Ayalon Hold. (AYAL) AI Stock Analysis

• Market Cap: ₪2.56B
• Dividend Yield: 6.25%
• Average Volume (3M): 58.67K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.07
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 10,288.00 ▲(18.25% Upside)

The score is driven primarily by improving financial performance (stronger profitability and better leverage), tempered by cash-flow inconsistency. Valuation is supportive due to a mid-range P/E and high dividend yield, while technical signals are mixed with weaker near-term momentum but longer-term trend support.

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

Income statement strength is supported by materially higher TTM profitability and margin expansion, and the balance sheet shows improved leverage with strong ROE. The main offsets are historically volatile results and inconsistent cash-flow conversion, including a sharp TTM free-cash-flow decline versus the prior period.

Income Statement

Profitability has improved materially into TTM (Trailing-Twelve-Months): net income rose to 345.9M with an ~8.3% net margin versus ~3.3% in 2024 and ~2.1% in 2023, alongside stronger operating profitability. Revenue growth in TTM is robust (up ~251% versus 2024), but results have been volatile historically (losses in 2020–2021 and a revenue decline in 2022), which tempers the score despite the recent step-up.

Balance Sheet

Leverage has improved and looks manageable: debt-to-equity is ~0.49 in TTM (Trailing-Twelve-Months) versus ~0.76 in 2024 and ~0.99 in 2023, supported by higher equity. Returns are strong in TTM with return on equity near ~28.8%, indicating better capital efficiency. The main risk is balance sheet sensitivity typical for insurers (very large asset base), and leverage was meaningfully higher in prior years, showing the capital profile can swing.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months) with operating cash flow of 322.3M and free cash flow of 190.4M, and free cash flow covers about ~59% of net income. However, free cash flow declined sharply versus the prior period (down ~43.5%), and cash flow has been inconsistent historically (negative operating/free cash flow in 2021 and 2023), reducing confidence in durability.

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: Positive
• Last Price: 8700.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 8700 is below the 20-day moving average (MA) of 9468.50, below the 50-day MA of 9505.49, and above the 200-day MA of 6831.00, indicating a neutral trend. The MACD of -15.45 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 39.06 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	79 Outperform	₪38.25B	12.53	―	4.19%	12.22%	71.58%
HARL	76 Outperform	₪29.34B	12.24	23.23%	2.21%	5.84%	138.80%
MMHD	71 Outperform	₪24.92B	12.14	―	2.61%	23.28%	124.99%
AYAL	70 Outperform	₪2.56B	15.31	―	6.25%	22.57%	73.32%
CLIS	69 Neutral	₪18.15B	9.63	―	1.67%	-27.87%	229.49%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IDIN	60 Neutral	₪3.61B	10.48	―	5.98%	19.48%	53.61%