Isracard (ISCD) AI Stock Analysis

• Market Cap: 4.46B
• Dividend Yield: 2.75%
• Average Volume (3M): 846.62K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.90
• Revenue Growth: 3.97%
• EPS Growth: -103.71%
• Country: IL
• Employees: 1,997
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): -74.10
• Shares Outstanding: 325,398,300
• 10 Day Avg. Volume: 642,059
• 30 Day Avg. Volume: 846,616
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1,417.98
• Price Target Upside: 3.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: 1,419.00 ▲(3.50% Upside)

The overall stock score of 61 reflects strong financial performance with robust revenue growth and cash flow generation. However, technical indicators suggest bearish momentum, and the valuation is concerning due to the negative P/E ratio. The lack of earnings call data and corporate events means these factors did 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 shows strong revenue growth and efficient cost management, reflected in its high gross profit margins. Operational efficiency is solid, but there is room for improvement in net profitability. The balance sheet reflects increasing leverage, which could pose financial risks. Cash flow generation is robust, though there is a recent decline in free cash flow growth. Overall, the company is financially stable with areas for improvement in profitability and leverage management.

Income Statement

The company's revenue has shown consistent growth with a notable increase from 2022 to TTM. The gross profit margin is strong at 102.05% for TTM, indicating efficient cost management. The net profit margin is somewhat modest at 6.25% for TTM, which suggests room for profitability improvement. EBIT and EBITDA margins are respectable at 44.57% and 27.12%, respectively, for TTM, reflecting solid operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased to 0.84 in TTM, indicating higher leverage, which could pose a risk. Return on equity is moderate at 6.62% for TTM, suggesting decent shareholder returns. However, the equity ratio is 11.74% for TTM, indicating a lower proportion of equity financing, which typically increases financial risk.

Cash Flow

The company has maintained strong operating cash flows with an operating cash flow to net income ratio of 4.46 for TTM, indicating robust cash generation relative to net income. The free cash flow to net income ratio is also healthy at 3.68 for TTM, suggesting efficient cash flow management. However, free cash flow growth has declined from the previous period, indicating a potential area of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53B	3.37B	3.23B	2.66B	2.30B	2.09B
Gross Profit	2.59B	2.67B	2.59B	2.13B	1.85B	1.61B
EBITDA	663.00M	966.00M	912.00M	852.00M	846.00M	525.00M
Net Income	-11.00M	264.00M	252.00M	155.00M	343.00M	93.00M
Balance Sheet
Total Assets	25.35B	25.60B	22.51B	22.68B	22.44B	23.92B
Cash, Cash Equivalents and Short-Term Investments	349.00M	1.00B	902.00M	1.85B	4.63B	125.00M
Total Debt	3.74B	2.44B	2.19B	1.06B	1.44B	5.21B
Total Liabilities	22.37B	22.42B	19.50B	19.88B	19.66B	21.47B
Stockholders Equity	2.98B	3.17B	3.00B	2.79B	2.78B	2.45B
Cash Flow
Free Cash Flow	-222.00M	937.00M	-127.00M	42.00M	8.63B	841.00M
Operating Cash Flow	-53.00M	1.10B	34.00M	214.00M	8.81B	1.01B
Investing Cash Flow	-1.96B	-1.15B	-2.08B	-2.48B	-223.00M	38.00M
Financing Cash Flow	1.50B	155.00M	1.07B	-506.00M	-4.06B	-1.12B

Isracard Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1371.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1371 is above the 20-day moving average (MA) of 1364.70, below the 50-day MA of 1395.16, and above the 200-day MA of 1248.98, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	854.79M	11.23		―	―	―
PEN	73 Outperform	727.32M	10.99		5.62%	27.66%	46.91%
MNIF	70 Outperform	1.27B	7.59		4.21%	24.31%	21.51%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
NAWI	66 Neutral	1.79B	10.91		5.94%	―	―
DIFI	64 Neutral	1.42B	13.51		5.18%	6.88%	-13.14%
ISCD	61 Neutral	4.46B	12.64	-0.51%	2.75%	3.97%	-103.71%

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.