Reit Azorim Liv (AZRT) AI Stock Analysis

• Market Cap: ₪578.43M
• Dividend Yield: N/A
• Average Volume (3M): 19.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -12.91%
• EPS Growth: -44.25%
• Country: IL
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -11.20
• Shares Outstanding: 98,022,770
• 10 Day Avg. Volume: 29,785
• 30 Day Avg. Volume: 19,873
• PEG Ratio: 0.22
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 8.26
• P/FCF Ratio: 15.41
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 653.00 ▲(7.45% Upside)

The overall stock score is primarily impacted by the company's financial performance, which shows strong gross profit margins but significant profitability challenges due to high leverage and net losses. Technical analysis provides a moderate positive outlook with the stock trading above its 50-day moving average. However, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation score, limiting the stock's attractiveness.

Positive Factors

High gross profit margin

A gross margin above 90% suggests AZRT manages direct property and development costs very efficiently. Over the medium term this provides a durable buffer to absorb SG&A and financing costs, supporting reinvestment for development and reducing sensitivity to modest revenue volatility.

Improving free cash flow generation

A 52.5% rise in free cash flow and FCF covering net losses indicate stronger cash conversion. Sustained FCF growth enhances ability to service debt, fund development projects internally, and reduce reliance on external equity, materially improving medium-term financial flexibility.

Diversified rental and development model

AZRT's mix of residential, office and retail rental income plus active development spreads revenue sources and risk. This diversified model provides steady rental cashflows while development activity offers growth and value creation, supporting resilience across property cycles over months to years.

Negative Factors

High financial leverage

A debt-to-equity ratio of 2.25 indicates significant leverage that raises interest and refinancing risk. Over the medium term high leverage constrains capital allocation, magnifies earnings volatility and can force asset sales or equity raises if cash flows weaken or rates rise, limiting strategic flexibility.

Negative net profitability

Persistent net losses erode book equity and limit retained earnings, undermining the REIT's capacity to pay distributions or self-fund development. If losses persist, management may need to change strategy, sell assets or seek external capital, altering long-term returns and balance sheet stability.

Declining operating margins

Falling EBIT/EBITDA margins point to worsening operational efficiency or weakening pricing power. Over several quarters this reduces the cushion available to cover financing costs and fund development, pressuring free cash flow and making long-term value creation more difficult without cost or revenue fixes.

Reit Azorim Liv Business Overview & Revenue Model

Company Description

REIT AZORIM - H.F LIVING Ltd. is a real estate investment fund, which engages in the specialization of rental properties in Israel. The company was founded on December 10, 2019 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Reit Azorim Liv generates revenue primarily through rental income from its diverse portfolio of properties, which includes residential units, office spaces, and retail locations. The company earns money by leasing these properties to tenants, ensuring a steady cash flow from rental agreements. Additionally, AZRT engages in property development, which can lead to significant profits from the sale of newly built or renovated properties. The company may also benefit from capital appreciation of its real estate holdings over time. Strategic partnerships with construction firms, property management companies, and financial institutions further enhance its operational capabilities and contribute to its earnings by facilitating development projects and expanding its asset base.

Reit Azorim Liv Financial Statement Overview

Summary

Reit Azorim Liv demonstrates strong gross profit margins but struggles with profitability due to high net losses. The company is highly leveraged, which could pose risks if not managed carefully. Cash flow generation is improving, but the company needs to address its operational inefficiencies and leverage to enhance financial stability.

Income Statement

The company shows a strong gross profit margin of over 90% in TTM, indicating efficient cost management. However, the net profit margin is negative, reflecting significant losses. Revenue growth is modest at 3.1% in TTM, but the EBIT and EBITDA margins have declined compared to previous years, suggesting challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio is high at 2.25 in TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the high debt levels suggest a low equity proportion in the asset base.

Cash Flow

Free cash flow has grown by 52.5% in TTM, showing improvement in cash generation. The operating cash flow to net income ratio is low, indicating cash flow challenges relative to net losses. However, free cash flow to net income is stable at 1.0, suggesting that cash flows are covering net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.00M	60.64M	58.10M	48.62M	15.39M	7.02M
Gross Profit	59.74M	55.76M	52.81M	43.68M	13.82M	5.97M
EBITDA	22.74M	27.99M	-15.82M	24.84M	259.18M	69.18M
Net Income	-53.96M	-37.66M	-75.16M	-19.77M	250.83M	69.18M
Balance Sheet
Total Assets	3.46B	3.46B	3.24B	3.28B	1.92B	1.30B
Cash, Cash Equivalents and Short-Term Investments	333.80M	232.25M	159.59M	257.55M	91.42M	282.98M
Total Debt	2.36B	2.32B	2.16B	2.18B	905.59M	520.77M
Total Liabilities	2.41B	2.39B	2.20B	2.23B	951.29M	588.71M
Stockholders Equity	1.05B	1.07B	1.04B	1.05B	967.06M	716.23M
Cash Flow
Free Cash Flow	36.17M	32.52M	22.00M	20.27M	9.55M	4.20M
Operating Cash Flow	36.17M	32.52M	22.00M	20.27M	9.55M	4.20M
Investing Cash Flow	187.85M	-62.54M	-68.68M	-1.15B	-560.74M	-384.13M
Financing Cash Flow	23.11M	102.68M	-51.28M	1.29B	359.63M	661.00M

Reit Azorim Liv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 607.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AZRT, the sentiment is Negative. The current price of 607.7 is below the 20-day moving average (MA) of 629.14, above the 50-day MA of 603.73, and above the 200-day MA of 537.81, indicating a neutral trend. The MACD of -3.78 indicates Positive momentum. The RSI at 32.96 is Neutral, neither overbought nor oversold. The STOCH value of 4.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AZRT.

Reit Azorim Liv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNRT	82 Outperform	₪2.07B	10.48	―	5.49%	―	―
SLARL	81 Outperform	₪2.71B	8.54	―	4.84%	―	―
RIT1	75 Outperform	₪5.57B	10.60	11.63%	3.11%	17.15%	310.11%
KSTN	70 Outperform	₪2.43B	4.07	―	4.46%	-8.03%	135.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AZRT	51 Neutral	₪578.43M	-10.84	―	―	-12.91%	-44.25%