ALTSHULER SHAHAM FINANCIAL LTD (ALTF) AI Stock Analysis

• Market Cap: ₪1.26B
• Dividend Yield: 5.43%
• Average Volume (3M): 480.15K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.66
• 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: 641.00 ▼(-19.73% 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

Revenue Recovery

A sustained rebound in revenue (TTM +41.2%) indicates recovering AUM or distribution after prior weakness. For an asset manager whose fees scale with assets, durable revenue recovery supports predictable fee income, strengthens reinvestment capacity, and improves long-term growth prospects.

High Gross Margins

Very high and rising gross margins reflect a fee-driven, low-variable-cost business model typical of asset managers. Margin scalability versus revenue growth enables stronger operating leverage, funding for distribution or product development, and more resilient profitability across multi-year cycles.

Strong ROE

A 20%+ ROE signals efficient use of shareholder capital and attractive returns on the firm's equity base. For a savings and pension-focused manager, sustained high ROE supports long-term capital allocation, dividend potential, and validates the competitive economics of its core product and distribution network.

Negative Factors

Rising Leverage

Higher leverage (D/E 1.33) raises financial risk for a business exposed to market cycles. Increased interest and principal obligations can limit flexibility to invest in distribution or product development, strain cash management during downturns, and amplify earnings volatility over months to years.

Weak Cash Generation

Negative operating and free cash flow undermine an asset manager's ability to fund growth, service debt, and sustain dividends. Without consistent cash generation, the company may need to rely on external financing or restrict capital returns, weakening resilience and strategic optionality over the medium term.

Earnings Volatility

A steep EPS decline indicates earnings volatility that can reflect fee pressure, one-offs, or operating leverage issues. For a fee-based business, persistent EPS weakness reduces predictability of fee-linked compensation, harms reinvestment plans, and can challenge long-term dividend and capital allocation consistency.

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 demonstrates strong profitability and revenue recovery in the TTM period, with robust gross profit margins and revenue growth. However, increased leverage and negative cash flows present potential risks. The company should focus on improving cash flow management and monitoring debt levels to maintain financial stability.

Income Statement

The company shows strong gross profit margins, with a notable increase in the TTM period to 69.19% from 44.29% in the previous year. However, net profit margins have slightly decreased from 12.31% to 12.22%. Revenue growth has rebounded positively in the TTM period with a 41.2% increase, indicating recovery from previous declines. EBIT and EBITDA margins remain healthy, though slightly lower than historical highs.

Balance Sheet

The debt-to-equity ratio has increased to 1.33 in the TTM period, indicating higher leverage compared to previous years. Return on equity remains strong at 20.35%, although it has decreased from past levels. The equity ratio is stable, reflecting a balanced asset structure. The increase in leverage poses a potential risk if not managed carefully.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in the TTM period. Free cash flow growth is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net income, but overall cash flow health needs improvement.

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: Negative
• 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 669.00, above the 50-day MA of 749.35, and above the 200-day MA of 685.35, indicating a bearish trend. The MACD of -37.80 indicates Positive momentum. The RSI at 19.29 is Positive, neither overbought nor oversold. The STOCH value of 8.87 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	₪2.34B	14.94	―	2.54%	62.82%	-15.94%
MPP	73 Outperform	₪1.92B	29.55	―	2.79%	19.74%	19.79%
MRIN	70 Neutral	₪3.67B	32.24	―	2.95%	26.35%	48.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALTF	58 Neutral	₪1.26B	11.10	―	5.43%	0.65%	-0.83%