Econergy (ECNR) AI Stock Analysis

• Market Cap: ₪3.67B
• Dividend Yield: N/A
• Average Volume (3M): 19.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -9.53%
• EPS Growth: -125.66%
• Country: IL
• Employees: 120
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 66,796,715
• 10 Day Avg. Volume: 16,123
• 30 Day Avg. Volume: 19,033
• PEG Ratio: -0.06
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 113.72
• P/FCF Ratio: -36.60
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 6,095.00 ▲(52.87% Upside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is primarily held back by weak profitability, negative cash flows, and high leverage despite exceptional revenue growth. Technicals are supportive due to a strong uptrend, but overbought signals raise near-term risk. Valuation is also constrained by negative earnings and no dividend data.

Positive Factors

Exceptional Revenue Growth

Sustained TTM revenue growth of +477.5% indicates the company is rapidly scaling underlying demand or capacity in its renewable utilities business. That scale can improve unit economics over time, support fixed-cost absorption, and create runway to drive margin recovery if operational execution holds.

Healthy Gross Margin

A healthy gross profit margin suggests the core generation or service economics are sound, implying the business can convert additional revenue into gross profit. This provides a structural foundation for future operating leverage and profitability if SG&A and operating inefficiencies are addressed.

Moderate Equity Ratio

A moderate equity ratio points to a balanced asset-financing mix, offering some capital buffer versus fully debt-funded peers. In capital-intensive renewable utilities this supports continued project deployment and asset-backed financing options, helping preserve operational continuity as the company scales.

Negative Factors

Negative Profitability

A negative net margin means the company is not retaining profit after costs, signaling persistent operational or non-operating pressures. Over months this erodes equity, limits reinvestment, and necessitates corrective actions (cost cuts, pricing, or scale benefits) to reach sustainable profitability.

Negative Operating & Free Cash Flow

Ongoing negative operating and free cash flows reflect cash burn from operations and investments. For a capital-intensive renewable utility, this increases dependence on external financing, raises liquidity risk, and can constrain maintenance, expansion, or debt servicing if cash generation does not improve.

High Leverage

Elevated debt-to-equity raises fixed interest obligations and refinancing risk, reducing financial flexibility. In an industry with long-lived assets and cyclical cash flows, high leverage amplifies downside if margins or cash flows falter, limiting strategic options and increasing creditor-driven constraints.

Econergy Business Overview & Revenue Model

Company Description

Econergy (ECNR) is a leading company in the renewable energy sector, specializing in the development, construction, and operation of sustainable energy solutions. The company focuses on a diverse range of energy projects including solar, wind, and energy storage systems. Econergy aims to provide clean energy alternatives to both residential and commercial clients, contributing to a more sustainable future while reducing carbon emissions.

How the Company Makes Money

Econergy generates revenue primarily through the sale of electricity produced by its renewable energy projects, which are often sold under long-term power purchase agreements (PPAs) with utilities and corporate buyers. Additionally, the company earns income through government incentives and tax credits related to renewable energy production. Another key revenue stream includes consulting services related to energy efficiency and sustainability strategies for businesses. Econergy may also engage in partnerships with other energy firms and government entities to develop large-scale energy projects, further enhancing its revenue potential.

Econergy Financial Statement Overview

Summary

Revenue growth is very strong (TTM +477.5%), but profitability remains weak (negative net margin), cash generation is pressured (negative operating and free cash flow), and leverage is elevated (high debt-to-equity), increasing financial risk.

Income Statement

Econergy's income statement shows strong revenue growth, particularly in the TTM period with a 477.5% increase. However, the company struggles with profitability, as indicated by a negative net profit margin in the TTM. The gross profit margin is healthy, but the EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity is low, reflecting limited profitability from equity investments. The equity ratio is moderate, suggesting a balanced asset structure but with potential risk due to high debt levels.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating cash management challenges. The free cash flow to net income ratio is high, suggesting that cash flow issues are not entirely due to profitability problems. However, the negative growth in free cash flow raises concerns about future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.87M	2.58M	1.10M	8.98M	976.00K	849.00K
Gross Profit	5.61M	2.00M	486.00K	7.33M	212.00K	126.00K
EBITDA	30.16M	36.04M	-8.98M	169.00K	-9.53M	-2.17M
Net Income	-430.48K	19.92M	-11.29M	2.37M	-10.88M	-1.21M
Balance Sheet
Total Assets	3.48B	783.67M	372.14M	201.57M	136.28M	9.98M
Cash, Cash Equivalents and Short-Term Investments	521.91M	193.38M	52.41M	20.02M	87.50M	1.90M
Total Debt	374.85M	524.66M	203.26M	70.06M	69.19M	2.66M
Total Liabilities	455.56M	571.43M	235.28M	89.46M	77.47M	3.79M
Stockholders Equity	227.57M	161.25M	114.11M	100.74M	58.03M	-404.00K
Cash Flow
Free Cash Flow	-40.24M	-8.03M	-15.21M	-13.45M	-14.66M	-1.75M
Operating Cash Flow	-13.41M	-7.37M	-14.81M	-13.23M	-2.50M	-808.00K
Investing Cash Flow	-391.40M	-200.09M	-125.61M	-96.17M	-36.29M	-5.82M
Financing Cash Flow	411.72M	337.19M	173.91M	44.96M	123.13M	6.85M

Econergy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3987.00
• 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:ECNR, the sentiment is Neutral. The current price of 3987 is below the 20-day moving average (MA) of 5848.25, below the 50-day MA of 5270.60, and below the 200-day MA of 4000.03, indicating a neutral trend. The MACD of 88.89 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 33.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ECNR.

Econergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENRG	59 Neutral	₪11.56B	40.36	―	2.25%	-1.14%	6.47%
ECNR	54 Neutral	₪3.67B	-155.76	―	―	-9.53%	-125.66%
MSKE	52 Neutral	₪8.13B	―	―	―	―	―
DORL	47 Neutral	₪12.31B	-30.78	―	―	113.54%	-242.38%
NOFR	44 Neutral	₪6.35B	-79.52	―	―	5.79%	-13.05%