Azorim (AZRM) AI Stock Analysis

• Market Cap: 3.52B
• Dividend Yield: 1.12%
• Average Volume (3M): 156.06K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.85
• Revenue Growth: 37.48%
• EPS Growth: -5.87%
• Country: IL
• Employees: 113
• Sector: Real Estate
• Sector Strength: 73
• Industry: Residential Construction
• EPS (TTM): 15.40
• Shares Outstanding: 211,139,950
• 10 Day Avg. Volume: 138,102
• 30 Day Avg. Volume: 156,064
• PEG Ratio: -0.30
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.49
• 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: 62 Neutral
• Price Target: 1,786.00 ▲(4.51%Upside)

Azorim's financial performance highlights strong revenue growth and operational efficiency, but the high leverage and negative cash flows are significant risks. Technical indicators show a neutral trend, providing no clear direction. The valuation suggests a potential overvaluation, further challenging the stock's attractiveness.

Azorim Business Overview & Revenue Model

Company Description

Azorim-Investment, Development & Construction Co. Ltd designs and constructs apartments in Israel. The company constructs residential apartments, including garden apartments, mini penthouses, and penthouses, as well as communities. It is also engaged in apartment rentals. The company was incorporated in 1994 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Azorim generates revenue primarily through the sale of residential and commercial real estate properties. The company's revenue model is based on developing properties from acquired land and selling the finished units to individuals, businesses, and investors. Key revenue streams include the sale of residential apartments, commercial spaces, and mixed-use properties. Azorim also engages in strategic partnerships with local and international investors and financial institutions to fund and develop large-scale projects, which contributes to its earnings. Additionally, the company may generate income from property management services and leasing activities.

Azorim Financial Statement Overview

Summary

Azorim shows strong revenue growth and solid operational performance with robust margins. However, increasing leverage and negative cash flows raise concerns about potential liquidity risks.

Income Statement

Azorim has demonstrated a strong revenue growth of 19.19% in 2024, supported by a healthy gross profit margin of 25.51%. However, net profit margin has slightly declined to 9.28% from the previous year. The EBIT and EBITDA margins are robust at 19.34% and 21.53% respectively, indicating efficient operational management despite a decrease in EBIT from the previous year.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.67, suggesting higher leverage, which could pose a risk in volatile markets. Return on equity is stable at 7.30%, but the equity ratio has decreased to 29.00%, indicating a higher reliance on debt financing. Overall, while the balance sheet shows growth in assets, the rising liabilities are a concern.

Cash Flow

Azorim's free cash flow remains negative, signaling potential liquidity issues, with a negative free cash flow growth rate. The operating cash flow to net income ratio is negative, highlighting challenges in converting profits into cash. However, financing cash flows have provided some relief, indicating reliance on external funding.

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
	EBIT
338.89M	354.67M	273.76M	349.07M	164.48M
	EBITDA
377.24M	393.01M	303.70M	225.88M	145.71M
	Net Income Common Stockholders
162.68M	176.40M	171.54M	322.03M	110.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
233.67M	155.51M	305.32M	508.19M	228.76M
	Total Assets
7.69B	6.86B	6.92B	5.66B	4.07B
	Total Debt
3.72B	3.02B	2.72B	2.08B	1.73B
	Net Debt
3.52B	2.90B	2.45B	1.57B	1.50B
	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: Negative
• Last Price: 1709.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1709 is above the 20-day moving average (MA) of 1692.65, above the 50-day MA of 1674.32, and below the 200-day MA of 1878.67, indicating a neutral trend. The MACD of -3.50 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 26.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AZRM.

Azorim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZRM	62 Neutral	3.52B	21.81		1.12%	37.48%	-5.87%
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
DLKGF		$3.36B	11.10	11.86%	8.43%	―	―
ELCO	65 Neutral	4.41B	―		7.64%	9.65%	58.93%
AFRE		2.85B	12.39		2.78%	―	―
RANI	61 Neutral	708.92M	7.87		―	―	―