Avgol (AVGL) AI Stock Analysis

• Market Cap: 410.55M
• Dividend Yield: N/A
• Average Volume (3M): 39.87K
• Price to Earnings (P/E): 98.2
• Beta (1Y): 0.27
• Revenue Growth: 5.57%
• EPS Growth: -168.76%
• Country: IL
• Employees: 915
• Sector: Industrials
• Sector Strength: 72
• Industry: Apparel - Manufacturers
• EPS (TTM): -2.40
• Shares Outstanding: 296,853,100
• 10 Day Avg. Volume: 83,653
• 30 Day Avg. Volume: 39,873
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 148.00
• Price Target Upside: 4.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: 148.00 ▲(4.30% Upside)

Avgol's overall stock score reflects significant financial challenges, particularly in profitability and cash flow, which are the most impactful factors. Technical analysis provides some stability, but valuation concerns due to a negative P/E ratio further weigh down the score.

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 through the manufacture and sale of nonwoven fabric products. The company's key revenue streams include the supply of high-quality fabrics to manufacturers of hygiene products like diapers and feminine care items, as well as materials for medical applications such as surgical masks and gowns. Avgol's earnings are bolstered by long-term contracts with major consumer product companies and healthcare providers. Additionally, the company invests in research and development to maintain a competitive edge and expand its product offerings, ensuring sustained demand and profitability.

Avgol Financial Statement Overview

Summary

Avgol's financial performance is concerning, with weak profitability and cash flow management. Despite modest revenue growth, the company faces challenges in cost management and operational efficiency, compounded by high leverage.

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	358.45M	350.03M	318.07M	426.82M	471.41M	383.02M
Gross Profit	47.68M	48.37M	45.36M	76.85M	64.33M	95.06M
EBITDA	48.91M	44.71M	42.35M	72.40M	50.60M	86.46M
Net Income	-2.56M	-620.00K	3.99M	27.51M	8.14M	36.76M
Balance Sheet
Total Assets	479.70M	469.00M	441.64M	465.68M	489.01M	463.83M
Cash, Cash Equivalents and Short-Term Investments	65.56M	60.89M	50.71M	61.51M	65.94M	75.47M
Total Debt	190.90M	196.36M	179.96M	187.42M	221.87M	216.72M
Total Liabilities	274.93M	277.33M	242.63M	255.83M	304.90M	289.04M
Stockholders Equity	204.52M	191.39M	198.69M	209.48M	183.65M	174.38M
Cash Flow
Free Cash Flow	10.53M	-3.64M	-2.87M	22.47M	-17.83M	91.59M
Operating Cash Flow	42.30M	42.51M	31.14M	50.70M	25.70M	101.55M
Investing Cash Flow	-30.97M	-45.89M	-33.42M	-29.92M	-43.15M	-6.02M
Financing Cash Flow	13.51M	16.10M	-8.05M	-24.10M	7.59M	-56.81M

Avgol Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 141.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 141.9 is below the 20-day moving average (MA) of 146.61, below the 50-day MA of 146.36, and below the 200-day MA of 147.79, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 19.66 is Positive, 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
KAFR	73 Outperform	667.95M	9.51	12.75%	2.74%	8.57%	7.79%
DLTI	71 Outperform	2.38B	14.99	31.61%	3.20%	―	―
AVGL	50 Neutral	410.55M	98.23	―	―	5.57%	-168.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%