Harel (HARL) AI Stock Analysis

• Market Cap: $19.44B
• Dividend Yield: 5.14%
• Average Volume (3M): 485.48K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.58
• Revenue Growth: -10.79%
• EPS Growth: 67.20%
• Country: IL
• Employees: 5,158
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Diversified
• EPS (TTM): 174.00
• Shares Outstanding: 206,140,370
• 10 Day Avg. Volume: 667,280
• 30 Day Avg. Volume: 485,482
• PEG Ratio: -0.30
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.63
• 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: $9,746.84
• Price Target Upside: 4.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: 10,514.00 ▲(13.15%Upside)

The overall stock score of 73 reflects Harel's strong technical indicators and attractive valuation amidst financial performance challenges. The stock benefits from bullish momentum and a good dividend yield, offset by high leverage and cash flow issues.

Harel Business Overview & Revenue Model

Company Description

Harel (HARL) is a diversified company operating within distinct sectors, primarily focusing on insurance and financial services. The company offers a range of products and services including life insurance, non-life insurance, and pension fund management. Harel is known for its robust insurance solutions that cater to both individual and corporate clients, and its commitment to providing financial security and risk management.

How the Company Makes Money

Harel makes money through a diversified revenue model primarily driven by premium collections from its insurance products, including life and non-life insurance policies. The company also generates revenue from managing pension funds, where it earns fees based on assets under management. Additionally, Harel invests its collected premiums in various financial instruments, which contributes to its investment income. Key partnerships with financial institutions and strategic investments in technology further enhance its service offerings and expand its client base, contributing to its overall earnings.

Harel Financial Statement Overview

Summary

Harel's financial performance is characterized by strong revenue growth and improving profitability, as seen in the income statement. However, the high leverage on the balance sheet and negative cash flow present significant risks. The company needs to focus on improving operational efficiencies and managing its leverage to sustain growth and mitigate these risks.

Income Statement

Harel demonstrates strong revenue growth, with a recent TTM revenue of $27.16 billion, up from $24.86 billion in the previous year, marking a growth rate of 11.21%. The gross profit margin is consistently high at 100%, indicating strong pricing power or cost management. Net profit margin improved to 3.48% from 1.95%, reflecting enhanced profitability. However, EBIT and EBITDA margins are relatively modest at 4.99% and 9.03%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 2.03, indicating significant leverage but typical for a financial conglomerate. Return on equity is healthy at 10.38%, showcasing effective use of equity capital. The equity ratio stands at 5.75%, suggesting a heavy reliance on liabilities which could pose risks in volatile markets. Overall, while there is solid equity growth, the high leverage could be a concern.

Cash Flow

Harel's cash flow situation has deteriorated, with a negative free cash flow of -$3.53 billion as opposed to a positive $3.02 billion previously. The operating cash flow to net income ratio is negative, highlighting operational cash flow challenges. Despite negative free cash flow, there is potential for improvement if cost management and operational efficiencies are addressed.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.16B	24.86B	12.69B	27.48B	18.72B
Gross Profit	27.16B	24.86B	12.69B	27.48B	18.72B
EBITDA	2.45B	1.53B	2.05B	2.31B	1.18B
Net Income	946.00M	485.00M	906.00M	1.21B	724.00M
Balance Sheet
Total Assets	158.66B	144.81B	135.27B	137.67B	119.75B
Cash, Cash Equivalents and Short-Term Investments	25.53B	26.50B	24.89B	26.25B	21.78B
Total Debt	18.50B	10.95B	7.28B	7.14B	6.03B
Total Liabilities	149.46B	135.85B	126.88B	128.78B	111.99B
Stockholders Equity	9.12B	8.89B	8.34B	8.86B	7.74B
Cash Flow
Free Cash Flow	-3.52B	3.02B	1.60B	1.13B	1.07B
Operating Cash Flow	-3.06B	3.47B	1.98B	1.49B	1.41B
Investing Cash Flow	-1.02B	-511.00M	-371.00M	-632.00M	-203.00M
Financing Cash Flow	1.45B	1.01B	-1.01B	581.00M	35.00M

Harel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9292.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HARL, the sentiment is Positive. The current price of 9292 is above the 20-day moving average (MA) of 7913.25, above the 50-day MA of 6919.88, and above the 200-day MA of 5408.56, indicating a bullish trend. The MACD of 688.50 indicates Negative momentum. The RSI at 82.88 is Negative, neither overbought nor oversold. The STOCH value of 94.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:HARL.

Harel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHOE	74 Outperform	24.07B	11.20		3.75%	-11.69%	105.99%
HARL	73 Outperform	$19.44B	15.79	12.96%	5.14%	-10.79%	67.20%
MMHD	72 Outperform	16.63B	13.53		3.63%	-2.35%	80.26%
IDIN	67 Neutral	3.24B	10.88		6.79%	25.90%	68.30%
MGDL	67 Neutral	10.12B	13.20		0.61%	-16.50%	29.61%
Sector *	64 Neutral	$6.62B	10.86	6.59%	5.05%	24.65%	0.99%
CLIS	63 Neutral	12.35B	11.34		1.69%	―	―

Harel Corporate Events

Harel Insurance Company Shows Resilience Amid Solvency Ratio Decline

Harel Insurance Company is experiencing a decrease in solvency ratio, projected to reach 167% by the end of 2024 due to financial market changes and regulatory adjustments. Despite this, the company maintains strong capital adequacy and stable profitability from insurance activities, underscoring its resilience and commitment to market position amidst global financial challenges.