Migdal Insur. (MGDL) AI Stock Analysis

• Market Cap: 10.12B
• Dividend Yield: 0.61%
• Average Volume (3M): 4.57M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.58
• Revenue Growth: -16.50%
• EPS Growth: 29.61%
• Country: IL
• Employees: 4,583
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Life
• EPS (TTM): 24.00
• Shares Outstanding: 1,054,292,600
• 10 Day Avg. Volume: 8,350,079
• 30 Day Avg. Volume: 4,574,895
• PEG Ratio: -0.12
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.36
• 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

• Rating: 67 Neutral
• Price Target: 1,025.00 ▲(33.20%Upside)

The stock score is driven primarily by solid financial performance with consistent revenue growth and strong equity positioning. Technical analysis indicates a strong bullish trend but overbought conditions suggest caution. Valuation metrics reflect a fair market price with limited dividend yield, providing a balanced outlook for investors.

Migdal Insur. Business Overview & Revenue Model

Company Description

Migdal Insur. (MGDL) is a leading insurance company that operates primarily in the sectors of life insurance, general insurance, and financial services. The company offers a wide range of insurance products, including life, health, property, and casualty insurance, as well as pension and savings plans. Migdal Insur. is known for its comprehensive coverage options and customer-centric approach, serving both individual clients and businesses.

How the Company Makes Money

Migdal Insur. generates revenue primarily through the collection of insurance premiums from policyholders. The company offers various insurance products, each with its own premium structure, which provides a steady stream of income. Additionally, Migdal Insur. earns money through investment income generated from the management of reserves and funds collected from policyholders. The company may also engage in strategic partnerships with financial institutions and leverage its expertise in risk management to offer value-added services. Factors such as underwriting performance, claims management efficiency, and investment portfolio returns significantly contribute to the company's earnings.

Migdal Insur. Financial Statement Overview

Summary

Migdal Insurance demonstrates steady revenue growth and strong equity positioning with low debt levels. While net profit margins are constrained, the company shows efficient cash flow management and operational efficiency improvements.

Income Statement

Migdal Insurance has shown steady revenue growth over the years, with a significant increase from 2023 to 2024. The gross profit margin remains consistent due to the nature of the insurance business. However, net profit margins are relatively low, indicating challenges in translating revenue into profit, which is typical in the insurance industry due to high operational and claims costs. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position with increasing stockholders' equity, which is a positive indicator of financial health. The debt-to-equity ratio is low, suggesting prudent financial leverage and management of liabilities. The equity ratio shows a healthy proportion of equity to total assets, which is favorable for stakeholders in the insurance sector. Overall, the balance sheet remains stable with a focus on equity growth.

Cash Flow

Migdal's cash flow statement indicates strong operating cash flow, underscoring the company's ability to generate cash from operations. The free cash flow growth from 2023 to 2024 is robust, yet fluctuations in previous years point to volatility in cash management. The operating cash flow to net income ratio is healthy, reflecting good cash conversion, but the free cash flow to net income ratio illustrates potential cash allocation challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.74B	28.47B	6.44B	36.68B	21.90B
Gross Profit	33.74B	28.47B	6.44B	36.68B	21.90B
EBITDA	1.47B	1.28B	1.51B	2.49B	914.10M
Net Income	608.16M	587.18M	750.97M	1.39B	388.63M
Balance Sheet
Total Assets	219.64B	204.86B	196.90B	204.16B	181.92B
Cash, Cash Equivalents and Short-Term Investments	46.09B	41.00B	38.79B	37.79B	29.44B
Total Debt	5.99B	5.97B	7.19B	5.42B	4.97B
Total Liabilities	210.09B	196.26B	188.80B	195.59B	175.04B
Stockholders Equity	9.54B	8.59B	8.09B	8.56B	6.88B
Cash Flow
Free Cash Flow	3.05B	2.15B	-3.11B	6.88B	-5.26B
Operating Cash Flow	3.38B	2.44B	-2.85B	7.12B	-5.07B
Investing Cash Flow	-353.88M	-284.03M	-254.66M	-245.25M	-181.84M
Financing Cash Flow	630.00M	-1.35B	1.18B	773.24M	968.91M

Migdal Insur. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 769.50
• 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 769.5 is below the 20-day moving average (MA) of 812.26, above the 50-day MA of 754.50, and above the 200-day MA of 683.99, indicating a bullish trend. The MACD of 56.29 indicates Negative momentum. The RSI at 82.63 is Negative, neither overbought nor oversold. The STOCH value of 89.00 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
HARL	73 Outperform	$20.08B	16.31	12.96%	5.22%	-10.79%	67.20%
MMHD	72 Outperform	16.63B	13.53		3.63%	-2.35%	80.26%
Sector *	71 Outperform	14.88B	17.24	15.69%	4.36%	8.25%	25.93%
IDIN	67 Neutral	3.28B	11.02		6.70%	25.90%	68.30%
MGDL	67 Neutral	10.12B	13.20		0.61%	-16.50%	29.61%
CLIS	62 Neutral	12.35B	11.34		1.62%	―	―

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.