Ashtrom Group (ASHG) AI Stock Analysis

• Market Cap: 8.81B
• Dividend Yield: 0.99%
• Average Volume (3M): 155.29K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.88
• Revenue Growth: 8.03%
• EPS Growth: N/A
• Country: IL
• Employees: 669
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 30.20
• Shares Outstanding: 111,528,786
• 10 Day Avg. Volume: 90,284
• 30 Day Avg. Volume: 155,292
• PEG Ratio: 0.08
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 20.98
• 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: 51 Neutral
• Price Target: 7,045.00 ▼(-9.10% Downside)

Ashtrom Group's overall stock score reflects a combination of financial challenges and bearish technical indicators. The company's high leverage and cash flow issues are significant risks, while the technical analysis indicates a bearish trend. The valuation suggests the stock is expensive, with a modest dividend yield. These factors collectively result in a moderate stock score.

Positive Factors

Revenue Growth

The company's revenue growth of 1.94% in the TTM indicates recovery from previous declines, showcasing resilience in its core operations.

Operational Efficiency

Strong EBIT and EBITDA margins reflect efficient operational management, enhancing profitability and competitive positioning.

Market Position

The company's reputation for quality and innovation strengthens its market position, aiding in securing contracts and sustaining revenue.

Negative Factors

High Leverage

High leverage poses financial risk, potentially impacting cash flow and limiting financial flexibility in the long term.

Cash Flow Challenges

Cash flow issues highlight inefficiencies in converting income into cash, which could strain operations and investment capacity.

Profitability Pressure

Decreasing net profit margins indicate pressure on profitability, which could affect long-term financial health and shareholder returns.

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 primarily through its construction and real estate development activities. The company earns income by executing large-scale construction contracts for residential and commercial buildings, as well as infrastructure projects, which are typically financed by governmental, private, and institutional clients. Key revenue streams include direct construction contracts, property sales, and rental income from developed properties. Additionally, Ashtrom Group may engage in joint ventures and partnerships with other firms, allowing for shared investments in significant projects, further enhancing its earnings potential. The company's strong reputation and experience in the industry also contribute to its ability to secure contracts and maintain a steady flow of revenue.

Ashtrom Group Financial Statement Overview

Summary

Ashtrom Group demonstrates strong revenue growth and gross profit margins, but faces challenges with high leverage and negative cash flows. The high debt-to-equity ratio and negative cash flow indicate potential financial risks, which need to be addressed to improve stability.

Income Statement

The company shows a strong gross profit margin of 22.65% in TTM, indicating effective cost management. However, the net profit margin is relatively low at 5.59%, suggesting high operational costs or other expenses. Revenue growth is impressive at 96% in TTM, rebounding from previous declines, which is a positive indicator of demand recovery.

Balance Sheet

The debt-to-equity ratio is high at 2.57 in TTM, indicating significant leverage, which could pose financial risks. Return on equity is modest at 4.89%, showing limited profitability relative to shareholder equity. The equity ratio is not provided, but the high leverage suggests a lower proportion of equity financing.

Cash Flow

The company faces challenges with negative free cash flow growth and negative operating cash flow in TTM, indicating potential liquidity issues. The free cash flow to net income ratio is high at 7.84, suggesting that free cash flow is significantly higher than net income, but the negative values raise concerns about cash sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.63B	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	1.16B	994.06M	581.67M	1.58B	1.72B	745.88M
Net Income	279.84M	169.66M	30.95M	930.85M	1.23B	328.56M
Balance Sheet
Total Assets	22.96B	21.83B	21.38B	18.23B	16.09B	14.39B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.08B	2.03B	1.72B	2.03B	1.87B
Total Debt	14.81B	14.39B	14.25B	10.63B	9.35B	8.50B
Total Liabilities	17.04B	16.70B	16.43B	13.18B	11.91B	11.00B
Stockholders Equity	5.49B	4.90B	4.74B	4.86B	4.02B	3.24B
Cash Flow
Free Cash Flow	-86.68M	284.22M	-987.03M	-32.45M	1.33B	785.55M
Operating Cash Flow	115.64M	833.76M	144.47M	138.19M	1.48B	864.35M
Investing Cash Flow	-926.15M	-700.04M	-2.07B	-1.13B	-1.71B	-384.98M
Financing Cash Flow	652.14M	-603.13M	2.40B	421.16M	172.52M	38.50M

Ashtrom Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7750.00
• 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 7750 is above the 20-day moving average (MA) of 7394.00, above the 50-day MA of 7446.88, and above the 200-day MA of 6714.73, indicating a bullish trend. The MACD of 166.53 indicates Negative momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 77.76 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GVYM	60 Neutral	9.27B	15.26	―	3.39%	7.67%	32.63%
ISCN	59 Neutral	6.29B	128.29	―	0.45%	48.74%	-82.72%
PRSK	54 Neutral	3.64B	28.08	―	1.21%	61.27%	35.14%
ASHG	51 Neutral	8.81B	29.88	―	0.99%	8.03%	―