Discount (DSCT) AI Stock Analysis

• Market Cap: ₪47.92B
• Dividend Yield: 3.69%
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.22
• Revenue Growth: 14.48%
• EPS Growth: 4.65%
• Country: IL
• Employees: 8,625
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 91.90
• Shares Outstanding: 1,223,274,700
• 10 Day Avg. Volume: 3,177,080
• 30 Day Avg. Volume: 2,996,804
• PEG Ratio: 3.63
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 9.44
• 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: ₪3,948.60
• Price Target Upside: 4.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.77
• Revenue Forecast (FY): ₪15.75B

• Rating: 75 Outperform
• Price Target: 4,095.00 ▲(8.33% Upside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

The overall stock score of 75 reflects strong technical indicators and a favorable valuation, which are the most significant factors. While financial performance is solid, concerns about revenue growth and cash conversion efficiency slightly offset the positives.

Positive Factors

Profitability

A stable net profit margin indicates effective cost management and pricing strategies, supporting long-term profitability and financial health.

Cash Flow Improvement

Improved free cash flow growth enhances the company's ability to reinvest in operations, pay down debt, and provide returns to shareholders, supporting sustainable growth.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, which are crucial for maintaining competitive advantage and profitability.

Negative Factors

Revenue Growth Decline

Declining revenue growth could indicate challenges in market expansion or competitive pressures, potentially impacting long-term business sustainability.

Cash Conversion Efficiency

Low cash conversion efficiency suggests difficulties in turning profits into cash, which can affect liquidity and the ability to fund operations and growth.

Revenue Growth Concerns

Ongoing concerns about revenue growth and cash conversion efficiency may hinder the company's ability to sustain its market position and financial performance.

Discount Business Overview & Revenue Model

Company Description

Israel Discount Bank Limited, together with its subsidiaries, provides various banking and financial services in Israel, Europe, and North America. The company operates through Retail Banking, Middle Market Banking, Corporate Banking, Financial Operations, Discount Capital, Discount Bancorp, Israel Credit Cards Company, and Other segments. Its personal banking services include checking accounts, deposits and savings products, loans and credit facilities, mortgages, credit cards, capital market products, consulting services, family banking programs, and tax exemption services. The company also provides accounts, credit, funds, credit cards, and loans for small businesses; commercial business products for factories, workshops, service providers, and merchants; corporate, residential and commercial construction, infrastructure, and rental property financing; and personal consulting services for corporations and executives in various fields of investment, inliquidity, and asset management; brokerage and trading services; customized services for diamond traders; and capital market consulting, including foreign trade, documentary collection and credit, foreign guarantee, export financing, online foreign trade, anti money laundering, and mutual fund services. In addition, it offers tools for capital market transactions; provides Israeli private banking, foreign currency, commercial payment, securities custody and execution, capital market advisory, international banking, portfolio management, and online and digital banking services; manages securities investment portfolios for private customers, corporations, not-for-profit organizations, and institutional bodies; and initiates and assists public offerings and private placements, as well as provides underwriting and distribution services. The company operates through a chain of 171 branches in Israel. Israel Discount Bank Limited was incorporated in 1935 and is based in Tel Aviv, Israel.

How the Company Makes Money

Discount generates revenue primarily through the sale of discounted products in its physical stores and online platform. The company's revenue model is based on high sales volume and low margins, allowing it to attract a large customer base. Key revenue streams include direct sales of merchandise, exclusive brand partnerships that provide unique products at reduced prices, and seasonal promotions that drive traffic and increase sales. Additionally, DSCT may engage in strategic partnerships with suppliers and manufacturers to secure better pricing and terms, further enhancing profitability. The company also benefits from loyalty programs and promotional campaigns that encourage repeat purchases, contributing to its overall earnings.

Discount Financial Statement Overview

Summary

Discount demonstrates solid profitability with a stable net profit margin and strong gross profit margin. However, there are concerns with declining revenue growth and cash conversion efficiency, which slightly dampen the overall financial performance.

Income Statement

The income statement shows a stable net profit margin of approximately 15.8% in the TTM, with a slight decline in revenue growth rate by -1.92%. The gross profit margin remains strong at 56.8%, indicating efficient cost management. However, the decline in revenue growth is a concern that needs to be addressed.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.72, indicating a balanced approach to leveraging. The return on equity is healthy at 13.5%, suggesting effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the overall leverage appears manageable.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth at 42.7% in the TTM, which is a positive sign. However, the operating cash flow to net income ratio is low at 0.005, indicating potential issues in converting income into cash. The free cash flow to net income ratio is moderate at 0.54.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.94B	27.26B	25.43B	15.52B	11.39B	10.96B
Gross Profit	14.55B	15.95B	15.66B	12.51B	10.43B	9.88B
EBITDA	7.72B	7.67B	7.23B	5.90B	4.86B	2.00B
Net Income	4.33B	4.28B	4.19B	3.50B	2.77B	975.00M
Balance Sheet
Total Assets	472.43B	436.54B	395.72B	376.75B	335.09B	293.97B
Cash, Cash Equivalents and Short-Term Investments	66.14B	62.70B	48.66B	65.81B	59.73B	43.04B
Total Debt	42.92B	43.45B	16.70B	13.57B	15.84B	10.98B
Total Liabilities	437.36B	403.45B	366.49B	13.57B	15.84B	10.98B
Stockholders Equity	33.54B	31.57B	28.47B	24.88B	21.48B	19.18B
Cash Flow
Free Cash Flow	1.41B	3.40B	819.00M	-2.01B	3.48B	6.22B
Operating Cash Flow	2.25B	4.23B	2.01B	-946.00M	4.46B	7.13B
Investing Cash Flow	-30.91B	-26.71B	-29.30B	-28.26B	-25.50B	-19.24B
Financing Cash Flow	27.79B	35.81B	12.68B	33.69B	38.27B	28.84B

Discount Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3780.00
• 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:DSCT, the sentiment is Positive. The current price of 3780 is below the 20-day moving average (MA) of 3895.20, above the 50-day MA of 3713.08, and above the 200-day MA of 3299.54, indicating a bullish trend. The MACD of 82.19 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 27.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DSCT.

Discount Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMI	80 Outperform	₪113.11B	11.26	15.67%	3.70%	6.95%	12.41%
MZTF	80 Outperform	₪63.64B	11.47	16.87%	4.11%	11.00%	6.03%
DSCT	75 Outperform	₪47.92B	11.15	13.10%	3.69%	14.48%	4.65%
FIBI	69 Neutral	₪28.04B	12.08	16.48%	4.57%	14.16%	1.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
POLI	64 Neutral	₪104.82B	11.44	15.13%	3.54%	19.05%	18.98%