Afcon Hold (AFHL) AI Stock Analysis

• Market Cap: 1.87B
• Dividend Yield: 1.12%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.91
• Revenue Growth: -8.18%
• EPS Growth: 329.99%
• Country: IL
• Employees: 1,335
• Sector: Services
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 325.50
• Shares Outstanding: 5,568,821
• 10 Day Avg. Volume: 3,356
• 30 Day Avg. Volume: 2,414
• PEG Ratio: -0.02
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 202.74
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 29,444.00 ▼(-12.47% Downside)

Afcon Hold's overall stock score reflects a balance between mixed financial performance and positive technical indicators. The stable profitability metrics and improving free cash flow growth are offset by high leverage and cash flow challenges. The stock's positive momentum and fair valuation contribute positively to the score.

Positive Factors

Stable Profit Margins

Stable profit margins indicate effective cost management, allowing the company to maintain profitability despite revenue declines.

Free Cash Flow Improvement

Positive free cash flow growth suggests improving cash generation, which can enhance financial flexibility and support future investments.

Healthy Return on Equity

A healthy ROE indicates efficient use of equity to generate profits, reflecting strong management performance and shareholder value creation.

Negative Factors

Revenue Decline

A sharp decline in revenue growth can impact long-term sustainability, signaling potential challenges in market demand or competitive positioning.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Negative cash flows indicate cash management issues, which could constrain the company's operational flexibility and ability to fund new projects.

Afcon Hold Business Overview & Revenue Model

Company Description

Afcon Hold (AFHL) is a diversified holding company primarily engaged in various sectors including construction, manufacturing, and technology. The company focuses on providing innovative solutions through its core products and services, which encompass electrical and mechanical engineering, infrastructure development, and advanced technological applications. With a commitment to sustainable practices and high-quality standards, AFHL aims to deliver comprehensive solutions that meet the evolving needs of its clients across different industries.

How the Company Makes Money

Afcon Hold generates revenue through multiple streams, primarily from its construction and engineering projects, which account for a significant portion of its income. The company undertakes contract work for public and private sector clients, providing services ranging from infrastructure development to electrical installations. Additionally, AFHL earns revenue from the sale of manufactured goods, including electrical equipment and components. Strategic partnerships with key industry players and government contracts also enhance its revenue potential. The company benefits from economies of scale in its manufacturing operations, allowing it to maintain competitive pricing while maximizing profit margins. Moreover, AFHL's investment in technology and innovation positions it to capitalize on emerging market trends, further diversifying its revenue sources.

Afcon Hold Financial Statement Overview

Summary

Afcon Hold's financial performance is challenged by declining revenue growth and high leverage. Moderate profitability margins are overshadowed by significant cash flow issues and high debt levels, posing risks to financial stability.

Income Statement

Afcon Hold's income statement shows mixed performance. The TTM gross profit margin of 13.51% and net profit margin of 3.89% indicate moderate profitability. However, the revenue growth rate is negative at -3.21%, suggesting declining sales. EBIT and EBITDA margins are relatively stable, but the overall trend points to challenges in maintaining revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.32, indicating significant leverage. Return on equity is 12.61%, showing decent profitability relative to equity. However, the equity ratio is not provided, limiting a full assessment of asset financing. The high leverage poses potential risks if earnings do not improve.

Cash Flow

Cash flow analysis highlights concerns with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is significantly negative at -67.21%, and the operating cash flow to net income ratio is negative, indicating cash flow challenges. The high free cash flow to net income ratio suggests reliance on non-operating cash sources.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70B	1.78B	2.15B	2.09B	2.11B	1.73B
Gross Profit	239.95M	222.07M	159.05M	140.86M	228.28M	153.34M
EBITDA	170.03M	146.48M	95.77M	46.35M	240.66M	108.76M
Net Income	75.45M	59.80M	-8.56M	-53.82M	119.41M	13.51M
Balance Sheet
Total Assets	2.01B	1.95B	1.86B	1.86B	1.95B	1.87B
Cash, Cash Equivalents and Short-Term Investments	155.88M	191.98M	197.94M	255.93M	508.28M	480.81M
Total Debt	748.85M	662.51M	677.13M	653.63M	591.72M	681.52M
Total Liabilities	1.41B	1.40B	1.39B	1.38B	1.40B	1.38B
Stockholders Equity	568.15M	529.42M	450.87M	455.72M	535.26M	492.18M
Cash Flow
Free Cash Flow	-40.78M	4.62M	52.92M	-146.73M	135.27M	52.71M
Operating Cash Flow	-22.07M	22.70M	72.27M	-130.03M	159.59M	76.19M
Investing Cash Flow	-38.41M	-22.30M	-38.87M	-77.89M	90.27M	-93.35M
Financing Cash Flow	104.49M	-8.84M	-71.37M	-43.79M	-187.41M	144.25M

Afcon Hold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33640.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 33640 is above the 20-day moving average (MA) of 30728.00, above the 50-day MA of 28767.80, and above the 200-day MA of 21388.96, indicating a bullish trend. The MACD of 1386.37 indicates Negative momentum. The RSI at 82.62 is Negative, neither overbought nor oversold. The STOCH value of 78.92 is Neutral, 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	69 Neutral	630.80M	9.33	―	3.17%	-0.71%	2.35%
AFHL	65 Neutral	1.87B	23.36	―	1.12%	-8.18%	329.99%
PRTC	59 Neutral	2.54B	19.76	―	―	―	20.99%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%