Abra (ABRA) AI Stock Analysis

• Market Cap: ₪632.47M
• Dividend Yield: N/A
• Average Volume (3M): 49.81K
• Price to Earnings (P/E): 47.0
• Beta (1Y): 0.60
• 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: 64 Neutral
• Price Target: 599.00 ▲(26.37% Upside)

The score is primarily supported by solid financial performance (steady growth and healthy operating margins with manageable leverage), but is held back by stretched technical conditions (RSI/Stoch at very high levels) and a premium valuation (P/E ~48 with no dividend yield provided).

Positive Factors

Revenue Growth Trend

Consistent TTM revenue growth (7.22%) indicates sustained user adoption and transaction activity on Abra's platform. Over a 2–6 month horizon this trend supports recurring fee revenue, helps absorb fixed costs, and underpins scalable margin improvement if growth continues.

Manageable Leverage / Capital Structure

A debt-to-equity of 0.35 and a strong equity ratio provide financial flexibility to fund product development and weather crypto-market volatility. This conservative leverage profile reduces refinancing risk and supports multi-quarter operational continuity and strategic investments.

Improving Free Cash Flow

Notable growth in free cash flow over the trailing twelve months strengthens Abra's ability to self-fund growth, reduce leverage, and invest in platform enhancements. Durable FCF improves resilience versus relying on external capital during prolonged industry headwinds.

Negative Factors

Weak Cash Conversion

An operating cash flow to net income ratio of 0.11 shows weak conversion of reported earnings into cash. Persistently low conversion can constrain working capital, limit funding for product rollout, and increase vulnerability if trading volumes or fee income decline.

Modest Profitability

A net margin near 2.85% and ROE of 3.92% signal modest profitability versus fintech peers. Low margins reduce the buffer against revenue shocks, limit free cash generation, and make it harder to finance growth initiatives internally, prolonging the path to durable returns.

Earnings Contraction

EPS growth of -27.35% reflects a material decline in reported earnings. If sustained, this weakens internal funding for expansion, increases reliance on external financing, and raises execution risk for management to restore profitability and support longer-term strategic plans.

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

Solid overall fundamentals driven by consistent revenue growth (TTM 7.22%) and healthy EBIT/EBITDA margins. Balance sheet leverage is manageable (debt-to-equity 0.35) with a strong equity ratio, but profitability is modest (net margin 2.85%, ROE 3.92%). Cash flow is improving (stronger free cash flow), though cash conversion is weak (operating cash flow to net income 0.11).

Income Statement

Abra has shown consistent revenue growth with a TTM growth rate of 7.22%. The gross profit margin is stable at 24.22%, although slightly lower than previous years. Net profit margin is modest at 2.85%, indicating room for improvement in profitability. EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is manageable at 0.35, suggesting a balanced approach to leveraging. Return on equity is modest at 3.92%, indicating moderate profitability from shareholders' investments. The equity ratio is strong, showing a solid capital structure.

Cash Flow

Abra's free cash flow has grown significantly in the TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.11, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is strong, showing effective cash management.

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: Positive
• RSI: Negative
• 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 below the 20-day moving average (MA) of 525.18, below the 50-day MA of 476.73, and above the 200-day MA of 406.88, indicating a bullish trend. The MACD of 21.72 indicates Positive momentum. The RSI at 71.51 is Negative, neither overbought nor oversold. The STOCH value of 41.18 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	64 Neutral	₪632.47M	47.04	―	―	19.46%	-27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRPD	53 Neutral	₪142.61M	-5.41	―	―	1290.36%	-214.81%
PHTM	43 Neutral	₪50.34M	-2.64	―	―	14.39%	-1797.14%