% Est @ 2.85% Present Value ($, Millions) Discounted @ 14.65% $7.0 $6.4 $5.8 $5.3 $4.8 $4.3 $3.9 $3.5 $3.1 $2.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $46.9m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$11m × (1 + 2.7%) ÷ (14.7% – 2.7%) = US$94m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$94m ÷ ( 1 + 14.7%)10 = $24.07m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $71.01m. … NasdaqGM:OBAS Intrinsic value, July 9th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Update: Optibase (NASDAQ:OBAS) Stock Gained 89% In The Last Five Years

Check out our latest analysis for Optibase Because Optibase is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … When a company doesn't make profits, we'd generally expect to see good revenue growth. … In the last 5 years Optibase saw its revenue grow at 4.7% per year.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Optibase Ltd.'s (NASDAQ:OBAS)

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Amir Philips's Compensation Compare With Similar Sized Companies. … is worth US$54m, and total annual CEO compensation is US$362k.

Simply Wall St -

Should Optibase (NASDAQ:OBAS) Be Disappointed With Their 79% Profit?

Optibase isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. … We'd be looking for the underlying business to grow revenue a bit faster.

Simply Wall St -

How Should Investors Feel About Optibase Ltd's (NASDAQ:OBAS) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Amir Philips's Compensation Compare With Similar Sized Companies. … We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$288k

Simply Wall St -

Is Optibase Ltd's (NASDAQ:OBAS) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as Optibase Ltd (NASDAQ:OBAS) with its market cap of US$44.84m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

What does Optibase Ltd's (NASDAQ:OBAS) Balance Sheet Tell Us About Its Future?

At this stable level of debt, OBAS currently has US$20.27M remaining in cash and short-term investments , ready to deploy into the business. … Additionally, OBAS has generated US$7.90M in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 4.88%, meaning that OBAS’s debt is not appropriately covered by operating cash. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: At its current level of cash flow coverage, OBAS has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Does Optibase Ltd (NASDAQ:OBAS) Go Up With The Market?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, OBAS appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … With a market cap of US$42.76M, OBAS falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies.

Simply Wall St -

Company Info

Description

Optibase Ltd., together with its subsidiaries, operates in the fixed-income real estate sector in Luxemburg, Switzerland, Germany, and the United States. The company purchases and operates real estate properties intended for leasing and resale primarily for the purpose of commercial, industrial, office space, parking garage, and warehouse use, as well as for residential purposes. The company was formerly known as Optibase Advanced Systems (1990) Ltd. and changed its name to Optibase Ltd. in November 1993. The company was founded in 1990 and is headquartered in Herzliya, Israel. Optibase Ltd. is a subsidiary of The Capri Family Foundation.

Details
Name: Optibase Ltd.
OBAS
Exchange: NasdaqGM
Founded: 1990
$57,378,475
5,216,225
Website: http://www.optibase-holdings.com
Address: Optibase Ltd.
8 Hamenofim Street,
Herzliya,
4672559,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM OBAS Ordinary Shares Nasdaq Global Market US USD 07. Apr 1999
DB OP4 Ordinary Shares Deutsche Boerse AG DE EUR 07. Apr 1999
TASE OBAS Ordinary Shares The Tel-Aviv Stock Exchange IL ILS 07. Apr 1999
Number of employees
Current staff
Staff numbers
11
Optibase employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 00:05
End of day share price update: 2020/03/31 00:00
Last earnings filing: 2019/11/27
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.