Poalim (POLI) AI Stock Analysis

• Market Cap: $91.40B
• Dividend Yield: 3.47%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.95
• Revenue Growth: 19.05%
• EPS Growth: 18.98%
• Country: IL
• Employees: 8,480
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 206.20
• Shares Outstanding: 1,316,183,200
• 10 Day Avg. Volume: 2,212,394
• 30 Day Avg. Volume: 2,987,811
• PEG Ratio: 1.92
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 2.76
• P/FCF Ratio: 6.64
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 3.68
• Enterprise Value/Ebitda: 4.42
• 1Y Price Target: $7,470.22
• Price Target Upside: -2.40% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ―

Poalim's overall stock score is driven by strong financial performance and attractive valuation. The company's robust income growth and solid balance sheet, combined with a reasonable P/E ratio and healthy dividend yield, make it an appealing investment. Positive technical indicators further enhance its attractiveness, though cash flow volatility and potential overbought conditions warrant monitoring.

Poalim Business Overview & Revenue Model

Company Description

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Corporate Banking, Retail Banking, and Financial Markets and International Banking divisions. The company offers account-management services, credit for various purposes, deposits, and savings plans, and capital-market service; securities, and currencies and derivatives trading services; securities custody services; research, consulting, and advisory services; pension advisory and retirement planning services; and housing loans. It also provides credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, securities, etc. In addition, the company offers financing for infrastructure projects, foreign trade and international trade financing, and project financing services; foreign trade transactions and transactions in financial derivatives; financing of working capital; syndication; credit-risk sales; financing of construction projects; dealing-room services; federal deposit insurance; and credit cards services. Further, it provides clearing of payment, asset management, investment portfolio management, investment banking, underwriting, and issuance management services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations through 175 branches, 601 external and 131 internal automatic teller machines, 126 external and 216 internal check-deposit machines, 30 information stations, 316 self-service stations, and 119 night safes. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

How the Company Makes Money

Poalim generates revenue through various streams, including interest income from loans and advances provided to customers, which constitutes a significant portion of its earnings. The bank also earns fees and commissions from a wide array of services such as account maintenance, transaction processing, and advisory services for corporate clients. Additionally, Poalim engages in trading and investment activities that contribute to its income. Strategic partnerships with fintech companies and other financial institutions further enhance its service offerings and operational efficiency, positively impacting revenue generation. Overall, the company's diversified revenue model and its ability to adapt to market changes play critical roles in sustaining its financial performance.

Poalim Financial Statement Overview

Summary

Poalim exhibits strong financial health with robust income growth and an improved balance sheet. The company effectively managed its costs to enhance profitability, as seen in the rising net and EBIT margins. The balance sheet showcases a solid equity position with minimal debt, reducing financial risk. However, cash flow management has shown volatility, particularly in operating cash flow, which could pose risks if not stabilized.

Income Statement

Poalim has demonstrated strong revenue growth, with a notable increase of 28.4% from 2020 to 2024. The gross profit margin remains at 100%, consistent with its sector's characteristics. Net profit margins improved from 15.7% to 34.8% over five years, indicating enhanced profitability. EBIT margin also increased from 27.8% in 2020 to 58.9% in 2024, reflecting efficient cost management.

Balance Sheet

The bank's balance sheet indicates a strong equity position with a rising trend in stockholders' equity from $38.18 billion in 2019 to $58.15 billion in 2024. The equity ratio improved from 8.24% in 2020 to 8.07% in 2024, showing stability. The debt-to-equity ratio is low due to no reported debt in 2024, reducing financial risk. Return on Equity improved to 13.13% in 2024, showcasing effective use of equity.

Cash Flow

Poalim's cash flow analysis shows a mixed picture. The free cash flow has rebounded to $8.85 billion in 2024 from negative figures in prior years, indicating better cash management. However, the operating cash flow to net income ratio has fluctuated, with a significant negative operating cash flow in 2023. The free cash flow to net income ratio improved to 1.16 in 2024, signaling effective conversion of earnings to free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.62B	40.48B	38.20B	23.63B	16.22B	14.58B
Gross Profit	17.62B	21.93B	21.31B	17.87B	14.30B	13.12B
EBITDA	14.69B	13.02B	12.07B	10.70B	8.41B	4.33B
Net Income	9.28B	7.63B	7.36B	6.53B	4.91B	2.06B
Balance Sheet
Total Assets	768.06B	720.84B	686.53B	665.35B	638.78B	539.60B
Cash, Cash Equivalents and Short-Term Investments	0.00	117.05B	107.11B	133.42B	189.28B	138.71B
Total Debt	63.09B	49.79B	22.36B	27.47B	26.27B	24.28B
Total Liabilities	704.32B	662.69B	634.10B	618.85B	596.03B	499.70B
Stockholders Equity	63.74B	58.15B	52.43B	46.50B	42.73B	39.87B
Cash Flow
Free Cash Flow	-3.83B	8.85B	-1.41B	-568.00M	4.29B	2.12B
Operating Cash Flow	-2.80B	9.83B	-437.00M	132.00M	5.18B	2.80B
Investing Cash Flow	-55.77B	-27.01B	-27.15B	-67.97B	-45.87B	-23.21B
Financing Cash Flow	32.78B	26.47B	1.96B	10.55B	91.97B	73.86B

Poalim Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7654.00
• 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:POLI, the sentiment is Positive. The current price of 7654 is above the 20-day moving average (MA) of 7116.94, above the 50-day MA of 6738.01, and above the 200-day MA of 5892.11, indicating a bullish trend. The MACD of 245.72 indicates Negative momentum. The RSI at 79.80 is Negative, neither overbought nor oversold. The STOCH value of 94.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:POLI.

Poalim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMI	80 Outperform	$100.10B	10.37	15.67%	3.56%	6.95%	12.41%
POLI	80 Outperform	$91.40B	9.95	15.13%	3.47%	19.05%	18.98%
MZTF	80 Outperform	$58.20B	10.49	16.87%	4.05%	11.00%	6.03%
FIBI	79 Outperform	25.81B	11.12	16.48%	4.56%	14.16%	1.05%
DSCT	79 Outperform	$40.60B	9.45	13.10%	3.68%	14.48%	4.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%