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Elron (ELRNF) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Elron disclosed 35 risk factors in its most recent earnings report. Elron reported the most risks in the “Finance & Corporate” category.

Risk Overview Q4, 2016

Source: the company's latest filing for the period ended Dec 31, 2016, filed Mar 21, 2017

Risk Distribution
35Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

No filing history is available.

Risks removedRisks addedRisks changedElron Risk Factors
No changes from previous report

Risk Highlights Q4, 2016

Main Risk Category
Finance & Corporate
With 9 Risks
Number of Disclosed Risks
35
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Dec 2016
Number of Risk Changed
0
S&P 500 Average: 1

Risk Word Cloud

product regulation may adversely affect the ability of our medical device group companies to bring new products to market or to continue to supply existing products to the market.our medical device group companiesif our cash resources are insufficient to finance our operations, we may be unable to obtain alternative sources of financing and consequently may be unable to invest in existing and new companies.insufficient to finance our operationsour principal shareholder, discount investment corporation ltd. (tase:disi), or dic, has the ability to direct our business and affairsability to direct our businessour and our group companies' operations could be disrupted as a result of the obligation of personnel in israel to perform military service.israel to perform military servicethere is no assurance that our subsidiary, rdc, will be able to continue to develop technologies and/or new companies.to continue to develop technologiesbecause the medical device industry is litigious, our medical device group companies are susceptible to intellectual property suits that could cause our medical device group companies to incur substantial costs or pay substantial damages or prohibit them from selling their productssusceptible to intellectual property suitsthe results of operations of our group companies may be harmed by foreign currency exchange rate fluctuations.foreign currency exchange rate fluctuationsif our medical device group companies are unable to obtain reimbursement coverage from third-party healthcare payors for procedures using their products, or if reimbursement is insufficient to cover the costs of purchasing their products, demand for their products may be adversely affected.unable to obtain reimbursement coveragethe technological fields within which our group companies operate involve a high level of risk and uncertaintyour group companies operate involveour financial results significantly depend on the results of operations of our group companies, which continue to invest heavily in their development and of which most have generated losses.our financial results significantly depend

Risk Factors Full Breakdown - Total Risks 35

Share Price & Shareholder Rights4 | 11.4%
  • Share Price & Shareholder Rights - Risk 1
    We may face difficulties in our ability to dispose of our shares in companies in our group.

    We are subject to regulatory limitations, including lock up periods according to applicable securities laws, anti-trust laws, as well as contractual limitations, all of which may limit the possibilities for disposing of our holdings in our group companies. Rights of first refusal, tag-along, bring along, veto rights and similar rights which may restrict transfer of shares may limit our ability to dispose of our shares in our privately held group companies. Furthermore, due to the limitations of U.S. and Israeli securities laws, material non-public information in relation to publicly traded companies to which we may become exposed because of service of our members of personnel on the boards of directors of companies in our group, and contractual and legal limits on the tradability of the shares we own or control, may create difficulties in our ability to dispose of our shares in these companies in our group at a time and in a manner we deem suitable.

  • Share Price & Shareholder Rights - Risk 2
    The market price of our ordinary shares is subject to fluctuations.

    The market price of our ordinary shares has fluctuated significantly over time. The following factors, among others, may significantly impact the market price of our ordinary shares: - any slowdown of the global economic condition;- low trading volume of our ordinary shares, which decreased following our delisting from Nasdaq and may further decrease;- announcements by our group companies (or by us regarding our group companies), their competitors or other third parties of technological innovations, new products, regulatory developments, new clinical data regarding current or future products or earnings or losses;- delays or failures in the development of products of our group companies;- periodic variations in results of operations of our group companies;- factors that generally affect the market for stocks of medical device and other companies;- political, economic or other developments affecting Israel and its region; and - quarter-to-quarter fluctuations in our financial results.

  • Share Price & Shareholder Rights - Risk 3
    Our principal shareholder, Discount Investment Corporation Ltd. (TASE:DISI), or DIC, has the ability to direct our business and affairs

    As of December 31, 2016, DIC beneficially owned an aggregate of approximately 50.32% of our ordinary shares and is our controlling shareholder. As of the date of publication of this Annual Report, DIC has the power to elect a majority of the members of our board of directors and accordingly, DIC has the ability to direct our business and affairs subject to the provisions of the Promotion of Competition and Reduction of Centralization Law, 5774-2013 ("Concentration Law") requiring that a majority of the board of directors be independent. For details regarding the Services Agreement with DIC and its termination, see "Item 7 – Related Party Transactions – Major Shareholders". In addition, DIC's control over us may impose various regulatory restrictions on our activities. See risk factors below regarding anti-trust regulations, Bank of Israel regulations on borrowing from Israeli banks, and regulatory and contractual restrictions. Due to the Israeli Law for Increasing Competitiveness and Reducing Market Concentration, DIC will be permitted to continue to control us until December 2019. For more information see "Risks Affecting Us and the Companies in Our Group".

  • Share Price & Shareholder Rights - Risk 4
    It may be difficult to serve process or to enforce a U.S. judgment against us, our directors and our officers.

    Since all of our directors and officers reside outside the United States, it may be difficult to effect service of process on us, our directors or officers within the United States. Furthermore, because most of our assets are located outside the United States, it may not be possible to enforce any judgment obtained in the United States against us or the aforementioned individuals in the United States. There is doubt as to the enforceability of civil liabilities under the U.S. Securities Act of 1933 and the Exchange Act in original actions instituted in Israel.

Debt & Financing3 | 8.6%
Corporate Activity and Growth2 | 5.7%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.