DIRECT FINANCE OF DIRECT GROUP (2006)LTD (IL:DIFI)
TASE:DIFI
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Direct Finance
(TASE:DIFI)
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Rating:52Neutral
Price Target:
54,803.00
▼(-0.29% Downside)
Action:ReiteratedDate:04/05/26
The score is held down primarily by weak financial quality—persistent negative operating/free cash flow and high, rising leverage—despite improved 2025 revenue growth. Technical indicators are supportive with positive momentum, and the high dividend yield provides some valuation support, but they do not fully offset the financial risk profile.
Positive Factors
Revenue growth re-acceleration
Sustained re-acceleration to 9.5% revenue growth shows demand recovery and scale potential in the credit-services business. Over a 2–6 month horizon this trend supports higher top-line resilience, better utilization of fixed costs, and a path to rebuild operating leverage if management sustains originations and fee income.
Negative Factors
High and rising leverage
Debt-to-equity near 6.2x marks materially higher financial risk and tighter covenant/refinancing exposure. Over a multi-month horizon this elevated leverage amplifies earnings volatility, raises interest costs, reduces strategic flexibility, and makes the firm more vulnerable to funding shocks or rising market rates.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth re-acceleration
Sustained re-acceleration to 9.5% revenue growth shows demand recovery and scale potential in the credit-services business. Over a 2–6 month horizon this trend supports higher top-line resilience, better utilization of fixed costs, and a path to rebuild operating leverage if management sustains originations and fee income.
Read all positive factors
Direct Finance (DIFI) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪1.57B
Dividend Yield5.03%
Average Volume (3M)4.66K
Price to Earnings (P/E)12.3
Beta (1Y)0.73
Revenue Growth0.10%
EPS Growth15.03%
CountryIL
Employees758
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)824.10
Shares Outstanding2,957,383
10 Day Avg. Volume7,233
30 Day Avg. Volume4,656
Financial Highlights & Ratios
PEG Ratio-2.13
Price to Book (P/B)1.09
Price to Sales (P/S)0.97
P/FCF Ratio-5.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Direct Finance Business Overview & Revenue Model
Company Description
Direct Finance of Direct Group (2006) Ltd provides finance products in Israel. It provides personal loans, including car loans. The company was incorporated in 2006 and is based in Petah Tikva, Israel. Direct Finance of Direct Group (2006) Ltd ope...
Direct Finance Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.53B | 1.51B | 1.38B | 1.37B | 853.30M |
| Gross Profit | 762.29M | 688.46M | 684.76M | 725.82M | 500.27M |
| EBITDA | 262.84M | 279.15M | 252.92M | 425.80M | 321.15M |
| Net Income | 120.06M | 141.10M | 132.47M | 244.46M | 181.32M |
Balance Sheet | |||||
| Total Assets | 10.37B | 8.57B | 7.83B | 6.74B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 11.44M | 13.93M | 12.58M | 10.56M | 80.20M |
| Total Debt | 8.39B | 6.82B | 6.24B | 5.21B | 3.04B |
| Total Liabilities | 8.95B | 7.19B | 6.56B | 5.56B | 3.31B |
| Stockholders Equity | 1.35B | 1.32B | 1.24B | 1.18B | 956.01M |
Cash Flow | |||||
| Free Cash Flow | -260.64M | -622.12M | -928.26M | -1.10B | -1.53B |
| Operating Cash Flow | -212.43M | -576.45M | -872.07M | -1.05B | -1.51B |
| Investing Cash Flow | -53.18M | -46.59M | -56.30M | -62.00M | -24.91M |
| Financing Cash Flow | 263.12M | 624.39M | 932.25M | 1.04B | 1.61B |
Direct Finance Technical Analysis
Positive
54960.00
Price Trends
52052.20
Positive
54548.51
Negative
52739.81
Positive
Market Momentum
665.88
Negative
61.97
Neutral
67.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DIFI, the sentiment is Positive. The current price of 54960 is above the 20-day moving average (MA) of 51074.50, above the 50-day MA of 52052.20, and above the 200-day MA of 52739.81, indicating a bullish trend. The MACD of 665.88 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 67.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DIFI.
Direct Finance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ₪1.55B | 7.96 | ― | 4.19% | 25.72% | 21.70% | |
64 Neutral | ₪712.70M | 10.01 | ― | ― | 29.67% | 15.36% | |
62 Neutral | ₪607.38M | 11.91 | ― | 5.35% | 25.73% | 45.19% | |
58 Neutral | ₪700.98M | 11.79 | ― | 1.53% | ― | ― | |
55 Neutral | ₪1.70B | 9.68 | ― | 6.49% | 33.06% | 59.60% | |
52 Neutral | ₪1.57B | 12.34 | ― | 5.03% | 0.10% | 15.03% |
* Financial Sector Average
IL:DIFI
Direct Finance
54,000.00
3,898.15
7.78%
IL:NAWI
Nawi
5,380.00
1,077.59
25.05%
IL:PEN
Peninsula Group
270.20
63.22
30.54%
IL:MNIF
Menif
2,635.00
951.03
56.48%
IL:MCLL
Michlol Fin
1,420.00
277.00
24.23%
IL:JCFN
Jacob Finance & Investments Ltd.
2,980.00
439.00
17.28%
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.