Ayalon Hold. (AYAL) AI Stock Analysis

• Market Cap: 1.87B
• Dividend Yield: 4.75%
• Average Volume (3M): 58.67K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.81
• Revenue Growth: 22.57%
• EPS Growth: 73.32%
• Country: IL
• Employees: 1,393
• Sector: Real Estate
• Sector Strength: 53
• Industry: Insurance - Diversified
• EPS (TTM): 436.50
• 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: 70 Neutral
• Price Target: 9,454.00 ▲(0.36% Upside)

The overall stock score for Ayalon Hold. is driven by solid financial performance and attractive valuation metrics. The company's strong revenue growth and improved profitability margins are key strengths. However, technical indicators suggest the stock is overbought, which may lead to a short-term pullback. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Ayalon Hold.'s robust revenue growth indicates effective market positioning and successful expansion strategies, enhancing its competitive edge.

Profitability Margins

Improved profitability margins reflect better cost management and operational efficiency, supporting sustainable long-term earnings growth.

Cash Flow Generation

Strong cash generation relative to net income enhances financial flexibility, allowing Ayalon Hold. to reinvest in growth opportunities and manage liabilities.

Negative Factors

Free Cash Flow Conversion

Limited free cash flow conversion suggests inefficiencies in translating earnings into cash, which could constrain future investments and dividend payouts.

Equity Base Size

A smaller equity base may limit financial resilience and flexibility, potentially affecting Ayalon Hold.'s ability to weather economic downturns or fund large projects.

Leverage Strategy

While leverage is conservative, enhancing the equity base is crucial for long-term stability and reducing reliance on debt financing, which can impact growth.

Ayalon Hold. Business Overview & Revenue Model

Company Description

Ayalon Hold (AYAL) is a diversified holding company based in Israel, primarily involved in the real estate, construction, and infrastructure sectors. The company focuses on developing and managing residential and commercial properties, along with engaging in various construction projects. Additionally, Ayalon Hold invests in complementary sectors to enhance its portfolio and drive growth, positioning itself as a significant player in the regional market.

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	4.06B	4.37B	3.66B	2.35B	3.15B	2.48B
Gross Profit	4.06B	3.87B	3.19B	1.90B	2.73B	2.05B
EBITDA	659.29M	389.55M	283.39M	312.60M	1.62M	24.40M
Net Income	250.68M	144.41M	84.91M	166.68M	-114.09M	-64.28M
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: 9420.00
• 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 9420 is above the 20-day moving average (MA) of 8459.00, above the 50-day MA of 7380.40, and above the 200-day MA of 5687.61, indicating a bullish trend. The MACD of 580.08 indicates Negative momentum. The RSI at 69.30 is Neutral, neither overbought nor oversold. The STOCH value of 46.04 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	81 Outperform	32.94B	12.09	―	3.53%	12.22%	71.31%
MMHD	79 Outperform	20.56B	12.30	―	3.18%	28.29%	74.13%
CLIS	75 Outperform	14.81B	10.42	―	2.01%	―	―
HARL	75 Outperform	$23.84B	12.36	23.23%	2.61%	5.84%	138.80%
AYAL	70 Neutral	1.87B	11.20	―	4.75%	22.57%	73.32%
IDIN	69 Neutral	3.62B	10.52	―	6.13%	19.48%	53.61%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%