Leumi (LUMI) AI Stock Analysis

• Market Cap: 107.39B
• Dividend Yield: 3.63%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.01
• Revenue Growth: 6.95%
• EPS Growth: 12.41%
• Country: IL
• Employees: 7,833
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 181.00
• Shares Outstanding: 1,485,548,700
• 10 Day Avg. Volume: 3,842,144
• 30 Day Avg. Volume: 3,405,959
• PEG Ratio: 0.16
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 2.98
• P/FCF Ratio: 4.60
• 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: 7,625.12
• Price Target Upside: 5.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: 8,509.00 ▲(17.71% Upside)

Bank Leumi's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators show bullish momentum, though caution is advised due to overbought signals. The valuation is reasonable, providing a balanced risk-reward profile.

Positive Factors

Strong Financial Performance

Leumi's robust profitability and high return on equity indicate strong operational efficiency and effective management, supporting long-term growth.

Improved Credit Quality

Improved credit quality with low credit loss expenses enhances financial stability and reduces risk, supporting sustainable growth.

Strategic Technology Implementation

High digital adoption reflects successful tech transformation, enhancing customer experience and operational efficiency, driving future growth.

Negative Factors

Decrease in Net Interest Income

Declining net interest income could pressure margins, impacting profitability if not offset by other income streams or cost controls.

Potential Regulatory Risks

Potential regulatory changes could increase costs and limit profitability, posing long-term challenges to financial performance.

Increasing Debt Levels

Rising debt levels may strain cash flow and financial flexibility, impacting the company's ability to invest in growth opportunities.

Leumi Business Overview & Revenue Model

Company Description

Bank Leumi le-Israel B.M., together with its subsidiaries, provides banking and financial services in Israel, the United States, the United Kingdom, and internationally. It operates through Households, Private Banking, Micro Businesses, Small Businesses, Mid-market, Corporations, Institutional Entities, and Financial Management segments. It provides housing loans, collateral loans, and loans to purchasing groups, including mortgage planning, accompanying the customer through the mortgage process, and recycling existing loans; and working capital, acquisitions, and term loans, as well as credit lines; financial support to Israeli high-tech companies; equipment lease financing; credit cards; and online banking services, as well as wealth and cash management services. The company also offers international trade financing, loan syndications and participations, foreign currency time deposits, and dealing room services. In addition, it provides provident funds, mutual funds, study funds, pension funds, and insurance products; invests in marketable securities, market-making activity involving securities and derivatives, repurchase and lending transactions involving securities, short selling of securities, and securities' underwriting services; engages in asset and liability management activities; and provides trust and custodial services for banks. Further, the company engages in the activities, such as advisory services, sale and management of loan portfolios, and development of financial products. Additionally, it provides banking services to private customers and small businesses, largest and multinational corporations, and middle-market companies, as well as financial services to institutional customers and foreign banks. The company operates approximately 250 branches. Bank Leumi le- Israel B.M. was founded in 1902 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Leumi generates revenue through several key streams. Primarily, the company earns money from interest on loans provided to customers, including personal, business, and mortgage loans. Additionally, Leumi generates income from transaction fees related to payment processing services. The company may also derive revenue from asset management fees for investment services offered to clients. Strategic partnerships with technology firms and financial institutions enhance their service offerings and expand their customer base, further contributing to earnings. Overall, Leumi's revenue model is supported by a blend of interest income, fee-based income, and partnerships that enhance its product offerings.

Leumi Financial Statement Overview

Summary

Leumi exhibits strong financial health with impressive revenue and net income growth. The balance sheet reflects stability with minimal debt and strong cash reserves. Despite positive cash flow trends, fluctuations in operating cash flows warrant attention. Overall, Leumi is well-positioned in the regional banking sector, with opportunities to enhance operational efficiency and equity growth.

Income Statement

Leumi has demonstrated strong revenue growth over the years, with a 17.4% increase from 2023 to 2024. The net profit margin has improved to 44.4% in 2024, up from 37.4% in 2023, indicating enhanced profitability. However, the absence of EBIT and EBITDA margins in 2024 is a notable gap, making it challenging to assess operational efficiency comprehensively.

Balance Sheet

Leumi maintains a robust equity position with an equity ratio of 7.85% in 2024. The debt-to-equity ratio is effectively nil, showcasing financial stability and minimal leverage risks. However, the equity growth has been moderate relative to total asset growth, which could be an area for improvement.

Cash Flow

Cash flow performance has been solid, with a significant turnaround in free cash flow from -966 million in 2023 to 14.3 billion in 2024. The operating cash flow to net income ratio improved, indicating better cash conversion. However, volatility in operating cash flows over the years suggests potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.66B	43.02B	38.66B	22.80B	16.82B	14.43B
Gross Profit	21.74B	22.07B	21.00B	17.21B	15.49B	12.97B
EBITDA	16.26B	16.10B	12.58B	11.49B	9.94B	4.17B
Net Income	10.16B	9.80B	7.03B	7.71B	6.03B	2.10B
Balance Sheet
Total Assets	827.11B	785.55B	731.50B	699.17B	656.45B	556.03B
Cash, Cash Equivalents and Short-Term Investments	138.31B	155.83B	102.47B	180.64B	194.22B	132.62B
Total Debt	44.88B	62.27B	32.76B	28.37B	16.23B	17.23B
Total Liabilities	760.07B	723.89B	677.00B	649.72B	614.40B	517.94B
Stockholders Equity	67.04B	61.66B	54.50B	49.44B	41.61B	37.66B
Cash Flow
Free Cash Flow	9.72B	14.30B	-966.00M	5.33B	4.66B	4.96B
Operating Cash Flow	10.62B	15.04B	-133.00M	6.09B	5.20B	5.56B
Investing Cash Flow	-65.75B	-8.32B	-98.23B	-72.89B	-43.27B	-25.84B
Financing Cash Flow	59.87B	42.07B	20.03B	52.47B	100.24B	80.51B

Leumi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7229.00
• 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:LUMI, the sentiment is Positive. The current price of 7229 is above the 20-day moving average (MA) of 7028.62, above the 50-day MA of 6672.75, and above the 200-day MA of 5804.65, indicating a bullish trend. The MACD of 200.20 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:LUMI.

Leumi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMI	80 Outperform	107.39B	10.66	15.67%	3.63%	6.95%	12.41%
MZTF	80 Outperform	61.48B	11.08	16.87%	4.08%	11.00%	6.03%
POLI	80 Outperform	101.23B	11.04	15.13%	3.48%	19.05%	18.98%
FIBI	79 Outperform	26.07B	11.23	16.48%	4.58%	14.16%	1.05%
DSCT	79 Outperform	43.52B	10.13	13.10%	3.75%	14.48%	4.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Leumi Corporate Events

Bank Leumi Reports Strong Q3 2025 Earnings Growth

Bank Leumi Le-Israel Ltd, a prominent player in the financial sector, is a leading Israeli bank known for its comprehensive banking services, including corporate, commercial, and mortgage lending, with a focus on responsible growth and financial stability.