Ackerstein Grp. (ACKR) AI Stock Analysis

• Market Cap: 2.31B
• Dividend Yield: 2.17%
• Average Volume (3M): 159.78K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.48
• Revenue Growth: 2.29%
• EPS Growth: -22.63%
• Country: IL
• Employees: 549
• Sector: Real Estate
• Sector Strength: 53
• Industry: Construction Materials
• EPS (TTM): 6.30
• Shares Outstanding: 288,480,260
• 10 Day Avg. Volume: 243,264
• 30 Day Avg. Volume: 159,776
• PEG Ratio: 0.66
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 53.46
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 820.00 ▲(2.47% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong profitability but is offset by negative revenue growth and cash flow issues. Technical analysis indicates bearish momentum, and valuation suggests the stock is overvalued, contributing to a moderate overall score.

Positive Factors

Profitability

Strong profitability and healthy margins indicate effective cost management and operational efficiency, supporting long-term financial stability.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, reducing risk and enhancing the company's ability to invest in growth opportunities.

Market Position

Leading market position in precast concrete solutions provides a competitive edge and supports sustained demand across diverse construction sectors.

Negative Factors

Revenue Growth

Negative revenue growth suggests challenges in expanding market share or demand, potentially impacting long-term profitability and market competitiveness.

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, limiting the company's ability to reinvest in operations and manage financial obligations effectively.

Earnings Growth

Declining EPS growth suggests reduced profitability and may signal operational inefficiencies or market challenges affecting long-term earnings potential.

Ackerstein Grp. Business Overview & Revenue Model

Company Description

Ackerstein Group Ltd operates in the infrastructure, construction, and environmental development sector. It is involved in underground infrastructure; civil engineering; production, marketing, and sale of concrete products for environmental development and landscape design, including interlocking stones; tiles for flooring and cladding; garden and curb stones; stairs and copings; mechanized infrastructure products, such as pipes; and other construction products. The company also engages in the real estate business. The company was founded in 1925 and is based in Herzliya, Israel.

How the Company Makes Money

Ackerstein Grp. generates revenue primarily through the sale of its precast concrete products to construction companies and contractors engaged in various projects. The company's revenue model is built on a combination of direct sales, long-term contracts, and project-based agreements, which provide a steady stream of income. Key revenue streams include bulk sales of standard products, custom orders for specialized solutions, and partnerships with construction firms that require reliable material supply for ongoing projects. Additionally, Ackerstein Grp. has established strategic alliances with industry stakeholders, enhancing its market reach and contributing to its overall profitability.

Ackerstein Grp. Financial Statement Overview

Summary

Ackerstein Grp. shows strong revenue growth and profitability with efficient operations and a solid balance sheet. However, significant challenges in cash flow management, including a negative free cash flow growth rate, pose potential liquidity risks.

Income Statement

Ackerstein Grp. demonstrates strong financial performance with a robust revenue growth rate of 98.4% in the TTM period. The company maintains healthy margins, with a gross profit margin of 28.7% and a net profit margin of 13.9%. The EBIT and EBITDA margins are also solid at 19.8% and 24.8%, respectively, indicating efficient operational management. However, the revenue growth has been volatile, with a significant drop in 2024, which could pose a risk if not managed carefully.

Balance Sheet

The balance sheet of Ackerstein Grp. is stable, with a low debt-to-equity ratio of 0.17, reflecting prudent financial leverage. The return on equity is moderate at 10.9%, suggesting effective use of equity to generate profits. The equity ratio stands at 62.9%, indicating a strong equity base relative to total assets. However, the company's debt levels have fluctuated over the years, which could impact financial stability if not monitored.

Cash Flow

Ackerstein Grp. faces challenges in cash flow management, with a negative free cash flow growth rate of -864.1% in the TTM period. The operating cash flow to net income ratio is low at 3.3%, and the free cash flow to net income ratio is negative, indicating potential liquidity issues. While the company has shown positive free cash flow growth in previous years, the recent downturn is a concern that needs addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	933.60M	902.35M	1.04B	782.25M	640.49M	662.77M
Gross Profit	265.45M	250.16M	291.15M	212.18M	191.79M	187.73M
EBITDA	188.28M	220.40M	187.68M	148.91M	125.97M	119.98M
Net Income	92.48M	123.41M	93.50M	75.62M	60.34M	59.15M
Balance Sheet
Total Assets	1.93B	1.94B	1.89B	1.93B	1.65B	1.41B
Cash, Cash Equivalents and Short-Term Investments	38.89M	80.15M	133.86M	242.99M	172.56M	131.50M
Total Debt	206.92M	149.18M	184.82M	232.02M	313.00M	277.86M
Total Liabilities	697.10M	708.25M	735.88M	850.30M	677.47M	628.78M
Stockholders Equity	1.24B	1.24B	1.15B	1.08B	974.18M	779.02M
Cash Flow
Free Cash Flow	-10.72M	46.28M	-10.67M	203.80M	15.42M	66.35M
Operating Cash Flow	22.57M	77.13M	27.45M	262.26M	38.52M	96.98M
Investing Cash Flow	5.38M	-90.18M	25.10M	-129.82M	41.67M	-95.79M
Financing Cash Flow	-18.84M	-99.52M	-96.28M	-127.76M	15.78M	17.30M

Ackerstein Grp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 800.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ACKR, the sentiment is Negative. The current price of 800.2 is below the 20-day moving average (MA) of 877.64, below the 50-day MA of 922.14, and below the 200-day MA of 827.31, indicating a bearish trend. The MACD of -36.98 indicates Positive momentum. The RSI at 29.94 is Positive, neither overbought nor oversold. The STOCH value of 15.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ACKR.

Ackerstein Grp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARGO	68 Neutral	2.65B	10.16	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ACKR	56 Neutral	2.31B	24.93	―	2.17%	2.29%	-22.63%
ELCRE	41 Neutral	2.86B	-19.74	―	―	-4.06%	65.26%