Azorim (AZRM) AI Stock Analysis

• Market Cap: 4.30B
• Dividend Yield: 0.93%
• Average Volume (3M): 266.41K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 2.35
• Revenue Growth: 27.20%
• EPS Growth: -30.47%
• Country: IL
• Employees: 113
• Sector: Real Estate
• Sector Strength: 53
• Industry: Residential Construction
• EPS (TTM): 16.00
• Shares Outstanding: 211,139,950
• 10 Day Avg. Volume: 408,104
• 30 Day Avg. Volume: 266,407
• PEG Ratio: -3.28
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 2.53
• P/FCF Ratio: -12.17
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 2,000.00 ▲(2.67% Upside)

Azorim's overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative cash flows. Technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategy, supporting long-term business sustainability.

Free Cash Flow Improvement

Improvement in free cash flow suggests better cash management, which enhances financial flexibility and supports future investments.

Market Position

Strong market position in Israel's real estate sector provides a competitive edge, facilitating sustained demand for its developments.

Negative Factors

High Leverage

Significant leverage can strain financial resources and limit the company's ability to invest in growth opportunities, impacting long-term stability.

Declining Margins

Decreasing margins indicate potential challenges in cost management, which could affect profitability and operational efficiency over time.

Negative Cash Flows

Persistent negative cash flows highlight liquidity challenges, potentially limiting the company's ability to fund operations and growth initiatives.

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 through multiple streams, primarily from the sale of residential units in newly constructed properties, as well as leasing commercial spaces to businesses. The company engages in large-scale real estate development projects, which involve acquiring land, obtaining necessary permits, and constructing buildings. Additionally, Azorim earns income from property management services, where it manages residential and commercial properties on behalf of owners or investors. Significant partnerships with local municipalities and financial institutions also contribute to its revenue, facilitating smoother project financing and execution. The company's ability to navigate the regulatory environment and maintain a strong brand reputation in the real estate market further enhances its profitability.

Azorim Financial Statement Overview

Summary

Azorim shows moderate revenue growth but struggles with declining margins and high leverage. The negative cash flows and high debt levels are concerning, although there is slight improvement in free cash flow growth.

Income Statement

Azorim's income statement shows moderate growth with a revenue increase of 2.83% TTM. However, margins have slightly decreased compared to previous years, with a current gross profit margin of 24.24% and a net profit margin of 7.47%. The EBIT and EBITDA margins have also declined, indicating potential challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.71, which suggests significant leverage. Return on equity has decreased to 6.61%, indicating reduced profitability from shareholders' equity. The equity ratio stands at 28.92%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Azorim's cash flow statement reveals negative operating and free cash flows, with a slight improvement in free cash flow growth at 5.65% TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio remains stable at 1.0, suggesting that all net income is being used to cover free cash flow deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.75B	1.47B	1.10B	1.51B	1.25B
Gross Profit	479.66M	447.05M	356.51M	276.81M	304.39M	231.34M
EBITDA	355.76M	377.24M	393.01M	202.22M	357.19M	171.72M
Net Income	147.76M	162.68M	176.40M	171.54M	322.03M	110.86M
Balance Sheet
Total Assets	7.75B	7.69B	6.86B	6.92B	5.66B	4.07B
Cash, Cash Equivalents and Short-Term Investments	164.52M	233.67M	155.51M	305.32M	508.19M	228.76M
Total Debt	3.83B	3.72B	3.02B	2.72B	2.08B	1.73B
Total Liabilities	5.50B	5.46B	4.79B	5.04B	3.95B	2.68B
Stockholders Equity	2.24B	2.23B	2.07B	1.88B	1.71B	1.39B
Cash Flow
Free Cash Flow	-725.58M	-364.78M	-599.46M	-286.83M	817.54M	402.19M
Operating Cash Flow	-725.58M	-364.78M	-599.46M	-286.83M	817.54M	402.19M
Investing Cash Flow	403.60M	-75.64M	324.21M	-448.48M	-831.69M	-88.64M
Financing Cash Flow	338.35M	509.56M	122.69M	500.66M	294.92M	-273.59M

Azorim Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1948.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1948 is below the 20-day moving average (MA) of 2009.75, below the 50-day MA of 2041.74, and below the 200-day MA of 1956.76, indicating a bearish trend. The MACD of -21.52 indicates Negative momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 59.54 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
AFPR	78 Outperform	8.68B	11.77	―	―	―	―
DIMRI	67 Neutral	8.68B	14.51	―	2.41%	13.94%	15.13%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AZRM	51 Neutral	4.30B	32.76	―	0.93%	27.20%	-30.47%