Isrotel (ISRO) AI Stock Analysis

• Market Cap: 7.39B
• Dividend Yield: 0.73%
• Average Volume (3M): 70.63K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.97
• Revenue Growth: 17.96%
• EPS Growth: -12.66%
• Country: IL
• Employees: 5,500
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 91.00
• Shares Outstanding: 59,947,018
• 10 Day Avg. Volume: 81,029
• 30 Day Avg. Volume: 70,628
• PEG Ratio: 0.53
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 167.92
• 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: 68 Neutral
• Price Target: 13,734.00 ▼(-0.26% Downside)

Isrotel's strong technical performance and revenue growth are offset by high valuation and cash flow concerns. The stock's upward trend is a positive indicator, but investors should be cautious of the high P/E ratio and declining profit margins.

Positive Factors

Revenue Growth

The strong revenue growth indicates a robust demand for Isrotel's services, reflecting effective market positioning and expansion in its hospitality offerings.

Operational Efficiency

Sustained operational efficiency through solid EBIT and EBITDA margins suggests effective cost management and a strong business model, supporting long-term profitability.

Stable Financial Position

A healthy equity ratio indicates financial stability, providing Isrotel with a strong foundation to support growth initiatives and withstand economic fluctuations.

Negative Factors

Declining Profit Margins

Declining profit margins can erode profitability, suggesting potential pricing pressures or increased costs, which may impact future earnings and competitiveness.

Cash Flow Challenges

Cash flow challenges indicate potential liquidity issues, which could constrain Isrotel's ability to invest in growth opportunities and manage debt obligations effectively.

Increased Leverage

Increased leverage can heighten financial risk, potentially limiting Isrotel's financial flexibility and increasing vulnerability to interest rate hikes or economic downturns.

Isrotel Business Overview & Revenue Model

Company Description

Isrotel Ltd. operates and manages a chain of hotels in Israel. It operates operates 21 hotels with various facilities comprising rooms and suites, lobby, dining rooms, restaurants, conference halls, business lounge, pubs, shops, swimming pools, health and fitness clubs, spas, wine bars, movie theaters, etc. The company also provides various vacation facilities. Isrotel Ltd. was incorporated in 1980 and is based in Tel Aviv, Israel.

How the Company Makes Money

Isrotel generates revenue primarily through the accommodation services offered in its hotels and resorts, which includes room bookings, event hosting, and ancillary services such as food and beverage sales, spa treatments, and recreational activities. The company benefits from a steady flow of income during peak tourist seasons, drawing visitors to popular destinations in Israel. Key revenue streams include direct bookings through its website, partnerships with travel agencies, and corporate contracts for business travelers. Additionally, Isrotel engages in strategic partnerships with tourism boards and local attractions to create package deals, further driving bookings and enhancing guest experiences. The company also invests in marketing initiatives to maintain brand visibility and attract both local and international clientele.

Isrotel Financial Statement Overview

Summary

Isrotel shows strong revenue growth and operational efficiency, but declining profit margins and cash flow challenges pose risks. The balance sheet remains stable, but increased leverage and reduced ROE warrant attention. Overall, the company is in a solid position but should focus on improving cash flow management and profitability.

Income Statement

Isrotel has demonstrated strong revenue growth with a TTM increase of 17.4%. However, there is a decline in profit margins, with the gross profit margin decreasing from 43.7% to 40.3% and the net profit margin from 15.9% to 12.5% over the past year. Despite this, the company maintains solid EBIT and EBITDA margins, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased slightly to 0.67, indicating moderate leverage. Return on equity has decreased to 9.9%, reflecting reduced profitability. However, the equity ratio remains healthy, suggesting a stable financial position.

Cash Flow

Isrotel's cash flow performance is concerning, with a significant decline in free cash flow growth and a negative free cash flow to net income ratio. The operating cash flow to net income ratio has also decreased, indicating potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.92B	1.80B	1.87B	1.61B	743.97M
Gross Profit	800.50M	837.91M	751.48M	765.84M	696.42M	214.57M
EBITDA	568.04M	617.09M	527.80M	515.63M	492.97M	126.68M
Net Income	247.25M	303.66M	233.42M	252.79M	250.64M	-24.50M
Balance Sheet
Total Assets	5.10B	4.81B	4.23B	4.07B	3.56B	3.04B
Cash, Cash Equivalents and Short-Term Investments	164.72M	419.84M	518.50M	412.86M	377.71M	7.63M
Total Debt	1.70B	1.40B	1.27B	1.24B	1.11B	1.21B
Total Liabilities	2.54B	2.28B	1.99B	2.03B	1.81B	1.68B
Stockholders Equity	2.53B	2.51B	2.22B	2.03B	1.73B	1.35B
Cash Flow
Free Cash Flow	-147.44M	28.61M	241.15M	416.79M	462.51M	-131.81M
Operating Cash Flow	449.37M	573.81M	488.50M	554.83M	545.18M	110.80M
Investing Cash Flow	-381.33M	-591.94M	-480.77M	-317.44M	-84.15M	-308.82M
Financing Cash Flow	-82.49M	-17.07M	-136.12M	-254.21M	-89.43M	177.05M

Isrotel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13770.00
• 50DMA: Positive
• 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:ISRO, the sentiment is Positive. The current price of 13770 is above the 20-day moving average (MA) of 12608.50, above the 50-day MA of 12545.60, and above the 200-day MA of 9906.08, indicating a bullish trend. The MACD of 50.44 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ISRO.

Isrotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLMS	73 Outperform	766.73M	19.88	―	8.07%	7.70%	-34.56%
ISRO	68 Neutral	7.39B	29.65	―	0.73%	17.96%	-12.66%
FTAL	64 Neutral	$9.76B	52.53	0.73%	―	3.84%	-94.37%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SKLN	38 Underperform	131.55M	-0.78	―	―	-33.82%	6.83%