Delek Automotiv (DLEA) AI Stock Analysis

• Market Cap: 2.77B
• Dividend Yield: 11.45%
• Average Volume (3M): 91.86K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 369
• Sector: Industrials
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 61.00
• Shares Outstanding: 96,975,960
• 10 Day Avg. Volume: 96,696
• 30 Day Avg. Volume: 91,865
• PEG Ratio: -1.68
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.83
• 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

• Rating: 67 Neutral
• Price Target: 2,992.00 ▲(10.08%Upside)

Delek Automotiv's overall stock score is driven primarily by its financial performance, which shows strong revenue growth but is hindered by high leverage and negative free cash flow. Technical analysis indicates mixed signals, with some bearish momentum and potential liquidity issues. The valuation is fair, with a reasonable P/E ratio but no dividend yield. The absence of earnings call and corporate events data does not impact the score.

Delek Automotiv Business Overview & Revenue Model

Company Description

Delek Automotive Systems Ltd (DLEA) is a leading company in the automotive sector, primarily engaged in the import, marketing, and distribution of vehicles and automotive products. The company operates across various segments, including passenger vehicles, commercial vehicles, and spare parts. Delek Automotive is known for its representation of several globally recognized automotive brands, offering a range of products and services tailored to meet diverse consumer needs.

How the Company Makes Money

Delek Automotive makes money through a diverse revenue model centered around the sale and distribution of vehicles and automotive parts. The company's primary revenue streams include the import and distribution of passenger and commercial vehicles, generating income through the sale of these vehicles to dealerships and consumers. Additionally, Delek Automotive earns revenue from its aftermarket services, such as the sale of spare parts and accessories, as well as maintenance and repair services offered through its network. Significant partnerships with major global automotive manufacturers enhance its product offerings and market reach, contributing to the company's overall earnings. These partnerships allow Delek Automotive to remain competitive and leverage brand recognition to drive sales.

Delek Automotiv Financial Statement Overview

Summary

Delek Automotiv exhibits strong revenue growth and stable operational margins. However, challenges arise with declining net profit margins, high leverage, and negative free cash flow, raising concerns about cash generation and liquidity. Management should focus on improving net margins and reducing leverage to enhance financial stability.

Income Statement

The company shows strong revenue growth with a compound annual growth rate of 13.6% from 2019 to 2024. Gross profit margin was 15.7% in 2024, showing stability. However, net profit margin decreased to 2.5% in 2024 from 5.7% in 2023, indicating pressure on net profitability. EBIT and EBITDA margins are healthy at 9.9% and 14.8% respectively for 2024, but there is a decline from previous years, suggesting rising operational costs.

Balance Sheet

The debt-to-equity ratio increased to 3.80 in 2024, indicating higher leverage which could pose financial risk. However, the return on equity (ROE) is relatively strong at 10.3% for 2024, reflecting efficient use of equity. The equity ratio is stable at 14.3%, showing a consistent level of shareholder equity relative to total assets.

Cash Flow

Free cash flow is negative in recent years, with -$74.6 million in 2024, indicating challenges in generating cash post capital expenditures. Operating cash flow to net income ratio is 1.09 in 2024, showing adequate conversion of income to cash. However, the free cash flow to net income ratio is negative, highlighting potential liquidity issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.39B	5.80B	5.24B	4.67B	3.30B
	Gross Profit
1.00B	982.55M	1.35B	925.76M	567.80M
	EBIT
632.94M	610.67M	1.22B	759.46M	475.44M
	EBITDA
945.16M	981.56M	1.33B	897.70M	554.55M
	Net Income Common Stockholders
160.73M	333.29M	715.92M	725.34M	311.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
145.66M	133.27M	142.91M	141.82M	110.86M
	Total Assets
10.95B	10.21B	5.83B	5.50B	5.50B
	Total Debt
5.96B	5.53B	2.13B	2.04B	2.83B
	Net Debt
5.81B	5.40B	1.99B	1.90B	2.72B
	Total Liabilities
8.19B	7.59B	3.74B	3.56B	4.11B
	Stockholders Equity
1.57B	1.40B	1.35B	1.26B	1.03B
Cash Flow		Free Cash Flow
-74.59M	-36.44M	801.36M	1.24B	372.49M
	Operating Cash Flow
175.84M	200.01M	861.61M	1.34B	489.29M
	Investing Cash Flow
-498.00M	-2.32B	-15.72M	-417.18M	-259.59M
	Financing Cash Flow
334.55M	2.11B	-844.80M	-893.38M	-182.13M

Delek Automotiv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2718.00
• 50DMA: Positive
• 100DMA: Neutral
• 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:DLEA, the sentiment is Positive. The current price of 2718 is below the 20-day moving average (MA) of 2753.75, above the 50-day MA of 2696.14, and above the 200-day MA of 2686.50, indicating a bullish trend. The MACD of 18.22 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DLEA.

Delek Automotiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILCO	71 Outperform	$8.49B	14.09	5.77%	0.62%	-4.29%	-24.35%
ORL	69 Neutral	$2.68B	6.47		13.67%	―	―
Sector *	68 Neutral	4.42B	7.09	13.29%	4.89%	4.42%	4.61%
DLEA	67 Neutral	2.77B	17.34		11.45%	―	―
TSEM	64 Neutral	$4.41B	21.86	7.88%	―	5.22%	-58.99%
TEVA	56 Neutral	69.33B	―		―	2.44%	-197.12%