Azrieli Group (AZRG) AI Stock Analysis

• Market Cap: ₪52.26B
• Dividend Yield: 2.02%
• Average Volume (3M): 92.36K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 1.48
• 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: ₪37,000.00
• Price Target Upside: 13.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 49,123.00 ▲(50.68% Upside)

The score is driven primarily by strong financial profitability and solid cash generation, supported by a positive earnings update (record NOI growth and strong occupancy) and constructive technical trends. The main offset is valuation (P/E 24.0) and some noted pressures on FFO and cash-flow conversion.

Positive Factors

Diversified portfolio

Azrieli's multi-asset platform (malls, offices, data centers, senior housing, renewables) provides durable cash-flow diversification. Exposure to secular data-center demand and aging-population housing reduces revenue cyclicality and enables cross‑funding of development, supporting stable medium-term cash generation.

High profitability

Very high reported EBIT and net margins indicate strong operating leverage and pricing power across Azrieli's portfolio. Durable margin strength supports internal financing for projects, capacity to absorb cyclical rent variations, and sustained ability to cover fixed costs and servicing obligations over the next several quarters.

Strong free cash generation

Positive FCF growth and high FCF-to-net-income conversion show the company converts earnings into discretionary cash at scale. This funds development, debt service and dividends without immediate reliance on equity, improving financial flexibility to execute strategic investments over the medium term.

Negative Factors

Moderate leverage

A debt-to-equity ratio around 1.1 means meaningful leverage that raises sensitivity to interest-cost increases and refinancing risk. Given recent higher financing expenses, leverage constrains agility for large acquisitions and increases the need to prioritize cash generation for servicing rather than growth in stressed conditions.

Weak operating cash conversion

Low operating cash conversion (c.35%) implies reported earnings are not fully translating into operating cash flows, which can limit the sustainability of distributions and internal investment. If persistent, it increases reliance on asset sales or external financing to fund capex and growth.

FFO pressure & senior housing constraints

A decline in core FFO (ex-senior housing) from higher financing and one-off data-center expenses, plus a 7% FFO drop in senior housing from sales/inventory limits, signal recurring cash-flow pressure. Recovery depends on new openings and execution, creating short-to-medium term risk to recurring distributable cash.

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 segments. It develops, acquires, leases out, manages, and maintains malls and retails centers in Israel; and office buildings and parks for offices and high-tech industry, as well as logistic areas and storage. As of December 31, 2021, the company owned 19 malls and retail centers, and 17 income-producing properties in the office and other space in Israel; and 8 office properties in the United States. The company has 4 active senior homes in an aboveground built-up area of approximately 105 thousand square meters (sqm), including approximately 1,033 senior housing units and projects under development and construction for approximately 275 residential units in a total area of approximately 31 thousand sqm. It also engages in the e-commerce and hospitality operation; and invests in banking and financial corporations, and investment funds, as well as operates hotel. The company was incorporated in 1983 and is based in Tel Aviv, Israel. Azrieli Group Ltd is a subsidiary of Nadav Investments Inc.

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

Strong profitability (EBIT margin 90.68%, net margin 44.91%) and positive revenue/free cash flow growth support a high score. Moderating factors include moderate leverage (debt-to-equity 1.10), relatively low ROE (6.80%), and weaker operating cash flow conversion (operating cash flow to net income 34.89%).

Income Statement

Azrieli Group shows strong profitability with a high EBIT margin of 90.68% and a net profit margin of 44.91% in the TTM period. Revenue growth is positive at 3.68%, indicating a healthy upward trend. However, the gross profit margin has slightly decreased compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio stands at 1.10, indicating moderate leverage. Return on equity is relatively low at 6.80%, suggesting room for improvement in generating returns for shareholders. The equity ratio is stable, reflecting a solid capital structure, but the increasing debt levels should be monitored.

Cash Flow

Azrieli Group's free cash flow growth is positive at 5.07%, and the free cash flow to net income ratio is strong at 87.39%, indicating efficient cash generation. However, the operating cash flow to net income ratio is relatively low at 34.89%, which could suggest potential challenges in converting income into cash.

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: 32600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 42258.50, below the 50-day MA of 36956.60, and above the 200-day MA of 32519.73, indicating a bullish trend. The MACD of 1570.34 indicates Positive momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 53.80 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZRG	78 Outperform	₪52.26B	31.75	6.64%	2.02%	-12.35%	-20.90%
AFPR	75 Outperform	₪10.20B	12.05	―	―	―	―
BIG	72 Outperform	₪19.51B	12.16	―	1.08%	12.23%	9.49%
AMOT	70 Outperform	₪12.19B	14.40	―	5.22%	3.63%	-10.21%
MVNE	69 Neutral	₪10.81B	15.92	―	1.10%	11.13%	110.98%
MLSR	66 Neutral	₪20.13B	12.74	―	1.89%	15.31%	17.50%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%