Energix (ENRG) AI Stock Analysis

• Market Cap: ₪12.48B
• Dividend Yield: 2.25%
• Average Volume (3M): 730.65K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 1.13
• Revenue Growth: -1.14%
• EPS Growth: 6.47%
• Country: IL
• Employees: 267
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 577,908,900
• 10 Day Avg. Volume: 860,090
• 30 Day Avg. Volume: 730,650
• PEG Ratio: -1.35
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 11.74
• P/FCF Ratio: -3.83
• 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: 55 Neutral
• Price Target: 2,213.00 ▲(35.77% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weak cash generation (deeply negative free cash flow) and materially higher leverage, despite strong reported profitability. Technicals are supportive with a clear uptrend, while valuation is a headwind due to a high P/E that is only modestly offset by the dividend yield.

Positive Factors

High profitability

Sustained high TTM gross and net margins indicate efficient generation and favorable pricing for Energix's assets. Durable margin strength supports internal funding for projects, cushions against pricing cycles, and underpins long-term return on invested capital.

Predictable revenue via PPAs

Long-term power purchase agreements and renewable incentives create predictable, contract-backed cash flows. This stability supports project financing, reduces merchant price exposure, and enables multi-year planning for construction and O&M, a durable advantage in renewables.

Integrated project capabilities

Vertical integration across development, construction and operations lets Energix capture more project value, control timelines and costs, and reuse in-house expertise across sites. This structural capability improves margins and reduces execution risk over time.

Negative Factors

Rising leverage

Material increase in debt-to-equity to roughly 3.6x materially reduces financial flexibility. Higher leverage raises refinancing and interest-rate sensitivity, constraining the firm's ability to fund projects organically and increasing solvency risk if cash flows weaken.

Negative free cash flow

Consistently large negative free cash flow and operating cash only a fraction of reported profit signal heavy capex or working-capital needs. Reliance on external financing to fund growth raises execution and funding risk, and limits capacity to self-fund dividends or buybacks.

Weakening revenue momentum

A decline in TTM revenue and compressed operating/EBITDA margins versus prior year point to slower project additions, pricing pressure, or operational issues. Persistent top-line weakness can impair scale economics and strain the payback profile on new investments.

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

Income statement profitability is strong (very high gross and net margins), but the overall financial profile is constrained by sharply higher leverage (~3.6x debt-to-equity) and persistently deep negative free cash flow (TTM about -2.3B) with operating cash flow low relative to net income.

Income Statement

Profitability is a clear strength: TTM (Trailing-Twelve-Months) gross margin (~83%) and net margin (~34%) remain very high, and the business has stayed solidly profitable across the period. However, growth and momentum weakened—TTM (Trailing-Twelve-Months) revenue declined (-5.1%) and operating profitability compressed versus 2024 (lower operating margin and EBITDA margin), suggesting either pricing/production mix pressure, higher costs, or normalization from prior peak conditions.

Balance Sheet

Leverage has risen materially, increasing financial risk. Total debt climbed sharply into TTM (Trailing-Twelve-Months), and debt relative to equity deteriorated to ~3.6x (up from ~2.7x in 2024 and ~1.2x in 2022). While returns on equity are still healthy (~12% TTM (Trailing-Twelve-Months)), the balance sheet is now much more debt-heavy, leaving less flexibility if rates, refinancing conditions, or project performance soften.

Cash Flow

Cash generation is the key weakness. Operating cash flow is positive but low relative to reported profit (TTM (Trailing-Twelve-Months) operating cash flow is only ~8% of net income), and free cash flow is deeply negative in every period shown, including a large deterioration in TTM (Trailing-Twelve-Months) (about -2.3B). This points to heavy investment and/or working-capital swings and increases reliance on external financing—more concerning given the rising debt load.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	755.66M	897.63M	681.91M	527.33M	266.63M
Gross Profit	288.04M	776.41M	587.99M	472.64M	227.65M
EBITDA	448.79M	573.77M	485.83M	380.81M	178.92M
Net Income	250.24M	337.79M	258.26M	236.69M	79.32M
Balance Sheet
Total Assets	13.21B	11.17B	9.81B	6.08B	4.78B
Cash, Cash Equivalents and Short-Term Investments	1.25B	463.63M	567.67M	465.12M	575.11M
Total Debt	8.64B	6.17B	5.41B	2.85B	2.57B
Total Liabilities	10.61B	8.86B	7.44B	3.75B	3.27B
Stockholders Equity	2.60B	2.31B	2.37B	2.33B	1.51B
Cash Flow
Free Cash Flow	-2.31B	-1.10B	-1.78B	-846.32M	-1.09B
Operating Cash Flow	129.39M	338.17M	505.81M	284.69M	103.49M
Investing Cash Flow	-2.47B	-944.70M	-3.10B	-1.09B	-1.27B
Financing Cash Flow	3.09B	521.45M	2.65B	666.75M	792.71M

Energix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1630.00
• 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:ENRG, the sentiment is Neutral. The current price of 1630 is below the 20-day moving average (MA) of 2100.75, below the 50-day MA of 1915.78, and above the 200-day MA of 1478.70, indicating a neutral trend. The MACD of 51.22 indicates Positive momentum. The RSI at 50.43 is Neutral, neither overbought nor oversold. The STOCH value of 29.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ENRG.

Energix 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%
ENLT	58 Neutral	₪31.45B	58.52	8.71%	―	21.55%	139.11%
ENRG	55 Neutral	₪12.48B	35.44	―	2.25%	-1.14%	6.47%
ECNR	54 Neutral	₪3.95B	-20.11	―	―	-9.53%	-125.66%
MSKE	52 Neutral	₪8.88B	71.54	―	―	―	―
DORL	47 Neutral	₪13.00B	-11.76	―	―	113.54%	-242.38%
NOFR	44 Neutral	₪6.58B	-219.79	―	―	5.79%	-13.05%