Lahav (LAHAV) AI Stock Analysis

• Market Cap: 1.79B
• Dividend Yield: 2.61%
• Average Volume (3M): 88.40K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.27
• Revenue Growth: 19.43%
• EPS Growth: 21.77%
• Country: IL
• Employees: 2,328
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 269,806,700
• 10 Day Avg. Volume: 78,591
• 30 Day Avg. Volume: 88,398
• PEG Ratio: 0.14
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 3.00
• P/FCF Ratio: -89.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 795.00 ▲(11.20% Upside)

Lahav's overall stock score is driven by strong technical momentum and reasonable valuation, despite mixed financial performance. The stock's bullish trend is tempered by overbought technical indicators, and while profitability is strong, liquidity concerns remain due to negative free cash flow.

Positive Factors

Revenue Growth

Lahav's strong revenue growth rate of 19.43% indicates expanding market reach and successful product adoption across sectors.

Profitability

A high net profit margin of 30.55% reflects effective cost control and strong profitability, enhancing financial stability.

Partnerships

Strategic partnerships in telecommunications and healthcare boost market reach and revenue potential through joint ventures.

Negative Factors

Gross Profit Margin

A low gross profit margin suggests potential cost management issues, which could impact long-term profitability and competitiveness.

Free Cash Flow

Negative free cash flow indicates liquidity challenges, limiting financial flexibility and investment capacity for growth initiatives.

Operating Cash Flow

A low operating cash flow to net income ratio suggests that cash generation from operations is insufficient to support net income, posing liquidity risks.

Lahav Business Overview & Revenue Model

Company Description

Lahav LR Real Estate Ltd. engages in the real estate and renewable green energy business in Israel and Germany. Its real estate properties include commercial centers and hotels. The company also produces electricity through solar energy. It owns 89 small photovoltaic power generation facilities and one medium-sized photovoltaic generation facility with aggregate capacity of 4.8 megawatts. The company was formerly known as S.R. Overseas Investments Ltd. and changed its name to Lahav LR Real Estate Ltd. in January 2012. Lahav LR Real Estate Ltd. was incorporated in 1963 and is based in Herzliya, Israel.

How the Company Makes Money

Lahav generates revenue through multiple streams, primarily by selling its proprietary software and hardware products to businesses in various sectors. The company employs a subscription-based model for its software solutions, allowing clients to access its platforms with recurring fees based on usage or tiered service levels. Additionally, Lahav earns revenue through direct sales of its IoT devices and hardware, which are often bundled with software packages. Significant partnerships with industry leaders in telecommunications and healthcare further enhance its market reach and revenue potential, as these collaborations often lead to joint ventures and co-developed products, increasing Lahav's visibility and sales opportunities in these lucrative sectors.

Lahav Financial Statement Overview

Summary

Lahav's financial performance is mixed. The company has a strong net profit margin of 30.55% and a reasonable return on equity of 11.97%, indicating profitability. However, the low gross profit margin of 3.52% and negative free cash flow highlight cost management and liquidity challenges.

Income Statement

Lahav's income statement shows a mixed performance. The TTM data indicates a modest revenue growth rate of 6.15%, which is a positive sign. However, the gross profit margin is low at 3.52%, indicating potential cost management issues. The net profit margin is strong at 30.55%, suggesting effective cost control and profitability. The EBIT margin is negative, which is concerning, but the EBITDA margin is high at 74.35%, reflecting strong operational cash flow generation.

Balance Sheet

The balance sheet presents a stable financial position with a debt-to-equity ratio of 0.89, indicating moderate leverage. The return on equity is 11.97%, which is decent, showing that the company is generating a reasonable return on shareholders' equity. The equity ratio is not explicitly calculated, but the company's equity position appears solid given the total assets and stockholders' equity figures.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow is negative, although it has shown improvement with a growth rate of 40.27%. The operating cash flow to net income ratio is low at 0.11, indicating that cash generation from operations is not fully supporting net income. The free cash flow to net income ratio is negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	474.52M	423.60M	487.68M	15.51M	15.24M	11.34M
Gross Profit	16.70M	60.24M	487.68M	6.52M	6.53M	10.29M
EBITDA	352.82M	261.89M	-19.00M	191.80M	190.21M	145.55M
Net Income	144.95M	155.96M	96.42M	162.09M	172.09M	132.60M
Balance Sheet
Total Assets	2.57B	2.49B	2.13B	1.67B	1.07B	868.12M
Cash, Cash Equivalents and Short-Term Investments	242.87M	362.92M	180.85M	80.55M	104.09M	20.21M
Total Debt	1.10B	1.10B	668.35M	530.00M	298.39M	224.19M
Total Liabilities	1.29B	1.25B	1.02B	696.48M	312.44M	292.85M
Stockholders Equity	1.24B	1.20B	1.08B	972.04M	759.38M	574.55M
Cash Flow
Free Cash Flow	-8.91M	-14.24M	-9.39M	-35.50M	38.16M	-11.68M
Operating Cash Flow	28.50M	25.33M	21.20M	7.08M	45.62M	-9.57M
Investing Cash Flow	-65.31M	-78.75M	-143.70M	-143.93M	-132.26M	-340.49M
Financing Cash Flow	50.70M	229.28M	224.45M	161.43M	121.99M	353.73M

Lahav Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 714.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:LAHAV, the sentiment is Positive. The current price of 714.9 is above the 20-day moving average (MA) of 667.62, above the 50-day MA of 624.13, and above the 200-day MA of 546.76, indicating a bullish trend. The MACD of 23.90 indicates Negative momentum. The RSI at 72.29 is Negative, neither overbought nor oversold. The STOCH value of 83.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:LAHAV.

Lahav Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAHAV	69 Neutral	1.79B	12.08	―	2.61%	19.43%	21.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ILDC	57 Neutral	1.53B	42.91	―	3.99%	-5.51%	35.48%