Clal Insurance (CLIS) AI Stock Analysis

• Market Cap: ₪19.16B
• Dividend Yield: 1.67%
• Average Volume (3M): 354.75K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.74
• Revenue Growth: -27.87%
• EPS Growth: 229.49%
• Country: IL
• Employees: 3,653
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 741.10
• Shares Outstanding: 80,045,140
• 10 Day Avg. Volume: 320,798
• 30 Day Avg. Volume: 354,754
• PEG Ratio: 0.04
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 5.15
• 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: 69 Neutral
• Price Target: 24,570.00 ▲(9.25% Upside)

Clal Insurance's overall stock score is driven by strong technical indicators and a favorable valuation, despite some financial performance concerns. The stock's bullish momentum and undervaluation are significant positives, but investors should be cautious of the potential risks associated with revenue decline and increased leverage.

Positive Factors

Profitability

High gross profit margins and improved net profit margins indicate efficient cost management and enhanced operational efficiency, supporting long-term profitability.

Operational Efficiency

Improved EBIT and EBITDA margins reflect better operational efficiency, which can lead to sustained profitability and competitive advantage over time.

Return on Equity

Improved return on equity indicates effective management in utilizing shareholder funds to generate profits, enhancing investor confidence and long-term growth potential.

Negative Factors

Revenue Decline

A significant revenue decline poses risks to growth and market position, potentially impacting long-term financial stability and strategic initiatives.

Increased Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially affecting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Declining free cash flow growth indicates potential issues in cash generation, which can limit the company's ability to fund operations and investments sustainably.

Clal Insurance Business Overview & Revenue Model

Company Description

Clal Insurance Enterprises Holdings Ltd. provides insurance services in Israel. It operates through three segments: Long-Term Savings, Non-Life insurance, and Health Insurance. The Long-Term Savings segment offers life insurance products and accompanying coverages; long-term savings for various insurance policies, and pension and provident funds, including study funds; and insurance coverage for various risks, such as death, disability, loss of working capacity, and health insurance policies. The Non-life Insurance segment offers third party, employers', professional, and product liability insurance products; credit and foreign trade risks; and property, motor, personal accident, and other insurance products, as well as guarantees. The Health Insurance segment provides long-term care, medical expenses, surgeries, transplants, personal accidents, international travel, dental, foreign workers, and other insurance products. Clal Insurance Enterprises Holdings Ltd. was incorporated in 1987 and is based in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Clal Insurance generates revenue primarily through the collection of premiums from its various insurance products, including life, health, and property insurance. The company earns money by underwriting insurance policies, where it assesses risk and sets premium rates accordingly. Additionally, Clal Insurance invests the premiums it collects into various financial markets, generating investment income. Key revenue streams include individual policyholder premiums, group insurance contracts, and investment returns from the managed assets within its portfolio. The company may also engage in strategic partnerships with financial institutions and other entities to offer bundled services, enhancing its market reach and revenue potential.

Clal Insurance Financial Statement Overview

Summary

Clal Insurance demonstrates strong profitability with high gross profit margins and improved net profit margins. However, the significant revenue decline and increased leverage in the TTM period are concerning. Cash flow metrics indicate challenges in cash generation, although the company maintains a healthy free cash flow to net income ratio. Overall, while profitability is strong, the company faces risks related to revenue growth and leverage.

Income Statement

Clal Insurance shows strong gross profit margins consistently above 97%, indicating efficient cost management. However, the company experienced a significant revenue decline of 15.34% in the TTM period, which is concerning. The net profit margin improved to 5.04% in the TTM, reflecting better profitability compared to previous years. EBIT and EBITDA margins have also improved, suggesting enhanced operational efficiency.

Balance Sheet

The debt-to-equity ratio increased to 1.66 in the TTM, indicating higher leverage, which could pose financial risks. However, the return on equity improved to 15.13%, showing effective use of equity to generate profits. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

The free cash flow growth rate declined by 26.46% in the TTM, highlighting cash flow challenges. The operating cash flow to net income ratio is zero, indicating potential issues in converting income to cash. However, the free cash flow to net income ratio remains healthy at 76.43%, suggesting adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.69B	26.83B	21.45B	7.31B	25.06B	14.64B
Gross Profit	23.93B	25.93B	20.43B	6.11B	24.00B	13.60B
EBITDA	4.12B	2.33B	1.46B	729.00M	2.14B	1.07B
Net Income	1.87B	718.00M	220.00M	121.00M	1.08B	438.68M
Balance Sheet
Total Assets	183.67B	170.10B	163.62B	144.62B	145.51B	124.48B
Cash, Cash Equivalents and Short-Term Investments	6.34B	20.15B	8.64B	13.90B	26.53B	17.72B
Total Debt	15.75B	775.00M	777.00M	5.13B	4.86B	4.64B
Total Liabilities	173.51B	160.57B	154.97B	136.56B	137.73B	118.13B
Stockholders Equity	10.08B	9.45B	8.58B	8.00B	7.72B	6.30B
Cash Flow
Free Cash Flow	992.00M	1.32B	-4.64B	-2.80B	6.87B	-1.47B
Operating Cash Flow	1.29B	1.38B	-4.31B	-2.59B	7.09B	-1.25B
Investing Cash Flow	-2.34B	-1.08B	-2.24B	-365.96M	-162.00M	-379.62M
Financing Cash Flow	553.00M	-79.00M	1.44B	785.33M	16.00M	-194.31M

Clal Insurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CLIS, the sentiment is Positive. The current price of 22490 is above the 20-day moving average (MA) of 22012.50, above the 50-day MA of 21362.80, and above the 200-day MA of 16506.02, indicating a bullish trend. The MACD of 608.90 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 94.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:CLIS.

Clal Insurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHOE	79 Outperform	₪41.55B	13.61	―	4.19%	12.22%	71.58%
HARL	76 Outperform	₪32.43B	13.52	23.23%	2.21%	5.84%	138.80%
MMHD	71 Outperform	₪27.45B	13.37	―	2.61%	23.28%	124.99%
MGDL	70 Outperform	₪18.73B	13.44	―	0.30%	6.00%	36.33%
CLIS	69 Neutral	₪19.16B	10.17	―	1.67%	-27.87%	229.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IDIN	60 Neutral	₪3.66B	10.63	―	5.98%	19.48%	53.61%