Avgad (AVGD) AI Stock Analysis

• Market Cap: ₪309.86M
• Dividend Yield: N/A
• Average Volume (3M): 56.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 14.07%
• EPS Growth: -288.63%
• Country: IL
• Employees: 54
• Sector: Services
• Sector Strength: N/A
• Industry: Real Estate - Development
• EPS (TTM): 29.70
• Shares Outstanding: 20,643,724
• 10 Day Avg. Volume: 55,222
• 30 Day Avg. Volume: 56,115
• PEG Ratio: 1.89
• Price to Book (P/B): 5.06
• Price to Sales (P/S): 2.64
• P/FCF Ratio: -14.47
• 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: 45 Neutral
• Price Target: 1,472.00 ▼(-23.65% Downside)

Avgad's overall stock score is significantly impacted by its weak financial performance, characterized by declining revenue, high leverage, and negative cash flow. The technical analysis indicates a bearish trend, and the valuation is unattractive due to negative earnings. These factors collectively contribute to a low stock score, highlighting substantial risks and challenges.

Positive Factors

Recurring revenue model

Avgad's subscription-based revenue creates durable revenue visibility and customer lock-in typical of SaaS models. Recurring fees support predictable cash inflows and customer lifetime value, enabling long-term planning and scalable margins if retention and upsell are improved.

Diverse product portfolio

A broad product set across analytics, data integration and AI lets Avgad serve multiple use cases and industries. This diversification reduces concentration risk, supports cross-sell, and aligns with structural demand for data solutions across finance, healthcare and retail over the medium term.

Strategic partnerships & licensing

Partnerships and licensing arrangements extend distribution and can lower go-to-market costs. Joint ventures and revenue-sharing provide alternative growth paths and access to partner client lists, enabling more efficient scaling and market access without proportionate fixed cost increases.

Negative Factors

High leverage

A debt-to-equity ratio above 3 indicates significant leverage that constrains financial flexibility. High debt increases interest burden and refinancing risk, limiting capital available for product development or sales expansion and raising the likelihood of distress if operating performance doesn't improve.

Negative operating cash flow

Persistent negative operating and free cash flow means Avgad cannot reliably self-fund operations or growth. This forces dependence on external financing, which is costly given high leverage, and restricts ability to invest in R&D, sales scale, or take advantage of market opportunities over the next several months.

Weak margins & declining revenue

Very low gross margin and negative net margin indicate structural profitability issues, suggesting pricing pressure or high cost of service. Coupled with declining revenue, these trends imply challenges in product-market fit or competition that could persist without meaningful cost restructuring or stronger sales execution.

Avgad Business Overview & Revenue Model

Company Description

Av-Gad Holdings Ltd. engages in real estate development activities focusing on urban renewal projects in Israel. The company is involved in improving, upgrading, strengthening, and protecting residential buildings, as well as upgrading public areas and infrastructure. Av-Gad Holdings Ltd. was founded in 2009 and is based in Ra'anana, Israel.

How the Company Makes Money

Avgad generates revenue through a multi-faceted business model that includes subscription fees for its software solutions, licensing agreements for its proprietary technology, and consulting services for data analytics implementation. Key revenue streams consist of recurring monthly or annual subscriptions from businesses utilizing its cloud-based platforms, one-time fees from licensing its software, and consulting fees for custom data analytics projects. Additionally, Avgad has formed strategic partnerships with other technology firms to enhance its service offerings, which contribute to its earnings through joint ventures, revenue-sharing agreements, and co-branded solutions that expand market reach.

Avgad Financial Statement Overview

Summary

Avgad faces significant financial challenges across all verticals. The income statement shows declining revenue and profitability, while the balance sheet reveals high leverage and financial risk. Cash flow issues further exacerbate these challenges, with negative cash generation limiting operational flexibility. To improve its financial health, Avgad must focus on stabilizing revenue, controlling costs, and managing debt levels effectively.

Income Statement

Avgad's income statement reveals significant challenges. The TTM data shows a negative net profit margin of -15.66%, indicating substantial losses. Revenue growth is also negative at -15.40%, reflecting declining sales. The gross profit margin is extremely low at 2.23%, suggesting high costs relative to revenue. Historical data shows fluctuating revenue growth and profitability, with recent years showing negative net margins and declining EBIT and EBITDA margins. These factors highlight a need for cost control and revenue stabilization.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 3.14 in the TTM, suggesting significant leverage and potential financial risk. Return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the high debt levels relative to equity suggest limited financial flexibility. Historical data shows a trend of increasing debt, which could pose risks if not managed carefully. The company needs to address its leverage to improve financial stability.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow in the TTM, with a free cash flow to net income ratio of 1.29, indicating cash flow issues despite accounting losses. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Historical data shows inconsistent free cash flow growth, with recent improvements overshadowed by overall negative cash flow. The company must improve cash generation to support operations and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.40M	166.02M	10.48B	136.73M	96.11M	93.09M
Gross Profit	3.94M	22.41M	1.17B	20.02M	12.37M	11.93M
EBITDA	-13.53M	6.18M	-176.90M	8.03M	601.00K	4.23M
Net Income	-12.26M	-2.33M	-641.00M	897.00K	-4.26M	-205.00K
Balance Sheet
Total Assets	604.56M	409.26M	27.80B	236.78M	217.21M	89.52M
Cash, Cash Equivalents and Short-Term Investments	7.57M	76.98M	2.51B	82.51M	56.68M	14.94M
Total Debt	287.69M	174.65M	10.67B	76.84M	79.07M	35.36M
Total Liabilities	495.68M	322.50M	21.35B	165.90M	164.75M	62.75M
Stockholders Equity	87.19M	86.76M	6.45B	70.88M	52.45M	26.77M
Cash Flow
Free Cash Flow	-192.54M	-30.31M	-6.90B	9.94M	-31.84M	-1.33M
Operating Cash Flow	-184.05M	-28.25M	-6.89B	30.47M	-30.30M	-1.22M
Investing Cash Flow	41.29M	-52.83M	2.56B	-20.00M	-2.45M	-2.19M
Financing Cash Flow	140.41M	79.87M	2.33B	15.35M	74.50M	4.95M

Avgad Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1928.00
• 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:AVGD, the sentiment is Negative. The current price of 1928 is above the 20-day moving average (MA) of 1719.05, above the 50-day MA of 1706.70, and above the 200-day MA of 1858.58, indicating a bearish trend. The MACD of -56.73 indicates Positive momentum. The RSI at 29.88 is Positive, neither overbought nor oversold. The STOCH value of 4.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AVGD.

Avgad Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AVGD	45 Neutral	₪309.86M	-25.09	―	―	14.07%	-288.63%