Israel Corp (ILCO) AI Stock Analysis

• Market Cap: ₪6.98B
• Dividend Yield: 0.85%
• Average Volume (3M): 9.97K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.02
• Revenue Growth: -2.93%
• EPS Growth: -20.58%
• Country: US
• 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: 97,290.00 ▲(7.32% Upside)

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 Business Mix

Israel Corp's exposure across specialty chemicals, energy and global shipping provides durable revenue diversification and reduces single-market cyclicality. This structure supports steady cash inflows, cross-subsidiary investment optionality and resilience to sector-specific downturns over multiple quarters.

Low Financial Leverage

A debt-to-equity of 0.20 gives Israel Corp substantial balance sheet flexibility to fund capex, support subsidiaries or pursue strategic M&A without straining credit metrics. Low leverage materially reduces bankruptcy risk and preserves capacity to navigate industry cycles over the medium term.

Robust Gross Margin

A sustained gross margin above 30% suggests structural pricing power in specialty chemicals and differentiated product mixes. Strong underlying gross profitability provides a buffer against input cost volatility and supports operating leverage potential if SG&A and overhead are controlled over subsequent reporting periods.

Negative Factors

Declining Free Cash Flow Growth

A significant TTM decline in free cash flow growth erodes internal funding for reinvestment, dividends and debt reduction. Persistently weaker FCF constrains strategic options, may force external financing for capex or acquisitions, and reduces the firm's ability to smooth payouts through industry cycles.

Compressed Profitability

Material margin compression to low net margins indicates rising cost pressures or weaker pricing at the operating level. Sustained margin deterioration undermines reinvestment capacity and return generation, making it harder to translate revenue into durable shareholder value across multiple quarters.

Modest Return on Equity

An ROE near 5.5% signals limited effectiveness in converting equity into profits, suggesting either low capital efficiency or underperforming asset returns. Over the medium term this limits shareholder value creation and raises questions about management's ability to allocate capital to higher-return opportunities.

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: Positive
• Last Price: 90650.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 90650 is below the 20-day moving average (MA) of 91591.50, above the 50-day MA of 88244.40, and below the 200-day MA of 104459.97, indicating a neutral trend. The MACD of 1333.40 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₪416.49M	11.04	―	10.50%	-5.25%	-8.54%
TRPZ	70 Outperform	₪8.51B	128.97	―	0.46%	44.88%	21.45%
KAFR	69 Neutral	₪643.16M	9.50	―	3.17%	-0.71%	2.35%
POLP	63 Neutral	₪1.10B	20.21	―	3.80%	-6.28%	-41.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ILCO	59 Neutral	₪6.98B	12.70	5.48%	0.85%	-2.93%	-20.58%