Albaad (ALBA) AI Stock Analysis

• Market Cap: ₪674.85M
• Dividend Yield: 3.09%
• Average Volume (3M): 16.36K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.48
• Revenue Growth: 1.75%
• EPS Growth: 5.26%
• Country: IL
• Employees: 1,670
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): N/A
• Shares Outstanding: 18,647,507
• 10 Day Avg. Volume: 13,562
• 30 Day Avg. Volume: 16,359
• PEG Ratio: 0.16
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 3.55
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 4,006.00 ▲(10.24% Upside)

Albaad's stock is supported by strong technical indicators and an attractive valuation, suggesting potential for price appreciation. However, financial performance is hindered by high leverage and declining cash flow, which are risks that need to be managed.

Positive Factors

Revenue Growth

A 49.3% TTM revenue increase indicates robust demand and successful sales execution across product lines. Sustained top-line expansion supports better capacity utilization and fixed-cost absorption, strengthening long-term operating leverage if growth remains consistent.

Diversified Manufacturing Model

Supplying both finished hygiene goods and nonwoven inputs creates multiple revenue streams and customer types (branded and private-label). This vertical and customer diversification promotes resilience, repeatable demand, and sticky supply contracts that support steady medium-term cash flows.

Improving Profitability Metrics

Higher gross margins and an improving ROE show better cost control and shareholder returns. If Albaad sustains these margin improvements through efficiency or pricing, it enhances free cash generation potential and the ability to reinvest or deleverage over a multi-quarter horizon.

Negative Factors

High Leverage

A debt-to-equity near 1.5 signals elevated financial leverage that constrains flexibility. Over the medium term, high leverage raises interest and refinancing risk, reducing capacity to fund capital expenditures or absorb demand shocks without materially raising default or covenant risk.

Weakening Cash Generation

A large fall in free cash flow and an OCF-to-net-income ratio well below 1 show earnings are not converting to cash efficiently. Persistently weak cash conversion undermines debt servicing, capital investment and dividend capacity, elevating structural liquidity risk.

Modest Operating Margins

Relatively low operating margins make profits sensitive to raw material and input cost swings common in nonwovens and hygiene manufacturing. Without structural efficiency gains or stronger pricing power, margins may compress under adverse input cost trends, pressuring long-term profitability.

Albaad Business Overview & Revenue Model

Company Description

Albaad Massuot Yitzhak Ltd produces and sells wipes worldwide. It offers cleaning hand wipes including disinfecting and antibacterial wipes; cosmetic wipes, such as facial care, body, and feet care wipes; feminine hygienic product, which include tampons; and baby, maternity, toddler, and household cleaning wipes. The company also provides professional wipes, such as para-medical, veterinary, automotive, and restaurant wipes, as well as sachets; adult wipes including adult bed and bath; personal care wipes, which include intimate wipes; para-pharma wipes and flushable moist toilet paper product. In addition, it offers contract, private label, and institutional manufacturing services. The company was founded in 1985 and is based in Nir Yitzhak, Israel.

How the Company Makes Money

Albaad generates revenue through multiple key streams, primarily by manufacturing and selling nonwoven fabric hygiene products to various retailers, wholesalers, and distributors. The company benefits from long-term contracts with major brands, ensuring a steady flow of income. Additionally, Albaad invests in research and development to create innovative products that cater to changing consumer preferences, which allows them to maintain a competitive edge. Partnerships with leading companies in the personal care industry further enhance their market reach and profitability. The company also focuses on sustainability initiatives, which not only attract environmentally-conscious consumers but may provide cost savings in production, contributing positively to their earnings.

Albaad Financial Statement Overview

Summary

Albaad demonstrates strong revenue growth and improving profitability, but faces challenges with high leverage and declining cash flow generation. The company needs to focus on enhancing operational efficiency and managing debt levels to ensure long-term financial stability.

Income Statement

Albaad's income statement shows a strong revenue growth rate of 49.3% in the TTM, indicating robust sales performance. The gross profit margin is healthy at 19.9%, and the net profit margin has improved to 2.93%, reflecting better cost management. However, the EBIT margin of 6.09% and EBITDA margin of 11.41% suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.49, which is a concern for financial stability. However, the return on equity has improved to 11.44%, indicating better profitability for shareholders. The equity ratio stands at 30.3%, suggesting moderate reliance on equity financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 38.77% in the TTM, which is a negative indicator. The operating cash flow to net income ratio is 0.215, and the free cash flow to net income ratio is 0.612, indicating that cash generation is not as strong as earnings growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.72B	1.71B	1.45B	1.49B	1.58B
Gross Profit	351.40M	347.93M	344.37M	235.00M	270.70M	418.70M
EBITDA	202.17M	192.42M	176.03M	78.18M	192.56M	281.40M
Net Income	56.21M	44.88M	30.23M	-35.12M	-20.34M	101.31M
Balance Sheet
Total Assets	1.53B	1.51B	1.58B	1.60B	1.57B	1.41B
Cash, Cash Equivalents and Short-Term Investments	8.48M	25.16M	19.13M	27.19M	18.24M	34.05M
Total Debt	688.71M	712.92M	829.03M	836.53M	802.11M	609.00M
Total Liabilities	1.06B	1.07B	1.18B	1.24B	1.14B	927.61M
Stockholders Equity	464.93M	426.68M	394.08M	346.83M	430.25M	478.58M
Cash Flow
Free Cash Flow	52.37M	101.60M	120.98M	-67.58M	-38.08M	114.28M
Operating Cash Flow	116.99M	152.50M	233.23M	18.57M	52.58M	184.72M
Investing Cash Flow	-25.02M	-9.51M	-110.94M	-30.36M	-170.24M	-22.61M
Financing Cash Flow	-110.10M	-135.56M	-134.49M	20.46M	103.68M	-149.09M

Albaad Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3634.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ALBA, the sentiment is Positive. The current price of 3634 is above the 20-day moving average (MA) of 3425.85, above the 50-day MA of 3285.36, and above the 200-day MA of 2453.79, indicating a bullish trend. The MACD of 57.13 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ALBA.

Albaad Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALBA	73 Outperform	₪674.85M	12.01	―	3.09%	1.75%	5.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%