Azorim (AZRM) AI Stock Analysis

• Market Cap: 4.02B
• Dividend Yield: 0.99%
• Average Volume (3M): 266.41K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 2.28
• 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 ▲(4.44% Upside)

Azorim faces significant challenges with financial performance and technical indicators suggesting bearish sentiment. High leverage and negative cash flows are key risks, while valuation metrics indicate potential overvaluation. The stock's overall score reflects these concerns, highlighting the need for improved financial management and market conditions.

Positive Factors

Operational Efficiency

Azorim's strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, which can support profitability despite revenue challenges.

Revenue Diversification

Azorim's diversified revenue streams from residential sales and commercial leasing reduce dependency on a single market segment, enhancing resilience against sector-specific downturns.

Sustainable Practices

Azorim's focus on sustainable building practices aligns with growing environmental trends, potentially attracting eco-conscious consumers and investors, supporting long-term growth.

Negative Factors

High Leverage

Azorim's high leverage could strain financial flexibility, increasing vulnerability to interest rate hikes and economic downturns, potentially impacting long-term viability.

Negative Cash Flows

Persistent negative cash flows highlight liquidity issues, limiting Azorim's ability to fund operations and service debt, posing a risk to financial stability.

Declining Profitability

Decreasing net profit margins suggest pressure on Azorim's profitability, which may affect its ability to reinvest in growth initiatives and maintain competitive positioning.

Azorim Business Overview & Revenue Model

Company Description

Azorim (AZRM) is a prominent real estate development and management company based in Israel, specializing in residential, commercial, and mixed-use properties. The company operates primarily in the construction and real estate sectors, focusing on creating high-quality living and working spaces that cater to the evolving needs of urban populations. Azorim is known for its innovative designs and sustainable building practices, contributing to the development of modern urban environments.

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, despite slight improvements 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	1.94B	1.75B	1.47B	1.10B	1.51B	1.25B
Gross Profit	478.69M	447.05M	356.51M	276.81M	304.39M	231.34M
EBITDA	347.06M	377.24M	393.01M	202.22M	357.19M	171.72M
Net Income	131.16M	162.68M	176.40M	171.54M	322.03M	110.86M
Balance Sheet
Total Assets	7.99B	7.69B	6.86B	6.92B	5.66B	4.07B
Cash, Cash Equivalents and Short-Term Investments	188.93M	233.67M	155.51M	305.32M	508.19M	228.76M
Total Debt	4.13B	3.72B	3.02B	2.72B	2.08B	1.73B
Total Liabilities	5.73B	5.46B	4.79B	5.04B	3.95B	2.68B
Stockholders Equity	2.26B	2.23B	2.07B	1.88B	1.71B	1.39B
Cash Flow
Free Cash Flow	-730.92M	-364.78M	-599.46M	-286.83M	817.54M	402.19M
Operating Cash Flow	-730.92M	-364.78M	-599.46M	-286.83M	817.54M	402.19M
Investing Cash Flow	332.80M	-75.64M	324.21M	-448.48M	-831.69M	-88.64M
Financing Cash Flow	414.84M	509.56M	122.69M	500.66M	294.92M	-273.59M

Azorim Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1915.00
• 50DMA: Negative
• 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 1915 is below the 20-day moving average (MA) of 1961.60, below the 50-day MA of 2058.56, and below the 200-day MA of 1947.48, indicating a bearish trend. The MACD of -32.83 indicates Positive momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.28 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	75 Outperform	9.41B	10.94	―	―	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DIMRI	63 Neutral	8.53B	14.22	―	2.49%	13.94%	15.13%
AZRM	51 Neutral	4.02B	30.67	―	0.99%	27.20%	-30.47%