Ayalon Hold. (AYAL) AI Stock Analysis

• Market Cap: 1.69B
• Dividend Yield: 6.05%
• Average Volume (3M): 57.22K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.81
• Revenue Growth: 22.57%
• EPS Growth: 73.32%
• Country: IL
• Employees: 1,393
• Sector: Real Estate
• Sector Strength: 50
• Industry: Insurance - Diversified
• EPS (TTM): 578.10
• Shares Outstanding: 27,234,426
• 10 Day Avg. Volume: 108,798
• 30 Day Avg. Volume: 57,223
• 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: 6,538.00
• Price Target Upside: -6.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: 6,538.00 ▼(-6.65% Downside)

Ayalon Hold. has a solid financial performance with strong revenue growth and improved profitability margins. The valuation is attractive with a low P/E ratio and a decent dividend yield. However, technical indicators suggest a lack of strong momentum, which could be a concern for short-term investors.

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 Holdings makes money primarily through the premiums collected from its insurance products, which include life, general, and health insurance. These premiums form a significant portion of the company's revenue stream. Additionally, Ayalon generates income from the management fees and commissions associated with its pension and provident fund services. Investment income from managing and investing insurance reserves and client assets also contributes to the company's earnings. Ayalon may also benefit from strategic partnerships and collaborations within the financial services industry, enhancing its market reach and product offerings.

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	4.06B	4.37B	3.43B	2.27B	3.15B	2.46B
Gross Profit	4.06B	4.37B	3.43B	2.27B	3.15B	2.46B
EBITDA	610.02M	389.55M	-66.82M	319.50M	1.62M	-14.04M
Net Income	250.68M	144.41M	73.04M	175.71M	-114.02M	-64.26M
Balance Sheet
Total Assets	18.02B	19.07B	15.94B	15.58B	16.02B	14.45B
Cash, Cash Equivalents and Short-Term Investments	931.39M	3.60B	410.07M	3.23B	3.08B	2.92B
Total Debt	710.55M	734.34M	697.08M	732.66M	793.57M	647.87M
Total Liabilities	16.75B	18.09B	15.24B	14.94B	15.34B	13.75B
Stockholders Equity	1.26B	971.34M	703.49M	638.27M	679.24M	698.79M
Cash Flow
Free Cash Flow	337.19M	81.33M	-70.05M	227.81M	-389.21M	271.10M
Operating Cash Flow	464.74M	208.64M	-65.06M	335.35M	-306.02M	359.34M
Investing Cash Flow	-123.49M	-122.87M	-104.22M	-5.44M	-82.55M	-102.19M
Financing Cash Flow	-119.66M	-49.60M	-8.96M	-66.42M	143.92M	-14.84M

Ayalon Hold. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7004.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AYAL, the sentiment is Positive. The current price of 7004 is above the 20-day moving average (MA) of 6444.62, above the 50-day MA of 6168.20, and above the 200-day MA of 4647.11, indicating a bullish trend. The MACD of 277.10 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 46.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AYAL.

Ayalon Hold. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHOE	77 Outperform	29.32B	10.71		4.00%	18.37%	92.33%
CLIS	73 Outperform	13.86B	9.75		2.12%	―	―
MMHD	73 Outperform	20.45B	12.23		3.42%	28.29%	74.13%
AYAL	68 Neutral	1.69B	11.04		6.05%	22.57%	73.32%
Sector *	63 Neutral	$7.09B	13.58	-0.39%	6.87%	4.08%	-25.24%
HAHRF	―	$7.00B	3.97	19.01%	―	―	―
IDIN	65 Neutral	3.40B	10.59		6.43%	24.23%	48.82%

Ayalon Hold. Corporate Events

Court Ruling Favors Ayalon Insurance in Class Action Case

Ayalon Insurance Company Ltd announced a favorable court ruling concerning a class action related to a student personal accident insurance policy. The court ordered the removal of the company from the approval request, allowing continued proceedings against other respondents, which positively impacts Ayalon’s legal standing and reduces potential liabilities.