Migdal Insur. (MGDL) AI Stock Analysis

• Market Cap: ₪17.67B
• Dividend Yield: 0.3%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.57
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 1,840.00 ▲(14.36% 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

Conservative balance sheet / low leverage

Very low debt-to-equity shows a conservative capital structure that increases resilience to underwriting shocks and market volatility. It supports regulatory capital buffers, funds claims payments, and reduces refinancing risk, preserving strategic optionality over months.

Very high gross profit margins

Exceptionally high gross margins indicate efficient premium economics or strong fee income. This durable margin at the top of the P&L provides structural capacity to absorb higher claims or invest in distribution and product development without immediate profit erosion.

Improving free cash flow generation

Large improvement in free cash flow and near-par conversion to net income show stronger cash generation quality. Durable cash strength funds capital needs, supports reinvestment or shareholder returns, and reduces reliance on external financing across quarters.

Negative Factors

Low net profit margin

A low net margin limits the company's ability to translate high gross margins into shareholder returns and provides a small buffer against adverse claims, rising expenses, or investment losses. This structural constraint can impair long-term earnings resilience.

Fluctuating and recently negative revenue trend

Inconsistent top-line growth and a recent TTM decline signal potential weakness in new business, pricing, or product mix. Persistent volatility in revenues undermines predictability of underwriting scale and fee income, complicating medium-term planning and margin recovery.

Concentration in life and health insurance exposures

Heavy exposure to life and health lines creates structural sensitivity to longevity, healthcare cost inflation, and regulatory shifts in reserving and pricing. Such sector concentration can amplify long-term underwriting and capital risks versus a more diversified insurer.

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 demonstrates strong financial health with robust gross profit margins and a conservative balance sheet. While cash flow generation has improved significantly, the company faces challenges with fluctuating revenue growth and relatively low net profit margins.

Income Statement

Migdal Insurance shows strong gross profit margins consistently above 95%, indicating efficient cost management. However, the net profit margin is relatively low at 4.12% for TTM, suggesting room for improvement in profitability. The revenue growth rate has fluctuated, with a recent decline of 3.16% in TTM, which could be a concern if it continues.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.013 in TTM, reflecting a conservative leverage strategy. Return on equity is healthy at 15.27%, indicating effective use of equity to generate profits. The equity ratio is strong, showing a solid financial position with significant equity backing its assets.

Cash Flow

Migdal Insurance has shown significant improvement in free cash flow, with a growth rate of 108.42% in TTM. The free cash flow to net income ratio is high at 0.95, indicating strong cash generation relative to net income. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.

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: 1609.00
• 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 1609 is below the 20-day moving average (MA) of 1628.95, above the 50-day MA of 1548.76, and above the 200-day MA of 1117.04, indicating a bullish trend. The MACD of 22.31 indicates Positive momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 48.32 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
HARL	76 Outperform	₪29.34B	12.24	23.23%	2.21%	5.84%	138.80%
MMHD	71 Outperform	₪24.92B	12.14	―	2.61%	23.28%	124.99%
MGDL	70 Outperform	₪17.67B	12.68	―	0.30%	6.00%	36.33%
CLIS	69 Neutral	₪18.15B	9.63	―	1.67%	-27.87%	229.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IDIN	60 Neutral	₪3.61B	10.48	―	5.98%	19.48%	53.61%