Azorim (AZRM) AI Stock Analysis

• Market Cap: 4.97B
• Dividend Yield: 80.55%
• Average Volume (3M): 252.79K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.95
• Revenue Growth: 37.48%
• EPS Growth: -5.87%
• Country: IL
• Employees: 113
• Sector: Real Estate
• Sector Strength: 61
• Industry: Residential Construction
• EPS (TTM): 15.40
• Shares Outstanding: 211,139,950
• 10 Day Avg. Volume: 169,885
• 30 Day Avg. Volume: 252,791
• PEG Ratio: -24.86
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.39
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: 2,586.00 ▲(9.95%Upside)

The stock's strong technical momentum is a key positive factor, though it may be tempered by its high valuation and financial concerns, particularly related to high leverage and negative cash flow. Investors should be cautious about liquidity risks despite the bullish price trend.

Azorim Business Overview & Revenue Model

Company Description

Azorim (AZRM) is a prominent real estate development company based in Israel. The company is primarily engaged in the development, construction, and sale of residential properties. Azorim operates across various sectors within the real estate industry, focusing on creating high-quality living spaces that cater to diverse market needs. Its core offerings include the construction and sale of residential units, as well as the development of commercial and mixed-use properties.

How the Company Makes Money

Azorim makes money primarily through the sale of residential properties, which includes both newly constructed units and properties developed for resale. The company generates revenue by developing residential neighborhoods and selling individual units to homebuyers. Additionally, Azorim may engage in the sale or lease of commercial spaces and mixed-use developments, contributing to its income streams. The company's earnings are influenced by factors such as real estate market conditions, property demand, and strategic partnerships with construction firms and real estate brokers.

Azorim Financial Statement Overview

Summary

Azorim shows strong revenue growth and profitability with healthy margins. However, high leverage and negative cash flow raise concerns about financial stability and liquidity.

Income Statement

Azorim's income statement shows a solid gross profit margin and a consistent net profit margin. The gross profit margin for the TTM is 24.9%, indicating effective cost management. The net profit margin is stable at 8.4%, reflecting ongoing profitability. Revenue growth shows a positive trend with a TTM increase of 9.8% compared to the previous period. The EBIT and EBITDA margins are robust at 17.3% and 20.6%, respectively, showcasing operational efficiency. However, the slight decrease in EBIT margin from the previous year indicates some pressure on operational costs.

Balance Sheet

Azorim's balance sheet highlights a moderate equity position with a debt-to-equity ratio of 1.63, suggesting a high leverage level, which poses some financial risk. The return on equity (ROE) stands at 7.2%, indicating efficient use of equity to generate profits. The equity ratio is 29.3%, reflecting a balanced but somewhat leveraged capital structure. The increase in total debt over the periods raises concerns about financial stability.

Cash Flow

The cash flow analysis indicates challenges, with a negative operating cash flow of -686.8M in the TTM. This results in a negative free cash flow, suggesting potential liquidity issues. The operating cash flow to net income ratio is negative, which might indicate that earnings are not being effectively converted into cash. The free cash flow to net income ratio is also negative, highlighting concerns in cash generation from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	1.47B	1.10B	1.51B	1.25B
Gross Profit	447.05M	356.51M	278.95M	304.39M	231.34M
EBITDA	377.24M	393.01M	303.70M	225.88M	145.71M
Net Income	162.68M	176.40M	171.54M	322.03M	110.86M
Balance Sheet
Total Assets	7.69B	6.86B	6.92B	5.66B	4.07B
Cash, Cash Equivalents and Short-Term Investments	233.67M	155.51M	305.32M	508.19M	228.76M
Total Debt	3.72B	3.02B	2.72B	2.08B	1.73B
Total Liabilities	5.46B	4.79B	5.04B	3.95B	2.68B
Stockholders Equity	2.23B	2.07B	1.88B	1.71B	1.39B
Cash Flow
Free Cash Flow	-364.78M	-599.46M	-286.83M	817.54M	402.19M
Operating Cash Flow	-364.78M	-599.46M	-286.83M	817.54M	402.19M
Investing Cash Flow	-75.64M	324.21M	-448.48M	-831.69M	-88.64M
Financing Cash Flow	509.56M	122.69M	500.66M	294.92M	-273.59M

Azorim Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2352.00
• 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:AZRM, the sentiment is Positive. The current price of 2352 is below the 20-day moving average (MA) of 2410.95, above the 50-day MA of 2047.14, and above the 200-day MA of 1962.83, indicating a neutral trend. The MACD of 88.16 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 45.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AZRM.

Azorim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIMRI	78 Outperform	8.09B	27.64		203.89%	―	―
AFPR	69 Neutral	7.95B	34.69		―	―	―
AZRM	64 Neutral	4.97B	30.81		80.55%	37.48%	-5.87%
Sector *	61 Neutral	AU$2.86B	8.35	4.17%	5.15%	17.25%	41.52%