Alony Hetz (ALHE) AI Stock Analysis

• Market Cap: 9.45B
• Dividend Yield: 2.42%
• Average Volume (3M): 308.68K
• Price to Earnings (P/E): 117.0
• Beta (1Y): 1.40
• 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: 226,099,950
• 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

Alony Hetz's financial statements demonstrate significant challenges, particularly in profitability and cash flow. Despite strong revenue generation and a substantial asset base, high leverage and negative net income heavily impact financial stability. The company must address these issues to improve its financial health.

Income Statement

The income statement reveals a turbulent financial period with substantial fluctuations. The gross profit margin is strong at approximately 86.6% for the most recent year, highlighting operational efficiency. However, the net profit margin is concerning, showing a loss due to a net income of -$346.2 million, primarily driven by declines in EBIT. Revenue growth has been erratic, with significant growth in 2024 over 2023, but the overall trajectory is inconsistent, reflecting instability in earnings and profitability.

Balance Sheet

The balance sheet indicates moderate financial health. The debt-to-equity ratio stands at approximately 4.21, suggesting high leverage, which poses financial risk. The equity ratio is around 13.5%, reflecting a modest proportion of assets financed by equity. Return on equity is negative due to net losses, highlighting financial challenges. Despite these issues, the company maintains substantial total assets and cash reserves, providing some stability.

Cash Flow

Cash flow analysis shows difficulty in generating positive free cash flow, with a negative figure of -$1.23 billion in 2024. Operating cash flow remains positive but has decreased compared to the previous year. The free cash flow to net income ratio is unfavorable due to negative net income, indicating challenges in converting earnings to cash. Overall, the cash flow position reflects liquidity pressures and inefficiencies in cash management.

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: Positive
• Last Price: 3969.00
• 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:ALHE, the sentiment is Positive. The current price of 3969 is above the 20-day moving average (MA) of 3953.90, above the 50-day MA of 3826.21, and above the 200-day MA of 3458.09, indicating a bullish trend. The MACD of 98.13 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	10.14B	11.82	―	―	―	―
AMOT	70 Outperform	13.28B	15.69	―	5.22%	3.63%	-10.21%
MVNE	69 Neutral	11.69B	17.22	―	1.10%	11.13%	110.98%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ALHE	49 Neutral	9.45B	117.05	―	2.42%	6.64%	―