Azrieli Group (AZRG) AI Stock Analysis

• Market Cap: 39.23B
• Dividend Yield: 2.04%
• Average Volume (3M): 92.36K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.40
• Revenue Growth: -12.35%
• EPS Growth: -20.90%
• Country: IL
• Employees: 442
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 326.00
• Shares Outstanding: 121,272,760
• 10 Day Avg. Volume: 86,660
• 30 Day Avg. Volume: 92,356
• PEG Ratio: -0.73
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 11.12
• P/FCF Ratio: 23.08
• 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: 37,243.87
• Price Target Upside: 13.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 34,248.00 ▲(4.29% Upside)

Azrieli Group's strong financial performance and strategic growth plans are tempered by bearish technical indicators and moderate valuation. The earnings call provided optimism with record NOI growth and strategic investments, but challenges in FFO and tenant vacancies present risks.

Positive Factors

Record NOI Growth

The significant increase in NOI highlights Azrieli Group's effective management and strong performance in key segments, ensuring sustained profitability and reinforcing its competitive position in the real estate market.

High Occupancy Rates

High occupancy rates in malls indicate strong demand and effective property management, ensuring steady rental income and enhancing the company's financial stability and growth potential.

Data Center Segment Expansion

The expansion of the data center segment, driven by strategic deals, positions Azrieli Group to capitalize on growing digital infrastructure demand, supporting long-term revenue growth and diversification.

Negative Factors

Decrease in FFO

The decrease in FFO due to increased expenses and one-time items could impact cash flow, challenging the company's ability to fund future investments and maintain financial flexibility.

Impact of Meta Vacancy

The vacancy left by a major tenant like Meta highlights potential vulnerabilities in tenant concentration, which could affect occupancy rates and rental income stability if not managed effectively.

Challenges in Senior Housing FFO

The decline in senior housing FFO due to inventory constraints may hinder growth in this segment, affecting the company's diversification strategy and overall revenue potential.

Azrieli Group Business Overview & Revenue Model

Company Description

Azrieli Group (AZRG) is a leading Israeli real estate and investment company specializing in the development, management, and leasing of commercial properties, including shopping centers, office buildings, and industrial parks. The company also has interests in other sectors such as renewable energy, hotels, and healthcare, providing a diversified portfolio that enhances its market position. With a strong presence in Israel and an expanding footprint in international markets, Azrieli Group focuses on creating value through strategic acquisitions and innovative development projects.

How the Company Makes Money

Azrieli Group generates revenue primarily through leasing and management of its commercial properties, which include retail spaces, office units, and industrial facilities. The company earns rental income from long-term leases with tenants, contributing significantly to its overall revenue. Additionally, Azrieli Group engages in property development, where it profits from the sale of developed properties and the increase in property values over time. The company also benefits from its investments in various sectors, including renewable energy and hotels, which provide additional revenue streams. Strategic partnerships with other real estate firms and participation in joint ventures further enhance its earning potential by broadening its investment base and sharing risks associated with large projects.

Azrieli Group Financial Statement Overview

Summary

Azrieli Group demonstrates a robust financial performance with consistent revenue growth and strong profitability margins. The balance sheet is stable with moderate leverage, and cash flow generation is improving, albeit with some conversion challenges. Overall, the company is well-positioned in the real estate services industry.

Income Statement

Azrieli Group's income statement shows a strong performance with a consistent increase in revenue over the years, highlighted by a 4.84% revenue growth in the TTM period. The company maintains high gross and net profit margins, indicating efficient cost management and profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting potential pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 1.13 in the TTM period, indicating a balanced approach to leveraging. The return on equity has slightly decreased, suggesting a need for improved profitability relative to equity. The equity ratio remains strong, showcasing a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals a positive trend with a 4.69% growth in free cash flow in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio remains strong, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.77B	3.28B	4.29B	2.69B	2.21B	1.80B
Gross Profit	2.58B	2.30B	3.38B	1.89B	1.54B	1.17B
EBITDA	3.43B	2.93B	3.79B	3.16B	4.13B	382.00M
Net Income	1.65B	1.48B	2.23B	1.80B	2.89B	189.00M
Balance Sheet
Total Assets	63.25B	57.93B	54.07B	48.47B	42.37B	35.12B
Cash, Cash Equivalents and Short-Term Investments	3.26B	4.63B	4.92B	3.41B	2.89B	2.67B
Total Debt	29.19B	25.89B	22.75B	19.33B	15.27B	11.82B
Total Liabilities	38.45B	34.10B	30.50B	26.37B	21.60B	16.99B
Stockholders Equity	24.77B	23.81B	23.54B	22.07B	20.74B	18.10B
Cash Flow
Free Cash Flow	1.59B	1.58B	1.17B	1.69B	1.32B	649.00M
Operating Cash Flow	1.78B	1.82B	1.37B	1.75B	1.36B	941.00M
Investing Cash Flow	-3.50B	-3.14B	-1.47B	-2.82B	-2.99B	-1.17B
Financing Cash Flow	2.59B	1.07B	1.68B	1.57B	1.89B	48.00M

Azrieli Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32840.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AZRG, the sentiment is Positive. The current price of 32840 is above the 20-day moving average (MA) of 32388.00, below the 50-day MA of 33745.40, and above the 200-day MA of 30299.69, indicating a neutral trend. The MACD of -428.29 indicates Negative momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 85.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AZRG.

Azrieli Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFPR	75 Outperform	9.40B	11.18	―	―	―	―
BIG	72 Outperform	18.20B	11.41	―	1.08%	12.23%	9.49%
AMOT	70 Outperform	12.18B	14.40	―	5.34%	3.63%	-10.21%
MVNE	69 Neutral	10.57B	15.58	―	1.11%	11.13%	110.98%
AZRG	68 Neutral	39.23B	23.83	6.64%	2.04%	-12.35%	-20.90%
MLSR	66 Neutral	19.01B	12.04	―	1.88%	15.31%	17.50%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Azrieli Group Corporate Events

Azrieli Group Reports Strong Q2 2025 Performance

Azrieli Group Ltd. is a prominent real estate company based in Tel Aviv, Israel, known for its diverse portfolio spanning commercial centers, office spaces, and senior housing, with a growing focus on data center services in Europe.