Phoenix (PHOE) AI Stock Analysis

• Market Cap: ₪40.76B
• Dividend Yield: 4.19%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.47
• Revenue Growth: 12.22%
• EPS Growth: 71.58%
• Country: IL
• Employees: 5,204
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 320.00
• Shares Outstanding: 253,328,060
• 10 Day Avg. Volume: 1,003,045
• 30 Day Avg. Volume: 1,333,724
• PEG Ratio: 0.05
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -8.38
• 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): 12.15
• Revenue Forecast (FY): ₪10.12B

• Rating: 79 Outperform
• Price Target: 18,778.00 ▲(39.10% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Phoenix's strong financial performance, particularly in revenue growth and profitability, combined with bullish technical indicators and attractive valuation metrics, contribute to a high overall stock score. The absence of earnings call data and corporate events does not detract from the positive outlook.

Positive Factors

Gross Margin

A gross profit margin near 99% indicates strong unit economics and pricing power in Phoenix's core products. Such exceptionally high margins provide durable cushion against input cost volatility, support reinvestment in R&D and distribution, and underpin long-term margin sustainability across business cycles.

Revenue & Profit Growth

Consistent revenue expansion with improving net margins signals structural demand and improving operational leverage. Sustained top-line growth paired with margin improvement supports scalable earnings, enhances funding capacity for projects, and indicates product-market fit across customer segments.

Return on Equity

A robust ROE demonstrates efficient use of shareholder capital and strong profitability relative to equity. Combined with moderate leverage, this suggests management can amplify returns without excessive balance sheet risk, supporting long-term capital allocation and growth initiatives.

Negative Factors

Cash Conversion

Weak conversion of accounting profits into operating cash and modest free cash flow relative to net income indicate potential strain funding growth, capex, or dividends from operations. Over months this can constrain flexibility, increase reliance on external financing, and stress liquidity under adverse conditions.

Low Equity Ratio

A relatively low equity ratio reduces the balance sheet buffer versus asset write-downs or project impairments. This structural vulnerability increases downside risk during industry downturns or project delays, potentially forcing deleveraging or equity issuance that dilutes long-term returns.

Policy Dependence

Material reliance on incentives and subsidies creates structural exposure to regulatory shifts. Changes in policy, tariffing, or subsidy levels can materially alter project economics and long-term margins, making revenue and profitability sensitive to political and regulatory cycles rather than pure market demand.

Phoenix Business Overview & Revenue Model

Company Description

The Phoenix Holdings Ltd. provides various insurance and pension products in Israel. It offers life and disability insurance; flight cancellation; and property and casualty insurance, including motor vehicle, motor property, home and business, third-party liability, employers' liability, directors' and officers' liability, product liability, building, contract works, and marine insurance products, as well as health insurance products, such as long-term care and critical illness, travel, sick leave, illness and hospitalization, and dental insurance. The company also provides mechanical-engineering equipment, mechanical breakdown, refrigerated inventory, cargo in transit and shippers' liability, short-term personal accident, fidelity, agricultural, and electronic equipment insurance; investment insurance for home buyers; insurance covering production and cancellation of events; and clinical trials, money, goods in transit, works of art, aviation, terrorism acts, and cyber insurance. In addition, it offers financial asset management services comprising marketing and management of investments, underwriting and investment banking, mutual funds management, and stock exchange and trading services; and pension, education, and provident funds, as well as savings products. The company was formerly known as The Israel Phoenix Assurance Company Limited. The Phoenix Holdings Ltd. was incorporated in 1949 and is headquartered in Givatayim, Israel.

How the Company Makes Money

Phoenix generates revenue through multiple streams, primarily from the sale of solar energy products and systems. Key revenue sources include the direct sale of solar panels and energy storage solutions to consumers and businesses, installation services, and ongoing maintenance contracts. Additionally, the company engages in strategic partnerships with governmental and non-governmental organizations to facilitate large-scale renewable energy projects, which contribute significantly to its earnings. Phoenix also benefits from incentives and subsidies related to renewable energy initiatives, further enhancing its profitability.

Phoenix Financial Statement Overview

Summary

Phoenix shows strong revenue growth and profitability with a high gross profit margin and improved net profit margin. The balance sheet is stable with a moderate debt-to-equity ratio, but cash flow management needs improvement despite a significant increase in free cash flow.

Income Statement

Phoenix has demonstrated strong revenue growth with a 2.53% increase in TTM, supported by a high gross profit margin of 98.56%. The net profit margin has improved to 8.80%, indicating enhanced profitability. EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency. However, the company should continue to monitor its cost structure to maintain these margins.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.33, suggesting a balanced approach to leverage. Return on equity is robust at 23.05%, indicating effective use of equity capital. However, the equity ratio is relatively low, which could pose risks if asset values fluctuate.

Cash Flow

Phoenix has experienced a significant turnaround in free cash flow growth, with a 1127.38% increase in TTM. However, the operating cash flow to net income ratio is low, suggesting potential challenges in cash generation relative to profits. The free cash flow to net income ratio is also modest at 12.50%, indicating room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.91B	30.15B	24.11B	8.49B	28.62B	17.10B
Gross Profit	30.12B	27.36B	22.01B	6.64B	27.01B	15.41B
EBITDA	5.95B	3.88B	2.04B	2.56B	3.26B	2.21B
Net Income	3.03B	1.82B	777.40M	1.26B	1.96B	1.17B
Balance Sheet
Total Assets	190.10B	172.57B	159.79B	147.52B	143.58B	119.16B
Cash, Cash Equivalents and Short-Term Investments	23.62B	32.01B	33.03B	29.51B	26.91B	19.96B
Total Debt	7.90B	10.46B	9.36B	8.11B	6.35B	4.90B
Total Liabilities	177.74B	160.32B	148.90B	136.98B	133.66B	111.08B
Stockholders Equity	12.07B	11.91B	10.58B	10.14B	9.65B	7.97B
Cash Flow
Free Cash Flow	1.44B	-1.60B	1.14B	2.20B	4.19B	4.40B
Operating Cash Flow	2.23B	-701.54M	2.18B	2.73B	4.55B	4.77B
Investing Cash Flow	-687.15M	-1.30B	-1.46B	-535.97M	-214.98M	-479.71M
Financing Cash Flow	626.45M	109.19M	1.84B	1.67B	-402.69M	374.22M

Phoenix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13500.00
• 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:PHOE, the sentiment is Neutral. The current price of 13500 is below the 20-day moving average (MA) of 16359.50, below the 50-day MA of 15041.60, and above the 200-day MA of 11915.08, indicating a neutral trend. The MACD of 450.64 indicates Positive momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 36.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:PHOE.

Phoenix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHOE	79 Outperform	₪40.76B	13.35	―	4.19%	12.22%	71.58%
HARL	76 Outperform	$33.42B	13.93	23.23%	2.21%	5.84%	138.80%
MMHD	71 Outperform	₪28.25B	13.74	―	2.61%	23.28%	124.99%
MGDL	70 Outperform	₪18.51B	13.29	―	0.30%	6.00%	36.33%
CLIS	69 Neutral	₪19.41B	10.26	―	1.67%	-27.87%	229.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IDIN	60 Neutral	₪3.56B	10.34	―	5.98%	19.48%	53.61%