Avgol (AVGL) AI Stock Analysis

• Market Cap: 400.16M
• Dividend Yield: N/A
• Average Volume (3M): 30.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 4.79%
• EPS Growth: -789.71%
• Country: IL
• Employees: 915
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.10
• Shares Outstanding: 296,853,100
• 10 Day Avg. Volume: 61,989
• 30 Day Avg. Volume: 30,950
• PEG Ratio: 1.60
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -31.66
• 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: 43 Neutral
• Price Target: 129.00 ▼(-4.30% Downside)

Avgol's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces profitability challenges and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score, resulting in an overall score of 43.

Positive Factors

Revenue Growth

Consistent revenue growth, even if slight, indicates resilience and potential for market expansion in core sectors like hygiene and medical.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling investment in innovation and sustainability initiatives crucial for long-term success.

Stable Leverage

Improved leverage indicates prudent financial management, maintaining a balance between debt and equity that supports sustainable growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues suggest difficulties in cost management and pricing power, potentially hindering long-term financial health.

Declining Margins

Decreasing margins reflect increased cost pressures, which could impact competitiveness and ability to invest in growth initiatives.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating shareholder value, which may deter investment and affect long-term strategic goals.

Avgol Business Overview & Revenue Model

Company Description

Avgol Industries 1953 Ltd, together with its subsidiaries, manufactures and markets nonwoven fabrics for manufacturers of baby diapers, adult incontinence, and feminine hygiene products worldwide. The company also manufactures and sells fabrics for use in the manufacture of masks, robes, and personal protective equipment. Its fabric is used as a raw material for various industries, such as agriculture, furniture and upholstery, disposable clothing, disposable fabrics, construction, filtration products, and others. The company offers its products under the Avgol, Avsoft, Avsilk, and Avspun brands. Avgol Industries 1953 Ltd was incorporated in 1953 and is headquartered in Petah Tikva, Israel. Avgol Industries 1953 Ltd is a subsidiary of Indorama Ventures Spain S.L.

How the Company Makes Money

Avgol generates revenue primarily through the sale of its nonwoven fabric products to various industries, including hygiene and medical sectors. The company's revenue model is based on direct sales to manufacturers who incorporate Avgol's materials into their end products. Key revenue streams include contracts with large consumer goods companies and healthcare providers, which often involve long-term agreements for consistent supply. Additionally, Avgol benefits from strategic partnerships with raw material suppliers and technological collaborations that enhance its production capabilities and expand its market reach. The company's emphasis on research and development allows it to innovate and diversify its product offerings, further contributing to its earnings.

Avgol Financial Statement Overview

Summary

Avgol's financial performance is concerning, with weak profitability and cash flow issues. Despite modest revenue growth, the negative net income and declining cash flow highlight significant operational inefficiencies and liquidity challenges. The high debt-to-equity ratio further exacerbates financial risks.

Income Statement

Avgol's income statement shows a mixed performance. The company has experienced modest revenue growth in the TTM period, but profitability metrics such as net profit margin are weak, with a negative net income indicating challenges in cost management or pricing strategy. Gross profit margin remains stable, but the declining EBIT and EBITDA margins suggest operational inefficiencies or increased costs.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks if earnings do not improve. However, the equity ratio is stable, and the return on equity, although low, is positive in the TTM period, suggesting some ability to generate returns on shareholder investments.

Cash Flow

Cash flow analysis reveals concerning trends. The free cash flow has significantly declined, and the free cash flow to net income ratio is negative, highlighting cash generation issues. Operating cash flow remains positive but is not sufficient to cover net income, indicating potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	371.56M	350.03M	318.07M	426.82M	471.41M	383.02M
Gross Profit	47.63M	48.37M	45.36M	76.85M	64.33M	95.06M
EBITDA	49.98M	44.71M	42.35M	72.40M	50.60M	86.46M
Net Income	-3.87M	-620.00K	3.99M	27.51M	8.14M	36.76M
Balance Sheet
Total Assets	475.26M	469.00M	441.64M	465.68M	489.01M	463.83M
Cash, Cash Equivalents and Short-Term Investments	67.58M	60.89M	50.71M	61.51M	65.94M	75.47M
Total Debt	191.76M	196.36M	179.96M	187.42M	221.87M	216.72M
Total Liabilities	274.21M	277.33M	242.63M	255.83M	304.90M	289.04M
Stockholders Equity	200.80M	191.39M	198.69M	209.48M	183.65M	174.38M
Cash Flow
Free Cash Flow	14.09M	-3.64M	-2.87M	22.47M	-17.83M	91.59M
Operating Cash Flow	38.50M	42.51M	31.14M	50.70M	25.70M	101.55M
Investing Cash Flow	-23.75M	-45.89M	-33.42M	-29.92M	-43.15M	-6.02M
Financing Cash Flow	15.64M	16.10M	-8.05M	-24.10M	7.59M	-56.81M

Avgol Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 134.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AVGL, the sentiment is Negative. The current price of 134.8 is below the 20-day moving average (MA) of 136.25, below the 50-day MA of 138.82, and below the 200-day MA of 145.41, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AVGL.

Avgol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLTI	76 Outperform	2.81B	18.01	―	3.08%	―	―
KAFR	69 Neutral	630.80M	9.33	―	3.17%	-0.71%	2.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AVGL	43 Neutral	400.16M	-28.74	―	―	4.79%	-789.71%