Leumi (LUMI) AI Stock Analysis

• Market Cap: ₪110.71B
• Dividend Yield: 3.7%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.02
• 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: 1,481,419,900
• 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): 1.53
• 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: ₪8,198.85
• Price Target Upside: 9.71% 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 ▲(13.86% 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 robust profitability and growth in the income statement, a stable balance sheet with moderate leverage, and improving cash flow generation. Attention should be given to the increasing debt levels and the conversion of operating income to cash.

Income Statement

Leumi's income statement shows a strong performance with a consistent revenue growth rate of 2.54% in TTM, indicating a positive trajectory. The gross profit margin is robust at 77.67%, and the net profit margin is healthy at 35.42%. EBIT and EBITDA margins are also strong, reflecting efficient operations and cost management. Overall, Leumi demonstrates solid profitability and growth.

Balance Sheet

Leumi's balance sheet is stable with a debt-to-equity ratio of 0.62 in TTM, indicating moderate leverage. The return on equity is strong at 15.53%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure. However, the increase in total debt over time warrants monitoring.

Cash Flow

Leumi's cash flow statement shows a significant free cash flow growth rate of 62.52% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is strong at 87.01%, reflecting good cash profitability.

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: Neutral
• Last Price: 7473.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:LUMI, the sentiment is Neutral. The current price of 7473 is below the 20-day moving average (MA) of 7544.15, above the 50-day MA of 7270.52, and above the 200-day MA of 6232.18, indicating a neutral trend. The MACD of 86.24 indicates Positive momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₪110.71B	11.02	15.67%	3.70%	6.95%	12.41%
MZTF	80 Outperform	₪63.27B	11.41	16.87%	4.11%	11.00%	6.03%
DSCT	75 Outperform	₪44.83B	10.44	13.10%	3.69%	14.48%	4.65%
FIBI	69 Neutral	₪26.51B	11.42	16.48%	4.57%	14.16%	1.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
POLI	64 Neutral	₪100.95B	11.02	15.13%	3.54%	19.05%	18.98%