Ellomay (ELLO) AI Stock Analysis

• Market Cap: 1.21B
• Dividend Yield: N/A
• Average Volume (3M): 7.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -6.85%
• EPS Growth: 1.72%
• Country: IL
• Employees: 26
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 79.00
• Shares Outstanding: 13,779,585
• 10 Day Avg. Volume: 2,004
• 30 Day Avg. Volume: 7,528
• PEG Ratio: 0.12
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 4.95
• P/FCF Ratio: -2.97
• 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: 51 Neutral
• Price Target: 8,563.00 ▲(0.50% Upside)

The score is held back primarily by balance-sheet and cash-flow risk (high leverage and deeply negative free cash flow) despite a strong TTM earnings and revenue rebound. Technically, the trend is strong, but overbought signals raise near-term risk. Valuation support is limited due to a negative P/E and no dividend yield data.

Positive Factors

Operational Efficiency

High EBIT and EBITDA margins indicate effective cost management and strong operational performance, which can sustain profitability over time.

Stable Revenue Stream

Long-term PPAs provide a predictable revenue stream, reducing volatility and enhancing financial stability, crucial for long-term planning and investment.

Industry Position

Engagement in diverse renewable energy projects positions Ellomay well in a growing industry, benefiting from global shifts towards sustainable energy.

Negative Factors

High Financial Leverage

High leverage can strain financial resources and limit flexibility, posing risks to long-term financial health and ability to invest in growth.

Negative Free Cash Flow

Negative free cash flow suggests that current operations are not generating enough cash to cover investments, potentially impacting future growth and liquidity.

Revenue Decline

A decline in revenue growth can signal market challenges or operational issues, potentially affecting future profitability and market position.

Ellomay Business Overview & Revenue Model

Company Description

Ellomay Capital Ltd., together with its subsidiaries, engages in the production of renewable and clean energy in Israel, Spain, and the Netherlands. The company owns six photovoltaic (PV) plants comprising four PV plants in Spain with an aggregate installed capacity of approximately 7.9 megawatts (MW); one PV plant with a peak capacity of 300 MW in the municipality of Talaván, Spain; and one PV plant in Israel with an installed capacity of approximately 9 MW. It also operates a dual-fuel operated power plant with an installed capacity of approximately 860 MWp in the vicinity of Ashkelon, Israel; and constructs a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel. In addition, the company develops anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h in Goor and 475 Nm3/h in Oude-Tonge in the Netherlands. Further, it is involved in the construction of a PV plant with installed capacity of 28MW in the municipality of Talaván, Spain. The company was formerly known as NUR Macroprinters Ltd. and changed its name to Ellomay Capital Ltd. in April 2008. Ellomay Capital Ltd. was incorporated in 1987 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Ellomay generates revenue primarily through the sale of electricity produced by its solar energy facilities. The company enters into long-term power purchase agreements (PPAs) with utilities and other organizations, ensuring a stable revenue stream from the electricity generated. Additionally, revenue is supplemented by government incentives and subsidies aimed at promoting renewable energy production. Significant partnerships with local governments and energy companies also contribute to its earnings, allowing Ellomay to expand its operational footprint and increase its capacity in the renewable energy market.

Ellomay Financial Statement Overview

Summary

Ellomay demonstrates strong operational efficiency with high EBIT and EBITDA margins. However, the company faces significant challenges in financial stability due to high leverage and negative free cash flow, which could impact future growth and sustainability.

Income Statement

Ellomay's income statement shows a mixed performance. Despite a positive TTM gross profit margin of 20.58% and a net profit margin of 12.37%, the company has experienced fluctuating revenue growth, with a recent decline. The EBIT and EBITDA margins of 24.05% and 77.25% respectively in TTM indicate strong operational efficiency. However, the inconsistency in net income across periods suggests potential volatility.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.73 TTM, indicating significant leverage. The return on equity is modest at 4.25% TTM, reflecting moderate profitability. The equity ratio stands at 16.59% TTM, highlighting a low equity base relative to assets. While the company has grown its total assets steadily, the high leverage poses a risk to financial stability.

Cash Flow

Ellomay's cash flow statements show challenges, with a negative free cash flow in TTM, indicating high capital expenditures outweighing operating cash flow. The operating cash flow to net income ratio of 1.39 TTM suggests that while operations generate cash, it is not sufficient to cover investments, raising concerns about cash management. The cash flow dependence on financing activities further reflects potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.82M	40.47M	48.83M	52.24M	44.78M	9.64M
Gross Profit	17.32M	4.78M	21.51M	24.79M	12.18M	1.72M
EBITDA	58.63M	20.43M	29.50M	26.98M	18.69M	1.15M
Net Income	28.91M	-6.52M	2.22M	-357.00K	-15.09M	-4.63M
Balance Sheet
Total Assets	2.95B	677.26M	612.85M	576.16M	551.15M	460.17M
Cash, Cash Equivalents and Short-Term Investments	193.86M	41.13M	52.12M	49.29M	71.58M	76.72M
Total Debt	2.12B	521.06M	446.40M	407.04M	376.32M	308.25M
Total Liabilities	2.29B	547.97M	487.75M	493.08M	437.66M	335.15M
Stockholders Equity	555.96M	118.62M	115.00M	95.72M	115.52M	124.23M
Cash Flow
Free Cash Flow	-96.46M	-67.47M	-52.53M	-37.29M	-67.57M	-134.25M
Operating Cash Flow	52.91M	7.97M	8.60M	11.32M	15.24M	-5.83M
Investing Cash Flow	-105.48M	-64.44M	-55.55M	-24.38M	-107.42M	-112.14M
Financing Cash Flow	15.39M	42.96M	54.43M	26.51M	54.20M	141.64M

Ellomay Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8520.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ELLO, the sentiment is Positive. The current price of 8520 is above the 20-day moving average (MA) of 8001.10, above the 50-day MA of 7257.58, and above the 200-day MA of 6111.52, indicating a bullish trend. The MACD of 481.75 indicates Negative momentum. The RSI at 78.12 is Negative, neither overbought nor oversold. The STOCH value of 87.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ELLO.

Ellomay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MSKE	56 Neutral	6.77B	―	―	―	―	―
ELLO	51 Neutral	1.21B	-169.29	-3.99%	―	-6.85%	1.72%
DORL	51 Neutral	7.13B	-38.98	―	―	113.54%	-242.38%
ECNR	49 Neutral	3.18B	-139.03	―	―	-9.53%	-125.66%