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AFCON Holdings Ltd (IL:AFHL)
:AFHL
Israel Market
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Afcon Hold (AFHL) AI Stock Analysis

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IL:AFHL

Afcon Hold

(AFHL)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
22,395.00
▲(1.43% Upside)
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 (AFHL) vs. iShares MSCI Israel ETF (EIS)

Afcon Hold Business Overview & Revenue Model

Company DescriptionAfcon 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 MoneyAFHL 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
65
Positive
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
58
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.71B1.78B2.15B2.09B2.11B1.73B
Gross Profit230.38M222.07M159.05M140.86M228.28M153.34M
EBITDA157.76M146.48M95.77M46.35M135.11M77.04M
Net Income66.31M59.80M-8.56M-53.82M119.41M13.51M
Balance Sheet
Total Assets1.95B1.95B1.86B1.86B1.95B1.87B
Cash, Cash Equivalents and Short-Term Investments118.79M191.98M197.94M255.93M508.28M480.81M
Total Debt712.69M662.51M627.34M653.63M582.46M681.52M
Total Liabilities1.39B1.40B1.39B1.38B1.40B1.38B
Stockholders Equity539.43M529.42M450.87M455.72M535.26M492.18M
Cash Flow
Free Cash Flow-22.63M4.62M52.92M-146.73M135.27M52.71M
Operating Cash Flow-5.97M22.70M72.27M-130.03M159.59M76.19M
Investing Cash Flow-34.46M-22.30M-38.87M-77.89M90.27M-93.35M
Financing Cash Flow51.57M-8.84M-71.37M-43.79M-187.41M144.25M

Afcon Hold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22080.00
Price Trends
50DMA
20967.60
Positive
100DMA
19123.45
Positive
200DMA
18460.20
Positive
Market Momentum
MACD
328.16
Positive
RSI
57.84
Neutral
STOCH
40.00
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 22080 is above the 20-day moving average (MA) of 21824.50, above the 50-day MA of 20967.60, and above the 200-day MA of 18460.20, indicating a bullish trend. The MACD of 328.16 indicates Positive momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
667.95M9.5112.75%2.74%8.57%7.79%
64
Neutral
1.17B17.361.71%-16.04%1025.81%
59
Neutral
2.25B20.067.88%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:AFHL
Afcon Hold
23,050.00
14,023.31
155.35%
IL:KAFR
Kafrit
3,012.00
574.73
23.58%
IL:PRTC
Priortech
19,800.00
4,490.00
29.33%
IL:CISY
C I Systems
3,177.00
1,891.00
147.05%
IL:MLTH
Malam-Team Hold
20,780.00
11,782.00
130.94%
IL:ARD
Arad
5,405.00
741.81
15.91%

Afcon Hold Corporate Events

Afcon Hold Announces Changes in Stakeholder Holdings
Feb 12, 2025

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
Feb 12, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025