Energix (ENRG) AI Stock Analysis

• Market Cap: ₪11.42B
• Dividend Yield: 2.25%
• Average Volume (3M): 730.65K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 1.03
• Revenue Growth: -1.14%
• EPS Growth: 6.47%
• Country: IL
• Employees: 267
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): 21.50
• Shares Outstanding: 577,894,600
• 10 Day Avg. Volume: 860,090
• 30 Day Avg. Volume: 730,650
• PEG Ratio: 0.68
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 7.65
• P/FCF Ratio: -6.24
• 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: 59 Neutral
• Price Target: 2,131.00 ▲(30.74% Upside)

The score is primarily constrained by financial fundamentals—high leverage and weak cash flow alongside soft revenue/profitability trends—despite strong operating margins. Technicals are supportive with a clear uptrend and neutral momentum readings, while valuation remains a headwind due to a high P/E and only modest dividend yield.

Positive Factors

High Operating Margins

Energix's exceptionally high gross and EBITDA margins indicate durable operational efficiency in generation and project operations. Such margin strength supports robust unit economics per MWh, enabling internal funding for maintenance and selective growth even if top-line growth is uneven over multiple quarters.

Stable PPA-driven Revenue Streams

Long-term PPAs and government incentives create predictable multi-year cash flows and reduce merchant exposure. This contractual framework supports project financing, lowers revenue volatility, and underpins durable EBITDA generation, making future project underwriting and financing more feasible.

Improving Free Cash Flow Trend

A 34.7% increase in free cash flow TTM signals improving cash conversion from operations and project ramp-ups. If sustained, this trend can materially aid debt reduction, fund reinvestment in the asset base, and relieve refinancing pressure inherent in capital-intensive renewables.

Negative Factors

High Financial Leverage

Very high leverage constrains financial flexibility and raises refinancing and covenant risk for a capital-intensive renewables operator. Interest cost variability and limited equity buffer reduce capacity to absorb shocks, making long-term project development and capital allocation more dependent on external financing availability.

Weak Cash Generation

Negative free cash flow and a low operating-cash-to-net-income ratio indicate earnings are not translating into cash. This structural cash shortfall hampers the ability to fund capex, service debt, and invest in new projects without raising external capital, elevating long-term financing risk.

Soft Revenue and Profitability Trend

A contracting top line alongside declining net margin points to weakening demand or pricing pressure in key markets. For renewables, steady capacity additions and stable offtake are crucial; sustained sales contraction undermines scale economics and could slow project development and earnings durability over the medium term.

Energix Business Overview & Revenue Model

Company Description

Energix - Renewable Energies Ltd engages in initiating, developing, financing, establishing, managing, and operating facilities for the production and storage of electricity from renewable energy sources in Israel, Poland, and the United States. It owns and operates solar PV facilities with a total capacity of 139MWp; and Banie wind farm with a total capacity of 119 MW. The company was incorporated in 2006 and is based in Ramat Gan, Israel. Energix - Renewable Energies Ltd is a subsidiary of Alony Hetz Properties and Investments Ltd.

How the Company Makes Money

Energix generates revenue through multiple streams, primarily by selling electricity produced from its solar and wind farms to utility companies and direct consumers under long-term power purchase agreements (PPAs). The company also benefits from government incentives and renewable energy credits, which provide additional financial support for clean energy initiatives. Partnerships with local and international energy organizations further enhance its market reach and operational efficiency, contributing to its overall earnings.

Energix Financial Statement Overview

Summary

Strong operational efficiency (73.91% gross margin and 64.21% EBITDA margin TTM) is offset by declining profitability and growth (net margin down to 26.67% and revenue growth at -1.33% TTM), high leverage (debt-to-equity 3.72; equity ratio 17%), and weak cash generation (negative free cash flow; operating cash flow to net income 0.13).

Income Statement

Energix's income statement shows a strong gross profit margin of 73.91% TTM, indicating efficient cost management. However, the net profit margin has decreased to 26.67% TTM, reflecting a decline in profitability. The revenue growth rate is negative at -1.33% TTM, suggesting a contraction in sales. Despite these challenges, the company maintains a solid EBITDA margin of 64.21% TTM, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.72 TTM, indicating significant leverage and potential financial risk. Return on equity has decreased to 9.43% TTM, reflecting reduced profitability for shareholders. The equity ratio stands at 17.00% TTM, suggesting a lower proportion of equity financing relative to total assets, which may limit financial flexibility.

Cash Flow

Energix's cash flow statement highlights challenges with a negative free cash flow and a free cash flow to net income ratio of -6.01 TTM, indicating cash flow issues relative to earnings. The operating cash flow to net income ratio is low at 0.13 TTM, suggesting limited cash generation from operations. Despite a 34.70% growth in free cash flow TTM, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	797.82M	897.63M	681.91M	527.33M	266.63M	263.07M
Gross Profit	662.48M	776.41M	587.99M	472.64M	227.65M	226.09M
EBITDA	494.55M	573.77M	485.83M	380.81M	178.92M	197.50M
Net Income	272.67M	337.79M	258.26M	236.69M	79.32M	77.21M
Balance Sheet
Total Assets	12.78B	11.17B	9.81B	6.08B	4.78B	3.81B
Cash, Cash Equivalents and Short-Term Investments	508.63M	463.63M	567.67M	465.12M	575.11M	961.72M
Total Debt	7.89B	6.17B	5.41B	2.85B	2.57B	1.78B
Total Liabilities	10.61B	8.86B	7.44B	3.75B	3.27B	2.22B
Stockholders Equity	2.17B	2.31B	2.37B	2.33B	1.51B	1.58B
Cash Flow
Free Cash Flow	-2.20B	-1.10B	-1.78B	-846.32M	-1.09B	-456.56M
Operating Cash Flow	201.94M	338.17M	505.81M	284.69M	103.49M	171.32M
Investing Cash Flow	-2.52B	-944.70M	-3.10B	-1.09B	-1.27B	-490.74M
Financing Cash Flow	2.43B	521.45M	2.65B	666.75M	792.71M	1.14B

Energix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1630.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ENRG, the sentiment is Positive. The current price of 1630 is below the 20-day moving average (MA) of 1825.25, below the 50-day MA of 1659.84, and above the 200-day MA of 1363.10, indicating a bullish trend. The MACD of 91.93 indicates Negative momentum. The RSI at 67.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ENRG.

Energix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENLT	73 Outperform	$23.26B	48.03	8.71%	―	21.55%	139.11%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENRG	59 Neutral	₪11.42B	39.89	―	2.25%	-1.14%	6.47%
ECNR	54 Neutral	₪3.87B	-164.78	―	―	-9.53%	-125.66%
MSKE	52 Neutral	₪7.65B	―	―	―	―	―
DORL	51 Neutral	₪8.70B	-22.27	―	―	113.54%	-242.38%
NOFR	44 Neutral	₪5.94B	-74.40	―	―	5.79%	-13.05%