Ashtrom Group (ASHG) AI Stock Analysis

• Market Cap: ₪7.94B
• Dividend Yield: 0.99%
• Average Volume (3M): 155.29K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.89
• 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: 8,054.00 ▲(3.92% Upside)

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

Diversified business model

Ashtrom's mix of contracting, development, rentals and JV activity spreads revenue sources across residential, commercial and infrastructure work. This diversity reduces reliance on any single cycle or client type, supporting steadier cash flows and contract winability over months.

High operational margins

Elevated EBIT/EBITDA margins point to efficient project execution and cost control in construction operations. Sustained margins bolster internal cash generation, improve project returns and provide a buffer against input-cost volatility over the medium term.

Revenue resilience

Positive revenue trends and recent recovery indicate stable demand and backlog conversion across segments. Continued top-line resilience supports utilization of capacity, preserves contracting strength, and underpins medium-term earnings stability if project pipelines hold.

Negative Factors

High leverage

A debt/equity ratio above 2.5 signals substantial financial leverage typical in real estate but raises refinancing and interest-rate exposure. Elevated leverage constrains financial flexibility, increases default risk under stress, and can limit capex or bidding ability over months.

Weak cash conversion

Sharp FCF deterioration and poor conversion of profits to cash indicate structural working-capital or project-timing issues. Persistent cash shortfalls undermine ability to service debt, fund new projects organically, and may require asset disposals or external financing over the medium term.

Low profitability metrics

Modest net margins and low ROE suggest limited profitability relative to invested capital. This reduces retained earnings for reinvestment and weakens equity returns, increasing reliance on leverage or external capital to grow, which can dilute resilience over time.

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's financial performance is mixed. While there is resilience in revenue growth and strong operational efficiency with high EBIT and EBITDA margins, the company faces significant risks from high leverage and cash flow challenges. Improving profitability and cash flow management is crucial for financial stability.

Income Statement

Ashtrom Group's income statement shows a moderate performance with a gross profit margin of 22.65% and a net profit margin of 5.59% for the TTM. The company has demonstrated revenue growth of 1.94% in the TTM, recovering from previous declines. However, the net profit margin has decreased compared to previous years, indicating pressure on profitability. The EBIT and EBITDA margins are strong at 21.84% and 25.13%, respectively, suggesting efficient operational management.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.57, indicating significant leverage, which is common in the real estate development industry but poses financial risk. The return on equity is relatively low at 5.23%, suggesting limited profitability from shareholders' investments. The equity ratio is stable, showing a solid base of equity relative to total assets.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -72.74% in the TTM, indicating cash flow issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash. However, the free cash flow to net income ratio is notably high, suggesting potential for improvement if cash flow management is optimized.

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: Negative
• Last Price: 7750.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 7750 is above the 20-day moving average (MA) of 7499.90, above the 50-day MA of 7341.92, and above the 200-day MA of 6891.39, indicating a neutral trend. The MACD of -119.20 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 36.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₪9.08B	14.96	―	3.39%	7.67%	32.63%
ISCN	59 Neutral	₪6.10B	120.73	―	0.45%	48.74%	-82.72%
PRSK	54 Neutral	₪3.49B	26.88	―	1.21%	61.27%	35.14%
ASHG	51 Neutral	₪7.94B	26.92	―	0.99%	8.03%	―