Afcon Hold (AFHL) AI Stock Analysis

• Market Cap: 1.35B
• Dividend Yield: 1.47%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.89
• Revenue Growth: -16.04%
• EPS Growth: 1025.81%
• Country: IL
• Employees: 1,335
• Sector: Services
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 5,307,353
• 10 Day Avg. Volume: 3,356
• 30 Day Avg. Volume: 2,414
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 22,395.00
• Price Target Upside: -10.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 22,395.00 ▼(-10.81% Downside)

Afcon Hold's overall stock score is primarily influenced by its challenging financial performance, with declining revenue growth and high leverage posing significant risks. However, positive technical indicators and a reasonable valuation provide some support, suggesting potential for recovery if financial issues are addressed.

Afcon Hold Business Overview & Revenue Model

Company Description

Afcon Holdings Ltd engages in the buildings and infrastructure, control and automation, trade, and communication solutions businesses in Israel and internationally. It provides solutions and technologies in the areas of multi-system infrastructure projects, including construction contracting and finishing works; installation of electromechanical systems and electrical systems for industry; manufacture and installation of HV/MV/LV switchgear products for buildings, industry, and infrastructure; natural gas engineering; and the construction and setup of wind farms, photovoltaic fields, and infrastructure facilities. The company also offers control and automation solutions, such as industrial control, building monitoring and management, security solutions, fire protection and safety, parking systems, and remote water metering solutions. In addition, it engages in the design, development, manufacture, marketing, installation, distribution, servicing, and maintenance of unified communications and collaboration systems, including digital IP-based switchboards, communication servers for enterprises, contact/call centers, interfaces for exchanges and smartphones, and business data networks. Further, the company distributes switching and electrical hardware, equipment control and instrumentation, and electronic equipment and packaging solutions. Additionally, it provides cyber and network security, network management, cloud services, and maintenance contracts; and customer engagement solutions. The company serves energy, ports and airports, transportation systems, fuel, gas and water, telecommunications, industry, and defense sectors; and public institutions and organizations, and municipal and government bodies. The company was formerly known as Afcon Industries Group. The company was founded in 1945 and is based in Petah Tikva, Israel. Afcon Holdings Ltd operates as a subsidiary of Shlomo Group.

How the Company Makes Money

AFHL generates revenue primarily through its construction and infrastructure development projects. The company secures contracts with government entities and private sector clients to design, build, and maintain critical infrastructure, which form the backbone of its income. Additionally, AFHL earns money through long-term maintenance contracts and operational services for completed projects, ensuring a steady stream of recurring revenue. Strategic partnerships with technology firms and energy companies further enhance its ability to deliver comprehensive solutions, contributing to its financial growth. The diversification into energy solutions, including renewable energy projects, adds another layer to its revenue streams, aligning with global sustainability trends.

Afcon Hold Financial Statement Overview

Summary

Afcon Hold's financial performance presents a mixed picture. The income statement shows operational efficiency but declining revenue and low profitability. The balance sheet reflects a stable yet leveraged position, while the cash flow statement highlights significant challenges in cash generation. The company needs to focus on improving cash flow and profitability to enhance its financial health.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is 12.73%, which is relatively modest. The net profit margin for the TTM is 3.25%, indicating a low level of profitability. Revenue has decreased from the previous year, showing a negative growth trend. Despite this, the EBIT and EBITDA margins are 4.13% and 8.53%, respectively, reflecting some operational efficiency.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio is 1.29, suggesting a balanced leverage. The return on equity (ROE) for the TTM is 10.47%, which is reasonable. The equity ratio stands at 26.98%, indicating a stable capital structure, although there is room for improvement in equity financing.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate and operating cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow issues. However, the free cash flow to net income ratio is also negative, suggesting difficulties in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.78B	2.15B	2.09B	2.11B	1.73B
Gross Profit	230.38M	222.07M	159.05M	140.86M	228.28M	153.34M
EBITDA	157.76M	146.48M	95.77M	46.35M	135.11M	77.04M
Net Income	66.31M	59.80M	-8.56M	-53.82M	119.41M	13.51M
Balance Sheet
Total Assets	1.95B	1.95B	1.86B	1.86B	1.95B	1.87B
Cash, Cash Equivalents and Short-Term Investments	118.79M	191.98M	197.94M	255.93M	508.28M	480.81M
Total Debt	712.69M	662.51M	627.34M	653.63M	582.46M	681.52M
Total Liabilities	1.39B	1.40B	1.39B	1.38B	1.40B	1.38B
Stockholders Equity	539.43M	529.42M	450.87M	455.72M	535.26M	492.18M
Cash Flow
Free Cash Flow	-22.63M	4.62M	52.92M	-146.73M	135.27M	52.71M
Operating Cash Flow	-5.97M	22.70M	72.27M	-130.03M	159.59M	76.19M
Investing Cash Flow	-34.46M	-22.30M	-38.87M	-77.89M	90.27M	-93.35M
Financing Cash Flow	51.57M	-8.84M	-71.37M	-43.79M	-187.41M	144.25M

Afcon Hold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AFHL, the sentiment is Positive. The current price of 25110 is above the 20-day moving average (MA) of 23383.50, above the 50-day MA of 21880.00, and above the 200-day MA of 18889.02, indicating a bullish trend. The MACD of 1094.80 indicates Negative momentum. The RSI at 71.28 is Negative, neither overbought nor oversold. The STOCH value of 85.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AFHL.

Afcon Hold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAFR	73 Outperform	754.60M	10.74	―	2.59%	8.57%	7.79%
AFHL	64 Neutral	1.35B	19.94	―	1.47%	-16.04%	1025.81%
PRTC	59 Neutral	2.83B	24.85	―	―	―	7.88%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Afcon Hold Corporate Events

Afcon Hold Announces Changes in Stakeholder Holdings

Afcon Hold, a company listed on the Tel Aviv Stock Exchange, has reported changes in the holdings of its interested parties and senior office holders. Dor Shlomo Investments (2014) Ltd, owned by Israel Reif, Assi Shalmzer, and Tovi Shalmzer, increased its holdings through a purchase outside the stock exchange, raising its stake to 2.68%. Meanwhile, Zion Rubin, a senior officer, sold his shares, resulting in a decrease in his holding to 0%. These transactions reflect strategic adjustments by stakeholders, potentially impacting the company’s market position and shareholder dynamics.

Afcon Hold Announces Key Changes in Securities Holdings

Afcon Hold has reported several changes in the holdings of its securities by key stakeholders. Dor Shlomo Investments increased its holdings, while individuals David Hareli and Gil Barack decreased theirs through transactions outside the stock exchange. These changes signify a strategic realignment of the company’s shareholder structure, potentially impacting its governance and market positioning.