Hilan (HLAN) AI Stock Analysis

• Market Cap: 6.19B
• Dividend Yield: 1.88%
• Average Volume (3M): 32.91K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.07
• Revenue Growth: 7.39%
• EPS Growth: 10.64%
• Country: IL
• Employees: 5,517
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 243.20
• Shares Outstanding: 22,947,678
• 10 Day Avg. Volume: 32,343
• 30 Day Avg. Volume: 32,906
• PEG Ratio: 1.18
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 13.54
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 30,241.00 ▲(13.52% Upside)

Hilan's strong financial performance, characterized by robust revenue growth and efficient cash flow management, is the most significant factor contributing to the stock's score. Technical analysis supports a positive outlook with bullish momentum, although some caution is warranted due to potential overbought conditions. The valuation is reasonable, providing a balanced view of the stock's current market position.

Positive Factors

Revenue Growth

The impressive revenue growth rate highlights Hilan's ability to expand its market presence and drive sales, supporting long-term business sustainability.

Cash Flow Management

Strong cash flow management ensures that Hilan can fund its operations and growth initiatives, providing a solid foundation for future expansion.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing Hilan to navigate economic fluctuations more effectively.

Negative Factors

Equity Growth

Limited equity growth may constrain Hilan's ability to invest in new opportunities, potentially impacting its competitive position over time.

Profit Margins

While profitability is solid, relatively modest net margins may limit reinvestment capabilities and affect competitive pricing strategies.

Equity Ratio

A moderate equity ratio indicates reliance on external financing, which could limit strategic flexibility in capital-intensive projects.

Hilan Business Overview & Revenue Model

Company Description

Hilan Ltd., a software as a service (SaaS) provider, develops solutions for management of enterprise human capital in Israel. It provides solutions for payroll, HR, time and attendance, pension, analytics, and BPO; and managing the employee lifecycle from recruitment to retirement. The company also offers information technology (IT) infrastructure, security, and data management; and IT solutions, including big data, data storage, backup and virtualization, cloud SaaS, data, and cyber security. It serves customers in the industry, high-tech, finance, academic, communication, health care, municipal, transportation, retail, government, education, social care, association, and hotel sectors. The company is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Hilan generates revenue primarily through the sale of its software solutions, which includes licensing fees for its proprietary applications and subscription-based models for its cloud services. Key revenue streams also include consulting and support services provided to clients, which help them implement and optimize Hilan's solutions. Additionally, Hilan has formed strategic partnerships with other technology firms and industry leaders, allowing for collaborative product offerings and expanded market reach. These partnerships enhance the company's ability to attract new customers and retain existing ones, contributing significantly to its overall earnings.

Hilan Financial Statement Overview

Summary

Hilan demonstrates strong financial health with impressive revenue growth of 22.1% and solid profitability metrics, including a net profit margin of 8.75%. The balance sheet is stable with a manageable debt-to-equity ratio of 0.25 and a strong ROE of 22.92%. Cash flow is robust, with a free cash flow growth rate of 212%. Minor concerns include cost pressures and cash flow volatility.

Income Statement

Hilan demonstrates strong revenue growth with a TTM increase of 22.1%, indicating robust demand for its services. The company maintains healthy profitability with a gross profit margin of 22.99% and a net profit margin of 8.75%. EBIT and EBITDA margins are also solid at 12.08% and 16.09%, respectively. These metrics reflect effective cost management and operational efficiency. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.25, indicating prudent leverage. The return on equity (ROE) is strong at 22.92%, showcasing effective utilization of shareholder funds. The equity ratio stands at 45.17%, reflecting a solid capital structure. However, the slight increase in debt levels over the years warrants monitoring to ensure continued financial stability.

Cash Flow

Hilan's cash flow is robust, with a free cash flow growth rate of 212% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.61, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.89 suggests effective cash management. However, fluctuations in free cash flow growth in previous years suggest potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	2.84B	2.59B	2.23B	1.71B	1.63B
Gross Profit	697.94M	643.46M	575.54M	516.18M	405.01M	383.41M
EBITDA	491.89M	450.73M	396.53M	338.49M	270.45M	263.59M
Net Income	263.07M	246.52M	216.16M	173.51M	151.20M	130.42M
Balance Sheet
Total Assets	2.71B	3.11B	2.35B	2.03B	1.48B	1.42B
Cash, Cash Equivalents and Short-Term Investments	302.77M	343.00M	300.63M	186.98M	298.36M	222.67M
Total Debt	268.55M	302.14M	290.31M	253.53M	151.32M	225.12M
Total Liabilities	1.48B	1.95B	1.34B	1.19B	873.68M	910.75M
Stockholders Equity	1.21B	1.14B	995.64M	833.22M	595.79M	502.96M
Cash Flow
Free Cash Flow	422.34M	366.48M	297.67M	228.00M	256.73M	274.13M
Operating Cash Flow	441.42M	422.87M	355.51M	245.07M	268.34M	281.30M
Investing Cash Flow	-106.86M	-182.39M	-64.10M	-385.06M	-9.86M	-75.63M
Financing Cash Flow	-227.88M	-198.24M	-177.53M	21.86M	-182.35M	-111.97M

Hilan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26640.00
• 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:HLAN, the sentiment is Positive. The current price of 26640 is below the 20-day moving average (MA) of 26747.38, above the 50-day MA of 26272.03, and above the 200-day MA of 25334.25, indicating a bullish trend. The MACD of 229.10 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 42.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:HLAN.

Hilan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLAN	76 Outperform	6.19B	23.52	22.56%	1.88%	7.39%	10.64%
ONE	76 Outperform	6.76B	25.38	―	2.55%	14.11%	25.79%
FORTY	73 Outperform	8.67B	33.78	―	2.68%	1.94%	-8.81%
MTRX	66 Neutral	9.13B	30.80	―	2.43%	8.82%	14.25%
MLTM	62 Neutral	2.89B	28.38	―	―	11.90%	13.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%