Inmobiliaria del Sur (ISUR) AI Stock Analysis

• Market Cap: €306.80M
• Dividend Yield: 3.93%
• Average Volume (3M): 2.43K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.19
• Revenue Growth: 31.65%
• EPS Growth: 46.61%
• Country: ES
• Employees: 213
• Sector: General
• Sector Strength: N/A
• Industry: Real Estate - Services
• EPS (TTM): 1.63
• Shares Outstanding: 18,669,031
• 10 Day Avg. Volume: 1,055
• 30 Day Avg. Volume: 2,432
• PEG Ratio: 0.07
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 6.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): €203.30M

• Rating: 58 Neutral
• Price Target: €17.00 ▲(13.33% Upside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is driven primarily by improving profitability and strong recent free cash flow, tempered by significant balance-sheet leverage risk. Technically, the stock shows mixed momentum with near-term softness but longer-term trend support, while valuation is a headwind due to a very high P/E despite a moderate dividend yield.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth through 2021–2025, including ~12% YoY in 2025, signals durable demand and strengthening market position in real estate services. Reliable top-line expansion supports margin recovery, reinvestment capacity and reduces dependence on external financing over the medium term.

Strong Free Cash Flow

Sharp improvement in free cash flow (strongly positive 2023–2025, ~€41.1M in 2025) demonstrates improved cash conversion and operational cash generation. Persistent FCF provides durable flexibility to fund capex, service debt, maintain dividends or accelerate deleveraging, strengthening financial resilience.

Improving Profitability and Margins

Meaningful rise in net income and healthy net margins in 2023–24 reflect improving operational efficiency and pricing power. Higher profitability provides internal funding for growth and balance-sheet repair, and if sustained, materially enhances the company's ability to withstand sector cyclicality and invest in its core business.

Negative Factors

High Absolute Debt Levels

Persistently high absolute debt (~€237–€280M) and historically elevated debt-to-equity ratios constrain strategic flexibility. Elevated leverage raises interest expense sensitivity, limits the capacity for opportunistic investment, and increases refinancing and covenant risk in weaker market cycles.

Balance-Sheet Equity Anomaly

An unusually low 2024 equity reading creates structural uncertainty about capital structure and leverage metrics. Whether a one-off accounting event or anomaly, it mechanically inflates leverage ratios, complicates covenant assessment, investor confidence and medium-term planning for debt reduction or capital raises.

Cash Flow and Earnings Volatility

Notable swings in cash flow and earnings (weak 2022 then strong 2023–25) reduce predictability of free cash flow and dividend capacity. This volatility complicates multi-year planning, heightens refinancing risk and makes sustaining capital allocation plans more challenging despite recent improvements.

Inmobiliaria del Sur Business Overview & Revenue Model

Company Description

Inmobiliaria del Sur, S.A. operates as a property development and management company in Spain. It develops, manages, and rents out houses; offices and commercial premises; and parking lots. The company was incorporated in 1945 and is headquartered in Sevilla La Nueva, Spain.

How the Company Makes Money

ISUR generates revenue primarily through commissions earned from property sales and rentals, typically receiving a percentage of the sale price or rental income. The company also offers property management services, charging fees for overseeing rental properties and maintaining them on behalf of owners. Additionally, ISUR may engage in strategic partnerships with local developers and financial institutions, which can enhance its service offerings and create referral opportunities. Other potential revenue streams include consultancy fees for market analysis and investment advice, as well as income from promotional events and property showcases.

Inmobiliaria del Sur Financial Statement Overview

Summary

Operating performance is improving with consistent revenue growth (2021–2025) and a strong rise in net income by 2025, supported by a sharp rebound in free cash flow (strongly positive in 2023–2025). The main constraint is balance-sheet risk: persistently high debt and an unusually low 2024 equity reading that increases uncertainty around leverage and capital structure stability.

Income Statement

Revenue has grown consistently from 2021–2025 (2025 revenue up ~12% year over year), with profitability improving meaningfully as net income rose from ~€11.3M (2023) to ~€39.3M (2025). Margins were healthy in 2023–2024 (net margin ~8% to ~13%), but profitability has shown volatility historically (notably an unusually strong 2020 followed by lower levels), suggesting results can swing with the cycle.

Balance Sheet

Leverage is a key constraint: total debt remains high (~€237–€280M across the period) and debt relative to equity was elevated in most years (around ~1.8–2.2x in 2021–2023). The 2024 equity figure appears extremely low versus the company’s assets and debt, which mechanically drives an extreme debt-to-equity ratio and indicates either a one-off balance-sheet event or data anomaly—either way it increases perceived balance sheet risk.

Cash Flow

Cash generation strengthened sharply after a weak 2022 (near-breakeven operating cash flow and negative free cash flow). Free cash flow was positive and strong in 2023–2025, reaching ~€41.1M in 2025, and cash conversion looked solid in 2023–2024 with free cash flow roughly matching net income. The main weakness is volatility—cash flow performance can swing materially year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	210.54M	164.49M	142.76M	116.53M	105.40M
Gross Profit	62.11M	51.59M	41.65M	31.98M	33.07M
EBITDA	60.93M	43.72M	29.97M	12.51M	25.34M
Net Income	39.33M	20.61M	11.30M	15.01M	12.02M
Balance Sheet
Total Assets	631.71M	507.79M	483.38M	497.07M	464.25M
Cash, Cash Equivalents and Short-Term Investments	98.00M	57.96M	31.34M	33.08M	50.13M
Total Debt	237.33M	256.06M	257.19M	280.60M	285.42M
Total Liabilities	352.61M	507.64M	337.66M	356.62M	332.74M
Stockholders Equity	275.31M	155.08K	142.54M	137.31M	128.34M
Cash Flow
Free Cash Flow	41.13M	20.45M	16.31M	-161.00K	21.09M
Operating Cash Flow	41.30M	20.71M	16.47M	47.00K	25.95M
Investing Cash Flow	17.80M	12.24M	10.06M	3.77M	-44.56M
Financing Cash Flow	-30.70M	-6.83M	-30.17M	-20.76M	24.08M

Inmobiliaria del Sur Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ISUR, the sentiment is Positive. The current price of 15 is below the 20-day moving average (MA) of 17.20, below the 50-day MA of 15.86, and above the 200-day MA of 13.90, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 15.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ISUR.

Inmobiliaria del Sur Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COL	74 Outperform	€3.21B	9.77	6.49%	5.64%	-16.98%	―
RLIA	65 Neutral	€1.52B	11.48	3.83%	4.05%	30.74%	67.62%
ARM	63 Neutral	€293.24M	21.63	-6.13%	―	4.98%	41.96%
HOME	62 Neutral	€1.75B	―	5.74%	16.56%	-19.93%	-42.19%
ISUR	58 Neutral	€306.80M	6.76	14.91%	3.93%	31.65%	46.61%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%