Ayalon Hold. (AYAL) AI Stock Analysis

• Market Cap: 2.45B
• Dividend Yield: 6.25%
• Average Volume (3M): 58.67K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.03
• Revenue Growth: 22.57%
• EPS Growth: 73.32%
• Country: IL
• Employees: 1,393
• Sector: Real Estate
• Sector Strength: 53
• Industry: Insurance - Diversified
• EPS (TTM): 463.00
• Shares Outstanding: 27,234,426
• 10 Day Avg. Volume: 56,507
• 30 Day Avg. Volume: 58,672
• PEG Ratio: 0.08
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 9.54
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 10,946.00 ▲(21.62% Upside)

Ayalon Hold. is performing well with strong financial performance and technical indicators suggesting bullish momentum. The valuation is reasonable with a good dividend yield, making it an attractive investment. However, caution is advised as the RSI indicates the stock is nearing overbought territory.

Positive Factors

Revenue Growth

Strong revenue growth indicates a positive trajectory and expanding market presence, supporting long-term business sustainability.

Profitability Margins

Improved profitability margins suggest enhanced operational efficiency, which can lead to better financial health and shareholder value.

Leverage Strategy

A conservative leverage strategy reduces financial risk and enhances the company's ability to withstand economic fluctuations.

Negative Factors

Free Cash Flow Conversion

Low free cash flow conversion indicates challenges in translating earnings into cash, potentially limiting reinvestment and growth opportunities.

Equity Base

A small equity base may limit financial flexibility and increase vulnerability to market volatility, affecting long-term stability.

Free Cash Flow Improvement

While cash flow has improved, further enhancement is needed to ensure robust financial health and support future investments.

Ayalon Hold. Business Overview & Revenue Model

Company Description

Ayalon Insurance Company Ltd, through its subsidiaries, provides various insurance products in Israel. It offers health insurance products, including nursing, medical expenses, surgeries and transplants, dental, personal accident, travel, and medical insurance for foreign workers; house certificates; and third party and employer, property, vehicle, and professional liability insurance products. The company also provides savings, pension, and provident fund products. In addition, it offers car, home, critical illness, life, mortgage, business, directors and officers, engineering, and agricultural insurance products, as well as reverse mortgages, and insurance products for collectives and organizations. The company serves its customers through a network of agents and agencies. Ayalon Insurance Company Ltd was formerly known as Ayalon Holdings Ltd and changed its name to Ayalon Insurance Company Ltd in July 2022. The company was founded in 1976 and is based in Ramat Gan, Israel. Ayalon Insurance Company Ltd is a subsidiary of Wesure Global Tech Ltd.

How the Company Makes Money

Ayalon Hold generates revenue through multiple streams, primarily from property development and management. The company profits by selling residential and commercial units, leasing properties, and providing construction services. Ayalon Hold also benefits from long-term lease agreements, which provide stable cash flow. Partnerships with local governments and private entities for infrastructure projects contribute to its revenue, enabling the company to tap into public tenders and collaborative ventures. Moreover, the diversification into related sectors allows Ayalon Hold to mitigate risks and exploit new market opportunities, enhancing overall earnings.

Ayalon Hold. Financial Statement Overview

Summary

Ayalon Hold. demonstrates a solid financial performance with strong revenue growth and improved profitability margins. The balance sheet reflects a conservative leverage strategy, and cash flow generation has improved significantly. However, there is room for improvement in free cash flow conversion and strengthening the equity base.

Income Statement

The company has shown a strong revenue growth rate of 27.53% from 2023 to 2024, indicating a positive trajectory. The gross profit margin remains consistent at 100% due to the nature of the insurance industry. However, the net profit margin improved significantly from 2.13% in 2023 to 3.30% in 2024. EBIT and EBITDA margins have also improved, suggesting better operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively low at 0.76, indicating a conservative leverage position. The return on equity (ROE) improved to 14.87% in 2024, reflecting enhanced profitability. The equity ratio is stable at 5.09%, suggesting a balanced capital structure. However, the company's equity base is relatively small compared to its total assets.

Cash Flow

The company experienced a significant turnaround in free cash flow, moving from negative in 2023 to positive in 2024. The operating cash flow to net income ratio improved to 1.44, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is only 0.56, suggesting room for improvement in converting income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.16B	4.37B	3.66B	2.35B	3.15B	2.48B
Gross Profit	4.16B	3.87B	3.19B	1.90B	2.73B	2.05B
EBITDA	781.83M	389.55M	283.39M	312.60M	1.62M	24.40M
Net Income	345.96M	144.41M	84.91M	166.68M	-114.09M	-64.28M
Balance Sheet
Total Assets	18.90B	19.07B	15.94B	15.58B	16.02B	14.45B
Cash, Cash Equivalents and Short-Term Investments	942.60M	3.60B	410.07M	3.23B	3.08B	2.92B
Total Debt	709.24M	734.34M	697.08M	732.66M	793.57M	647.87M
Total Liabilities	17.44B	18.09B	15.24B	14.94B	15.34B	13.75B
Stockholders Equity	1.46B	971.34M	703.49M	638.27M	679.24M	698.79M
Cash Flow
Free Cash Flow	190.44M	81.33M	-70.05M	227.81M	-389.21M	271.10M
Operating Cash Flow	322.35M	208.64M	-65.06M	335.35M	-306.02M	359.34M
Investing Cash Flow	-127.68M	-122.87M	-104.22M	-5.44M	-82.55M	-102.19M
Financing Cash Flow	-44.87M	-49.60M	-8.96M	-66.42M	143.92M	-14.84M

Ayalon Hold. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AYAL, the sentiment is Neutral. The current price of 9000 is below the 20-day moving average (MA) of 9859.17, above the 50-day MA of 8611.94, and above the 200-day MA of 6185.85, indicating a neutral trend. The MACD of 224.71 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 9.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:AYAL.

Ayalon Hold. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHOE	79 Outperform	34.01B	11.12	―	4.19%	12.22%	71.58%
MMHD	79 Outperform	25.22B	12.29	―	2.61%	23.28%	124.99%
HARL	76 Outperform	26.83B	11.18	23.23%	2.21%	5.84%	138.80%
AYAL	75 Outperform	2.45B	14.66	―	6.25%	22.57%	73.32%
IDIN	69 Neutral	3.65B	10.61	―	5.98%	19.48%	53.61%
CLIS	69 Neutral	16.65B	8.83	―	1.67%	-27.87%	229.49%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%