Oil Refineries (ORL) AI Stock Analysis

• Market Cap: 2.75B
• Dividend Yield: 10.64%
• Average Volume (3M): 6.55M
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.96
• Revenue Growth: -21.11%
• EPS Growth: -124.60%
• Country: IL
• Employees: 1,492
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -4.30
• Shares Outstanding: 3,109,160,200
• 10 Day Avg. Volume: 4,998,089
• 30 Day Avg. Volume: 6,548,091
• 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: 93.41
• Price Target Upside: 5.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 92.00 ▲(3.84% Upside)

The overall stock score reflects significant financial performance challenges, including declining revenue and profitability margins. Technical indicators suggest a neutral to slightly overbought trend, while valuation concerns arise from a negative P/E ratio despite a high dividend yield. These factors collectively indicate a need for caution.

Oil Refineries Business Overview & Revenue Model

Company Description

Bazan (Oil Refineries Ltd. - ORL) is one of Israel's largest oil refining and petrochemical companies. Located in the Haifa Bay area, Bazan operates an integrated refining complex producing a wide range of petroleum products, including gasoline, diesel, kerosene, and various petrochemical products. The company serves both domestic and international markets, with its core operations focused on refining, chemistry, and trade of oil and oil by-products.

How the Company Makes Money

Bazan makes money primarily through the refining and sale of petroleum products. Its revenue model is centered around converting crude oil into refined products such as gasoline, diesel, and jet fuel, which are sold to various customers, including industrial clients, wholesalers, and retailers. Additionally, Bazan generates income from the production and sale of petrochemical products used in various industrial applications. The company benefits from long-term supply agreements and partnerships with crude oil suppliers and customers, ensuring a steady flow of raw materials and consistent demand for its products. Fluctuations in global oil prices and refining margins can significantly impact Bazan's earnings.

Oil Refineries Financial Statement Overview

Summary

Oil Refineries faces challenges with declining revenue and profitability margins, impacting its financial health. While leverage is under control, the reduced return on equity and cash flow issues suggest the need for strategic improvements to enhance financial performance and shareholder value.

Income Statement

The income statement shows a declining trend in revenue with a negative growth rate of -5.44% in TTM. Gross profit margin has decreased to 4.31% from 5.70% in the previous year, indicating pressure on profitability. Net profit margin turned negative at -0.47%, reflecting a challenging operating environment. EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.67 in TTM, showing a manageable level of leverage. However, the return on equity has dropped significantly to 1.89%, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -3.13% in TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is 0.27, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio of 0.40 highlights some challenges in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.63B	7.54B	8.32B	10.83B	6.58B	4.06B
Gross Profit	209.88M	430.00M	764.08M	780.67M	569.64M	-12.60M
EBITDA	225.99M	430.00M	773.00M	780.89M	589.21M	13.87M
Net Income	-64.93M	113.00M	408.27M	441.22M	252.84M	-274.31M
Balance Sheet
Total Assets	4.42B	4.45B	4.66B	4.53B	4.39B	3.92B
Cash, Cash Equivalents and Short-Term Investments	549.00M	752.00M	831.15M	751.06M	637.73M	809.70M
Total Debt	1.23B	1.26B	1.32B	1.42B	1.66B	1.61B
Total Liabilities	2.79B	2.69B	2.80B	2.78B	3.01B	2.84B
Stockholders Equity	1.63B	1.76B	1.86B	1.74B	1.37B	1.08B
Cash Flow
Free Cash Flow	147.45M	254.00M	541.23M	497.11M	-89.95M	347.09M
Operating Cash Flow	383.38M	441.00M	704.59M	700.81M	12.94M	435.25M
Investing Cash Flow	-227.46M	-84.00M	-153.14M	-226.40M	-133.41M	-6.43M
Financing Cash Flow	-195.28M	-363.00M	-539.96M	-363.44M	-49.75M	-45.00M

Oil Refineries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 88.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ORL, the sentiment is Neutral. The current price of 88.6 is above the 20-day moving average (MA) of 85.97, below the 50-day MA of 88.78, and below the 200-day MA of 91.68, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 86.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ORL.

Oil Refineries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.18B	7.59	4.09%	5.21%	3.87%	-62.32%
ORL	52 Neutral	2.75B	6.26	-3.72%	10.64%	-21.11%	-124.60%
NFTA	―	2.43B	13.98		7.01%	―	―
DRAL	―	2.07B	9.00		4.82%	―	―
TMRP	79 Outperform	3.30B	19.08		6.67%	11.84%	-4.96%
MSKE	60 Neutral	3.44B	71.44		―	―	―
DORL	45 Neutral	2.95B	―		―	113.54%	-242.38%