ALTSHULER SHAHAM FINANCIAL LTD (ALTF) AI Stock Analysis

• Market Cap: 1.41B
• Dividend Yield: 5.43%
• Average Volume (3M): 480.15K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.65
• Revenue Growth: 0.65%
• EPS Growth: -0.83%
• Country: IL
• Employees: 864
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 14.30
• Shares Outstanding: 198,435,670
• 10 Day Avg. Volume: 449,850
• 30 Day Avg. Volume: 480,153
• PEG Ratio: -0.60
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 9.18
• 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: 58 Neutral
• Price Target: 727.00 ▼(-8.97% Downside)

The overall stock score of 58 reflects a mix of strong financial performance and attractive valuation, offset by technical analysis indicating bearish momentum. The company's profitability and revenue growth are positive, but increased leverage and negative cash flows pose risks. The stock's valuation is appealing with a reasonable P/E ratio and high dividend yield, but technical indicators suggest caution due to current market trends.

Positive Factors

Recurring fee-based revenue model

A fee-based business tied to AUM and advisory services yields recurring, predictable revenue that scales with asset growth. This diversified fee mix (mutual funds, pensions, alternatives) supports durable margins and steadier cash inflows across market cycles, underpinning long-term stability.

Improved gross margins and revenue rebound

Material margin expansion and a strong revenue rebound indicate pricing power, operational leverage, and recovery in client flows. Sustained high gross margins enhance the firm's ability to absorb costs, invest in product development, and maintain profitability through market fluctuations over the medium term.

High return on equity with stable equity ratio

A ~20% ROE shows efficient use of shareholder capital and attractive returns from core asset-management operations. Combined with a stable equity ratio, this suggests disciplined capital allocation and a balanced asset structure that can sustain shareholder value creation over multiple reporting periods.

Negative Factors

Rising financial leverage

An elevated and rising debt-to-equity ratio increases interest burden and financial risk, reducing flexibility to invest or withstand market stress. Higher leverage can amplify losses during downturns and may require deleveraging or higher earnings to maintain credit stability over the medium term.

Negative operating and free cash flow

Persistent negative operating and free cash flows suggest reported profits are not converting into cash, constraining the firm's ability to fund investments, pay dividends, or reduce debt organically. Continued cash deficits necessitate external financing or asset sales, weakening long-term resilience.

Earnings volatility and decline

A sharp decline in EPS signals material earnings volatility or one-off charges that erode profitability. Sustained earnings weakness can limit reinvestment, dividend capacity, and market confidence; management must restore consistent earnings generation to support long-term strategic initiatives.

ALTSHULER SHAHAM FINANCIAL LTD Business Overview & Revenue Model

Company Description

ALTShuler Shaham Financial Ltd (ALTF) is a prominent financial services firm based in Israel, specializing in asset management, investment services, and financial consulting. The company operates across various sectors, including mutual funds, pension funds, and alternative investments, catering to both institutional and retail clients. ALTF is known for its innovative investment strategies and commitment to delivering tailored financial solutions that meet the diverse needs of its clientele.

How the Company Makes Money

ALTShuler Shaham Financial Ltd generates revenue primarily through management fees charged on the assets under management (AUM) for its various investment products, including mutual funds and pension funds. These fees are typically a percentage of the AUM and vary based on the type of fund and services provided. Additionally, the company earns performance fees from certain funds, which are contingent on the fund achieving specific investment benchmarks. ALTF may also generate income from advisory services offered to institutional clients, as well as commissions from trading activities. Strategic partnerships with financial institutions and access to a broad client base further enhance its revenue potential, allowing it to leverage its expertise in the financial markets.

ALTSHULER SHAHAM FINANCIAL LTD Financial Statement Overview

Summary

ALTSHULER SHAHAM FINANCIAL LTD shows a mixed financial performance with declining revenue and profitability margins, but maintains a strong cash flow position. The balance sheet is stable but increasing leverage is a potential risk.

Income Statement

ALTSHULER SHAHAM FINANCIAL LTD has demonstrated a decline in revenue over recent years with a significant drop from 2021 to 2024. The gross profit margin has decreased from previous years, indicating rising costs or diminished pricing power. The net profit margin has also contracted, reflecting challenges in maintaining profitability. Despite these challenges, the company has maintained a reasonable EBIT and EBITDA margin relative to revenue.

Balance Sheet

The company's balance sheet shows a stable equity ratio, indicating a solid foundation of equity relative to total assets. However, the debt-to-equity ratio has increased over time, indicating rising leverage, which could pose a risk if not managed carefully. Return on equity has been decreasing, which suggests diminished profitability and efficiency in utilizing equity.

Cash Flow

ALTSHULER SHAHAM FINANCIAL LTD has maintained positive operating cash flow, which is a positive sign of operational efficiency. Free cash flow, although positive, has declined in recent years, suggesting less cash available after capital expenditures. The free cash flow to net income ratio remains healthy, indicating good conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	925.37M	918.16M	990.30M	1.29B	1.42B	897.17M
Gross Profit	640.30M	406.66M	446.42M	618.08M	652.13M	368.73M
EBITDA	226.31M	246.80M	288.89M	411.59M	427.78M	248.90M
Net Income	113.08M	113.06M	137.93M	213.12M	258.26M	138.26M
Balance Sheet
Total Assets	1.52B	1.21B	1.19B	1.33B	1.62B	723.38M
Cash, Cash Equivalents and Short-Term Investments	246.35M	83.99M	115.86M	100.06M	298.67M	140.05M
Total Debt	763.22M	515.86M	519.50M	109.12M	729.55M	171.47M
Total Liabilities	906.21M	664.25M	673.31M	834.95M	1.07B	439.90M
Stockholders Equity	572.46M	549.03M	520.28M	493.39M	551.52M	283.48M
Cash Flow
Free Cash Flow	-44.03M	138.31M	211.73M	168.37M	166.62M	96.20M
Operating Cash Flow	-26.49M	155.05M	232.94M	229.75M	206.93M	119.82M
Investing Cash Flow	-45.49M	-40.56M	46.05M	-23.21M	-654.74M	-21.68M
Financing Cash Flow	75.01M	-146.35M	-259.66M	-406.59M	-159.42M	-37.14M

ALTSHULER SHAHAM FINANCIAL LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 798.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ALTF, the sentiment is Negative. The current price of 798.6 is above the 20-day moving average (MA) of 755.59, below the 50-day MA of 830.10, and above the 200-day MA of 673.42, indicating a neutral trend. The MACD of -32.55 indicates Positive momentum. The RSI at 23.64 is Positive, neither overbought nor oversold. The STOCH value of 11.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ALTF.

ALTSHULER SHAHAM FINANCIAL LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNRS	77 Outperform	2.29B	14.74	―	2.54%	62.82%	-15.94%
MPP	73 Outperform	1.91B	29.49	―	2.79%	19.74%	19.79%
MRIN	70 Neutral	3.96B	34.79	―	2.95%	26.35%	48.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALTF	58 Neutral	1.41B	12.43	―	5.43%	0.65%	-0.83%