Energix (ENRG) AI Stock Analysis

• Market Cap: ₪12.13B
• Dividend Yield: 2.25%
• Average Volume (3M): 730.65K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 1.26
• 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: 578,059,700
• 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: 1,963.00 ▲(20.43% 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 very high gross and net margins indicate strong underlying operating economics typical of utility-scale renewables (low variable costs and scalable output). These margins provide a structural buffer to absorb cost pressures and support long-term earnings even if growth moderates.

Contracted, Diversified Business Model

A business model combining owned operating assets plus development and potential asset sales creates multiple, durable revenue pathways. Long-term PPAs and regulated tariffs (where used) reduce merchant exposure, while development and sell-downs allow recycling capital and de-risking through partner monetizations.

Healthy Returns on Equity

ROE near 12% suggests management historically earns solid returns on invested capital, reflecting efficient project selection and operations. This level of recurring profitability supports reinvestment capacity and investor returns, assuming capital structure and cash generation remain manageable.

Negative Factors

Elevated Leverage

Material rise in debt-to-equity to ~3.6x materially increases financial risk and reduces balance-sheet flexibility. Higher leverage raises refinancing and interest-rate sensitivity, limiting the firm's ability to fund new projects organically and amplifying downside if project cash flows or power prices weaken.

Weak Cash Generation

Persistent deeply negative free cash flow (TTM ~-2.3B) and operating cash flow at only ~8% of net income show cash conversion weakness. This forces reliance on external financing for capex and growth, raising vulnerability to tighter credit or higher funding costs and constraining shareholder returns.

Revenue and Operational Momentum Weakening

A recent decline in TTM revenue and compressed operating margins signal emerging demand, pricing, or production-mix pressures. If persistent, these trends could erode the company's ability to cover higher financing costs and to self-fund expansion, increasing execution risk on the project pipeline.

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 makes money primarily by generating and selling electricity from its renewable energy assets. Its core revenue stream is power sales from operating projects (e.g., solar and wind plants), which may be sold under long-term power purchase agreements (PPAs), government-regulated tariffs, or other contracted/offtake structures where applicable; where contracts are not used, revenue may be exposed to merchant power prices in the relevant market. Additional earnings can come from development-related activities such as bringing new projects through permitting and interconnection to a build-ready stage and then monetizing them via asset sales, partial sell-downs to partners, or recycling capital into new projects (when and if the company pursues those strategies). The company’s profitability is influenced by factors including installed capacity and capacity factors of its plants, prevailing electricity prices and contract terms (indexation, curtailment rules, and duration), availability of grid connections, operating and maintenance costs, financing structure (project-level debt and interest rates), and the pace at which new projects move from pipeline to operation. Specific information on material partnerships, customer concentration, or the exact split of revenues between contracted vs. merchant sales is null.

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: Positive
• 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 Positive. The current price of 1630 is below the 20-day moving average (MA) of 2044.56, below the 50-day MA of 1982.39, and above the 200-day MA of 1524.23, indicating a bullish trend. The MACD of -10.66 indicates Positive momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 50.25 is Neutral, 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
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENLT	58 Neutral	₪31.24B	58.36	4.89%	―	21.55%	139.11%
ENRG	55 Neutral	₪12.13B	35.44	―	2.25%	-1.14%	6.47%
ECNR	54 Neutral	₪4.77B	-167.26	―	―	-9.53%	-125.66%
MSKE	52 Neutral	₪9.33B	71.54	―	―	―	―
DORL	47 Neutral	₪13.25B	-11.76	―	―	113.54%	-242.38%
NOFR	44 Neutral	₪6.48B	-219.79	―	―	5.79%	-13.05%