{"id":228,"date":"2023-04-23T09:11:32","date_gmt":"2023-04-23T06:11:32","guid":{"rendered":"https:\/\/israeldividendinvestor.com\/?p=228"},"modified":"2023-05-02T23:18:04","modified_gmt":"2023-05-02T20:18:04","slug":"one-software-technologies-2023-04-dividend-analysis","status":"publish","type":"post","link":"https:\/\/israeldividendinvestor.com\/?p=228","title":{"rendered":"One Software Technologies – 2023-04 Dividend Analysis"},"content":{"rendered":"\n

One Software Technologies Ltd. (ONE<\/a>) is one of Israel’s leading IT companies, providing a wide range of services and solutions to its clients, including software development, hardware and storage infrastructures, cloud computing, cyber security, data analytics, artificial intelligence, digital transformation, and more. The company has been operating since 1994 and has grown to become one of the largest IT companies in Israel, with over 6500 employees and over 2000 clients in various sectors such as industry, government, finance, health, education, and defense. The company\u2019s mission is to help its clients achieve their business goals by delivering innovative and high-quality IT solutions that are tailored to their specific needs and challenges. and to be a trusted partner for its clients and to provide them with technologies for their future needs.<\/p>\n\n\n\n

One Software Technologies has clients in various sectors, such as industry, government, finance, health, education, and defense. Some of the company\u2019s biggest clients are the Israel Ministry of Defense, Israel Electric Corporation, Bank Hapoalim, Clalit Health Services, and Israel Aerospace Industries, among others.<\/p>\n\n\n\n

The company provides complete IT solutions under one roof, from advanced hardware and storage infrastructures to complex software solutions, tailoring its solutions to the needs and challenges of its clients helping them achieve their business goals. It has accumulated years of rich experience and deep understanding of its clients\u2019 business needs today, to deal with tomorrow\u2019s challenges. This is very important in government areas such as the military, where long term customer relations and experience are very valuable to the business.<\/p>\n\n\n\n

One operates in 3 main areas: software services consultancy, IT infrastructure, and business process outsourcing, which produce 55%, 35% and 10% of revenue in 2022.<\/p>\n\n\n\n

2022 was a good year, with 18% growth in revenue, 21.6% in net earnings. From the company’s presentation to investors, the last four years have been very good for the company with revenue growth of 224%<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Gross profit growth of 209%<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Operating income growth of 252%<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

And net income growth of 249%<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The company’s board of directors declared that the company has a dividend policy of distributing up to 66% of the net earnings to shareholders. This policy is still in place.<\/p>\n\n\n\n

Looking at some longer-term financials, One Software Technologies has been able to grow its revenue per share from 15.86 IL 44.85 IL in the last 10 years, which is an absolute growth of 182.75% and an average yearly growth rate of 10.95%.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Earning have grown in parallel to revenue, slower initially, and accelerating in the last 4 years. In the last 10 years, earnings per share have grown from 0.76 ILS to 2.28 ILS, a total growth of 218.44% and an average yearly growth rate of 12.28%. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Two things are of interest in this chart. First, the latest growth streak started before the COVID pandemic, which is a good sign that there is not only pandemic-related growth that we must be aware (and beware) of. At the same time, there is a LOT of growth in the years of the pandemic, in which companies had to invest large amounts of money to update their systems and infrastructures to support a secure “hybrid” work model, and a “hybrid” customer model – government offices and healthcare providers in Israel stared serving customers through the internet, and this required investment in the creation of new apps, and modernization to support these apps. I think this growth trend will slow in the coming years, especially if we enter a recession as many economists are predicting of late.<\/p>\n\n\n\n

Dividends distributed by One Software Technologies have grown in parallel to the growth in revenue and earnings. In the last 10 years, the company has grown its dividend per share from 0.349 ILS in 2012 to 1.445 ILS in 2020, total growth of 314% and a average yearly growth rate of 15.27%. As I wrote previously., I expect this growth to slow down in the incoming years.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

One Software Technologies has a good cash flow to support paying these dividends in the short-term future. And even if there is a slowdown in the economy, many of the contracts that the company has are mid to long term contracts that are expensive to break, so it will take time for this to filter down into the company’s bottom line.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

One Software Technologies is currently trading at 37.70 ILS, which gives it a P\/E of 16.54 and a trailing dividend yield of 3.8%. If the company can maintain its growth rate, even partially, it looks like a good investment for the future.<\/p>\n\n\n\n

Disclaimer: I own stock in the company.<\/p>\n","protected":false},"excerpt":{"rendered":"

One Software Technologies Ltd. (ONE) is one of Israel’s leading IT companies, providing a wide range of services and solutions to its clients, including software development, hardware and storage infrastructures, cloud computing, cyber security, data analytics, artificial intelligence, digital transformation, and more. The company has been operating since 1994 and has grown to become one […]<\/p>\n","protected":false},"author":13766092,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[1828844],"tags":[1828843,1828847,6635,9937,1828853,1828841,1828833],"class_list":["post-228","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-analysis","tag-dividend","tag-investing","tag-israel","tag-one-software-technologies","tag-stock","tag-tase"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/peDCsg-3G","jetpack-related-posts":[{"id":381,"url":"https:\/\/israeldividendinvestor.com\/?p=381","url_meta":{"origin":228,"position":0},"title":"One Software Technologies Ltd. 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