Elron (ELRN) AI Stock Analysis

• Market Cap: 313.39M
• Dividend Yield: 16.2%
• Average Volume (3M): 54.41K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 8
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 53,378,853
• 10 Day Avg. Volume: 32,573
• 30 Day Avg. Volume: 54,408
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 1.38
• P/FCF Ratio: -15.63
• 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: 72 Outperform
• Price Target: 645.00 ▲(9.86% Upside)

Elron's strong valuation with a low P/E ratio and high dividend yield is a significant positive factor. However, challenges in cash flow management and inconsistent profitability weigh on the overall score. Technical indicators suggest neutral to slightly bearish momentum, but the stock's valuation offers a compelling case for potential investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful expansion and increased market penetration, enhancing long-term business prospects.

Stable Balance Sheet

A stable balance sheet with low leverage provides financial resilience and flexibility to support strategic investments and growth.

High Gross Profit Margin

A high gross profit margin reflects efficient operations and cost control, contributing to sustainable profitability over time.

Negative Factors

Cash Flow Management Issues

Negative cash flows indicate potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives.

Inconsistent Profitability

Fluctuating profitability can create uncertainty in financial performance, impacting investor confidence and long-term planning.

Return on Equity Variability

Inconsistent returns on equity may indicate challenges in effectively utilizing shareholder capital, affecting long-term value creation.

Elron Business Overview & Revenue Model

Company Description

Elron Ventures Ltd formerly known as Elron Electronic Industries Ltd, is a venture capital firm specializing in early stage and seed investment. The firm prefers to invest in cybersecurity, enterprise software or healthcare industries. The firm prefers to invest in Israel sector. Elron Ventures Ltd was founded in 1962 and is based in Tel Aviv, Israel with additional office in New York, New York.

How the Company Makes Money

Elron generates revenue primarily through capital gains from its investments in portfolio companies as they grow and eventually exit, either through public offerings or acquisitions. The company also earns returns through dividends from its investments when applicable. Key revenue streams include management fees from managing funds and partnerships, as well as any success fees realized from the sale of equity interests. Significant partnerships with other venture capital firms and technology incubators enhance its investment opportunities and increase its earning potential.

Elron Financial Statement Overview

Summary

Elron shows strong revenue growth and a stable balance sheet, but faces challenges with cash flow management and inconsistent profitability. Addressing these issues is crucial for long-term growth.

Income Statement

Elron has demonstrated significant revenue growth with a 63.96% increase in the latest year, indicating strong top-line expansion. The company has maintained a high gross profit margin, suggesting effective cost management. However, the net profit margin has fluctuated, reflecting some volatility in profitability. Overall, the income statement shows a positive growth trajectory with some areas for improvement in net profitability.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.093, indicating conservative leverage. The equity ratio is strong, reflecting a solid capital structure. However, the return on equity has been inconsistent, suggesting variability in generating returns for shareholders. Overall, the balance sheet is robust, but there is room for improvement in return metrics.

Cash Flow

Elron's cash flow statement shows challenges with negative operating and free cash flows, indicating cash management issues. Despite this, the free cash flow to net income ratio is positive, suggesting that cash generation relative to net income is adequate. The company needs to focus on improving cash flow stability to support its growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.86M	43.85M	16.09M	89.51M	37.82M	4.31M
Gross Profit	41.86M	43.85M	16.09M	89.51M	37.82M	4.31M
EBITDA	36.46M	38.01M	10.18M	81.96M	31.21M	-6.81M
Net Income	20.49M	22.58M	-8.17M	69.52M	5.48M	-17.72M
Balance Sheet
Total Assets	128.69M	147.31M	159.82M	169.56M	144.24M	84.95M
Cash, Cash Equivalents and Short-Term Investments	69.73M	64.36M	49.87M	53.34M	83.00M	36.09M
Total Debt	7.16M	10.30M	10.16M	10.71M	9.88M	1.72M
Total Liabilities	13.15M	22.08M	18.26M	17.90M	17.80M	6.14M
Stockholders Equity	100.61M	110.66M	129.01M	136.29M	100.27M	61.11M
Cash Flow
Free Cash Flow	-2.97M	-3.87M	-3.54M	-5.53M	-5.23M	-11.41M
Operating Cash Flow	-2.96M	-3.86M	-3.54M	-5.53M	-5.19M	-11.13M
Investing Cash Flow	2.01M	38.62M	13.47M	29.13M	-11.96M	10.62M
Financing Cash Flow	-26.56M	-41.74M	-42.00K	-34.65M	41.46M	-521.00K

Elron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 587.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ELRN, the sentiment is Positive. The current price of 587.1 is above the 20-day moving average (MA) of 566.85, above the 50-day MA of 571.28, and above the 200-day MA of 520.78, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 70.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ELRN.

Elron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELRN	72 Outperform	313.39M	4.08	20.06%	16.20%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%