Migdal Insur. (MGDL) AI Stock Analysis

• Market Cap: 12.79B
• Dividend Yield: 0.34%
• 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: 70 Outperform
• Price Target: 1,640.00 ▲(8.04% Upside)

Migdal Insurance's strong financial performance and upward technical trend are the primary drivers of its stock score. However, potential overvaluation concerns due to overbought technical indicators and modest dividend yield slightly temper the overall outlook.

Positive Factors

Cash Generation Ability

Strong cash generation provides Migdal Insur. with the flexibility to invest in growth opportunities, reduce debt, or return capital to shareholders, enhancing financial stability.

Balance Sheet Health

A low debt-to-equity ratio indicates a strong balance sheet, reducing financial risk and providing a solid foundation for sustainable growth.

Gross Profit Margins

High gross profit margins demonstrate efficient cost management, allowing the company to maintain profitability even in competitive markets.

Negative Factors

Revenue Growth Fluctuations

Fluctuating revenue growth can indicate market challenges or operational inefficiencies, potentially impacting long-term growth prospects.

Net Profit Margin

A low net profit margin suggests limited profitability, which could hinder the company's ability to reinvest in business development and innovation.

Lack of Earnings Call Data

The absence of earnings call data limits transparency and investor insight into management's strategic vision and operational performance.

Migdal Insur. Business Overview & Revenue Model

Company Description

Migdal Insur. (MGDL) is one of Israel's leading insurance and financial services companies, operating primarily in the fields of life, health, and general insurance. The company offers a range of products including life insurance policies, health insurance, pension plans, and investment funds. Migdal Insur. serves a diverse clientele, including individual customers, families, and businesses, aiming to provide comprehensive risk management and financial security solutions.

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	33.77B	33.74B	28.47B	6.44B	36.68B	21.90B
Gross Profit	33.61B	32.38B	28.47B	6.44B	36.68B	20.58B
EBITDA	2.72B	1.47B	1.28B	1.51B	2.49B	933.95M
Net Income	1.39B	608.16M	587.18M	750.97M	1.39B	388.63M
Balance Sheet
Total Assets	241.69B	219.64B	204.86B	196.90B	204.16B	181.92B
Cash, Cash Equivalents and Short-Term Investments	29.33B	46.09B	41.00B	38.79B	37.79B	29.44B
Total Debt	128.00M	5.99B	5.97B	7.19B	5.42B	4.97B
Total Liabilities	232.16B	210.09B	196.26B	188.80B	195.59B	175.04B
Stockholders Equity	9.52B	9.54B	8.59B	8.09B	8.56B	6.88B
Cash Flow
Free Cash Flow	7.23B	3.05B	2.15B	-3.11B	6.88B	-5.26B
Operating Cash Flow	7.62B	3.38B	2.44B	-2.85B	7.12B	-5.07B
Investing Cash Flow	-423.20M	-353.88M	-284.03M	-254.66M	-245.25M	-181.84M
Financing Cash Flow	106.97M	630.00M	-1.35B	1.18B	773.24M	968.91M

Migdal Insur. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1518.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1518 is above the 20-day moving average (MA) of 1370.55, above the 50-day MA of 1252.94, and above the 200-day MA of 961.71, indicating a bullish trend. The MACD of 55.26 indicates Negative momentum. The RSI at 76.88 is Negative, neither overbought nor oversold. The STOCH value of 99.18 is Negative, 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	―	2.78%	23.28%	124.99%
HARL	76 Outperform	$23.84B	12.36	23.23%	2.27%	5.84%	138.80%
CLIS	75 Outperform	14.81B	10.42	―	1.76%	-27.87%	229.49%
MGDL	70 Outperform	12.79B	14.56	―	0.34%	6.00%	36.33%
IDIN	69 Neutral	3.55B	10.31	―	6.32%	19.48%	53.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%