Shapir Eng (SPEN) AI Stock Analysis

• Market Cap: 9.04B
• Dividend Yield: 0.88%
• Average Volume (3M): 345.36K
• Price to Earnings (P/E): 46.9
• Beta (1Y): 1.43
• Revenue Growth: 4.96%
• EPS Growth: 38.72%
• Country: IL
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 4.80
• Shares Outstanding: 357,441,040
• 10 Day Avg. Volume: 250,325
• 30 Day Avg. Volume: 345,356
• PEG Ratio: -2.01
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.56
• 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

• Rating: 53 Neutral
• Price Target: 2,568.00 ▼(-5.38%Downside)

Shapir Eng's overall stock score is driven by its financial performance and valuation. While revenue growth is positive, profitability, operational efficiency, and cash flow issues are significant concerns. The high valuation coupled with weak technical indicators further impacts the overall score, suggesting caution for potential investors.

Shapir Eng Business Overview & Revenue Model

Company Description

Shapir Engineering and Industry Ltd engages in the infrastructure, concessions, quarry materials, real estate development and construction businesses in Israel. It constructs bridges, interchanges, commercial public projects, and apartment buildings, as well as undertakes road paving and marine works; and designs, constructs, maintains, and operates large-scale projects in cooperation with the private and public sectors. The company also manufactures quarry materials, ready-mix concrete and building finishing products, prefabricated elements from prestressed and precast concrete, and hot mix asphalt for paving roadways. In addition, it is involved in the development and construction of apartment buildings. The company was formerly known as Shapir Bareket Holdings Ltd. and changed its name to Shapir Engineering and Industry Ltd in September 2014. Shapir Engineering and Industry Ltd was founded in 1968 and is based in Petach Tikva, Israel.

How the Company Makes Money

Shapir Engineering generates revenue through its diversified operations in construction, infrastructure, and real estate development. The company earns substantial income from government contracts for public infrastructure projects, such as roads, bridges, and transportation systems. Additionally, SPEN capitalizes on private sector opportunities by developing residential and commercial properties. Strategic partnerships and joint ventures further enhance its revenue streams, while its reputation and proven track record in project delivery bolster its ability to secure new contracts and maintain a steady flow of income.

Shapir Eng Financial Statement Overview

Summary

Shapir Eng shows revenue growth and a stable gross profit margin, but profitability and operational efficiency have declined. The company's balance sheet reflects high leverage, which poses risks in economic downturns. Cash flow issues are a concern, with negative free cash flow pointing to potential liquidity challenges.

Income Statement

Shapir Eng has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 13.02% from 2022 to 2023. However, the net profit margin decreased from 3.02% in 2022 to 3.46% in 2023, indicating potential profitability challenges. Gross profit margin remained stable, but EBIT margin decreased significantly from 15.21% in 2022 to 9.27% in 2023, reflecting potential operational inefficiencies.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.92 in 2023, indicating significant leverage. However, the return on equity improved slightly from 5.30% in 2022 to 5.29% in 2023. The equity ratio also improved to 20.11% in 2023, reflecting a stronger equity position. The balance sheet shows moderate stability but the high leverage poses a risk.

Cash Flow

The operating cash flow decreased significantly from 2022 to 2023, indicating potential cash generation issues. Free cash flow turned negative in 2023, which raises concerns about the company's ability to fund operations and growth internally. The operating cash flow to net income ratio was 1.16 in 2023, indicating a decent conversion of earnings to cash, but the free cash flow challenges pose a risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.08B	5.21B	4.55B	3.89B	3.48B
	Gross Profit
740.00M	724.00M	745.00M	712.25M	700.20M
	EBIT
599.00M	482.00M	927.00M	679.46M	521.85M
	EBITDA
1.13B	1.05B	1.18B	644.00M	671.00M
	Net Income Common Stockholders
178.00M	158.00M	383.00M	436.00M	330.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.06B	1.19B	1.11B	1.09B	1.01B
	Total Assets
15.53B	14.86B	14.33B	11.42B	7.71B
	Total Debt
9.10B	8.53B	8.12B	6.14B	4.51B
	Net Debt
8.43B	7.71B	7.36B	5.35B	3.75B
	Total Liabilities
11.66B	11.16B	10.78B	8.29B	5.64B
	Stockholders Equity
3.12B	2.99B	2.86B	2.49B	2.07B
Cash Flow		Free Cash Flow
-70.00M	290.00M	-697.00M	338.85M	321.74M
	Operating Cash Flow
183.00M	559.00M	-482.00M	523.90M	508.34M
	Investing Cash Flow
-254.00M	-269.00M	-845.00M	-896.22M	-124.92M
	Financing Cash Flow
-71.00M	-235.00M	1.30B	527.96M	-30.40M

Shapir Eng Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2714.00
• 50DMA: Negative
• 100DMA: Negative
• 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:SPEN, the sentiment is Negative. The current price of 2714 is above the 20-day moving average (MA) of 2697.75, above the 50-day MA of 2554.46, and above the 200-day MA of 2489.02, indicating a neutral trend. The MACD of 8.00 indicates Positive momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 25.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:SPEN.

Shapir Eng Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	80 Outperform	$6.72B	33.73	23.87%	―	41.03%	51.42%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
ELCO	65 Neutral	4.41B	―		7.64%	9.65%	58.93%
DORL	63 Neutral	2.52B	―		―	―	―
AFHL	59 Neutral	844.78M	14.43		2.37%	-15.70%	3972.94%
SPEN	53 Neutral	9.04B	46.86		0.88%	4.96%	38.72%
BRIL		99.11M	21.36		―	―	―