Bank Hapoalim BM (BKHYY) AI Stock Analysis

• Market Cap: $33.19B
• Dividend Yield: 2.71%
• Average Volume (3M): 112.00
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.20
• Revenue Growth: 25.15%
• EPS Growth: 25.32%
• Country: US
• Employees: 8,480
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.07
• Shares Outstanding: 262,639,650
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 112
• PEG Ratio: 1.80
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 6.23
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 3.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $135.00 ▲(14.00% Upside)

The score is driven by strong technical trend/momentum and a constructive earnings-call backdrop (profitability, capital, cost control). These positives are moderated by weaker financial statement signals in the latest TTM data—especially negative and volatile cash flow plus a sharp revenue decline—while valuation remains reasonable and supportive.

Positive Factors

Strong profitability and ROE

Consistent high margins and a 13–15% ROE indicate the bank's lending, fee, and investment businesses generate durable returns. Strong profitability supports internal capital generation, dividends and buybacks, and funds reinvestment into digital and corporate initiatives over the medium term.

Healthy capital and liquidity buffers

A CET1 ratio ~12% and LCR >120% provide meaningful loss-absorbing capacity and short-term liquidity resilience. These buffers reduce the likelihood of forced asset sales or emergency funding in stress, enabling continued lending and strategic flexibility through cycles.

Large digital payments user base (Bit)

A 3.45M active-user base for Bit signals strong customer engagement and a distribution advantage in payments. This scale supports low-cost funding, cross-sell of retail products, and customer stickiness—structural advantages as digital banking and payments adoption grows.

Negative Factors

Sharp TTM revenue decline

A ~16.7% TTM revenue drop is a material hit to top-line scale and questions recent growth sustainability. Prolonged revenue weakness erodes operating leverage, limits reinvestment capacity, and can force margin or strategic trade-offs if not reversed in coming quarters.

Negative and volatile cash flow

Negative and inconsistent operating/free cash flow reduces the bank's ability to self-fund dividends, buybacks and organic growth. Cash-generation volatility increases reliance on market or deposit funding and raises execution risk for capital allocation over the medium term.

Funding and regulatory risks

Declining retail deposits weaken a low-cost funding base, potentially raising funding costs. Coupled with flagged regulatory risks (possible higher taxes and mortgage levies), the bank faces structural headwinds that could compress margins, reduce return on equity, and limit shareholder distributions.

Bank Hapoalim BM Business Overview & Revenue Model

Company Description

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Corporate Banking, Retail Banking, and Financial Markets and International Banking divisions. The company offers account-management services, credit for various purposes, deposits, and savings plans, and capital-market service; securities, and currencies and derivatives trading services; securities custody services; research, consulting, and advisory services; pension advisory and retirement planning services; and housing loans. It also provides credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, securities, etc. In addition, the company offers financing for infrastructure projects, foreign trade and international trade financing, and project financing services; foreign trade transactions and transactions in financial derivatives; financing of working capital; syndication; credit-risk sales; financing of construction projects; dealing-room services; federal deposit insurance; and credit cards services. Further, it provides clearing of payment, asset management, investment portfolio management, investment banking, underwriting, and issuance management services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations through 175 branches, 601 external and 131 internal automatic teller machines, 126 external and 216 internal check-deposit machines, 30 information stations, 316 self-service stations, and 119 night safes. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

How the Company Makes Money

Bank Hapoalim generates revenue primarily through interest income from loans and credit facilities extended to customers, which constitutes a significant portion of its earnings. The bank also earns income from fees and commissions related to its banking services, including account management, transaction processing, and wealth management services. Additionally, investment income from its trading and investment portfolios contributes to its revenue. The bank has established strategic partnerships with various financial service providers, enhancing its product offerings and customer reach, which further supports its revenue generation. Economic conditions, regulatory changes, and interest rate fluctuations are significant factors influencing the bank's overall financial performance.

Bank Hapoalim BM Financial Statement Overview

Summary

Profitability is solid (net margin ~21%, EBIT margin ~32%, ROE ~13–15%), but the latest TTM shows a sharp revenue decline (~-16.7%) and negative operating/free cash flow with notable volatility, which meaningfully weakens near-term quality and momentum.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) net margin around 21% and strong operating profitability (EBIT margin ~32%). Net income has been fairly steady over the last several years, and returns on equity are healthy (about 13–15% in the most recent periods). The key concern is the sharp TTM revenue decline (down ~16.7% versus the prior annual period) and some margin volatility across years, which suggests earnings resilience is good but top-line momentum has weakened recently.

Balance Sheet

Leverage looks moderate on the latest annual balance sheet (debt-to-equity ~0.36 in 2024) and equity levels appear supportive for a regional bank, alongside a healthy ROE (~13% in 2024). However, the TTM snapshot shows a much higher debt-to-equity (near ~1.0) and materially lower equity and assets versus the annual figures, indicating potential reporting/measurement inconsistency or a meaningful balance sheet shift. Overall balance sheet strength is reasonable, but leverage and comparability across periods are notable watch items.

Cash Flow

Cash generation is the weakest area: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, and cash flow has been inconsistent across years (negative in 2022–2023, strong in 2021 and 2024). While 2024 showed robust positive operating and free cash flow, the latest TTM reversal raises questions about near-term cash earnings quality and working capital/operating flow volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.31B	40.48B	38.20B	23.63B	16.22B	14.58B
Gross Profit	17.62B	21.93B	21.31B	17.87B	14.30B	13.12B
EBITDA	14.58B	13.02B	12.07B	10.70B	8.41B	4.33B
Net Income	9.21B	7.63B	7.36B	6.53B	4.91B	2.06B
Balance Sheet
Total Assets	762.25B	720.84B	686.53B	665.35B	638.78B	539.60B
Cash, Cash Equivalents and Short-Term Investments	0.00	117.05B	107.73B	133.42B	189.28B	138.71B
Total Debt	62.61B	20.75B	22.36B	27.47B	26.27B	24.28B
Total Liabilities	698.99B	662.69B	634.10B	618.85B	596.03B	499.70B
Stockholders Equity	63.26B	58.15B	52.43B	46.50B	42.73B	39.87B
Cash Flow
Free Cash Flow	-2.90B	8.85B	-1.41B	-568.00M	4.29B	2.12B
Operating Cash Flow	-1.87B	9.83B	-437.00M	132.00M	5.18B	2.80B
Investing Cash Flow	-57.82B	-27.01B	-27.15B	-67.97B	-45.87B	-23.21B
Financing Cash Flow	32.10B	26.47B	1.96B	10.55B	91.97B	73.86B

Bank Hapoalim BM Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 118.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKHYY, the sentiment is Positive. The current price of 118.42 is below the 20-day moving average (MA) of 118.82, above the 50-day MA of 113.04, and above the 200-day MA of 93.82, indicating a bullish trend. The MACD of 3.34 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 98.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKHYY.

Bank Hapoalim BM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCNCA	74 Outperform	$26.59B	12.82	10.38%	0.37%	-3.18%	-3.10%
BAP	73 Outperform	$25.60B	14.43	18.12%	4.82%	8.72%	27.70%
BBD	72 Outperform	$34.53B	9.97	11.78%	2.48%	5.89%	34.68%
BKHYY	71 Outperform	$33.19B	12.83	15.13%	2.71%	25.15%	25.32%
KB	69 Neutral	$32.32B	8.25	9.99%	2.79%	-4.64%	24.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHG	65 Neutral	$25.49B	7.97	8.58%	2.86%	-4.88%	4.84%