Avgad (AVGD) AI Stock Analysis

• Market Cap: 380.05M
• Dividend Yield: N/A
• Average Volume (3M): 56.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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: 1,628.00 ▼(-15.56% 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

Strategic Partnerships

Strategic partnerships enhance Avgad's service offerings, potentially expanding market reach and creating new revenue streams through joint ventures.

Revenue Model

A diversified revenue model with recurring subscriptions and consulting services provides a stable income base, reducing dependency on any single source.

Industry Focus

Focusing on high-demand sectors like finance and healthcare positions Avgad to capitalize on growing data analytics needs, supporting long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting Avgad's ability to invest in growth or weather economic downturns.

Negative Cash Flow

Negative cash flow challenges Avgad's operational sustainability, necessitating improved cash generation to reduce reliance on external financing.

Declining Revenue

Declining revenue indicates potential market share loss or reduced demand, requiring strategic adjustments to stabilize and grow sales.

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's financial performance is severely challenged, with significant revenue volatility, persistent losses, high leverage, and negative cash flows. These factors indicate a weak financial position and a need for strategic adjustments.

Income Statement

Avgad's income statement shows significant volatility with a dramatic revenue decline of 92.37% in the latest year, following a previous year of high growth. The company has struggled with profitability, evidenced by negative net profit margins and EBIT margins in recent years. Despite a positive gross profit margin, the overall financial health is weakened by consistent net losses.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio over 2, indicating potential financial risk. The return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a concerning free cash flow growth rate of -93.72%. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, but overall cash flow performance is weak.

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: Positive
• Last Price: 1928.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AVGD, the sentiment is Positive. The current price of 1928 is above the 20-day moving average (MA) of 1730.50, above the 50-day MA of 1723.84, and above the 200-day MA of 1869.28, indicating a neutral trend. The MACD of 37.42 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	380.05M	-30.91	―	―	14.07%	-288.63%