Delek Automotiv (DLEA) AI Stock Analysis

• Market Cap: 2.35B
• Dividend Yield: 8.34%
• Average Volume (3M): 615.49K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.66
• Revenue Growth: -2.81%
• EPS Growth: 372.63%
• Country: IL
• Employees: 369
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 62.40
• Shares Outstanding: 96,975,960
• 10 Day Avg. Volume: 729,334
• 30 Day Avg. Volume: 615,490
• PEG Ratio: -0.33
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -36.34
• 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: 60 Neutral
• Price Target: 2,538.00 ▲(4.88% Upside)

Delek Automotiv's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The company's high leverage and recent revenue decline are concerns, but strong cash flow generation and stable margins provide some stability. The stock's valuation is attractive, with a reasonable P/E ratio and high dividend yield, offering potential for income-focused investors. However, the bearish technical signals suggest caution in the short term.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates improved cash generation, enhancing financial stability and providing flexibility for strategic investments.

Margin Sustainability

Sustained margins demonstrate operational efficiency and pricing power, supporting long-term profitability despite revenue fluctuations.

Electric Vehicle Market Entry

Entry into the electric vehicle market aligns with global trends, offering growth opportunities and positioning the company for future demand shifts.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Revenue Decline

Declining revenue growth can signal challenges in market demand or competitive positioning, impacting long-term growth prospects.

Market Position

Mixed financial performance and declining revenue suggest potential issues in maintaining market position and competitiveness.

Delek Automotiv Business Overview & Revenue Model

Company Description

Delek Automotive Systems Ltd. imports and distributes cars and motorcycles in Israel. The company also operates technical training centers, garages, distribution centers for spare parts, and car supply centers. In addition, it offers insurance services for vehicles and car repair services. It operates through showrooms and sub-agencies, as well as operates approximately 60 service centers. The company was formerly known as Gal – Wisepiler and Karts Indsutiries Ltd. and changed its name to Delek Automotive Systems Ltd. in February 1994. Delek Automotive Systems Ltd. was founded in 1965 and is headquartered in Nir Tzvi, Israel.

How the Company Makes Money

Delek Automotive generates revenue primarily through the sales of vehicles, automotive parts, and accessories. The company earns money from both new and used car sales, leveraging its partnerships with international automotive manufacturers to import popular models. Its revenue model is bolstered by service operations, including maintenance and repairs, which provide a steady income stream from existing vehicle owners. Furthermore, Delek Automotive has capitalized on the growing electric vehicle market, contributing to its financial performance. Strategic partnerships with automotive brands enhance its market presence and product offerings, while a robust distribution network ensures efficient delivery and customer service, further driving sales and profitability.

Delek Automotiv Financial Statement Overview

Summary

Delek Automotiv shows stable profitability margins but faces challenges with declining revenue growth and high leverage. The positive cash flow growth is a strength, yet high debt levels pose a risk to financial stability.

Income Statement

Delek Automotiv's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 2.63%, which is concerning. However, the company maintains a stable gross profit margin of around 15.66% and a net profit margin of 3.39%. The EBIT and EBITDA margins are also reasonable at 9.35% and 16.02%, respectively. Despite the revenue decline, profitability margins remain relatively stable, indicating efficient cost management.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio of 3.97 in the TTM period, indicating significant reliance on debt financing. The return on equity (ROE) is moderate at 13.56%, reflecting decent profitability relative to equity. However, the equity ratio is low, suggesting potential financial risk due to high debt levels. The company's financial stability could be at risk if debt levels continue to rise without corresponding equity growth.

Cash Flow

Cash flow analysis shows improvement, with a 17.67% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.14, indicating that operating cash flow is covering net income, albeit not robustly. The free cash flow to net income ratio is 0.62, suggesting that a significant portion of net income is being converted into free cash flow. The positive cash flow growth is a strength, but the coverage ratios indicate room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.01B	6.39B	5.80B	5.24B	4.67B	3.30B
Gross Profit	829.67M	1.00B	982.55M	1.35B	925.76M	567.80M
EBITDA	1.11B	945.16M	1.07B	1.33B	1.17B	669.38M
Net Income	212.35M	160.73M	333.29M	715.92M	725.34M	311.03M
Balance Sheet
Total Assets	10.61B	10.95B	10.21B	5.83B	5.50B	5.50B
Cash, Cash Equivalents and Short-Term Investments	79.87M	145.66M	133.27M	142.91M	141.82M	110.86M
Total Debt	5.81B	5.96B	5.53B	2.13B	2.04B	2.83B
Total Liabilities	7.79B	8.19B	7.59B	3.74B	3.56B	4.11B
Stockholders Equity	1.53B	1.57B	1.40B	1.35B	1.26B	1.03B
Cash Flow
Free Cash Flow	552.15M	-74.59M	-36.44M	801.36M	1.24B	372.49M
Operating Cash Flow	770.50M	175.84M	200.01M	861.61M	1.34B	489.29M
Investing Cash Flow	-505.07M	-498.00M	-2.32B	-15.72M	-417.18M	-259.59M
Financing Cash Flow	-263.10M	334.55M	2.11B	-844.80M	-893.38M	-182.13M

Delek Automotiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2420.00
• 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:DLEA, the sentiment is Negative. The current price of 2420 is below the 20-day moving average (MA) of 2483.45, below the 50-day MA of 2557.74, and below the 200-day MA of 2584.36, indicating a bearish trend. The MACD of -61.79 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:DLEA.

Delek Automotiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DLEA	60 Neutral	2.35B	11.05	―	8.34%	-2.81%	372.63%