Abra (ABRA) AI Stock Analysis

• Market Cap: 550.76M
• Dividend Yield: N/A
• Average Volume (3M): 49.81K
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.55
• Revenue Growth: 19.46%
• EPS Growth: -27.35%
• Country: IL
• Employees: 883
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.00
• Shares Outstanding: 117,059,456
• 10 Day Avg. Volume: 21,422
• 30 Day Avg. Volume: 49,815
• PEG Ratio: -0.99
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.76
• P/FCF Ratio: -253.44
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 466.00 ▼(-1.69% Downside)

Abra's overall stock score is driven primarily by its solid financial performance, which reflects consistent revenue growth and operational efficiency. Technical analysis indicates a neutral to slightly positive outlook, while the valuation suggests the stock is priced for high growth, which may limit its appeal to value investors. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and competitiveness.

Cash Flow Management

Improved cash generation enhances financial flexibility, allowing for strategic investments and operational resilience over the long term.

Balance Sheet Health

A manageable debt-to-equity ratio suggests a stable financial position, enabling sustainable growth and reducing financial risk.

Negative Factors

Profitability Challenges

Low net profit margins may limit reinvestment opportunities and shareholder returns, potentially impacting long-term financial health.

Cash Conversion Efficiency

Poor cash conversion can strain liquidity and limit operational flexibility, posing challenges for sustaining growth and meeting financial obligations.

Earnings Growth

Declining EPS growth suggests challenges in scaling profitability, which could hinder long-term value creation and investor confidence.

Abra Business Overview & Revenue Model

Company Description

Abra Information Technologies Ltd. provides information technology solutions in Israel. The company offers enterprise resource planning system solutions, including project management, training and instruction, data migration, and support and service center, as well as consultancy, application, and implementation solutions; and customer relationship management system solutions, such as system specification, cross-organizational implantation, process automation, instruction and training, and ongoing support solutions. It also provides web and mobile development solutions comprising application development, UX/UI design, digital transformation, react, and specification and system design, as well as system, custom software, front-end, and backend development solutions; research and development solutions, including big data and analytics, embedded and IoT, startup and innovation, cloud and DevOps, application development, and digital transformation solutions; and business intelligence solutions. In addition, the company offers strategy realization solutions, such as project management and agile transformation solutions, as well as implementing PPM, Jira, and Atlassian tools; monday.com for managing processes and strategies within and outside the organization; e-commerce solutions comprising development of e-commerce websites and systems, technological specifications, and UI/UX and IoT direct sales solutions; cloud solutions; cyber consulting solutions, including information and cyber security management, technological consultancy and test, and supply chain security solutions; and training services. It serves health, security, fintech, hi-tech, government, and commerce and retail industries. The company was incorporated in 1997 and is based in Kfar Saba, Israel.

How the Company Makes Money

Abra generates revenue through several key streams, primarily from trading fees charged on transactions conducted via its platform. When users buy or sell cryptocurrencies, Abra takes a percentage of the transaction value as a fee. Additionally, the company may earn interest on the digital assets held within user accounts, particularly through its lending and borrowing services. Abra also engages in partnerships with other financial institutions and digital asset platforms, which can provide additional revenue opportunities through referral fees and collaborative services. Moreover, by offering premium features or subscription-based services, Abra can diversify its income sources beyond traditional trading fees.

Abra Financial Statement Overview

Summary

Abra demonstrates a solid financial position with consistent revenue growth and a strong equity base. While profitability margins and cash conversion ratios indicate areas for improvement, the company's ability to generate free cash flow is a positive sign. Continued focus on cost management and operational efficiency could enhance profitability and cash flow stability.

Income Statement

Abra's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.20%. The company maintains a stable gross profit margin of approximately 24.66% in the TTM period. However, the net profit margin is relatively low at 3.02%, indicating room for improvement in cost management. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting potential areas for cost optimization.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.34, indicating a balanced approach to leveraging. The return on equity is modest at 4.05%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at 54.10%, showcasing a strong equity base relative to total assets, which provides stability but also indicates potential underutilization of leverage for growth.

Cash Flow

Abra's cash flow statement highlights a significant improvement in free cash flow growth at 143.61% in the TTM period, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is low at 0.08, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio of 0.61 reflects a positive cash flow position relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	508.81M	444.68M	408.00M	371.83M	209.07M	31.99M
Gross Profit	119.90M	113.89M	106.43M	101.48M	53.08M	7.37M
EBITDA	58.63M	55.95M	37.87M	34.88M	26.65M	-19.14M
Net Income	13.55M	13.64M	14.46M	2.83M	11.76M	-21.32M
Balance Sheet
Total Assets	645.04M	602.97M	589.04M	516.52M	343.56M	182.83M
Cash, Cash Equivalents and Short-Term Investments	32.96M	63.79M	94.40M	80.64M	67.78M	92.84M
Total Debt	123.02M	121.31M	136.06M	87.26M	27.11M	13.93M
Total Liabilities	283.61M	248.41M	289.83M	267.92M	156.63M	60.45M
Stockholders Equity	348.76M	344.96M	290.78M	240.78M	180.55M	122.38M
Cash Flow
Free Cash Flow	14.95M	-1.33M	30.16M	17.87M	-1.66M	2.72M
Operating Cash Flow	18.38M	2.93M	34.53M	18.73M	162.00K	2.85M
Investing Cash Flow	-3.65M	-29.18M	-5.92M	-94.27M	5.92M	-72.09M
Financing Cash Flow	-33.37M	-4.29M	-15.08M	77.43M	48.34M	31.93M

Abra Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 474.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ABRA, the sentiment is Positive. The current price of 474 is above the 20-day moving average (MA) of 457.28, above the 50-day MA of 444.19, and above the 200-day MA of 388.47, indicating a bullish trend. The MACD of 9.99 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ABRA.

Abra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABRA	67 Neutral	550.76M	40.73	―	―	19.46%	-27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRPD	53 Neutral	153.46M	-5.62	―	―	1290.36%	-214.81%
PHTM	43 Neutral	55.24M	-3.01	―	―	14.39%	-1797.14%