Azrieli Group Ltd. (IL:AZRG)
TASE:AZRG
Want to see IL:AZRG full AI Analyst Report?
Top Page
Azrieli Group
(TASE:AZRG)
Select Model
Select Model
Rating:65Neutral
Price Target:
50,428.00
▲(54.69% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by solid but not pristine fundamentals: strong profitability and positive free cash flow are tempered by volatility, weaker cash conversion, and rising leverage. The earnings call adds support via a large data-center growth pipeline and strengthened capital base, while valuation (P/E 30 with a ~1.46% yield) and only mixed near-term technicals cap the overall rating.
Positive Factors
Data-center growth pipeline
A large contracted data-center pipeline and a ~1 GW powered land bank provide multi-year, contracted revenue visibility and structural diversification beyond retail/offices. This positions Azrieli to capture secular cloud/colocation demand and scale high-margin, long-term cash flows across geographies.
Negative Factors
Rising leverage
Debt rising to above equity and a ~1.1 debt-to-equity point increases structural financial risk. Higher leverage amplifies sensitivity to rate shocks and downturns, limits balance-sheet flexibility for opportunistic acquisitions or distress, and raises the probability of future equity raises or asset disposals to rebalance capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center growth pipeline
A large contracted data-center pipeline and a ~1 GW powered land bank provide multi-year, contracted revenue visibility and structural diversification beyond retail/offices. This positions Azrieli to capture secular cloud/colocation demand and scale high-margin, long-term cash flows across geographies.
Read all positive factors
Azrieli Group (AZRG) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪55.82B
Dividend Yield2.02%
Average Volume (3M)92.36K
Price to Earnings (P/E)27.6
Beta (1Y)1.56
Revenue Growth18.37%
EPS Growth34.05%
CountryIL
Employees442
SectorReal Estate
Sector Strength53
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)17.23
Revenue Forecast (FY)₪3.37B
Azrieli Group Business Overview & Revenue Model
Company Description
Azrieli Group Ltd operates in the real estate industry. The company operates through four segments: Retail Centers and Malls in Israel, Office and Other Space for Lease in Israel, Income-Producing Properties segment in the U.S., and Senior Housing...
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
74
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| 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 | 0.00 | 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 | 1.35B | 1.32B | 1.58B | 1.17B | 1.69B | 1.32B |
| Operating Cash Flow | 1.43B | 1.44B | 1.82B | 1.37B | 1.75B | 1.36B |
| Investing Cash Flow | -2.20B | -3.03B | -3.14B | -1.47B | -2.82B | -2.99B |
| Financing Cash Flow | -656.00M | 751.00M | 1.07B | 1.68B | 1.57B | 1.89B |
Azrieli Group Technical Analysis
Negative
32600.00
Price Trends
45977.97
Negative
43453.45
Positive
38039.51
Positive
Market Momentum
362.07
Positive
40.22
Neutral
20.92
Neutral
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 47696.00, below the 50-day MA of 45977.97, and below the 200-day MA of 38039.51, indicating a neutral trend. The MACD of 362.07 indicates Positive momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.92 is Neutral, 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 (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₪8.87B | 7.51 | ― | ― | ― | ― | |
68 Neutral | ₪9.77B | 14.53 | ― | 5.22% | 1.93% | -17.71% | |
68 Neutral | ₪18.18B | 8.66 | ― | 1.08% | 13.86% | 19.70% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ₪55.82B | 27.60 | 6.64% | 2.02% | 18.37% | 34.05% | |
65 Neutral | ₪20.31B | 18.27 | ― | 1.89% | 11.57% | 23.45% | |
41 Neutral | ₪7.78B | 105.73 | ― | 2.42% | 6.63% | ― |
* Real Estate Sector Average
IL:AZRG
Azrieli Group
44,850.00
18,740.08
71.77%
IL:ALHE
Alony Hetz
3,441.00
616.09
21.81%
IL:MLSR
Melisron
42,570.00
11,178.45
35.61%
IL:AFPR
Afi Properties
21,400.00
3,660.00
20.63%
IL:AMOT
Amot
1,979.00
73.79
3.87%
IL:BIG
Big
72,430.00
19,066.19
35.73%
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.