Migdal Insur. (MGDL) AI Stock Analysis

• Market Cap: 12.79B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.64
• Revenue Growth: 6.00%
• EPS Growth: 36.33%
• Country: IL
• Employees: 4,583
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 50.60
• Shares Outstanding: 1,057,948,100
• 10 Day Avg. Volume: 3,001,843
• 30 Day Avg. Volume: 2,903,189
• PEG Ratio: 1.58
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 2.24
• 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: 74 Outperform
• Price Target: 1,396.00 ▲(5.76% Upside)

Migdal Insurance's strong technical momentum and solid financial performance drive the overall score. The stock's valuation is fair, though not particularly compelling. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The robust revenue growth indicates effective market expansion and strong demand for Migdal's insurance products, supporting long-term business sustainability.

Operational Efficiency

Improving EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to better profitability and competitiveness in the insurance market.

Balance Sheet Health

A lower debt-to-equity ratio indicates reduced leverage risk and a stronger equity position, enhancing financial stability and flexibility for future growth.

Negative Factors

Cash Flow Generation

Negative free cash flow growth suggests challenges in cash generation, potentially impacting the company's ability to invest in growth opportunities and meet financial obligations.

Profitability Concerns

A low net profit margin indicates limited profitability, which could hinder the company's ability to reinvest in its business and reward shareholders.

Cash Flow Analysis Limitations

The absence of a comprehensive cash flow analysis limits visibility into cash conversion efficiency, posing a risk to understanding the company's financial health.

Migdal Insur. Business Overview & Revenue Model

Company Description

Migdal Insurance and Financial Holdings Ltd., together with its subsidiaries, provides insurance, pension, and financial services for private and corporate customers in Israel. The company deals and manages pension plans, life and health insurance products, pensions, and financial business plans; and provides personal accident and mortgage insurance solutions, and savings, as well as insurance agency services. It also markets investments; operates nostro accounts; and manages financial assets, including mutual funds and portfolios, as well as engages in the investment banking and distribution activities. The company was founded in 1934 and is based in Petah Tikva, Israel. Migdal Insurance and Financial Holdings Ltd. operates as a subsidiary of Eliahu Issues Ltd.

How the Company Makes Money

Migdal Insur. generates revenue through multiple key streams, primarily from the sale of insurance premiums across its various products, including life, health, and property insurance. The company collects premiums upfront, which are then invested to generate returns. Additional revenue comes from management fees associated with investment funds and pension plans. Furthermore, Migdal Insur. may engage in reinsurance arrangements, allowing them to manage risk and optimize their capital structure. Strategic partnerships with financial institutions and distribution networks also play a significant role in expanding their customer base and enhancing revenue opportunities.

Migdal Insur. Financial Statement Overview

Summary

Migdal Insurance shows strong revenue growth and operational efficiency with high gross profit margins. However, the net profit margin is relatively low, and cash flow generation has been declining, indicating areas for improvement.

Income Statement

Migdal Insurance has shown strong revenue growth with a 33.14% increase in TTM, indicating robust business expansion. The gross profit margin remains exceptionally high at 100%, showcasing efficient cost management. However, the net profit margin is relatively low at 2.95%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.24 in TTM, indicating a stronger equity position and reduced leverage risk. Return on equity is at 9.75%, which is a moderate performance, suggesting effective use of equity to generate profits. The equity ratio stands at 3.81%, indicating a stable financial structure, though there is potential for further strengthening.

Cash Flow

Migdal Insurance's free cash flow growth has been negative in TTM, showing a decline in cash generation capabilities. However, the free cash flow to net income ratio is strong at 1.17, indicating efficient conversion of profits into cash. The operating cash flow to net income ratio is not available, which limits a comprehensive cash flow analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.87B	33.74B	28.47B	6.44B	36.68B	21.90B
Gross Profit	34.87B	32.38B	28.47B	6.44B	36.68B	20.58B
EBITDA	1.92B	1.47B	1.28B	1.51B	2.49B	933.95M
Net Income	877.31M	608.16M	587.18M	750.97M	1.39B	388.63M
Balance Sheet
Total Assets	236.03B	219.64B	204.86B	196.90B	204.16B	181.92B
Cash, Cash Equivalents and Short-Term Investments	26.55B	46.09B	41.00B	38.79B	37.79B	29.44B
Total Debt	134.00M	5.99B	5.97B	7.19B	5.42B	4.97B
Total Liabilities	227.03B	210.09B	196.26B	188.80B	195.59B	175.04B
Stockholders Equity	8.99B	9.54B	8.59B	8.09B	8.56B	6.88B
Cash Flow
Free Cash Flow	3.47B	3.05B	2.15B	-3.11B	6.88B	-5.26B
Operating Cash Flow	3.86B	3.38B	2.44B	-2.85B	7.12B	-5.07B
Investing Cash Flow	-419.77M	-353.88M	-284.03M	-254.66M	-245.25M	-181.84M
Financing Cash Flow	958.35M	630.00M	-1.35B	1.18B	773.24M	968.91M

Migdal Insur. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1320.00
• 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:MGDL, the sentiment is Positive. The current price of 1320 is above the 20-day moving average (MA) of 1319.65, above the 50-day MA of 1195.90, and above the 200-day MA of 930.28, indicating a bullish trend. The MACD of 42.00 indicates Positive momentum. The RSI at 55.88 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MGDL.

Migdal Insur. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMHD	79 Outperform	20.56B	12.30	―	3.18%	28.29%	74.13%
CLIS	75 Outperform	14.81B	10.42	―	2.01%	―	―
HARL	75 Outperform	$23.84B	12.36	23.23%	2.61%	5.84%	138.80%
MGDL	74 Outperform	12.79B	14.56	―	0.40%	6.00%	36.33%
IDIN	69 Neutral	3.62B	10.52	―	6.13%	19.48%	53.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%