Lahav (LAHAV) AI Stock Analysis

• Market Cap: ₪2.67B
• Dividend Yield: 2.26%
• Average Volume (3M): 88.40K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.13
• 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): 44.10
• Shares Outstanding: 283,140,050
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 1,076.00 ▲(37.91% Upside)

Lahav's stock score is primarily driven by strong technical indicators, reflecting bullish momentum. Financial performance is solid, with strong profitability but some concerns over cash flow management and increasing debt. The valuation is reasonable, with a fair P/E ratio and attractive dividend yield.

Positive Factors

Sustained Profitability

Consistently strong net profit margins provide durable earnings power that supports reinvestment in R&D and product development, funds strategic initiatives and partnerships, and creates a buffer against cyclical revenue dips, strengthening long-term competitiveness.

Revenue and EPS Momentum

Double-digit revenue growth and large EPS expansion reflect improving unit economics and operational leverage; sustained growth at this pace supports scale, enhances cash generation potential over time, and validates market demand for core products and services.

Diversified Recurring Revenue Model

A mix of subscription software, bundled hardware sales and strategic partnerships creates recurring revenue, cross-sell opportunities and sector diversification, reducing single-market exposure and improving predictability of revenue streams over the medium term.

Negative Factors

Rising Leverage

A declining equity ratio and growing debt reliance increase fixed obligations and reduce financial flexibility; over 2–6 months higher leverage can constrain capital allocation, raise refinancing risk and limit the company's ability to fund strategic investments without raising costs.

Weak Cash Conversion

Persistent negative free cash flow and poor conversion of income to operating cash reduce internal funding for capex, R&D and dividends; this structural cash gap may force external financing, increasing leverage and cost of capital over the medium term.

Volatile Gross Margins

Material volatility and recent deterioration in gross margins point to cost or pricing pressures; margin instability undermines earnings predictability and makes long-term margin sustainability uncertain, complicating planning for investments and margin-driven strategies.

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 demonstrates strong profitability with impressive net profit margins and revenue growth. However, challenges exist in maintaining consistent gross profit margins and managing cash flows effectively. The balance sheet shows a balanced leverage position, but increasing debt levels warrant caution.

Income Statement

Lahav's income statement shows strong net profit margins, particularly in the TTM period, indicating robust profitability. The company has demonstrated consistent revenue growth, with a notable increase in the latest TTM period. However, gross profit margins have been volatile, and there was a significant drop in gross profit margin in the TTM compared to previous years. Overall, the company exhibits strong profitability metrics, but the variability in gross profit margins suggests potential cost management issues.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. The return on equity has been relatively stable, showcasing effective use of equity to generate profits. However, the equity ratio has been decreasing, suggesting a growing reliance on debt financing. While the company's financial leverage is manageable, the increasing debt levels could pose risks if not controlled.

Cash Flow

Lahav's cash flow statement reveals challenges in free cash flow generation, with negative free cash flow growth in recent periods. The operating cash flow to net income ratio is low, indicating potential issues in converting profits into cash. Despite these challenges, the company has shown some ability to manage operating cash flows, but the negative free cash flow to net income ratio highlights the need for improved cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	497.30M	423.60M	487.68M	15.51M	15.24M	11.34M
Gross Profit	41.99M	60.24M	487.68M	6.52M	6.53M	10.29M
EBITDA	450.70M	261.89M	-19.00M	191.80M	190.21M	145.55M
Net Income	233.76M	155.96M	96.42M	162.09M	172.09M	132.60M
Balance Sheet
Total Assets	2.45B	2.49B	2.13B	1.67B	1.07B	868.12M
Cash, Cash Equivalents and Short-Term Investments	213.94M	362.92M	180.85M	80.55M	104.09M	20.21M
Total Debt	901.81M	1.10B	668.35M	530.00M	298.39M	224.19M
Total Liabilities	1.06B	1.25B	1.02B	696.48M	312.44M	292.85M
Stockholders Equity	1.34B	1.20B	1.08B	972.04M	759.38M	574.55M
Cash Flow
Free Cash Flow	8.74M	-14.24M	-9.39M	-35.50M	38.16M	-11.68M
Operating Cash Flow	44.64M	25.33M	21.20M	7.08M	45.62M	-9.57M
Investing Cash Flow	-53.19M	-78.75M	-143.70M	-143.93M	-132.26M	-340.49M
Financing Cash Flow	16.41M	229.28M	224.45M	161.43M	121.99M	353.73M

Lahav Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 780.20
• 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:LAHAV, the sentiment is Positive. The current price of 780.2 is below the 20-day moving average (MA) of 927.06, below the 50-day MA of 837.59, and above the 200-day MA of 625.98, indicating a bullish trend. The MACD of 34.86 indicates Positive momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 53.37 is Neutral, 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	75 Outperform	₪2.67B	10.82	―	2.26%	19.43%	21.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ILDC	64 Neutral	₪1.50B	11.35	―	3.87%	-5.51%	35.48%