Avgol (AVGL) AI Stock Analysis

• Market Cap: ₪375.82M
• Dividend Yield: N/A
• Average Volume (3M): 30.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 4.79%
• EPS Growth: -789.71%
• Country: IL
• Employees: 915
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 296,853,100
• 10 Day Avg. Volume: 61,989
• 30 Day Avg. Volume: 30,950
• PEG Ratio: -0.21
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 11.03
• 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: 47 Neutral
• Price Target: 124.00 ▼(-8.82% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is mainly weighed down by pressured financial performance (margin compression, net losses, and inconsistent free cash flow) and a bearish technical setup (price below key moving averages with negative MACD). Valuation is also constrained by a negative P/E, indicating current losses.

Positive Factors

Leading nonwoven manufacturer

Avgol's position as a global leader in spunbond and meltblown nonwovens underpins durable demand from hygiene, medical, and industrial makers. These materials are essential inputs with high technical barriers, supporting long-term customer relationships, repeat volumes, and product differentiation.

Long-term contracts & diversified end markets

Long-term supply relationships with consumer goods and healthcare customers create recurring revenue and reduce customer concentration risk. Serving hygiene, medical and industrial markets diversifies exposure across secular demand streams, helping stabilize revenue over multi-quarter cycles.

Consistently positive operating cash flow

Repeated positive operating cash flow demonstrates the business's ability to generate core cash from operations, supporting working capital and capex needs. This cash generation provides a durable liquidity buffer even when accounting earnings are volatile or affected by non-cash items.

Negative Factors

Gross margin compression and net losses

Gross margin compression (from ~25% historically to ~14% in recent years) and two consecutive years of net losses signal structural pressure on pricing or cost base. Sustained margin erosion undermines ability to fund investments, hampers returns, and may force strategic repositioning to restore profitability.

Volatile and weakened free cash flow

Inconsistent free cash flow reduces discretionary capacity to repay debt, invest in capacity, or return capital. Even with positive operating cash flow, weak FCF conversion increases funding risk for strategic initiatives and heightens sensitivity to any further margin or working capital swings.

Moderate leverage and negative ROE

Debt near parity with equity limits financial flexibility during earnings weakness; negative ROE shows shareholder capital is producing poor returns. Continued losses make servicing leverage harder and could constrain capex or require balance-sheet repair, slowing strategic growth initiatives.

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

Revenue has recovered in 2024–2025, but profitability has deteriorated versus 2020–2022 with gross margin compression and consecutive net losses in 2024 and 2025. The balance sheet is stable but moderately leveraged (debt/equity around ~1x) and ROE turned negative. Operating cash flow remains positive, but free cash flow has been volatile and recently weakened, indicating inconsistent cash conversion.

Income Statement

Revenue has recovered over the last two years (up ~10% in 2024 and ~9% in 2025), but profitability has deteriorated materially versus 2020–2022. Gross margin has compressed (about 14% in 2023–2024 vs ~25% in 2020), and the company swung from solid profits in 2022 to net losses in 2024 and 2025, indicating weaker pricing/power or higher costs. Operating profitability (EBIT/EBITDA) remains positive, but the inability to convert that into net income keeps the income statement score below average.

Balance Sheet

The balance sheet is functional but moderately leveraged. Debt relative to equity has generally hovered around ~0.9–1.2x (improving to ~0.91x in 2023, but ~1.03x in 2024), and equity has remained fairly stable (~191M–210M in 2022–2024), which provides some cushion. However, returns on equity have turned negative most recently (2024), and debt levels remain sizable, limiting flexibility if earnings stay pressured.

Cash Flow

Cash generation is mixed: operating cash flow has stayed positive each year (roughly 26M–102M historically, ~38M in 2025), which supports liquidity, but free cash flow has been volatile and often negative (negative in 2021, 2023, and 2024; positive in 2020, 2022, and 2025). Notably, free cash flow declined in 2025 (down ~20% year-over-year), and recent periods show weaker translation of operating performance into discretionary cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	405.86M	350.03M	318.07M	426.82M	471.41M
Gross Profit	50.18M	48.37M	45.36M	76.85M	64.33M
EBITDA	50.40M	44.71M	42.35M	72.40M	50.60M
Net Income	-2.25M	-620.00K	3.99M	27.51M	8.14M
Balance Sheet
Total Assets	460.65M	469.00M	441.64M	465.68M	489.01M
Cash, Cash Equivalents and Short-Term Investments	51.18M	60.89M	50.71M	61.51M	65.94M
Total Debt	176.65M	196.36M	179.96M	187.42M	221.87M
Total Liabilities	256.81M	277.33M	242.63M	255.83M	304.90M
Stockholders Equity	203.60M	191.39M	198.69M	209.48M	183.65M
Cash Flow
Free Cash Flow	11.29M	-3.64M	-2.87M	22.47M	-17.83M
Operating Cash Flow	37.93M	42.51M	31.14M	50.70M	25.70M
Investing Cash Flow	-26.38M	-45.89M	-33.42M	-29.92M	-43.15M
Financing Cash Flow	-25.16M	16.10M	-8.05M	-24.10M	7.59M

Avgol Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.00
• 50DMA: Negative
• 100DMA: Negative
• 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:AVGL, the sentiment is Negative. The current price of 136 is above the 20-day moving average (MA) of 127.66, above the 50-day MA of 131.74, and below the 200-day MA of 141.14, indicating a bearish trend. The MACD of -1.90 indicates Negative momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 43.50 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
KAFR	69 Neutral	₪649.67M	9.59	―	3.17%	-0.71%	2.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DLTI	58 Neutral	₪2.65B	17.46	―	3.08%	―	―
AVGL	47 Neutral	₪375.82M	-54.66	―	―	4.79%	-789.71%