Discount (DSCT) AI Stock Analysis

• Market Cap: ₪41.19B
• Dividend Yield: 3.69%
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.17
• Revenue Growth: 14.48%
• EPS Growth: 4.65%
• Country: IL
• Employees: 8,625
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 70.30
• Shares Outstanding: 1,223,274,700
• 10 Day Avg. Volume: 3,177,080
• 30 Day Avg. Volume: 2,996,804
• PEG Ratio: -3.48
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 3.75
• 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: ₪4,046.76
• Price Target Upside: 20.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.72
• Revenue Forecast (FY): ₪15.64B

• Rating: 66 Neutral
• Price Target: 3,877.00 ▲(15.15% Upside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is supported by solid underlying profitability and a strong 2025 cash-flow rebound, as well as relatively attractive valuation (low P/E and a ~3.7% yield). These positives are tempered by increased leverage and a recent revenue decline, while technical indicators point to weak near-term momentum.

Positive Factors

Return on Equity

Consistent ROE in the low‑teens and mid‑teens net margins point to a durable earnings base and effective capital deployment. This level of profitability supports internal capital generation, dividend capacity and reinvestment, improving resilience versus peers over a multi‑quarter horizon.

Cash Flow Rebound

A meaningful improvement in operating and free cash flow in 2025 enhances liquidity and funds strategic priorities without immediate external financing. Strong FCF supports dividends, debt servicing or selective growth investments and improves the firm's ability to navigate medium‑term stress.

Margin Resilience

Sustained mid‑teens net margins and healthy operating margins indicate pricing power and cost control versus peers. Margin resilience helps protect earnings during revenue softness, sustaining ROE and cash conversion over several quarters and enabling continued investment in core banking operations.

Negative Factors

Rising Leverage

A material increase in leverage materially raises financial and liquidity risk, reducing flexibility to absorb shocks or fund growth from internal sources. Higher debt levels increase sensitivity to funding cost shifts and constrain capital allocation choices over the medium term.

Revenue Decline

A sequential revenue contraction signals weakening demand or reduced fee/loan growth, which pressures margins and earnings sustainability. Persistent top‑line weakness would erode internal cash generation and make deleveraging or reinvestment harder over multiple quarters.

Cash Flow Volatility

Historic swings in operating and free cash flow, including negative cash flow in 2022, indicate uncertainty around the durability of the 2025 rebound. Volatile cash generation increases reliance on markets or balance sheet flexibility during downturns, especially with elevated leverage.

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.

Discount Financial Statement Overview

Summary

Solid profitability with mid-teens net margins and ROE around 12–15%, plus a strong operating/free cash flow rebound in 2025. Offsetting this, 2025 revenue declined (-6.17%) and leverage increased materially (debt-to-equity rising to ~1.32–1.38 in 2024–2025), raising balance-sheet risk.

Income Statement

Profitability is solid and fairly resilient for a regional bank: net profit margin stayed in the mid-teens across 2023–2025, and EBIT/EBITDA margins remained strong. However, revenue momentum weakened—after growth in 2022–2024, 2025 revenue declined (-6.17%), and margins also compressed versus the unusually high levels seen in 2021–2022, pointing to a less favorable operating environment.

Balance Sheet

The balance sheet shows decent profitability on equity (ROE ~12–15% in 2021–2025), supporting a healthy earnings base. The main concern is leverage trending higher: debt-to-equity moved from ~0.55–0.74 (2021–2023) to ~1.32–1.38 (2024–2025), increasing financial risk and reducing flexibility if conditions tighten.

Cash Flow

Cash generation improved meaningfully in the latest period, with 2025 operating cash flow jumping to 11.8B and free cash flow to 11.1B, and free cash flow broadly tracking net income in recent years. That said, cash flow has been volatile (notably negative operating/free cash flow in 2022), so the durability of the recent rebound remains the key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.28B	27.26B	25.43B	15.52B	11.39B
Gross Profit	12.62B	15.95B	15.66B	12.51B	10.43B
EBITDA	6.61B	7.67B	7.23B	5.90B	4.86B
Net Income	4.14B	4.28B	4.19B	3.50B	2.77B
Balance Sheet
Total Assets	478.15B	436.54B	395.72B	376.75B	335.09B
Cash, Cash Equivalents and Short-Term Investments	74.54B	62.70B	48.66B	65.81B	59.73B
Total Debt	44.68B	43.45B	16.70B	13.57B	15.84B
Total Liabilities	442.81B	403.45B	366.49B	13.57B	15.84B
Stockholders Equity	33.81B	31.57B	28.47B	24.88B	21.48B
Cash Flow
Free Cash Flow	11.09B	3.40B	819.00M	-2.01B	3.48B
Operating Cash Flow	11.79B	4.23B	2.01B	-946.00M	4.46B
Investing Cash Flow	-37.49B	-26.71B	-29.30B	-28.26B	-25.50B
Financing Cash Flow	28.94B	35.81B	12.68B	33.69B	38.27B

Discount Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3367.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DSCT, the sentiment is Negative. The current price of 3367 is below the 20-day moving average (MA) of 3682.20, below the 50-day MA of 3737.82, and above the 200-day MA of 3364.43, indicating a neutral trend. The MACD of -121.54 indicates Positive momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 16.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:DSCT.

Discount Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MZTF	75 Outperform	₪60.49B	10.73	16.87%	4.11%	11.00%	6.03%
LUMI	70 Outperform	₪109.00B	10.73	15.67%	3.70%	6.95%	12.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DSCT	66 Neutral	₪41.19B	10.01	13.10%	3.69%	14.48%	4.65%
FIBI	62 Neutral	₪26.19B	11.59	15.81%	4.57%	14.16%	1.05%
POLI	62 Neutral	$100.82B	10.34	15.13%	3.54%	19.05%	18.98%