Ashtrom Group (ASHG) AI Stock Analysis

• Market Cap: 8.64B
• Dividend Yield: 0.98%
• Average Volume (3M): 125.93K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 2.09
• Revenue Growth: 1.31%
• EPS Growth: N/A
• Country: IL
• Employees: 669
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 83.40
• Shares Outstanding: 111,528,786
• 10 Day Avg. Volume: 155,749
• 30 Day Avg. Volume: 125,933
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 6,565.00
• Price Target Upside: -11.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 6,565.00 ▼(-11.58% Downside)

The overall stock score of 52 reflects the company's strong revenue growth and gross profit margins, offset by high leverage and negative cash flows. Technical indicators suggest a bearish trend with potential for a short-term rebound. The valuation is moderate, with a P/E ratio indicating fair pricing but a low dividend yield.

Ashtrom Group Business Overview & Revenue Model

Company Description

Ashtrom Group Ltd. operates as a construction and property company in Israel and internationally. It constructs various projects comprising infrastructures and mega-projects, residential and public buildings, hotels, office blocks, retail and industrial facilities, industrial building plants, and groundwork and underground infrastructures, as well as educational, community, and security institutions. The company also produces, markets, and sells concrete and mortar products, white autoclaved blocks, gypsum interlocking blocks, waterproofing and insulation systems, adhesives, coatings, cladding materials, and mined and quarried materials for the building industries and the infrastructures sector. In addition, it operates concession projects, such as public infrastructure, construction, and transport projects; develops land; initiates, builds, and markets housing developments; and initiates, procures, owns, and manages offices and businesses, commerce, industrial and logistics facilities, and hotels, as well as manages and invests in properties. The company was founded in 1963 and is headquartered in Tel Aviv-Yafo, Israel. Ashtrom Group Ltd. is a subsidiary of Unedco United Engineering and Development Company Ltd.

How the Company Makes Money

Ashtrom Group generates revenue through multiple streams, primarily from its construction and infrastructure projects, which include residential, commercial, and industrial developments. The company is involved in the entire lifecycle of construction projects, from initial planning and design to construction and project management, allowing it to capture revenue at various stages. In addition, Ashtrom Group earns income from its real estate development and investment activities, by developing properties for sale or lease. The company also engages in public-private partnerships (PPPs), which provide a steady source of income through long-term contracts. The diversification of its operations across different sectors and geographies helps in mitigating risk and stabilizing earnings.

Ashtrom Group Financial Statement Overview

Summary

Ashtrom Group's financial performance shows strengths in operational efficiency and gross profit margins. However, declining net profit margins and free cash flow, combined with high leverage, present potential risks. The balance sheet stability is bolstered by increased equity, yet the high debt levels could impact future growth and profitability.

Income Statement

The company shows a slight revenue decline over recent years, with TTM revenue at 4.50 billion compared to 4.82 billion in 2023. Gross profit margin remains strong at 22.7%, indicating good cost control. However, net profit margin has decreased to 3.7% in the TTM period, suggesting higher expenses or lower revenue efficiency. EBIT and EBITDA margins are healthy, but the decline in net income is a concern.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicative of significant leverage, which is common in real estate development. Stockholders' equity has increased over the years, contributing to a moderate equity ratio of 24.6%. The return on equity has decreased significantly, reflecting reduced profitability relative to equity.

Cash Flow

The company has experienced significant volatility in free cash flow. The recent TTM free cash flow shows a drastic decrease to 101 million from 284 million in 2024. The operating cash flow to net income ratio is strong, demonstrating good cash conversion, but the declining trend in free cash flow raises concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.54B	4.46B	4.82B	5.15B	4.46B	4.63B
Gross Profit	1.03B	993.91M	1.05B	1.10B	894.10M	894.30M
EBITDA	1.14B	994.06M	581.67M	1.58B	609.38M	641.30M
Net Income	253.81M	169.66M	30.95M	930.85M	1.23B	328.56M
Balance Sheet
Total Assets	22.41B	21.83B	21.38B	18.23B	16.09B	14.39B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.08B	2.03B	1.72B	2.03B	1.87B
Total Debt	14.18B	14.39B	14.25B	10.63B	9.35B	8.50B
Total Liabilities	16.45B	16.70B	16.43B	13.18B	11.91B	11.00B
Stockholders Equity	5.51B	4.90B	4.74B	4.86B	4.02B	3.24B
Cash Flow
Free Cash Flow	-317.97M	284.22M	-987.03M	-32.45M	1.33B	785.55M
Operating Cash Flow	-40.53M	833.76M	144.47M	138.19M	1.48B	864.35M
Investing Cash Flow	-184.95M	-700.04M	-2.07B	-1.13B	-1.71B	-384.98M
Financing Cash Flow	203.09M	-603.13M	2.40B	421.16M	172.52M	38.50M

Ashtrom Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ASHG, the sentiment is Positive. The current price of 7425 is above the 20-day moving average (MA) of 6852.65, above the 50-day MA of 6818.66, and above the 200-day MA of 6283.75, indicating a bullish trend. The MACD of 248.33 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 79.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ASHG.

Ashtrom Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GVYM	69 Neutral	8.96B	16.01	―	2.47%	9.77%	10.54%
PRSK	67 Neutral	3.43B	22.68	―	1.12%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ISCN	54 Neutral	5.65B	36.15	―	0.44%	―	―
ASHG	52 Neutral	8.64B	32.06	―	0.98%	1.31%	―