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DIRECT FINANCE OF DIRECT GROUP (2006)LTD (IL:DIFI)
:DIFI
Israel Market
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Direct Finance (DIFI) AI Stock Analysis

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IL:DIFI

Direct Finance

(DIFI)

Rating:69Neutral
Price Target:
58,530.00
▲(10.43%Upside)
The overall score of 68.6 reflects strong valuation metrics, with a particularly high dividend yield and reasonable P/E ratio, supporting the stock's attractiveness. However, financial performance is constrained by high leverage and negative cash flows, highlighting potential financial risks. Technical analysis suggests bearish momentum, but possible oversold conditions may offer reversal potential.

Direct Finance (DIFI) vs. iShares MSCI Israel ETF (EIS)

Direct Finance Business Overview & Revenue Model

Company DescriptionDirect Finance (DIFI) is a financial services company specializing in providing a wide range of lending solutions, including personal loans, business loans, and mortgage financing. Operating in the fintech sector, DIFI leverages advanced technology to offer seamless, user-friendly platforms that facilitate quick and easy access to credit for individuals and small to medium-sized enterprises (SMEs). The company's core services are designed to address diverse financial needs, ensuring customers receive personalized financial solutions with competitive rates and flexible terms.
How the Company Makes MoneyDIFI makes money primarily through the interest charged on the loans it issues. The company's revenue model is based on earning interest income from the various types of loans it provides, which include personal loans, business loans, and mortgage financing. DIFI sets competitive interest rates that vary depending on the type of loan, the amount borrowed, and the borrower's creditworthiness. Additionally, the company may generate revenue from service fees associated with loan origination, processing, and account maintenance. Significant partnerships with banks and financial institutions allow DIFI to offer a diverse range of financial products and leverage additional funding sources, enhancing its ability to serve a broad customer base and contribute to its earnings.

Direct Finance Financial Statement Overview

Summary
Direct Finance demonstrates strong revenue growth and improved profitability, but high leverage and negative operating cash flows pose potential risks. Addressing cash flow challenges is essential for sustainable financial health.
Income Statement
72
Positive
Direct Finance shows strong revenue growth with a substantial increase from $761.6M to $1.51B in the latest annual period. The gross profit margin remains healthy at 45.5%, and the net profit margin improved to 9.3%. However, EBIT and EBITDA margins have slightly decreased, indicating rising operational costs.
Balance Sheet
65
Positive
The company has a high debt-to-equity ratio of 5.16, highlighting significant leverage risk. However, stockholders' equity has increased, suggesting strengthening financial stability. The equity ratio of 15.4% is on the lower side, which is typical in financial services but indicates reliance on debt.
Cash Flow
58
Neutral
The operating cash flow is negative, indicating challenges in generating cash from operations. Despite this, free cash flow improved slightly but remains negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, emphasizing the need for better cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.23B1.51B761.64M1.37B844.47M477.57M
Gross Profit654.63M688.46M684.76M725.82M491.44M299.01M
EBITDA239.37M279.15M252.92M425.80M321.15M136.17M
Net Income113.17M141.10M132.47M244.46M181.32M70.93M
Balance Sheet
Total Assets8.92B8.57B7.83B6.74B4.26B3.68B
Cash, Cash Equivalents and Short-Term Investments9.70M13.93M12.58M10.56M80.20M3.11M
Total Debt7.17B6.82B6.24B5.21B3.03B2.77B
Total Liabilities7.54B7.19B6.56B5.56B3.31B3.00B
Stockholders Equity1.32B1.32B1.24B1.18B956.01M679.14M
Cash Flow
Free Cash Flow-1.00B-622.12M-928.26M-1.10B-1.53B-310.42M
Operating Cash Flow-949.45M-576.45M-872.07M-1.05B-1.51B-293.10M
Investing Cash Flow-53.48M-46.59M-56.30M-62.00M-24.91M-17.06M
Financing Cash Flow1.00B624.39M932.25M1.04B1.61B306.21M

Direct Finance Technical Analysis

Technical Analysis Sentiment
Negative
Last Price53000.00
Price Trends
50DMA
54752.01
Negative
100DMA
55238.75
Negative
200DMA
55551.03
Negative
Market Momentum
MACD
-723.30
Positive
RSI
42.52
Neutral
STOCH
18.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DIFI, the sentiment is Negative. The current price of 53000 is below the 20-day moving average (MA) of 55946.00, below the 50-day MA of 54752.01, and below the 200-day MA of 55551.03, indicating a bearish trend. The MACD of -723.30 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 18.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:DIFI.

Direct Finance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
702.18M13.86
139.48%
80
Outperform
911.58M12.24
76
Outperform
1.94B11.74
405.72%
74
Outperform
1.35B8.40
361.06%24.68%21.90%
73
Outperform
799.58M13.60
418.96%9.30%-0.76%
69
Neutral
1.57B13.63
475.38%14.62%-12.09%
67
Neutral
$16.60B11.209.14%3.93%10.99%-3.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:DIFI
Direct Finance
53,000.00
2,333.34
4.61%
IL:PEN
Peninsula Group
359.50
224.87
167.03%
IL:MCLL
Michlol Fin
1,506.00
971.69
181.86%
IL:MNIF
Menif
2,220.00
1,144.69
106.45%
IL:NAWI
Nawi
5,933.00
3,478.84
141.75%
IL:JCFN
Jacob Finance & Investments Ltd.
3,614.00
2,172.00
150.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2025