Delek Group (DLEKG) AI Stock Analysis

• Market Cap: $12.80B
• Dividend Yield: 7.4%
• Average Volume (3M): 37.36K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.23
• Revenue Growth: 5.86%
• EPS Growth: -3.40%
• Country: IL
• Employees: 799
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 960.00
• Shares Outstanding: 18,288,143
• 10 Day Avg. Volume: 37,744
• 30 Day Avg. Volume: 37,360
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $80,827.29
• Price Target Upside: 12.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: 80,827.00 ▲(12.26% Upside)

The overall stock score of 81 reflects strong technical analysis and robust valuation metrics. Delek Group shows positive market momentum with a favorable P/E ratio and high dividend yield. Financial performance is solid, with strong cash flow metrics, although net income trends require monitoring. The absence of earnings call and corporate events data limited further analysis.

Delek Group Business Overview & Revenue Model

Company Description

Delek Group Ltd., an energy company, engages in the exploration, development, production, and marketing of oil and gas in Israel and internationally. The company operates through three segments: Energy in Israel, Foreign Energy, and Other Operations. It holds interests in the Tamar, Leviathan, and Aphrodite reservoirs in Cyprus; has rights to oil assets in the Gulf of Mexico and Canada, as well as oil and gas reserves in the North Sea off the coast of England; and owns production, treatment, and storage facilities. The company was founded in 1951 and is headquartered in Herzliya, Israel.

How the Company Makes Money

Delek Group generates revenue through several key streams, primarily from its oil and gas exploration and production activities. The company earns money by extracting natural gas and crude oil, which it then sells on international and domestic markets. Delek Group's revenue is significantly bolstered by its stakes in major natural gas fields, such as the Leviathan and Tamar fields, which provide substantial output for export and local consumption. Furthermore, the company benefits from its downstream operations, including refining and distribution, and it has strategic partnerships and joint ventures that enhance its market reach and operational efficiency. These partnerships, along with favorable market conditions and resource management, play a crucial role in Delek Group's profitability.

Delek Group Financial Statement Overview

Summary

Delek Group exhibits solid financial performance with robust revenue growth and strong profitability margins. The balance sheet reveals moderate leverage with a stable equity position, while cash flow metrics highlight strong cash generation despite fluctuations in net income. Overall, the company demonstrates financial resilience, though careful monitoring of net income trends and leverage is advisable.

Income Statement

The income statement reflects strong profitability with a gross profit margin of 51.7% and a net profit margin of 8.9% in the TTM period. The company experienced a revenue growth rate of 7.49% from the previous year, indicating a positive growth trajectory. EBIT and EBITDA margins are robust at 41.3% and 72.8% respectively, showcasing operational efficiency. However, net income decreased compared to the previous year, which is a point of concern.

Balance Sheet

The balance sheet indicates a solid equity position with an equity ratio of 16.3% and a healthy ROE of 13.1%. The debt-to-equity ratio stands at 1.76, suggesting moderate leverage. While the debt levels are high, the company's assets have grown, offering some stability. The increase in stockholders' equity is a positive indicator of financial health.

Cash Flow

The cash flow statement shows a significant free cash flow growth of 21.73%, supporting the company's operational stability. The operating cash flow to net income ratio is 4.45, indicating strong cash generation relative to net income. A free cash flow to net income ratio of 2.26 further underscores the company's ability to generate cash. Despite a decrease in net income, the cash flow generation remains strong, providing financial flexibility.

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: 72000.00
• 50DMA: Positive
• 100DMA: Positive
• 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:DLEKG, the sentiment is Positive. The current price of 72000 is above the 20-day moving average (MA) of 69120.50, above the 50-day MA of 69192.20, and above the 200-day MA of 56646.64, indicating a bullish trend. The MACD of 261.07 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 is Negative, 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
DLEKG	81 Outperform	$12.80B	11.29	10.26%	7.40%	5.86%	-3.40%
Sector *	54 Neutral	C$4.15B	0.97	16.40%	5.23%	10.45%	-57.37%
DKDRF	―	$5.51B	11.89	26.44%	4.46%	―	―
ISRMF	―	$1.69B	13.55	21.18%	6.42%	―	―
RTEXF	―	$1.52B	2.73	31.13%	22.88%	―	―
TMRP	69 Neutral	3.22B	18.60		6.71%	11.84%	-4.96%
NVPT	47 Neutral	10.98B	247.91		―	-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.