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IRONSOURCE LTD-A (IS) Stock Fundamental Analysis

NYSE:IS - New York Stock Exchange, Inc. - IL0011763799 - Common Stock - Currency: USD

2.74  -0.09 (-3.18%)

After market: 2.8 +0.06 (+2.19%)

Fundamental Rating

4

IS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. IS has a great financial health rating, but its profitability evaluates not so good. IS is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

IS had positive earnings in the past year.
IS had a positive operating cash flow in the past year.
IS Yearly Net Income VS EBIT VS OCF VS FCFIS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 50M 100M

1.2 Ratios

Industry RankSector Rank
ROA 4.23%
ROE 5.58%
ROIC 5.46%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
IS Yearly ROA, ROE, ROICIS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 10 20 30 40 50

1.3 Margins

Industry RankSector Rank
OM 12.53%
PM (TTM) 9.84%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
IS Yearly Profit, Operating, Gross MarginsIS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 20 40 60 80

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IS is destroying value.
The number of shares outstanding for IS remains at a similar level compared to 1 year ago.
There is no outstanding debt for IS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
IS Yearly Shares OutstandingIS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 200M 400M 600M 800M 1B
IS Yearly Total Debt VS Total AssetsIS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 500M 1B

2.2 Solvency

An Altman-Z score of 5.54 indicates that IS is not in any danger for bankruptcy at the moment.
IS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.54
ROIC/WACC0.73
WACC7.52%
IS Yearly LT Debt VS Equity VS FCFIS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 2.17 indicates that IS has no problem at all paying its short term obligations.
A Quick Ratio of 2.17 indicates that IS has no problem at all paying its short term obligations.
Industry RankSector Rank
Current Ratio 2.17
Quick Ratio 2.17
IS Yearly Current Assets VS Current LiabilitesIS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

The earnings per share for IS have decreased strongly by -10.80% in the last year.
The Revenue has grown by 48.78% in the past year. This is a very strong growth!
EPS 1Y (TTM)-10.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)48.78%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.36%

3.2 Future

Based on estimates for the next years, IS will show a very strong growth in Earnings Per Share. The EPS will grow by 36.98% on average per year.
IS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.52% yearly.
EPS Next Y234.07%
EPS Next 2Y93.38%
EPS Next 3Y59.7%
EPS Next 5Y36.98%
Revenue Next Year41.7%
Revenue Next 2Y33.08%
Revenue Next 3Y28.93%
Revenue Next 5Y21.53%

3.3 Evolution

IS Yearly Revenue VS EstimatesIS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B
IS Yearly EPS VS EstimatesIS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3

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4

4. Valuation

4.1 Price/Earnings Ratio

IS is valuated rather expensively with a Price/Earnings ratio of 18.27.
IS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.70, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.27, which indicates a very decent valuation of IS.
The average S&P500 Price/Forward Earnings ratio is at 22.49. IS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.27
Fwd PE 11.27
IS Price Earnings VS Forward Price EarningsIS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF 35.61
EV/EBITDA 18.94
IS Per share dataIS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.2 0.4 0.6 0.8 1

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IS's earnings are expected to grow with 59.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y93.38%
EPS Next 3Y59.7%

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0

5. Dividend

5.1 Amount

No dividends for IS!.
Industry RankSector Rank
Dividend Yield N/A

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IRONSOURCE LTD-A

NYSE:IS (11/4/2022, 8:04:00 PM)

After market: 2.8 +0.06 (+2.19%)

2.74

-0.09 (-3.18%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-10 2022-08-10/bmo
Earnings (Next)11-22 2022-11-22/bmo
Inst Owners0.14%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.81B
Analysts79.05
Price Target4.9 (78.83%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)116.74%
Min EPS beat(2)64.17%
Max EPS beat(2)169.31%
EPS beat(4)4
Avg EPS beat(4)63.16%
Min EPS beat(4)4.96%
Max EPS beat(4)169.31%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)0.3%
Revenue beat(4)3
Avg Revenue beat(4)2.19%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)6.24%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 18.27
Fwd PE 11.27
P/S 4.19
P/FCF 35.61
P/OCF 29.64
P/B 2.37
P/tB 5.16
EV/EBITDA 18.94
EPS(TTM)0.15
EY5.47%
EPS(NY)0.24
Fwd EY8.87%
FCF(TTM)0.08
FCFY2.81%
OCF(TTM)0.09
OCFY3.37%
SpS0.65
BVpS1.15
TBVpS0.53
PEG (NY)0.08
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.23%
ROE 5.58%
ROCE N/A
ROIC 5.46%
ROICexc N/A
ROICexgc 11.57%
OM 12.53%
PM (TTM) 9.84%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 36.1%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 119.57%
Current Ratio 2.17
Quick Ratio 2.17
Altman-Z 5.54
F-Score5
WACC7.52%
ROIC/WACC0.73
Cap/Depr(3y)67.4%
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)157.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y234.07%
EPS Next 2Y93.38%
EPS Next 3Y59.7%
EPS Next 5Y36.98%
Revenue 1Y (TTM)48.78%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.36%
Revenue Next Year41.7%
Revenue Next 2Y33.08%
Revenue Next 3Y28.93%
Revenue Next 5Y21.53%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.95%
OCF growth 3YN/A
OCF growth 5YN/A