Elron (ELRN) AI Stock Analysis

• Market Cap: ₪314.08M
• Dividend Yield: 16.2%
• Average Volume (3M): 54.41K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 8
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 67.70
• Shares Outstanding: 53,378,853
• 10 Day Avg. Volume: 32,573
• 30 Day Avg. Volume: 54,408
• PEG Ratio: -0.17
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.75
• 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: 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: 65 Neutral
• Price Target: 563.00 ▼(-4.10% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back primarily by weak cash-flow conversion and volatile profitability despite a strong balance sheet. Valuation is supportive due to a low P/E and very high dividend yield, while technicals are mixed with modest positive momentum but the price still below longer-term moving averages.

Positive Factors

Strong balance sheet

A large equity base and low leverage provide durable financial flexibility: the company can support follow-on investments, absorb portfolio volatility, and avoid forced asset sales. This reduces financing risk over the next 2–6 months and supports strategic optionality.

Holding/investment platform model

Elron’s core model—building and holding stakes in technology and med‑tech companies—is structurally scalable and less capital‑intensive than manufacturing. Durable revenue sources derive from exits, fair‑value appreciation, and dividends, aligning incentives with long‑term portfolio value creation.

Episodes of strong profitability

A track record of high operating profitability in multiple years demonstrates the platform can generate outsized returns from successful portfolio outcomes. That capability supports long‑term value capture through exits and validates investment selection and governance playbooks.

Negative Factors

Poor cash conversion

Sustained negative operating and free cash flow erodes liquidity and forces reliance on asset sales or external financing to fund operations and investments. Over several months this raises the risk of constrained capital deployment and reduced ability to support portfolio companies.

Volatile profitability and revenue

Sharp swings from strong profits to sizable losses and a year with zero revenue indicate unstable underlying cash generation. This volatility undermines predictability of returns and complicates planning, making dividend or payout reliability and forecasting more uncertain.

Inconsistent returns on equity

Wide ROE swings suggest portfolio performance is uneven and outcomes depend heavily on timing of realizations. Inconsistent equity returns reduce confidence in steady shareholder value growth and make multi‑period performance harder to rely on for income or reinvestment planning.

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 primarily makes money through returns on its investment portfolio rather than through sales of products or services from its own operations. Its key sources of economic value are: (1) gains from exits—selling equity stakes in portfolio companies via mergers and acquisitions, secondary sales, or other liquidity events; (2) changes in fair value of its holdings, which can be recognized in financial results depending on accounting treatment of specific investments; and (3) income received from portfolio companies, such as dividends and interest, when applicable. Elron may also generate proceeds by participating in financing rounds (e.g., investing and later monetizing those positions) and by structuring investments through equity and/or convertible instruments. Specific significant partnerships or portfolio-company revenue contributions: null.

Elron Financial Statement Overview

Summary

Balance sheet strength and low leverage support financial stability, but profitability is volatile (including a sizable 2023 loss and 2025 showing zero revenue) and cash-flow quality is a major concern with consistently negative operating and free cash flow across 2020–2025.

Income Statement

Profitability has been strong in several years (notably 2021–2024) with very high operating profitability, but results are volatile: 2023 swung to a sizable net loss, and 2025 shows zero revenue with operating losses despite positive net income (suggesting non-operating gains). Revenue growth is also unstable, including a sharp decline into 2025, which lowers confidence in the durability of earnings.

Balance Sheet

The balance sheet looks solid with a large equity base and modest leverage (debt-to-equity remains low in the years provided). Total assets and equity are sizable relative to debt, which provides flexibility and reduces financial risk. The main weakness is inconsistent returns on equity (strong in 2022 and 2024, negative in 2020 and 2023), reflecting uneven profitability rather than balance-sheet strain.

Cash Flow

Cash generation is a key weak spot: operating cash flow and free cash flow are negative every year shown (2020–2025), even in years with strong reported net income. Free cash flow trends are mixed and remain meaningfully below zero, indicating the business has not been consistently converting accounting profits into cash, which can pressure liquidity over time if sustained.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.86M	0.00	43.85M	16.09M	89.51M	37.82M
Gross Profit	41.86M	―	43.85M	16.09M	89.51M	37.82M
EBITDA	36.46M	-5.37M	38.01M	10.18M	81.96M	31.21M
Net Income	20.49M	10.07M	22.58M	-8.17M	69.52M	5.48M
Balance Sheet
Total Assets	128.69M	138.06M	147.31M	159.82M	169.56M	144.24M
Cash, Cash Equivalents and Short-Term Investments	69.73M	59.00M	64.36M	49.87M	53.34M	83.00M
Total Debt	7.16M	7.17M	10.30M	10.16M	10.71M	9.88M
Total Liabilities	13.15M	12.45M	22.08M	18.26M	17.90M	17.80M
Stockholders Equity	100.61M	104.81M	110.66M	129.01M	136.29M	100.27M
Cash Flow
Free Cash Flow	-2.97M	-2.30M	-3.87M	-3.54M	-5.53M	-5.23M
Operating Cash Flow	-2.96M	-2.28M	-3.86M	-3.54M	-5.53M	-5.19M
Investing Cash Flow	2.01M	22.70M	38.62M	13.47M	29.13M	-11.96M
Financing Cash Flow	-26.56M	-19.54M	-41.74M	-42.00K	-34.65M	41.46M

Elron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 587.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 477.05, above the 50-day MA of 505.27, and above the 200-day MA of 549.42, indicating a neutral trend. The MACD of 16.39 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ELRN	65 Neutral	₪314.08M	9.74	20.06%	16.20%	―	―