Delek Group (DLEKG) AI Stock Analysis

• Market Cap: $12.71B
• Dividend Yield: 7.98%
• Average Volume (3M): 45.39K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.34
• Revenue Growth: 5.86%
• EPS Growth: -3.40%
• Country: IL
• Employees: 799
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 50.00
• Shares Outstanding: 18,288,143
• 10 Day Avg. Volume: 53,877
• 30 Day Avg. Volume: 45,390
• PEG Ratio: <0.01
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.36
• 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: 77 Outperform
• Price Target: 81,720.00 ▲(17.58%Upside)

Delek Group's stock is supported by strong technical momentum and an attractive valuation with a high dividend yield. While financial performance is robust, concerns around revenue growth and leverage require attention. The stock's overbought technical indicators suggest caution for short-term investors.

Delek Group Business Overview & Revenue Model

Company Description

Delek Group (DLEKG) is a prominent Israeli conglomerate primarily operating in the energy and infrastructure sectors. The company is involved in the exploration and production of natural gas and oil, as well as the operation of gas stations and convenience stores. Delek Group also engages in the insurance and financial services industry, thereby diversifying its portfolio across multiple sectors.

How the Company Makes Money

Delek Group generates revenue through various channels. A significant portion of its income comes from the exploration, production, and sale of natural gas and oil, particularly from its assets in the Eastern Mediterranean region. The company also earns money through its retail operations, which include operating a network of gas stations and convenience stores. Additionally, Delek Group benefits from its investments in the insurance and financial services sectors, contributing to its diversified revenue streams. Partnerships and joint ventures in energy projects also play a crucial role in enhancing the company's earnings.

Delek Group Financial Statement Overview

Summary

Delek Group shows robust profitability and cash flow generation with strong margins. However, revenue growth is negative, and high leverage poses potential risks. Despite solid profitability, the declining net profit margin and revenue growth rate are concerns.

Income Statement

Delek Group's income statement shows a mixed performance with some strengths and weaknesses. The gross profit margin for 2024 is robust at 47.67%, though slightly down from 52.03% in 2023. The net profit margin has decreased to 11.74% from 12.92% the previous year, indicating a decline in profitability. Revenue growth is negative at -3.00%, suggesting challenges in maintaining top-line growth. EBIT margin is strong at 36.25%, but down from 42.22% in 2023, reflecting reduced operational efficiency. EBITDA margin remains high at 70.22%, though slightly decreased from 76.49% in 2023. Overall, while the margins indicate strong profitability, the revenue decline and decreased net profit margin are concerns.

Balance Sheet

The balance sheet of Delek Group reveals a stable yet leveraged position. The debt-to-equity ratio stands at 1.73, indicating high leverage, though improved from 1.52 in 2023. Return on equity (ROE) is relatively low at 16.10%, a decrease from 16.72% the previous year, reflecting lower profitability from shareholders' equity. The equity ratio is 16.66%, slightly up from 21.72%, indicating moderate financial health and capital structure. While the company maintains sufficient equity, the high debt levels pose a potential risk.

Cash Flow

Delek Group's cash flow statement shows a decline in operating performance. Free cash flow has decreased by -45.54% from 2023 to 2024, indicating a reduction in cash generated after capital expenditures. The operating cash flow to net income ratio is 3.14, suggesting robust cash generation relative to net income. The free cash flow to net income ratio is 1.51, demonstrating solid cash conversion. Despite strong cash flow ratios, the year-on-year decline in free cash flow highlights challenges in sustaining cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.96B	12.33B	11.99B	7.97B	6.67B
Gross Profit	5.70B	6.42B	6.80B	4.31B	3.13B
EBITDA	8.40B	9.43B	13.39B	5.21B	5.06B
Net Income	1.40B	1.59B	3.98B	1.43B	-1.59B
Balance Sheet
Total Assets	52.35B	43.84B	43.07B	31.40B	34.28B
Cash, Cash Equivalents and Short-Term Investments	2.43B	1.60B	2.16B	1.21B	403.00M
Total Debt	15.06B	14.51B	16.86B	14.87B	18.32B
Total Liabilities	33.81B	28.91B	30.19B	26.21B	29.09B
Stockholders Equity	8.72B	9.52B	8.56B	2.60B	2.02B
Cash Flow
Free Cash Flow	2.12B	3.90B	5.26B	2.50B	3.11B
Operating Cash Flow	4.42B	6.24B	6.83B	3.60B	3.17B
Investing Cash Flow	-1.64B	-1.94B	-5.87B	2.72B	568.00M
Financing Cash Flow	-2.13B	-4.89B	-27.00M	-5.53B	-4.79B

Delek Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DLEKG, the sentiment is Positive. The current price of 69500 is above the 20-day moving average (MA) of 66408.50, above the 50-day MA of 61917.92, and above the 200-day MA of 51236.12, indicating a bullish trend. The MACD of 2178.11 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DLEKG.

Delek Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RATI	80 Outperform	$5.37B	10.12	31.13%	5.46%	―	―
DLEKG	77 Outperform	$12.71B	11.21	11.86%	7.98%	5.86%	-3.40%
TMRP	77 Outperform	3.43B	19.74		10.80%	9.89%	-5.73%
NWMD	76 Outperform	$19.66B	10.24	30.42%	4.38%	6.84%	18.87%
Sector *	64 Neutral	6.11B	16.00	2.07%	7.38%	33.60%	18.24%
NVPT	56 Neutral	10.74B	244.45		―	-18.73%	86.94%

Delek Group Corporate Events

Delek Group Signs MOU for Natural Gas Export from Cyprus to Egypt

Delek Group has announced a non-binding memorandum of understanding for exporting natural gas from the Aphrodite reservoir in Cyprus to Egypt, in collaboration with the Egyptian Natural Gas Holding Company. This agreement aims to establish a framework for cooperation and information exchange that could lead to the future export of natural gas, potentially benefiting the economies of Cyprus and Egypt. The understanding is a crucial step towards developing the Aphrodite reservoir and involves exploring various export options, including pipeline and LNG, to reach a final investment decision.