Israel Canada (ISCN) AI Stock Analysis

• Market Cap: ₪6.03B
• Dividend Yield: 0.45%
• Average Volume (3M): 774.36K
• Price to Earnings (P/E): 119.4
• Beta (1Y): 1.91
• Revenue Growth: 48.74%
• EPS Growth: -82.72%
• Country: IL
• Employees: 104
• Sector: Services
• Sector Strength: N/A
• Industry: Real Estate - Development
• EPS (TTM): 20.50
• Shares Outstanding: 341,097,260
• 10 Day Avg. Volume: 1,105,504
• 30 Day Avg. Volume: 774,364
• PEG Ratio: -0.05
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 9.08
• P/FCF Ratio: -30.70
• 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: 1,831.00 ▼(-0.76% Downside)

The score is held back primarily by financial risk factors—high leverage and negative operating/free cash flow—despite strong revenue growth. Technicals are supportive with a strong uptrend and positive momentum, but valuation is a major headwind due to the very high P/E and low dividend yield.

Positive Factors

Strong Revenue Growth

Sustained ~31% TTM revenue growth signals durable demand for ISCN's development and asset-management services. Over 2–6 months this top-line momentum supports scale, recurring rental and fee income, and provides scope to invest in projects and improve operating leverage if margins are managed.

Diversified Real Estate Business Model

A business model spanning development, asset management, leasing and transaction fees creates multiple revenue levers and reduces single-market reliance. Structural diversification supports resilient cash flows over cycles and helps sustain deal flow via partnerships with developers and financial institutions.

Improving Net Margin

An improved net margin suggests management has achieved short-term operational efficiencies or higher-yield projects. If sustained, margin improvement can convert revenue growth into stronger free cash generation and equity returns, aiding deleveraging and reinvestment in the portfolio.

Negative Factors

High Financial Leverage

A D/E of ~2.8 indicates material leverage that increases interest expense and refinancing sensitivity. Over several months this constrains capital flexibility, raises downside risk in a rate shock or property slowdown, and limits the company's ability to fund new projects internally.

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow undermines the firm's ability to service debt, fund developments, or return cash to shareholders without external financing. Structurally weak cash generation increases refinancing and liquidity risk, especially given elevated leverage.

Weakened Gross Margin and Profitability Volatility

Declining gross margins point to rising development or operating costs and compress unit economics. Coupled with historical profit volatility, this reduces predictability of earnings and ROE, making long-term returns less reliable absent sustained cost control or pricing power.

Israel Canada Business Overview & Revenue Model

Company Description

Pangaea Real-Estate Ltd. is a principal investment firm specializing in investments in real estate. The firm seeks to invest in Europe. Pangaea Real-Estate Ltd. was founded in 2000 and is based in Ramat Gan, Israel.

How the Company Makes Money

ISCN generates revenue primarily through its real estate investments and property management services. The company earns income from rental agreements and leasing operations within its portfolio of residential and commercial properties. Additionally, ISCN may profit from property sales, development projects, and strategic partnerships with other real estate firms or investment groups. Key revenue streams include management fees from assets under management, transaction fees from property sales, and income generated from leasing properties. Significant partnerships with local developers and financial institutions also enhance its investment opportunities and contribute to its overall earnings.

Israel Canada Financial Statement Overview

Summary

Income statement shows strong TTM revenue growth (31.38%) and improved net margin, but profitability has been volatile and gross margin has weakened. Balance sheet leverage is high (debt-to-equity 2.80) with declining ROE, and cash flow is the biggest drag with negative operating and free cash flow in the TTM.

Income Statement

Israel Canada shows a strong revenue growth rate of 31.38% in the TTM, indicating robust top-line expansion. However, the gross profit margin has declined compared to previous years, suggesting increased cost pressures. The net profit margin has improved in the TTM, but historical fluctuations indicate potential volatility in profitability. Overall, the company demonstrates growth potential but faces challenges in maintaining consistent profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 2.80 in the TTM, reflecting significant leverage, which could pose financial risk. Return on equity has decreased over the years, indicating declining efficiency in generating returns for shareholders. The equity ratio remains stable, suggesting a balanced asset structure. The balance sheet reflects a need for improved financial stability and reduced leverage.

Cash Flow

Israel Canada's cash flow situation is concerning, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive, indicating some ability to cover net income, but the negative growth in free cash flow highlights cash management challenges. The company needs to address its cash flow issues to ensure long-term financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	779.68M	501.62M	547.57M	1.52B	350.93M	192.75M
Gross Profit	185.42M	140.13M	175.70M	526.39M	151.42M	91.99M
EBITDA	244.50M	317.75M	100.44M	536.67M	809.32M	142.01M
Net Income	48.73M	206.37M	-55.74M	268.76M	571.01M	76.53M
Balance Sheet
Total Assets	12.42B	10.96B	8.58B	8.71B	8.17B	4.30B
Cash, Cash Equivalents and Short-Term Investments	361.82M	539.47M	295.28M	944.74M	776.64M	161.85M
Total Debt	7.68B	6.67B	5.18B	5.33B	5.02B	2.45B
Total Liabilities	8.84B	7.49B	5.53B	5.75B	5.71B	2.94B
Stockholders Equity	2.62B	2.49B	2.23B	2.14B	1.75B	961.29M
Cash Flow
Free Cash Flow	-397.11M	-148.38M	-240.52M	217.23M	-1.92B	-292.00M
Operating Cash Flow	-319.16M	-88.42M	-169.15M	435.52M	-1.82B	-249.17M
Investing Cash Flow	-357.05M	-1.04B	278.48M	-681.21M	-1.04B	-478.45M
Financing Cash Flow	725.29M	1.34B	-113.48M	313.51M	2.84B	766.05M

Israel Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1845.00
• 50DMA: Positive
• 100DMA: Positive
• 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:ISCN, the sentiment is Positive. The current price of 1845 is above the 20-day moving average (MA) of 1822.55, above the 50-day MA of 1736.50, and above the 200-day MA of 1514.28, indicating a neutral trend. The MACD of 9.96 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ISCN.

Israel Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRSR	64 Neutral	₪1.98B	33.23	―	3.03%	12.10%	-39.64%
GVYM	60 Neutral	₪8.92B	14.69	―	3.39%	7.67%	32.63%
ISCN	59 Neutral	₪6.03B	119.38	―	0.45%	48.74%	-82.72%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PRSK	54 Neutral	₪3.39B	26.12	―	1.21%	61.27%	35.14%