Israel Corp (ILCO) AI Stock Analysis

• Market Cap: ₪6.06B
• Dividend Yield: 0.85%
• Average Volume (3M): 9.97K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.09
• Revenue Growth: -2.93%
• EPS Growth: -20.58%
• Country: IL
• Employees: 13,067
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2062.10
• Shares Outstanding: 7,572,864
• 10 Day Avg. Volume: 13,884
• 30 Day Avg. Volume: 9,968
• PEG Ratio: -0.35
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 2.77
• 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: 98,209.00 ▲(8.34% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

The overall stock score of 59 reflects a stable financial position but highlights significant challenges in profitability and cash flow growth. Technical analysis indicates bearish momentum, which weighs heavily on the score. Valuation is a relative strength, suggesting the stock is fairly priced, but market sentiment remains weak.

Positive Factors

Diversified industrial holding across chemicals, energy, shipping

ILCO’s diversified holding structure spans specialty chemicals, fertilizers, energy and maritime shipping, which provides multiple, structurally different cash‑flow streams. That diversification reduces single‑sector cyclicality and supports resilience across commodity and trade cycles over months to years.

Conservative balance sheet with low leverage

A debt-to-equity ratio around 0.20 and a solid equity ratio provide durable financial flexibility, lowering default and refinancing risks. This conservative capital structure supports measured capital allocation, ability to fund capex or acquisitions and resilience through commodity or shipping downturns over the medium term.

Reasonable cash conversion of earnings to free cash flow

Converting roughly half of reported earnings into operating and free cash flow demonstrates underlying cash generation capability. Even with recent declines, >50% conversion supports dividends, maintenance capex and selective investments, providing a stable base for shareholder returns and operations.

Negative Factors

Declining free cash flow growth

A ~25.7% drop in free cash flow growth materially reduces internal funding for growth, capex and shareholder distributions. If sustained, the decline constrains strategic flexibility, increases reliance on external financing and elevates execution risk for medium‑term investment plans.

Compressed profitability and low net margins

Healthy gross margin but compressed EBIT and especially low net margin leave little buffer for shocks. Narrow net profitability increases sensitivity to cost rises or price volatility in chemicals, energy or shipping, limiting retained earnings available for reinvestment and slowing sustainable growth.

Weak earnings growth and modest returns on equity

Significant negative EPS growth paired with a low ROE (~5.5%) signals difficulty converting capital into higher shareholder returns. Persistent weak earnings growth and modest ROE could reflect operational challenges or cyclicality in core businesses, limiting long‑term value creation.

Israel Corp Business Overview & Revenue Model

Company Description

Israel Corporation Ltd, through its investee companies, operates in the specialty minerals and refining businesses in Asia, Europe, South America, North America, and internationally. The company offers bromine and bromine-based compounds; salts, magnesium chloride, magnesia-based products, phosphorus-based flame retardants, and functional fluids; potash and electricity; phosphate-based specialty products; and controlled release fertilizers, water soluble fertilizers, liquid fertilizers and straights, FertilizerspluS range products, soil and foliar micronutrients, secondary nutrients, biostimulants, soil conditioners, seed treatment products, and adjuvants. It also produces fuel products; raw materials for the petrochemical industry; and materials for the plastics industry, as well as provides power and water services to various industries in Haifa. The company is based in Tel Aviv, Israel.

How the Company Makes Money

Israel Corp generates revenue through multiple key streams, primarily from its subsidiaries in the chemicals and energy sectors. The company earns significant income from the production and sale of specialty chemicals and fertilizers, which are essential for agriculture and industrial applications. Additionally, the energy division contributes to the revenue through the operation of natural gas and other energy-related services. The shipping segment, through Zim Integrated Shipping Services, generates income by providing maritime transportation solutions and logistics services globally. Strategic partnerships and joint ventures in these sectors enhance ILCO's market position and revenue potential, allowing the company to leverage synergies and expand its operational capabilities.

Israel Corp Financial Statement Overview

Summary

Israel Corp demonstrates a stable financial position with low leverage and a strong equity base. However, challenges in maintaining profitability and cash flow growth are evident. Revenue growth has resumed, but margin compression and declining free cash flow growth could pose risks to future financial performance.

Income Statement

Israel Corp's income statement shows a mixed performance. The TTM data indicates a modest revenue growth rate of 1.44%, which is a positive sign after previous declines. However, margins have compressed compared to prior years, with the net profit margin at 2.27% and EBIT margin at 11.38%. The gross profit margin remains healthy at 32.23%, but the declining trend in profitability metrics suggests potential challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.20, indicating low leverage and financial stability. The return on equity (ROE) is modest at 5.49%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 22.81%, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, down by 25.74% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.49, indicating adequate cash generation relative to earnings. The free cash flow to net income ratio of 0.52 suggests that a significant portion of earnings is converted into free cash flow, though the declining trend is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.05B	6.84B	7.54B	10.02B	6.96B	5.04B
Gross Profit	2.25B	2.25B	2.67B	5.03B	2.61B	1.49B
EBITDA	1.48B	1.43B	1.71B	4.06B	1.93B	711.00M
Net Income	155.00M	190.00M	273.00M	953.00M	88.00M	-173.00M
Balance Sheet
Total Assets	13.40B	12.49B	12.89B	13.09B	12.26B	11.08B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.32B	1.57B	1.56B	1.14B	1.06B
Total Debt	1.02B	604.00M	1.05B	3.96B	4.61B	4.44B
Total Liabilities	6.57B	6.11B	6.53B	7.24B	7.98B	7.32B
Stockholders Equity	3.06B	2.82B	2.78B	2.46B	1.54B	1.40B
Cash Flow
Free Cash Flow	505.00M	710.00M	1.04B	1.46B	497.00M	290.00M
Operating Cash Flow	1.14B	1.42B	1.82B	2.21B	1.11B	917.00M
Investing Cash Flow	-820.00M	-343.00M	-1.10B	-748.00M	-830.00M	-398.00M
Financing Cash Flow	-455.00M	-979.00M	-931.00M	-1.16B	-403.00M	-192.00M

Israel Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90650.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ILCO, the sentiment is Negative. The current price of 90650 is above the 20-day moving average (MA) of 90247.50, below the 50-day MA of 90692.00, and below the 200-day MA of 102185.20, indicating a bearish trend. The MACD of -1802.37 indicates Positive momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 25.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ILCO.

Israel Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIMO	82 Outperform	₪378.00M	10.02	―	10.50%	-5.25%	-8.54%
TRPZ	70 Outperform	₪8.21B	124.42	―	0.46%	44.88%	21.45%
KAFR	69 Neutral	₪649.67M	9.59	―	3.17%	-0.71%	2.35%
POLP	63 Neutral	₪1.02B	18.70	―	3.80%	-6.28%	-41.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ILCO	59 Neutral	₪6.06B	11.02	5.48%	0.85%	-2.93%	-20.58%