Peninsula Group (PEN) AI Stock Analysis

• Market Cap: ₪671.44M
• Dividend Yield: 5.35%
• Average Volume (3M): 72.14K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.16
• Revenue Growth: 25.73%
• EPS Growth: 45.19%
• Country: IL
• Employees: 45
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Credit Services
• EPS (TTM): 7.20
• Shares Outstanding: 223,218,300
• 10 Day Avg. Volume: 93,375
• 30 Day Avg. Volume: 72,145
• PEG Ratio: 0.27
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 3.49
• P/FCF Ratio: -7.71
• 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: 54 Neutral
• Price Target: 322.00 ▼(-12.33% Downside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is held back mainly by volatile cash flow (including a material negative swing in 2025) and elevated/rising leverage, alongside weak technical momentum (price below key moving averages with negative MACD). These are partially offset by an attractive valuation (low P/E and high dividend yield).

Positive Factors

Strong recent revenue growth

A very large top-line increase in 2025 demonstrates the company can scale sales and capture demand in its market. Durable revenue expansion supports reinvestment, product development and debt servicing capacity, improving medium-term cash generation potential if growth persists.

High operating and net margins

Elevated margins indicate strong unit economics, pricing power or a differentiated cost structure that can sustain profits through cycles. High profitability provides cushion against shocks, funds strategic initiatives, and underpins long-term return generation if margins remain structurally supported.

Solid returns on equity and growing equity base

Consistent mid-high single-digit ROE alongside rising equity suggests the business converts capital into earnings reasonably well. A growing equity base increases loss-absorption capacity and supports strategic flexibility, enhancing resilience and ability to fund expansion without excessive dilution.

Negative Factors

Elevated and rising leverage

A materially higher debt-to-equity ratio raises financial risk and interest burden, constraining operational flexibility. Persistent or rising leverage can limit capacity for strategic investment, amplify earnings volatility in downturns, and increase refinancing risk over the medium term.

Volatile, negative cash generation in 2025

A substantial negative cash flow year undermines liquidity and shows difficulty converting reported profits to cash. This inconsistency raises funding, covenant and dividend risks, making the business dependent on external financing in weak periods and reducing resilience to prolonged stress.

Choppy revenue history and margin erosion

Historical volatility in revenues and a trend of margin compression suggest structural competitiveness or demand variability. Such instability makes long-term forecasting harder, reduces confidence in sustained profitability, and may require continual investment to stabilize growth and margins.

Peninsula Group Business Overview & Revenue Model

Company Description

Peninsula Group Ltd provides credit solutions in Israel. The company offer long term, medium term, import, supplier, equipment, and asset-based financing services. It also provides bridge loans; line of credit; and diamond exchange services. The company was founded in 2004 and is based in Tel Aviv-Yafo, Israel.

Peninsula Group Financial Statement Overview

Summary

Strong reported profitability and a large 2025 revenue increase are offset by rising leverage (debt-to-equity up to ~2.11x in 2024 with debt rising again in 2025) and highly inconsistent cash generation, including a sharp swing to negative operating and free cash flow (~-99M) in 2025.

Income Statement

Revenue has grown strongly in the most recent year (2025: +148.9%), but the top line was relatively choppy earlier (including a decline in 2022). Profitability remains high, with very strong operating and net margins in 2024 (net margin ~28%, EBIT margin ~37%), though margins have trended down from 2020–2021 peaks. Net income increased in 2025 versus 2024, supporting overall earnings quality, but the longer-term margin compression tempers the score.

Balance Sheet

The balance sheet is meaningfully leveraged: debt-to-equity moved from ~1.73x (2023) to ~2.11x (2024), and total debt rose again in 2025. Equity has grown, but not as fast as debt, which increases financial risk and reduces flexibility. Returns on equity are solid (~9.7% in 2024; ~10.6% in 2023), but the rising leverage profile is the key constraint.

Cash Flow

Cash generation is volatile. After strong positive operating and free cash flow in 2023 and 2024 (with 2024 free cash flow roughly matching net income), 2025 swung sharply negative (operating cash flow about -99M and free cash flow about -99M). Prior years also showed negative cash flow periods (notably 2020 and 2022), indicating inconsistency in converting reported profits into cash and elevating funding/liquidity risk in weaker years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	219.07M	181.66M	166.28M	140.00M	152.89M
Gross Profit	208.69M	126.49M	122.17M	114.50M	140.57M
EBITDA	166.37M	70.99M	75.03M	68.03M	99.85M
Net Income	71.93M	51.31M	53.80M	48.74M	68.65M
Balance Sheet
Total Assets	1.84B	1.68B	1.41B	1.52B	1.50B
Cash, Cash Equivalents and Short-Term Investments	1.31M	23.40M	101.38M	93.00M	111.21M
Total Debt	1.24B	1.12B	877.71M	1.00B	962.25M
Total Liabilities	1.28B	1.15B	901.41M	1.02B	993.89M
Stockholders Equity	559.68M	529.58M	507.06M	505.47M	507.46M
Cash Flow
Free Cash Flow	-99.16M	102.61M	359.01M	-21.63M	10.07M
Operating Cash Flow	-98.97M	106.48M	359.50M	-20.86M	12.84M
Investing Cash Flow	-1.74M	-3.88M	-489.00K	-770.00K	-1.31M
Financing Cash Flow	78.59M	-180.54M	-350.26M	3.55M	9.28M

Peninsula Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 367.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PEN, the sentiment is Negative. The current price of 367.3 is above the 20-day moving average (MA) of 324.71, above the 50-day MA of 345.45, and above the 200-day MA of 325.54, indicating a bearish trend. The MACD of -14.12 indicates Positive momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 20.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PEN.

Peninsula Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNIF	70 Outperform	₪1.62B	7.96	―	4.19%	25.72%	21.70%
MCLL	58 Neutral	₪761.53M	11.79	―	1.53%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
JCFN	55 Neutral	₪800.22M	10.01	―	―	29.67%	15.36%
PEN	54 Neutral	₪671.44M	10.63	―	5.35%	25.73%	45.19%
DIFI	51 Neutral	₪1.52B	5.48	―	5.03%	0.10%	15.03%