Isracard (ISCD) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: 266.02%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.85
• Revenue Growth: 2.13%
• EPS Growth: -20.89%
• Country: IL
• Employees: 1,997
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 3.50
• Shares Outstanding: 325,355,740
• 10 Day Avg. Volume: 2,686,600
• 30 Day Avg. Volume: 1,524,696
• PEG Ratio: -0.86
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.76
• 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: $1,822.13
• Price Target Upside: 30.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: 2,428.00 ▲(74.18%Upside)

Isracard's strong financial performance and positive technical indicators are significant strengths, driving the overall score. However, the high P/E ratio suggests potential overvaluation, which may limit upside potential. The absence of new guidance or notable corporate events means these factors do not influence the score.

Isracard Business Overview & Revenue Model

Company Description

Isracard Ltd. is one of Israel's leading credit card companies, operating primarily within the financial services sector. It offers a wide range of credit card products and services, including issuing credit cards, processing transactions, and providing financial solutions to both individual consumers and businesses. Isracard is known for its comprehensive portfolio of credit card offerings, including various branded and co-branded cards, catering to diverse customer needs in the Israeli market.

How the Company Makes Money

Isracard generates revenue through multiple streams primarily centered around its credit card operations. The company earns money through interchange fees, which are charged to merchants for processing credit card transactions. Additionally, Isracard collects interest and fees from cardholders on outstanding credit balances, late payments, and other credit-related services. The company also benefits from partnerships with banks and retailers, offering co-branded credit cards that drive additional transaction volumes and customer engagement. Furthermore, Isracard provides value-added services such as insurance products, financial advisory, and payment solutions, contributing to its diversified income sources.

Isracard Financial Statement Overview

Summary

Isracard has shown consistent revenue growth with a strong gross profit margin. Improved leverage management is evident from a decreasing debt-to-equity ratio. However, cash flow volatility and challenges in maintaining consistent free cash flow generation are areas that need 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.31B	3.37B	3.23B	2.66B	2.30B	2.09B
Gross Profit	3.38B	2.67B	2.59B	2.13B	1.85B	1.61B
EBITDA	899.00M	966.00M	912.00M	852.00M	846.00M	525.00M
Net Income	207.00M	264.00M	252.00M	155.00M	343.00M	93.00M
Balance Sheet
Total Assets	26.66B	25.60B	22.51B	22.68B	22.44B	23.92B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.00B	902.00M	1.85B	4.63B	125.00M
Total Debt	2.64B	2.44B	2.19B	1.06B	1.44B	5.21B
Total Liabilities	23.53B	22.42B	19.50B	19.88B	19.66B	21.47B
Stockholders Equity	3.13B	3.17B	3.00B	2.79B	2.78B	2.45B
Cash Flow
Free Cash Flow	761.00M	937.00M	-127.00M	42.00M	8.63B	841.00M
Operating Cash Flow	923.00M	1.10B	34.00M	214.00M	8.81B	1.01B
Investing Cash Flow	-1.48B	-1.15B	-2.08B	-2.48B	-223.00M	38.00M
Financing Cash Flow	250.00M	155.00M	1.07B	-506.00M	-4.06B	-1.12B

Isracard Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1394.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ISCD, the sentiment is Neutral. The current price of 1394 is below the 20-day moving average (MA) of 1451.63, above the 50-day MA of 1311.76, and above the 200-day MA of 1200.80, indicating a neutral trend. The MACD of 32.62 indicates Positive momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	911.58M	12.24		―	―	―
ISCD	79 Outperform	$4.73B	14.10	6.70%	266.02%	2.13%	-20.89%
NAWI	76 Outperform	2.11B	12.72		405.72%	―	―
MNIF	74 Outperform	1.46B	9.05		361.06%	24.68%	21.90%
PEN	73 Outperform	855.86M	14.56		418.96%	9.30%	-0.76%
DIFI	69 Neutral	1.66B	14.42		475.38%	14.62%	-12.09%
Sector *	67 Neutral	¥752.53B	11.08	7.55%	3.21%	7.70%	14.15%

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.