Isracard (ISCD) AI Stock Analysis

• Market Cap: $3.25B
• Dividend Yield: 3.3%
• Average Volume (3M): 429.47K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.84
• Revenue Growth: 2.13%
• EPS Growth: -20.89%
• Country: IL
• Employees: 1,997
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 3.50
• Shares Outstanding: 202,562,530
• 10 Day Avg. Volume: 286,608
• 30 Day Avg. Volume: 429,468
• PEG Ratio: -0.25
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.33
• 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

• Rating: 64 Neutral
• Price Target: 1,771.00 ▲(12.09%Upside)

Isracard exhibits strong financial performance with robust revenue growth and improved profitability, balanced by cash flow challenges. Technical analysis indicates bearish momentum, suggesting potential short-term price weakness. The valuation is reasonable with a good dividend yield, providing a balanced risk-reward scenario.

Isracard Business Overview & Revenue Model

Company Description

Isracard (ISCD) is one of Israel's leading credit card companies, providing a wide range of financial services including credit card issuance, payment processing, and financial technology solutions. The company operates primarily within the financial sector, focusing on consumer and business credit card products, loyalty programs, and digital payment solutions. Isracard is known for its comprehensive suite of credit cards, offering various benefits and rewards to cater to diverse customer needs.

How the Company Makes Money

Isracard makes money primarily through fees and interest associated with its credit card products. Key revenue streams include interchange fees, which are charged to merchants for processing card transactions, and interest income from cardholders who carry a balance on their credit cards. The company also earns from annual card fees, late payment fees, and other service charges. Additionally, Isracard generates revenue from partnerships with banks and retail brands, offering co-branded credit card programs and loyalty incentives. These partnerships enhance customer acquisition and retention, contributing to Isracard's earnings.

Isracard Financial Statement Overview

Summary

Isracard shows strong revenue growth and improved profitability ratios, reflecting effective operational management. The debt-to-equity ratio has improved, indicating good leverage management. However, cash flow volatility and inconsistent free cash flow generation are areas for improvement.

Income Statement

Isracard's revenue growth has been consistent, increasing from 2,093 million in 2020 to 3,365 million in 2024, representing a compound annual growth rate (CAGR) of approximately 12.5%. Gross profit margin remains robust at nearly 79.3% for 2024. However, EBIT margin declined significantly in 2023 due to a surge in interest and operating expenses, though it recovered to 24% in 2024. Net profit margin of 7.8% in 2024 is stable but relatively lower than previous years due to increased operational costs.

Balance Sheet

The debt-to-equity ratio decreased from 2.54 in 2019 to 0.77 in 2024, indicating improved leverage management. However, the equity ratio has been relatively stable around 12% in 2024, suggesting a balanced financial structure. Return on equity increased from 3.8% in 2020 to 8.3% in 2024, demonstrating improved profitability and utilization of equity.

Cash Flow

Operating cash flow has shown volatility, with a significant drop in 2023 but strong recovery in 2024 to 1,099 million. Free cash flow turned positive in 2024 after recovering from negative figures in 2023, indicating improved cash generation. However, the free cash flow to net income ratio shows inconsistency, reflecting potential cash management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.37B	3.23B	2.66B	2.30B	2.09B
	Gross Profit
2.67B	2.59B	2.13B	1.85B	1.61B
	EBIT
807.00M	752.00M	716.00M	714.00M	354.00M
	EBITDA
966.00M	912.00M	852.00M	846.00M	525.00M
	Net Income Common Stockholders
264.00M	252.00M	155.00M	343.00M	93.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.00B	902.00M	1.85B	4.63B	125.00M
	Total Assets
25.60B	22.51B	22.68B	22.44B	23.92B
	Total Debt
2.44B	2.19B	1.06B	1.44B	5.21B
	Net Debt
1.45B	1.29B	-786.00M	-3.19B	5.09B
	Total Liabilities
22.42B	19.50B	19.88B	19.66B	21.47B
	Stockholders Equity
3.17B	3.00B	2.79B	2.78B	2.45B
Cash Flow		Free Cash Flow
937.00M	-127.00M	42.00M	8.63B	841.00M
	Operating Cash Flow
1.10B	34.00M	214.00M	8.81B	1.01B
	Investing Cash Flow
-1.15B	-2.08B	-2.48B	-223.00M	38.00M
	Financing Cash Flow
155.00M	1.07B	-506.00M	-4.06B	-1.12B

Isracard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1580.00
• 50DMA: Negative
• 100DMA: Negative
• 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:ISCD, the sentiment is Negative. The current price of 1580 is below the 20-day moving average (MA) of 1680.50, below the 50-day MA of 1696.50, and above the 200-day MA of 1555.09, indicating a neutral trend. The MACD of -24.10 indicates Positive momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 23.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ISCD.

Isracard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JCFN	80 Outperform	809.31M	11.42		―	―	―
MNIF	79 Outperform	1.30B	8.49		2.61%	27.52%	22.38%
PEN	73 Outperform	564.94M	9.61		7.56%	9.30%	-0.76%
NAWI	68 Neutral	1.86B	11.22		4.68%	―	―
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
ISCD	64 Neutral	$3.25B	15.55	6.70%	3.30%	2.13%	-20.89%
DIFI	61 Neutral	1.46B	12.74		0.04%	14.62%	-12.09%

Isracard Corporate Events

Isracard Announces Key Shareholder Meeting to Decide on Strategic Proposals

Isracard Ltd. has announced an Extraordinary General Meeting on February 20, 2025, for its shareholders to consider several significant proposals. Key items on the agenda include the approval of a merger proposal requiring a 75% affirmative vote, the distribution of a cash dividend, an increase in the company’s share capital, and amendments to the Articles of Association. These decisions, particularly the merger and capital increase, could have substantial implications for Isracard’s strategic positioning and shareholder value.

Bank of Jerusalem Finalizes Improved Offer for Isracard Acquisition

The Bank of Jerusalem has made an improved offer to acquire the entire share capital of Isracard through a reverse triangular merger. In their latest communication, the bank informed Isracard that no further changes will be made to their proposal, highlighting a significant step forward in the potential acquisition, which may affect Isracard’s operational dynamics and market positioning.