Azrieli Group Ltd. (IL:AZRG)
TASE:AZRG
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Azrieli Group
(TASE:AZRG)
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Rating:65Neutral
Price Target:
48,128.00
▲(47.63% Upside)
Action:DowngradedDate:03/21/26
The score is driven primarily by solid underlying financial performance but tempered by rising leverage, weaker cash conversion, and volatility. Earnings-call commentary is supportive (strong NOI growth and occupancy with data-center momentum), while valuation (high P/E and modest yield) and a mixed near-term technical picture cap the overall rating.
Positive Factors
Record NOI growth
A 12% YoY record NOI reflects expanding underlying cash generation from core assets, improving the firm's ability to fund reinvestment, service debt, and support distributions. Sustained NOI growth across segments strengthens long-term operating cash flow resiliency and portfolio value.
Negative Factors
Rising leverage
The meaningful increase in debt relative to equity elevates refinancing, interest-rate and covenant risks, and reduces capital flexibility for development or opportunistic investments. Higher leverage makes the balance sheet more sensitive to cyclical NOI swings and funding-cost shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Record NOI growth
A 12% YoY record NOI reflects expanding underlying cash generation from core assets, improving the firm's ability to fund reinvestment, service debt, and support distributions. Sustained NOI growth across segments strengthens long-term operating cash flow resiliency and portfolio value.
Read all positive factors
Azrieli Group (AZRG) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪53.96B
Dividend Yield2.02%
Average Volume (3M)92.36K
Price to Earnings (P/E)27.8
Beta (1Y)1.47
Revenue Growth-12.35%
EPS Growth-20.90%
CountryIL
Employees442
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)589.00
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 Target
₪43,500.00Price Target Upside33.44% Upside
Rating ConsensusHold
Number of Analyst Covering1
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:Nov 26, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in NOI growth driven by data centers and malls, high occupancy rates, and strategic investments, tempered by challenges such as decreased FFO and impacts from tenant vacancies. The overall sentiment is buoyed by optimism and strategic growth plans.Positive Updates
Record NOI Growth
Achieved a record Net Operating Income (NOI) with a double-digit increase of 12% year-over-year, driven mainly by the data center segment and strong mall segment performance.
Negative Updates
Decrease in FFO
FFO excluding senior housing showed a slight decrease of 3% due to increased financing expenses and one-time items related to data center operations.
Read all updates
Q3-2025 Updates
Positive
Negative
Record NOI Growth
Achieved a record Net Operating Income (NOI) with a double-digit increase of 12% year-over-year, driven mainly by the data center segment and strong mall segment performance.
Read all positive updates
Company Guidance
In the third quarter of 2025, Azrieli Group reported a robust performance with a record net operating income (NOI) showing a 12% year-over-year increase, primarily driven by the data center segment and strong summer performance in their mall segment. The funds from operations (FFO), excluding senior housing operations, saw a slight 3% decrease due to increased financing and onetime data center expenses. Despite a 7% decline in the senior housing sector's FFO due to inventory constraints, the company anticipates a boost with the opening of a new senior home in Rishon LeZion by December 2025. The company's investments totaled approximately NIS 650 million in the third quarter and NIS 2.5 billion in the first nine months of 2025 across various sectors, including properties in Israel and data centers in the U.K., Germany, and Norway. Azrieli Group's strategic focus on maintaining high portfolio standards and capitalizing on opportunities, such as a significant deal with SolarEdge and a resurgence in office leasing demand in Tel Aviv, underscores their commitment to growth and development in the coming years.Azrieli Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.99B | 3.28B | 4.29B | 2.69B | 2.21B |
| Gross Profit | 2.57B | 2.30B | 3.38B | 1.89B | 1.54B |
| EBITDA | 3.64B | 2.93B | 3.79B | 3.16B | 4.13B |
| Net Income | 1.89B | 1.48B | 2.23B | 1.80B | 2.89B |
Balance Sheet | |||||
| Total Assets | 63.57B | 57.93B | 54.07B | 48.47B | 42.37B |
| Cash, Cash Equivalents and Short-Term Investments | 3.97B | 4.63B | 4.92B | 3.41B | 2.89B |
| Total Debt | 29.15B | 25.89B | 22.75B | 19.33B | 15.27B |
| Total Liabilities | 38.26B | 34.10B | 30.50B | 26.37B | 21.60B |
| Stockholders Equity | 25.30B | 23.81B | 23.54B | 22.07B | 20.74B |
Cash Flow | |||||
| Free Cash Flow | 1.32B | 1.58B | 1.17B | 1.69B | 1.32B |
| Operating Cash Flow | 1.44B | 1.82B | 1.37B | 1.75B | 1.36B |
| Investing Cash Flow | -3.03B | -3.14B | -1.47B | -2.82B | -2.99B |
| Financing Cash Flow | 751.00M | 1.07B | 1.68B | 1.57B | 1.89B |
Azrieli Group Technical Analysis
Positive
32600.00
Price Trends
44687.20
Negative
39983.90
Positive
36244.55
Positive
Market Momentum
-850.31
Positive
46.18
Neutral
40.89
Neutral
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 32600 is below the 20-day moving average (MA) of 44932.00, below the 50-day MA of 44687.20, and below the 200-day MA of 36244.55, indicating a neutral trend. The MACD of -850.31 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 40.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | ₪9.78B | 13.87 | ― | 5.22% | 3.63% | -10.21% | |
68 Neutral | ₪18.03B | 10.73 | ― | 1.08% | 12.23% | 9.49% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ₪53.96B | 27.83 | 6.64% | 2.02% | -12.35% | -20.90% | |
65 Neutral | ₪19.46B | 5.49 | ― | 1.89% | 15.31% | 17.50% | |
64 Neutral | ₪9.28B | 9.71 | ― | ― | ― | ― | |
60 Neutral | ₪9.41B | 16.38 | ― | 1.10% | 11.13% | 110.98% |
* Real Estate Sector Average
IL:AZRG
Azrieli Group
43,350.00
18,232.39
72.59%
IL:MVNE
Mivne
1,300.00
275.00
26.83%
IL:MLSR
Melisron
40,810.00
10,491.75
34.61%
IL:AFPR
Afi Properties
22,390.00
4,940.00
28.31%
IL:AMOT
Amot
1,980.00
187.89
10.48%
IL:BIG
Big
71,950.00
19,850.41
38.10%
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.