Ackerstein Grp. (ACKR) AI Stock Analysis

• Market Cap: ₪2.74B
• Dividend Yield: 2.12%
• Average Volume (3M): 159.78K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.40
• 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: ₪1,040.00
• Price Target Upside: 17.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 743.00 ▼(-16.35% Downside)
• Action: Downgraded Date: 12/11/25
• Date: Action: Downgraded 12/11/25

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

Sustainable Margins

Sustained gross (~28%) and net (~13.9%) margins indicate durable pricing power and efficient production in precast concrete. These margins support reinvestment in operations, buffer cyclical demand swings, and enable long-term profitability even if revenue growth slows.

Low Financial Leverage

A debt-to-equity of 0.17 gives the company financial flexibility and lower interest burden, reducing solvency risk during downturns. Combined with a reasonable ROE (~10.9%), this positions management to fund capex or strategic initiatives without heavy reliance on external borrowing.

Diversified Revenue Model

A mix of direct sales, long-term contracts and project work plus strategic alliances broadens demand sources and builds repeat business. This reduces customer concentration and supports steadier revenue streams and contract visibility over multi-month horizons for construction cycles.

Negative Factors

Declining Revenues

Negative TTM revenue growth (-1.5%) signals weakening top-line traction, which can erode scale benefits and margin sustainability over time. If the trend persists, it pressures utilization of production assets and requires operational changes or new market wins to restore growth.

Weak Cash Generation

A sharp decline in free cash flow (-38.1% TTM) and OCF-to-net-income of 0.03 show limited cash conversion of reported earnings. Persistent cash strain hampers ability to fund capex, service unexpected costs, or return capital, increasing reliance on external financing for strategic needs.

Earnings Per Share Contraction

A ~22.6% decline in EPS points to deterioration in per-share profitability, reflecting either revenue pressure, margin erosion, or dilution. Over months this can weaken investor confidence and limit internal capital for growth initiatives or shareholder distributions absent operational improvement.

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. demonstrates strong profitability with healthy margins and a stable balance sheet with low leverage. However, negative revenue growth and significant cash flow challenges indicate potential financial risks.

Income Statement

Ackerstein Grp. shows strong profitability with a consistent gross profit margin around 28% and a net profit margin of 13.9% in the TTM. However, the revenue growth rate is negative at -1.5% TTM, indicating a decline in sales. Despite this, the EBIT and EBITDA margins remain healthy, reflecting efficient cost management.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.17 TTM, indicating low financial leverage. The return on equity is reasonable at 10.9%, suggesting effective use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -38.1% TTM, and a negative free cash flow to net income ratio, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.03, suggesting limited cash generation from operations relative to net income.

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: Positive
• Last Price: 888.20
• 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:ACKR, the sentiment is Positive. The current price of 888.2 is below the 20-day moving average (MA) of 903.96, above the 50-day MA of 858.38, and above the 200-day MA of 867.61, indicating a bullish trend. The MACD of 34.95 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₪2.68B	9.95	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ACKR	56 Neutral	₪2.74B	29.55	―	2.12%	2.29%	-22.63%
ELCRE	49 Neutral	₪3.63B	-24.11	―	―	-4.06%	65.26%