Alony Hetz (ALHE) AI Stock Analysis

• Market Cap: ₪9.21B
• Dividend Yield: 2.42%
• Average Volume (3M): 308.68K
• Price to Earnings (P/E): 114.0
• Beta (1Y): 1.37
• Revenue Growth: 6.64%
• EPS Growth: N/A
• Country: IL
• Employees: 150
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -99.80
• Shares Outstanding: 226,242,690
• 10 Day Avg. Volume: 325,010
• 30 Day Avg. Volume: 308,680
• PEG Ratio: 0.20
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 2.61
• P/FCF Ratio: -4.76
• 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: 49 Neutral
• Price Target: 4,160.00 ▲(4.81% Upside)

The score is held back primarily by weak financial quality (high leverage and consistently negative free cash flow) despite a return to modest profitability. Technicals are strong with the stock in an uptrend, but valuation is demanding (very high P/E), limiting upside confidence.

Positive Factors

Return to profitability

A modest TTM net margin (~3%) indicates the core property operations can generate positive earnings, providing a baseline for cash generation. Sustained operating profitability supports debt servicing and reinvestment capacity, improving long-term financial resilience if maintained.

Recurring rental and development income

A diversified business model—long-term rental income across commercial, industrial and residential assets plus development and JV activity—creates multiple durable cash sources. Recurring rents provide steady cash flow while development/JVs offer growth and return enhancement optionality over time.

Positive operating cash flow

Consistent positive operating cash flow shows underlying property operations generate real cash, supporting maintenance, interest payments and some capex. This steadiness reduces near-term liquidity strain and underpins operations even if free cash flow and financing needs vary.

Negative Factors

High leverage

Debt-to-equity around 5.3x materially increases refinancing and interest-rate exposure and limits strategic flexibility. For a capital-intensive real estate firm, elevated leverage amplifies downside risk to equity if asset values or rental income weaken and can force asset sales or dilutive funding.

Consistently negative free cash flow

Persistent negative free cash flow, despite positive operating cash flow, signals heavy investment or outflows that are not self-funded. Over the medium term this raises reliance on external financing, heightening liquidity and execution risk given the company’s already elevated leverage.

Volatile earnings quality

Large swings between strong 2020–2022 results and sharp losses in 2023–2024 indicate earnings are influenced by non-recurring items or valuation changes. This volatility undermines predictability of cash returns and complicates long-term planning, financing and investor confidence.

Alony Hetz Business Overview & Revenue Model

Company Description

Alony Hetz Properties and Investments Ltd. publicly owned holding real-estate investment manager. Through its subsidiaries, the firm focuses on income-generating commercial real estate. It primarily invests in Israel, Europe, and North America. The firm also seeks to invest in India and Sweden. Alony Hetz Properties and Investments was incorporated in 1989 and is based in Ramat Gan, Israel.

How the Company Makes Money

Alony Hetz generates revenue through several key streams, primarily from rental income derived from its extensive portfolio of commercial and residential properties. The company leases office spaces, retail units, and industrial facilities, benefiting from long-term leases that provide stable cash flow. Additionally, ALHE earns revenue through property development projects, wherein it develops new properties or renovates existing ones for sale or lease. The firm also engages in joint ventures and partnerships with other real estate developers and investors, which can result in shared profits and reduced risks. These collaborations, along with strategic property acquisitions, enable ALHE to capitalize on market opportunities and drive revenue growth.

Alony Hetz Financial Statement Overview

Summary

Income statement has improved to modest profitability in TTM (about 3% net margin) with solid underlying profitability, but results have been volatile versus prior years. Balance sheet risk is high with leverage rising to ~5.3x debt-to-equity, and cash flow quality is weak due to consistently negative free cash flow despite positive operating cash flow.

Income Statement

TTM (Trailing-Twelve-Months) shows a return to profitability (about 3% net margin) on modest revenue growth (~5%), with very strong gross profitability and solid operating profitability. However, earnings quality and consistency are a concern given the sharp losses in 2023–2024 (negative net margins) versus very strong 2020–2022 results, suggesting volatility likely driven by non-recurring items or valuation swings.

Balance Sheet

Leverage is the main weakness: debt is high relative to equity, rising to ~5.3x in TTM (Trailing-Twelve-Months) from ~2.5x in 2022, reducing financial flexibility. While the company maintains a sizable equity base, returns on equity are currently low in TTM and were negative in 2023–2024, indicating that the balance sheet is carrying meaningful risk if asset values or financing conditions deteriorate.

Cash Flow

Operating cash flow is positive and fairly steady across periods, which is a key support. That said, free cash flow is consistently negative (including TTM), indicating heavy investment/outflows and limited self-funding; free cash flow also does not track earnings well (negative relative to net income in profitable periods), which elevates funding and liquidity risk—especially alongside higher leverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.31B	2.25B	285.13M	1.75B	1.26B	1.15B
Gross Profit	1.93B	1.94B	5.43M	1.54B	1.11B	1.04B
EBITDA	1.41B	1.17B	-1.43B	702.19M	2.71B	1.03B
Net Income	76.53M	-346.20M	-2.39B	338.57M	1.56B	465.49M
Balance Sheet
Total Assets	47.30B	40.05B	38.73B	36.31B	31.96B	26.50B
Cash, Cash Equivalents and Short-Term Investments	2.02B	1.52B	2.20B	1.69B	1.16B	2.30B
Total Debt	28.91B	22.80B	22.73B	19.13B	16.50B	13.86B
Total Liabilities	34.61B	28.42B	27.67B	22.72B	20.13B	16.59B
Stockholders Equity	5.43B	5.41B	5.00B	7.71B	7.64B	6.40B
Cash Flow
Free Cash Flow	-2.59B	-1.23B	-1.81B	-1.66B	-3.98B	-1.01B
Operating Cash Flow	1.01B	1.06B	1.12B	629.16M	666.33M	754.33M
Investing Cash Flow	-3.79B	-1.93B	-3.78B	-3.05B	-4.57B	-465.89M
Financing Cash Flow	3.81B	209.96M	3.10B	2.93B	2.87B	1.16B

Alony Hetz Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3969.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ALHE, the sentiment is Neutral. The current price of 3969 is below the 20-day moving average (MA) of 4108.00, above the 50-day MA of 3930.67, and above the 200-day MA of 3557.03, indicating a neutral trend. The MACD of 29.37 indicates Positive momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ALHE.

Alony Hetz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFPR	75 Outperform	₪10.20B	11.80	―	―	―	―
AMOT	70 Outperform	₪12.19B	14.40	―	5.22%	3.63%	-10.21%
MVNE	69 Neutral	₪10.81B	15.92	―	1.10%	11.13%	110.98%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ALHE	49 Neutral	₪9.21B	114.03	―	2.42%	6.64%	―