Paz Energy (PAZ) AI Stock Analysis

• Market Cap: ₪9.18B
• Dividend Yield: N/A
• Average Volume (3M): 19.89K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.11
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 7,486
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 1284.80
• Shares Outstanding: 10,758,762
• 10 Day Avg. Volume: 23,291
• 30 Day Avg. Volume: 19,886
• PEG Ratio: -1.00
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 7.45
• 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: 71 Outperform
• Price Target: 89,870.00 ▲(15.22% Upside)
• Action: Upgraded Date: 03/17/26
• Date: Action: Upgraded 03/17/26

The score is driven primarily by strong cash flow generation and improving (but still leveraged) balance sheet trends, tempered by significant top-line decline risk. Technicals are supportive with the price above key moving averages and neutral momentum, while valuation is favorable due to a moderate P/E and high dividend yield.

Positive Factors

Free cash flow strength

Consistent positive operating cash flow and strong free cash flow across 2024-25 provides durable internal funding for debt reduction, capex and shareholder distributions. Reliable FCF improves resilience to cyclical swings and lowers dependence on external financing if sustained.

Gradual deleveraging

A clear multi-year decline in total debt shows management is prioritizing balance sheet repair. Gradual deleveraging reduces interest burden and raises financial flexibility, improving credit profile and the firm's ability to withstand downturns in the cyclical refining business.

Profitability recovery and margin resilience

Return to positive net income and stable-to-rising gross profit dollars indicate operational improvements or maintained pricing power. Sustained margin resilience helps preserve earnings even with weaker top line, supporting cash flow and long-term earnings durability if cost discipline continues.

Negative Factors

Elevated leverage remains

Despite debt reduction, leverage remains materially above equity, limiting strategic optionality. High leverage raises refinancing and interest-rate sensitivity, reducing buffer against margin shocks in a cyclical refining market and constraining investment or M&A flexibility.

Sharp multi-year revenue decline

A steep, sustained revenue contraction materially weakens operating leverage and increases reliance on margin recovery to sustain profits. Persistent top-line shrinkage can erode market position, reduce scale economics, and limit sustainable cash generation over the medium term.

Cash conversion variability

Variability in converting earnings to cash creates uncertainty around the firm's ability to consistently fund debt paydown and investments. Irregular cash conversion increases execution risk, complicates multi-year planning for dividends, capex and further deleveraging.

Paz Energy Business Overview & Revenue Model

Company Description

Paz Retail And Energy Ltd., together with its subsidiaries, refines, produces, stores, imports, markets, and sells petroleum and other products in Israel and internationally. It engages in the transportation, marketing, distribution, and sale of fuels through refueling stations; food and convenience products through Yellow market stores; leasing of stores; and engineering, maintenance, and logistic services. The company is also involved in trading and direct marketing of fuel products to private, commercial, industrial, and institutional customers, as well as to vehicle fleets and the Palestinian Authority. In addition, it markets, distributes, and sells LPG for cooking, heating, and refueling vehicles; produces, markets, and exports sealing and insulation products to construction industry; manufactures and markets products for transportation infrastructure; develops new products; distributes aviation fuels; and provides refueling services. Further, the company produces, imports, markets, and exports oils for transportation and industry, automotive auxiliary products, fuel additives; urea for transportation; oils and lubricants for industry raw materials for the detergent and cosmetics industry; offers process products for the metal industry; cleaning materials for industry; dust repellents; chemicals; solvents and combustion fluids. Additionally, it generates and sells photovoltaic electricity; imports crude oil; and offers procurement services. The company was formerly known as Paz Oil Company Ltd. and changed its name to Paz Retail And Energy Ltd. in October 2024. Paz Retail And Energy Ltd. was founded in 1922 and is based in Yakum, Israel.

Paz Energy Financial Statement Overview

Summary

Strong, consistent cash generation and solid free cash flow support resilience and continued debt reduction. However, the balance sheet still has above-average leverage, and the sharp multi-year revenue decline (including a steep 2025 drop) raises risk around the durability of future earnings.

Income Statement

Profitability has improved meaningfully versus the 2023 loss, with 2024 net income of 650M and 2025 net income of 578M. Gross profit dollars held up well (2.43B in 2024; 2.59B in 2025), supporting earnings stability. The key weakness is top-line pressure: revenue declined for multiple years, including a sharp drop in 2025 (down 42.1% year-over-year), which increases volatility risk for future earnings if margins cannot offset lower volumes/pricing.

Balance Sheet

Leverage remains elevated, with debt consistently above equity (debt-to-equity of ~1.55 in 2024 and ~1.89 in 2023), which can constrain flexibility in a cyclical refining/marketing environment. A positive offset is gradual deleveraging: total debt fell from 6.90B (2022) to 5.05B (2024) and 4.72B (2025), while equity has been relatively stable to slightly higher. Overall, the balance sheet is improving but still carries above-average leverage risk.

Cash Flow

Cash generation is a clear strength: operating cash flow has been consistently positive (1.41B in 2024; 1.28B in 2025) and free cash flow is strong (1.18B in 2024; 1.05B in 2025). Free cash flow rebounded sharply from 2022 (slightly negative) and has stayed solid, supporting debt reduction and shareholder capacity. The main watch-out is variability in cash conversion over time (e.g., weaker year in 2022), though the recent two-year profile is robust.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.13B	11.91B	13.28B	14.15B	7.73B
Gross Profit	2.59B	2.43B	2.31B	2.28B	1.58B
EBITDA	1.38B	1.50B	1.11B	1.37B	9.22M
Net Income	578.00M	650.00M	-5.00M	300.00M	224.00M
Balance Sheet
Total Assets	10.36B	10.49B	11.35B	15.37B	12.49B
Cash, Cash Equivalents and Short-Term Investments	745.00M	764.00M	1.09B	1.54B	2.68B
Total Debt	4.72B	5.05B	5.98B	6.90B	6.14B
Total Liabilities	6.97B	7.24B	8.18B	11.31B	9.18B
Stockholders Equity	3.39B	3.25B	3.17B	4.05B	3.31B
Cash Flow
Free Cash Flow	1.05B	1.18B	954.00M	-8.00M	880.00M
Operating Cash Flow	1.28B	1.41B	1.33B	640.00M	1.23B
Investing Cash Flow	-116.00M	205.00M	-590.00M	-2.18B	-491.00M
Financing Cash Flow	-1.18B	-1.94B	-1.29B	464.00M	405.00M

Paz Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAZ	71 Outperform	₪9.18B	13.59	―	―	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%