Ludan (LUDN) AI Stock Analysis

• Market Cap: ₪131.27M
• Dividend Yield: 8.27%
• Average Volume (3M): 10.24K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.86
• Revenue Growth: -21.65%
• EPS Growth: -30.92%
• Country: IL
• Employees: 1,079
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 38.60
• Shares Outstanding: 11,524,676
• 10 Day Avg. Volume: 4,331
• 30 Day Avg. Volume: 10,237
• PEG Ratio: 10.44
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 4.37
• 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: 66 Neutral
• Price Target: 1,201.00 ▼(-2.67% Downside)

Ludan's overall stock score is driven by its strong valuation, offering an attractive P/E ratio and high dividend yield. However, bearish technical indicators and declining revenue growth weigh on the score. The company's stable financial performance and cash flow management provide some support.

Positive Factors

Free Cash Flow Growth

A 54.1% TTM free cash flow growth rate signals sustainably improving cash generation. For a project-driven engineering firm, stronger FCF supports reinvestment in proprietary software, funding for backlog execution, dividends or debt reduction, and cushions cyclicality over months.

Improved Leverage and ROE

A lower D/E of 0.55 alongside a 17.85% ROE reflects better capital structure and efficient equity use. Improved leverage boosts financial flexibility for capex or acquisitions, reduces interest burden risk, and supports durable profitability through economic cycles.

Stable Profit Margins

Consistent gross and operating margins indicate structural operational efficiency in engineering and software delivery. Stable margins despite revenue pressure suggest disciplined pricing and cost control, underpinning long-term cash conversion and resilience across project cycles.

Negative Factors

Declining Revenue

Material revenue decline (reported -21.6% in fundamentals and TTM declines) signals weakening top-line demand or contract timing. For a project-based services provider, sustained revenue fall risks lower utilization, thinner backlog, and reduced scalability over the coming months.

Weak Operating Cash Conversion

An operating cash flow to net income ratio of 0.09 indicates poor conversion of accounting profits into cash. This suggests working capital strains or accrual-based earnings, increasing liquidity risk and constraining durable funding for capex, dividends, or debt repayments.

Project-Based Revenue Concentration

Heavy reliance on project-based engineering contracts yields lumpy, less predictable revenue and cash flow. Exposure to cyclical sectors like oil & gas and large project timing amplifies volatility in backlog and utilization, challenging steady multi-quarter growth and planning.

Ludan Business Overview & Revenue Model

Company Description

Ludan Engineering Co. Ltd operates as an engineering company worldwide. It is involved in the provision of engineering and project management services that include management, planning, procurement, and construction services, as well as turn-key services; technological solutions for industrial wastewater; soil and groundwater pollution survey and rehabilitation services; treatment of exhaust gases; and emission survey services. The company also develops, produces, installs, and maintains computerized ticketing systems, access control systems, and vehicle fleet management systems; produces automatic inspection systems; provides real-time command and control systems and feasibility testing services; and implements international management services. In addition, it provides systems and equipment in the fields of structure control, security, and access control, as well as engages in the operation and maintenance of the systems; and develops and supplies information security solutions for infrastructure companies and industrial factories. The company was incorporated in 1977 and is headquartered in Petah Tikva, Israel.

How the Company Makes Money

Ludan generates revenue primarily through contracts for engineering and consulting services, which are often project-based and can vary in duration and complexity. The company also earns money by providing proprietary software solutions that enhance operational efficiency for its clients, leading to recurring revenue through licensing or subscription models. Additionally, Ludan may engage in partnerships with other firms in the energy and technology sectors, leveraging collaborative projects to expand its market reach and create new revenue opportunities. Key revenue streams include project management fees, software licensing fees, and potential government contracts in environmental and energy initiatives.

Ludan Financial Statement Overview

Summary

Ludan demonstrates stable financial performance with strengths in profitability and cash flow management. Despite a decline in revenue growth, the company maintains stable margins and has improved leverage. Continued focus on revenue growth and cash conversion efficiency is crucial.

Income Statement

Ludan's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 10.54%, which is concerning. However, the company maintains a stable gross profit margin of around 11.3% and a net profit margin of 4.26%. The EBIT and EBITDA margins are also stable, indicating operational efficiency. Despite the revenue decline, the company has managed to maintain profitability, which is a positive sign.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.55 in the TTM period from higher levels in previous years, indicating better leverage management. The return on equity is strong at 17.85%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 54.1% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low at 0.09, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is healthy at 74.87%, highlighting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	489.49M	633.46M	625.49M	575.97M	513.74M	531.67M
Gross Profit	51.73M	76.89M	66.81M	67.72M	52.65M	58.66M
EBITDA	55.73M	78.43M	45.16M	69.15M	57.32M	60.29M
Net Income	18.70M	27.50M	27.48M	27.70M	16.30M	14.52M
Balance Sheet
Total Assets	269.20M	487.36M	433.65M	389.57M	358.12M	349.71M
Cash, Cash Equivalents and Short-Term Investments	27.78M	34.67M	36.46M	45.72M	32.36M	36.94M
Total Debt	74.11M	145.18M	94.41M	85.80M	99.73M	115.69M
Total Liabilities	189.31M	344.34M	291.33M	257.92M	276.05M	278.82M
Stockholders Equity	77.48M	128.33M	128.72M	117.98M	80.75M	69.14M
Cash Flow
Free Cash Flow	31.10M	55.15M	22.90M	31.17M	39.54M	64.50M
Operating Cash Flow	37.48M	62.86M	26.11M	37.04M	48.04M	73.12M
Investing Cash Flow	-13.17M	-15.18M	-13.07M	-11.89M	-8.00M	-8.61M
Financing Cash Flow	-23.15M	-49.34M	-23.39M	-13.50M	-43.13M	-50.77M

Ludan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1234.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:LUDN, the sentiment is Negative. The current price of 1234 is above the 20-day moving average (MA) of 1159.00, above the 50-day MA of 1217.98, and below the 200-day MA of 1311.73, indicating a bearish trend. The MACD of -31.40 indicates Negative momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 51.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:LUDN.

Ludan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRAN	67 Neutral	₪655.68M	25.47	11.23%	6.92%	-2.68%	-57.38%
LUDN	66 Neutral	₪131.27M	7.02	―	8.27%	-21.65%	-30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%