Poalim (POLI) AI Stock Analysis

• Market Cap: $100.75B
• Dividend Yield: 3.54%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.97
• 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: 1,313,198,200
• 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): 1.45
• P/FCF Ratio: 6.64
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 8.69
• Enterprise Value/Ebitda: 10.43
• 1Y Price Target: $7,498.63
• Price Target Upside: -2.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 7,728.00 ▲(0.73% Upside)

The score is primarily held back by the financial profile’s cash-flow deterioration and higher leverage despite strong TTM profitability and improved ROE. Valuation is supportive (low P/E and solid dividend yield), while technicals are mixed with longer-term trend support but near-term weakness.

Positive Factors

Strong Profitability

The company's strong profitability metrics indicate robust earnings power, which supports long-term business sustainability and potential for reinvestment.

Revenue Growth

Improving revenue growth suggests the company is expanding its market presence, which could enhance its competitive position over time.

Improved ROE

An improved ROE indicates better efficiency in generating profits from equity, enhancing shareholder value and financial health.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues and reliance on external funding, which could constrain operational flexibility and growth.

Rising Leverage

Increased leverage heightens financial risk and may limit the company's ability to withstand economic downturns or invest in growth opportunities.

Cash Flow Volatility

The volatility in cash flow conversion suggests potential instability in financial operations, which could impact strategic planning and investment.

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 channels, including interest income from loans and credit products, fees from banking services, and commissions from investment services. The primary revenue stream comes from the interest charged on consumer and business loans, which typically exceeds the interest paid on deposits. Additionally, Poalim earns fees from account maintenance, transaction services, and financial advisory services. The bank also engages in proprietary trading and investment in securities, contributing to its income. Strategic partnerships with other financial institutions and fintech companies enhance its service offerings and customer reach, further boosting its earnings potential.

Poalim Financial Statement Overview

Summary

Poalim exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet reflects a stable financial position with moderate leverage. Cash flow performance is generally positive, though there are areas for improvement in cash conversion efficiency. Overall, Poalim is well-positioned in the regional banking sector.

Income Statement

Poalim has demonstrated strong revenue growth with a 14.79% increase in the latest year, supported by a solid gross profit margin of 54.18%. The net profit margin of 18.86% indicates healthy profitability, although slightly lower than the previous year. The EBIT and EBITDA margins are robust at 30.29% and 32.18%, respectively, reflecting efficient operational management.

Balance Sheet

The debt-to-equity ratio of 0.86 suggests moderate leverage, which is manageable given the industry context. Return on equity stands at 13.13%, indicating effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base relative to assets.

Cash Flow

Free cash flow growth of 7.68% is a positive indicator, although the operating cash flow to net income ratio of 0.0168 suggests potential challenges in cash conversion. The free cash flow to net income ratio of 0.90 is strong, indicating good cash generation relative to net income.

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: 7672.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 7672 is above the 20-day moving average (MA) of 7455.55, above the 50-day MA of 7160.27, and above the 200-day MA of 6161.60, indicating a bullish trend. The MACD of 89.57 indicates Negative momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 88.93 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	$111.08B	11.05	15.67%	3.70%	6.95%	12.41%
MZTF	80 Outperform	$62.60B	11.29	16.87%	4.11%	11.00%	6.03%
DSCT	75 Outperform	44.36B	10.32	13.10%	3.69%	14.48%	4.65%
FIBI	69 Neutral	26.45B	11.39	16.48%	4.57%	14.16%	1.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
POLI	64 Neutral	$100.75B	11.00	15.13%	3.54%	19.05%	18.98%