Migdal Insur. (MGDL) AI Stock Analysis

• Market Cap: 10.94B
• Dividend Yield: 0.5%
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.66
• Revenue Growth: 24.69%
• EPS Growth: -28.38%
• Country: IL
• Employees: 4,583
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 54.00
• Shares Outstanding: 1,057,779,200
• 10 Day Avg. Volume: 3,415,087
• 30 Day Avg. Volume: 2,864,529
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1,233.00
• Price Target Upside: 19.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: 1,233.00 ▲(19.25% Upside)

Migdal Insurance's strong financial performance, particularly in revenue growth and operational efficiency, is the primary driver of its stock score. The technical analysis supports a positive outlook with bullish momentum. Valuation is reasonable, though the low dividend yield may be a concern for some investors.

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 its revenue primarily through the sale of insurance policies and the management of pension and provident funds. The company earns premiums from customers who purchase life and health insurance policies, which form a significant part of its income. Additionally, Migdal Insur. manages a substantial portfolio of assets through its pension and provident funds, generating revenue from investment management fees and returns on investments. Strategic partnerships and collaborations with financial institutions and brokers also contribute to its revenue streams, enhancing its market reach and service offerings.

Migdal Insur. Financial Statement Overview

Summary

Migdal Insurance shows a mixed financial performance. While the income statement reflects profitability, recent revenue declines are concerning. The balance sheet is robust with low leverage, yet cash flow volatility poses short-term liquidity challenges. Continued focus on revenue growth and cash flow stability will be crucial for sustaining financial health.

Income Statement

The company demonstrates strong gross profit margins, with consistent profitability over time. However, recent revenue and net profit margin have declined significantly compared to previous periods, indicating potential concerns in maintaining growth momentum.

Balance Sheet

The balance sheet reflects a solid equity base and a low debt-to-equity ratio, indicating financial stability. However, a slight decrease in stockholders' equity over the periods needs monitoring to ensure long-term sustainability.

Cash Flow

Cash flow analysis highlights volatility, with negative operating and free cash flow in the TTM period. This suggests challenges in generating cash internally, countered by positive cash flow in previous years, indicating potential short-term issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.70B	33.74B	28.47B	6.44B	36.68B	21.90B
Gross Profit	34.87B	33.36B	28.47B	6.44B	36.68B	21.90B
EBITDA	1.92B	1.47B	1.28B	1.51B	2.49B	914.10M
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: Neutral
• Last Price: 1034.00
• 50DMA: Negative
• 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:MGDL, the sentiment is Neutral. The current price of 1034 is below the 20-day moving average (MA) of 1140.20, below the 50-day MA of 1088.27, and above the 200-day MA of 828.11, indicating a neutral trend. The MACD of -14.75 indicates Positive momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:MGDL.

Migdal Insur. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMHD	75 Outperform	17.88B	10.69	14.97%	4.00%	28.29%	74.13%
CLIS	73 Outperform	12.20B	8.58	14.86%	2.48%	―	―
HARL	71 Outperform	20.27B	10.53	17.32%	3.20%	16.52%	108.70%
MGDL	69 Neutral	10.94B	12.45	―	0.50%	24.69%	-28.38%
IDIN	63 Neutral	2.86B	8.90	26.00%	7.83%	24.23%	48.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Migdal Insur. Corporate Events

Migdal Insurance Faces Governance Scrutiny Amidst Leadership Changes

Migdal Insurance Company is facing scrutiny from the Commissioner of Capital Market, Insurance and Savings due to high turnover in its board leadership, as evidenced by the recent resignation of Chairman Prof. Amir Barnea after a short tenure. The Commissioner has raised concerns about the potential mismanagement of the company, emphasizing the need for independent and stable leadership decisions, and is considering using legal powers to enforce governance standards at Migdal Insurance.

Court Dismisses Class Action Against Migdal Insurance

Migdal Insur. announced that the Tel Aviv District Court has dismissed a class action approval request against its subsidiary, Migdal Insurance Company Ltd., and four other respondents. The lawsuit involved alleged discrimination in travel insurance policies for not covering mental illnesses. The dismissal was due to the non-appointment of a representative counsel by the applicant, as previously required by the court, and was resolved without an order for expenses.

Migdal Insurance Issues Corrective Report on Securities Register Error

Migdal Insurance has issued a corrective report related to a previous securities register report, indicating an error due to human oversight. The primary correction involved deducting private shareholders’ securities, which were transferred for registration on the Tel Aviv Stock Exchange. This update highlights a transfer between shareholders, affecting securities ownership without altering the total number of securities. Such adjustments are critical for maintaining accurate records and transparency in shareholder information, impacting investor trust and regulatory compliance.

Migdal Insurance Updates Capital Structure with Share Transfer

Migdal Insurance announced a change in its capital structure involving a transfer of securities between shareholders. This adjustment, which did not alter the total quantity of securities, was executed without stock exchange clearing. The changes reflect an update to the corporation’s security registry, affecting the balance of regular shares held by the Company for Registration of the Stock Exchange in Tel Aviv Ltd. This move is part of ongoing securities management and aligns with regulatory compliance as outlined by the Securities Regulations.

Migdal Insurance Announces Chairman’s Departure

Migdal Insurance Company Ltd. has announced that its Chairman of the Board of Directors is ending his tenure. This development could impact the company’s governance and strategic direction, with potential implications for stakeholders in terms of leadership transition and future company policies.