Israel Shipyard (ISHI) AI Stock Analysis

• Market Cap: ₪3.93B
• Dividend Yield: 0.57%
• Average Volume (3M): 16.61K
• Price to Earnings (P/E): 87.8
• Beta (1Y): 1.51
• Revenue Growth: 10.92%
• EPS Growth: -24.52%
• Country: IL
• Employees: 195
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 35.90
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 19,843
• 30 Day Avg. Volume: 16,607
• PEG Ratio: -1.21
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 26.59K
• 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: 58 Neutral
• Price Target: 19,240.00 ▲(16.61% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is held back primarily by weaker cash flow quality (low operating cash conversion and negative free cash flow) and compressed profitability margins, despite moderate revenue growth and a generally stable capital structure. Technicals show strong momentum with the price well above major moving averages, but extremely overbought RSI/Stochastic readings add short-term risk. Valuation is a significant headwind given the very high P/E and only modest dividend yield.

Positive Factors

Moderate revenue growth

Sustained top-line growth (TTM +5.18%) signals continued contract wins and backlog conversion typical for shipbuilders. Over the next 2–6 months, steady revenue supports capacity utilization and program delivery, underwriting recovery potential despite margin pressure.

Stable capital structure

A stable equity base provides financing resilience for multi‑year vessel projects and repairs. This structural balance allows management to fund working capital and contract stages without immediate reliance on volatile capital markets, supporting operational continuity over months.

Defense-focused, recurring services model

A business mix of vessel construction plus aftermarket repair, modernization and through‑life support creates recurring revenue streams and higher customer stickiness. For 2–6 months this structural mix smooths revenue volatility and supports steady service margins.

Negative Factors

Weak operating cash generation

Very low cash conversion and negative free cash flow indicate the company struggles to turn earnings into usable cash. Over the medium term this limits reinvestment, dividend capacity and increases reliance on external financing for contracts or capex, raising structural funding risk.

Compressed profitability margins

Falling gross and net margins reflect cost pressures or contract pricing erosion. Persistently compressed margins reduce cash flow buffers and bidding flexibility on new contracts, making profitability vulnerable to material or labor cost shocks over the coming months.

Higher leverage and lower ROE

Rising leverage paired with declining ROE weakens financial flexibility and increases interest and covenant risk. In a capital‑intensive shipbuilding cycle this constrains the firm's ability to fund bids or absorb delays, raising structural financing and execution vulnerability.

Israel Shipyard Business Overview & Revenue Model

Company Description

Israel Shipyards Industries Ltd, through its subsidiaries, designs and constructs military and civilian vessels in Israel and internationally. The company offers vessel repair services; port services, including loading, unloading, storage, and transportation services; and performs metal works, as well as engages in importing activities; and production and distribution of cement materials. It also operates and manages cargo ships that include 9 general cargo ships and 4 ships for transporting cement. In addition, the company is involved in the operation of a port; and provision of logistics and maintenance services for land and sea facilities, and various production services for companies operating in the field of drilling and gas production. Israel Shipyards Industries Ltd was incorporated in 2019 and is based in Haifa, Israel.

How the Company Makes Money

Israel Shipyard generates revenue through multiple streams, primarily from the sale of new vessels and the provision of repair and maintenance services for existing ships. The company secures contracts with governmental defense agencies, commercial shipping companies, and international maritime organizations, which form a significant portion of its income. Additionally, ISHI capitalizes on partnerships with other defense contractors and technology firms to enhance its product offerings and expand its market reach. Revenue is also supplemented through after-sales support services, including training and technical assistance, which ensure ongoing client engagement and satisfaction.

Israel Shipyard Financial Statement Overview

Summary

Moderate revenue growth (TTM +5.18%) is offset by weakening profitability: gross margin fell to 12.49% (from 13.93%) and net margin to 3.26% (from 5.02%), alongside declining EBIT/EBITDA margins. Balance sheet is fairly stable but leverage is higher (debt-to-equity 0.69) and ROE is down to 5.01%. Cash flow is the key weakness: operating cash flow to net income is low (0.19) and free cash flow remains negative (FCF/net income -0.72).

Income Statement

Israel Shipyard shows moderate revenue growth in the TTM period at 5.18%, recovering from a decline in the previous year. Gross profit margin has decreased to 12.49% from 13.93% in 2024, indicating pressure on cost management. Net profit margin also decreased to 3.26% from 5.02%, reflecting reduced profitability. EBIT and EBITDA margins have similarly declined, suggesting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased to 0.69 in the TTM period, indicating higher leverage compared to previous years. Return on equity has decreased to 5.01%, suggesting reduced efficiency in generating profits from equity. However, the equity ratio remains stable, indicating a solid capital structure with equity financing still playing a significant role.

Cash Flow

Operating cash flow to net income ratio decreased to 0.19, indicating less cash generation relative to net income. Free cash flow is negative, and the free cash flow to net income ratio is -0.72, reflecting challenges in generating positive cash flow. Despite a 17.56% growth in free cash flow, the negative value highlights ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.31B	1.53B	1.48B	945.11M	765.32M
Gross Profit	183.80M	182.24M	220.07M	252.57M	183.27M	162.01M
EBITDA	198.56M	200.39M	229.88M	239.38M	197.88M	162.47M
Net Income	39.14M	65.69M	96.75M	126.39M	93.68M	70.65M
Balance Sheet
Total Assets	2.16B	1.67B	1.74B	1.59B	1.48B	1.39B
Cash, Cash Equivalents and Short-Term Investments	410.71M	328.25M	418.21M	344.28M	492.37M	528.97M
Total Debt	685.65M	344.14M	423.19M	343.74M	228.14M	219.81M
Total Liabilities	1.20B	704.77M	811.03M	727.42M	724.43M	634.12M
Stockholders Equity	948.68M	961.89M	927.20M	857.22M	750.00M	726.75M
Cash Flow
Free Cash Flow	-148.97M	96.00K	18.37M	-61.45M	8.43M	-29.66M
Operating Cash Flow	168.97M	200.69M	180.28M	24.76M	120.26M	82.36M
Investing Cash Flow	-306.33M	-52.35M	-95.20M	-143.31M	-136.98M	-273.89M
Financing Cash Flow	184.29M	-134.95M	9.22M	-4.21M	-41.69M	311.72M

Israel Shipyard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16500.00
• 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:ISHI, the sentiment is Negative. The current price of 16500 is above the 20-day moving average (MA) of 15885.50, below the 50-day MA of 17266.80, and above the 200-day MA of 13999.25, indicating a neutral trend. The MACD of -178.37 indicates Negative momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ISHI.

Israel Shipyard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLT	76 Outperform	₪127.73B	78.66	12.62%	0.49%	13.02%	63.70%
BSEN	65 Neutral	₪7.30B	44.56	―	―	14.00%	20.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISHI	58 Neutral	₪3.93B	87.81	―	0.57%	10.92%	-24.52%