Azrieli Group Ltd. (IL:AZRG)
TASE:AZRG
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Azrieli Group
(TASE:AZRG)
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Rating:61Neutral
Price Target:
47,317.00
▲(45.14% Upside)
Action:Reiterated
Date:05/24/26
The score is primarily driven by solid underlying profitability but constrained by leverage and notably weaker/volatile cash flow. Technical signals are currently soft (price below 20/50 DMA with subdued RSI/Stoch), while valuation is only moderate given the ~27.6 P/E and ~1.5% yield. Earnings call commentary adds support via the data-center growth pipeline and strengthened capital base, but near-term NOI/FFO declines and external headwinds remain key risks.
Positive Factors
Data‑center growth pipeline
A contracted data‑center pipeline (~EUR 278m potential annual NOI) and a ~1 GW powered land bank provide a durable, high‑visibility growth engine. Contracted and land‑backed capacity reduces execution risk, diversifies income away from retail/offices, and supports multi‑year NOI buildup.
Negative Factors
Meaningful leverage
Debt around ~1.1x equity and substantial gross/net debt levels constrain financial flexibility. In a prolonged downturn or slower leasing environment, this leverage magnifies downside risk, increases sensitivity to interest costs and limits the room to fund capex without additional equity or asset disposals.
Read all positive and negative factors
Positive Factors
Negative Factors
Data‑center growth pipeline
A contracted data‑center pipeline (~EUR 278m potential annual NOI) and a ~1 GW powered land bank provide a durable, high‑visibility growth engine. Contracted and land‑backed capacity reduces execution risk, diversifies income away from retail/offices, and supports multi‑year NOI buildup.
Read all positive factors
Azrieli Group (AZRG) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪51.64B
Dividend Yield2.02%
Average Volume (3M)92.36K
Price to Earnings (P/E)25.6
Beta (1Y)1.58
Revenue Growth18.37%
EPS Growth34.05%
CountryIL
Employees442
SectorGeneral
Sector StrengthN/A
IndustryReal Estate - Services
Share Statistics
EPS (TTM)16.26
Shares Outstanding124,464,060
10 Day Avg. Volume86,660
30 Day Avg. Volume92,356
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)1.73
Price to Sales (P/S)10.95
P/FCF Ratio33.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)15.03
Revenue Forecast (FY)₪3.11B
Azrieli Group Business Overview & Revenue Model
Company Description
Azrieli Group Ltd., a subsidiary of Nadav Investments Inc., is an Israeli real estate firm established in Tel Aviv in 1983. The company's operations are divided into four primary segments: the management of retail centers and malls in Israel, the ...
How the Company Makes Money
Azrieli Group makes money primarily by owning and operating income-producing real estate and earning recurring cash flows from tenants and customers. Key revenue streams include: (1) Rental and occupancy income: The company leases office space to ...
Azrieli Group Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call presents a cautiously constructive picture: management delivered a solid quarter given a challenging environment (war-related disruptions and FX headwinds), highlighted by strong occupancy, defensive office performance, a deepening data center pipeline (contracted NOI ≈ ILS 1 billion and 1 GW land bank), significant ongoing investments and a successful ILS 1.4 billion equity raise. These positives are offset by short-term headwinds—NOI down ~1%, FFO down 9–12%, FX-driven translation losses and higher financing/G&A costs. Management frames most negatives as temporary and tied to external shocks, while emphasizing long-term value creation from developments like the Spiral Tower and data center expansion.Positive Updates
Maintained High Occupancy and Stable Office Performance
Mall occupancy remained at 98%; Office NOI was unchanged year-over-year, supported by high-quality assets and steady demand. Offices benefited from CPI-linked revenue growth despite timing of income recognition from the former Meta space.
Negative Updates
Overall NOI and Same-Property NOI Decline
Total NOI was ILS 638 million, down 1% year-over-year (≈ ILS 5–7 million impact in retail). Same-property NOI totaled ILS 635 million versus ILS 646 million a year earlier (≈1.7% decline).
Read all updates
Q1-2026 Updates
Positive
Negative
Maintained High Occupancy and Stable Office Performance
Mall occupancy remained at 98%; Office NOI was unchanged year-over-year, supported by high-quality assets and steady demand. Offices benefited from CPI-linked revenue growth despite timing of income recognition from the former Meta space.
Read all positive updates
Company Guidance
Management guided that the company will press ahead with its development-led growth while maintaining conservative financial discipline, highlighting a data‑center pipeline with signed contracts that represent roughly EUR 278m (≈ ILS 1.0b) of potential annual NOI and a powered land bank of ~1 GW (1,000 MW), continued European expansion (Undheim 80 MW; 54 MW German project revaluation profit ILS 33m), and large Israel investments including >ILS 600m deployed in the quarter and ILS 260m in income‑producing property under construction (ILS 122m into data centers, ILS 81m into the Frankfurt JV, 50% share). They reiterated that the Spiral Tower core has reached the 74th floor (occupied floor structure to the 60th) and will add ~14,000 sqm of leasable area to Azrieli Tel Aviv, that a new senior‑housing project in Rishon LeZion (274 units, 3,000 sqm retail) is due to open this year (senior‑housing occupancy ~100%, medical dept. 90%), and emphasized balance‑sheet strength after an ILS 1.4b equity raise; quarter metrics cited included NOI ILS 638m (‑1% YoY; same‑property NOI ILS 635m), FFO excl. senior housing ILS 395m (‑9% YoY), gross financial debt ILS 28.6b, net financial debt ~ILS 22.75b (~35%), average effective interest 2.9% and average duration 6 years.Azrieli Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.10B | 3.99B | 3.28B | 4.29B | 2.69B | 2.21B |
| Gross Profit | 3.01B | 2.57B | 2.30B | 3.38B | 1.89B | 1.54B |
| EBITDA | 3.81B | 3.64B | 2.93B | 3.79B | 3.16B | 4.13B |
| Net Income | 1.97B | 1.89B | 1.48B | 2.23B | 1.80B | 2.89B |
Balance Sheet | ||||||
| Total Assets | 65.43B | 63.57B | 57.93B | 54.07B | 48.47B | 42.37B |
| Cash, Cash Equivalents and Short-Term Investments | 4.00B | 3.97B | 4.63B | 4.92B | 3.41B | 2.89B |
| Total Debt | 28.58B | 29.15B | 25.89B | 22.75B | 19.33B | 15.27B |
| Total Liabilities | 39.07B | 38.26B | 34.10B | 30.50B | 26.37B | 21.60B |
| Stockholders Equity | 26.34B | 25.30B | 23.81B | 23.54B | 22.07B | 20.74B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.32B | 1.58B | 1.17B | 1.69B | 1.32B |
| Operating Cash Flow | 1.23B | 1.44B | 1.82B | 1.37B | 1.75B | 1.36B |
| Investing Cash Flow | -2.75B | -3.03B | -3.14B | -1.47B | -2.82B | -2.99B |
| Financing Cash Flow | 272.00M | 751.00M | 1.07B | 1.68B | 1.57B | 1.89B |
Azrieli Group Technical Analysis
Negative
32600.00
Price Trends
45549.83
Negative
44783.61
Negative
39155.70
Positive
Market Momentum
-1345.47
Positive
34.96
Neutral
13.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AZRG, the sentiment is Negative. The current price of 32600 is below the 20-day moving average (MA) of 43820.50, below the 50-day MA of 45549.83, and below the 200-day MA of 39155.70, indicating a neutral trend. The MACD of -1345.47 indicates Positive momentum. The RSI at 34.96 is Neutral, neither overbought nor oversold. The STOCH value of 13.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AZRG.
Azrieli Group Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₪9.14B | 11.63 | ― | 5.22% | 1.93% | -17.71% | |
64 Neutral | ₪7.50B | 7.71 | ― | ― | ― | ― | |
64 Neutral | ₪17.86B | 11.40 | ― | 1.08% | 12.76% | -13.74% | |
61 Neutral | ₪51.64B | 25.58 | 6.64% | 2.02% | 18.37% | 34.05% | |
61 Neutral | ₪19.79B | 10.49 | ― | 1.89% | 11.57% | 23.45% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
43 Neutral | ₪7.59B | 446.67 | ― | 2.42% | 15.70% | -67.34% |
* General Sector Average
IL:AZRG
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40,630.00
11,810.56
40.98%
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IL:BIG
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.