Aura (AURA) AI Stock Analysis

• Market Cap: ₪6.39B
• Dividend Yield: 0.66%
• Average Volume (3M): 582.98K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.86
• Revenue Growth: 31.05%
• EPS Growth: -6.52%
• Country: IL
• Employees: 141
• Sector: Financial
• Sector Strength: 70
• Industry: Real Estate - Services
• EPS (TTM): 21.20
• Shares Outstanding: 285,706,630
• 10 Day Avg. Volume: 661,914
• 30 Day Avg. Volume: 582,982
• PEG Ratio: 0.09
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 4.00
• P/FCF Ratio: -47.81
• 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: 60 Neutral
• Price Target: 2,653.00 ▲(19.34% Upside)

Aura's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth but is offset by high leverage and negative cash flows. Technical analysis indicates a neutral trend with some bearish momentum. The valuation suggests moderate pricing, but the low dividend yield may not attract income-focused investors.

Positive Factors

Recurring subscription revenue

A subscription and partnership-driven model creates durable, recurring revenue and higher lifetime value. Family plans and premium tiers enable upsell and retention, while institutional partnerships broaden distribution, improving revenue visibility and lowering long-term acquisition costs.

Sustained revenue growth

Consistent top-line growth indicates robust product-market fit in consumer cybersecurity. Steady revenue expansion supports scale benefits, funds R&D and marketing investments, and underpins long-term competitiveness as digital security demand continues to rise.

Improving margins and strong ROE

Rising gross margin and robust operating margins demonstrate operational leverage and cost control, while a high ROE shows efficient capital use. These fundamentals support sustainable profitability and reinvestment capacity as the business scales over the medium term.

Negative Factors

High leverage

Elevated leverage raises interest and refinancing risk, reducing financial flexibility to invest in product development or marketing. In a rising-rate environment, higher debt servicing can compress cash available for growth and increase vulnerability to macro shocks over the medium term.

Negative operating and free cash flow

Ongoing negative operating and free cash flows indicate the business currently consumes cash to support growth. This necessitates external financing or drawdown of reserves, which can constrain long-term investment plans, increase funding costs, and pressure liquidity if trends persist.

Net margin compression

A meaningful decline in net margin suggests rising operating expenses or cost pressures that could erode profitability if structural. Even with strong gross and EBITDA margins, falling net margins reduce retained earnings and free cash conversion, limiting reinvestment and resilience over time.

Aura Business Overview & Revenue Model

Company Description

Aura (AURA) is a technology-driven company specializing in digital security and privacy solutions. It operates primarily in the cybersecurity sector, offering a suite of products designed to protect individuals and families from online threats. Core services include identity theft protection, credit monitoring, antivirus software, and secure browsing tools, all aimed at enhancing users' digital safety and privacy in an increasingly connected world.

How the Company Makes Money

Aura generates revenue through a subscription-based model, where customers pay monthly or annual fees for access to its suite of services. Key revenue streams include individual subscriptions, family plans, and additional premium features, such as enhanced monitoring and personalized support. The company may also engage in partnerships with financial institutions and other organizations that offer Aura's services as part of their customer offerings, which can contribute to its earnings through referral fees or bundled service agreements.

Aura Financial Statement Overview

Summary

Aura shows strong revenue growth and operational efficiency, but faces challenges with high leverage and negative cash flows. The company needs to address its cash flow issues to ensure long-term financial stability. While profitability metrics are solid, the increased debt levels pose a risk that needs careful management.

Income Statement

Aura has demonstrated solid revenue growth with a 13.53% increase in the TTM period, indicating strong market demand. The gross profit margin has improved to 23.86%, reflecting better cost management. However, the net profit margin has decreased from 23.65% in the previous year to 17.93% in the TTM, suggesting increased expenses or cost pressures. The EBIT and EBITDA margins remain robust, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.19 in the TTM, indicating higher leverage and potential risk in a rising interest rate environment. Return on equity remains strong at 21.10%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

Aura's cash flow position is concerning, with negative operating and free cash flows in the TTM. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow generation is in line with net income, but overall liquidity remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.52B	1.04B	849.01M	893.89M	1.11B
Gross Profit	395.00M	347.51M	190.98M	139.44M	137.10M	130.34M
EBITDA	439.18M	477.33M	208.47M	205.55M	182.64M	111.96M
Net Income	284.38M	360.14M	117.69M	140.54M	113.53M	42.14M
Balance Sheet
Total Assets	6.99B	4.88B	3.14B	2.60B	1.86B	1.82B
Cash, Cash Equivalents and Short-Term Investments	625.89M	137.03M	129.36M	73.21M	67.45M	110.80M
Total Debt	3.14B	2.26B	1.36B	845.63M	828.08M	1.06B
Total Liabilities	5.19B	3.59B	2.24B	1.93B	1.34B	1.45B
Stockholders Equity	1.54B	1.27B	882.03M	652.64M	520.38M	368.74M
Cash Flow
Free Cash Flow	-501.80M	-127.40M	-565.56M	163.03M	207.27M	-102.86M
Operating Cash Flow	-495.75M	-122.29M	-564.73M	167.92M	207.99M	-94.71M
Investing Cash Flow	-232.05M	-412.89M	-5.13M	-141.69M	-56.88M	-3.88M
Financing Cash Flow	1.08B	540.60M	607.07M	-26.42M	-194.34M	175.21M

Aura Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2223.00
• 50DMA: Positive
• 100DMA: Positive
• 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:AURA, the sentiment is Positive. The current price of 2223 is below the 20-day moving average (MA) of 2366.95, below the 50-day MA of 2249.90, and above the 200-day MA of 2151.33, indicating a neutral trend. The MACD of -1.15 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 31.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AURA.

Aura Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFPR	75 Outperform	₪10.20B	11.80	―	―	―	―
MVNE	69 Neutral	₪10.81B	15.92	―	1.10%	11.13%	110.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AURA	60 Neutral	₪6.39B	22.17	―	0.66%	31.05%	-6.52%
ALHE	49 Neutral	₪9.21B	114.03	―	2.42%	6.64%	―