Afcon Hold (AFHL) AI Stock Analysis

• Market Cap: 1.03B
• Dividend Yield: 193.3%
• Average Volume (3M): 3.46K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.84
• Revenue Growth: -15.70%
• EPS Growth: 3972.94%
• Country: IL
• Employees: 1,335
• Sector: Industrials
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 11.61
• Shares Outstanding: 5,306,896
• 10 Day Avg. Volume: 4,085
• 30 Day Avg. Volume: 3,465
• PEG Ratio: -3.04
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.57
• 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

• Rating: 70 Outperform
• Price Target: 22,165.00 ▲(10.00%Upside)

The overall stock score of 70 reflects a combination of moderate financial performance with significant cash flow concerns, strong technical momentum, and fair valuation. The stock shows positive technical indicators, although the high RSI and Stochastic suggest possible overbought conditions. The financials indicate operational challenges that need addressing, particularly in cash flow management and revenue growth.

Afcon Hold Business Overview & Revenue Model

Company Description

Afcon Hold (AFHL) is a dynamic company operating in the infrastructure and construction sectors. It specializes in the development, construction, and management of large-scale infrastructure projects, including roads, bridges, and public transportation systems. AFHL is known for its innovative approach to project management and its commitment to sustainable building practices.

How the Company Makes Money

Afcon Hold (AFHL) generates revenue primarily through the execution of construction contracts for both public and private sector clients. The company's key revenue streams include project management fees, construction fees, and maintenance contracts. Significant partnerships with government agencies and private developers enable AFHL to secure long-term contracts and leverage its expertise in infrastructure development. Additionally, AFHL may also earn income through consulting services and by investing in joint ventures or other strategic partnerships that align with its core capabilities.

Afcon Hold Financial Statement Overview

Summary

Afcon Hold demonstrates moderate financial performance with concerns in cash flow management and declining revenue. Profitability margins are modest, indicating operational efficiency challenges. The balance sheet is stable but with moderate leverage. While there are positive aspects like reasonable ROE, cash generation and revenue growth need improvement.

Income Statement

The company's gross profit margin for TTM is approximately 12.73%, showing a slight improvement over the previous year. However, the net profit margin is only 3.25%, which is relatively low. There has been a revenue decline in recent years, particularly a significant drop from 2023 to 2024. EBIT and EBITDA margins are moderate, with TTM figures at 4.13% and 8.53% respectively, indicating some operational efficiency challenges.

Balance Sheet

The debt-to-equity ratio is approximately 1.29, indicating a moderate level of leverage. The return on equity for TTM is 10.47%, reflecting a reasonable return for shareholders. The equity ratio stands at 26.98%, suggesting a stable capital structure. Overall, the balance sheet reflects moderate financial health with some leverage concerns.

Cash Flow

The company faces cash flow challenges, with a negative operating cash flow and free cash flow in TTM. The free cash flow to net income ratio is negative, indicating inefficiencies in cash generation. The operating cash flow to net income ratio is also negative, pointing to potential liquidity issues. Moreover, free cash flow growth is negative, highlighting significant cash management challenges.

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

Afcon Hold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20150.00
• 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 20150 is above the 20-day moving average (MA) of 18303.00, above the 50-day MA of 17380.60, and above the 200-day MA of 16070.26, indicating a bullish trend. The MACD of 390.54 indicates Negative momentum. The RSI at 71.18 is Negative, neither overbought nor oversold. The STOCH value of 97.40 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	80 Outperform	661.21M	9.77		288.18%	15.45%	26.50%
AFHL	70 Outperform	1.03B	17.67		193.30%	-15.70%	3972.94%
Sector *	65 Neutral	$10.91B	15.53	5.25%	2.19%	3.15%	-27.00%
PRTC	59 Neutral	2.37B	18.35		―	―	44.85%

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.