Shapir Eng (SPEN) AI Stock Analysis

• Market Cap: 10.88B
• Dividend Yield: 0.74%
• Average Volume (3M): 324.99K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.54
• Revenue Growth: 19.23%
• EPS Growth: 2139.29%
• Country: IL
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 13.10
• Shares Outstanding: 357,696,700
• 10 Day Avg. Volume: 367,007
• 30 Day Avg. Volume: 324,994
• PEG Ratio: 27.19
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 2.16
• P/FCF Ratio: -157.14
• 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: 64 Neutral
• Price Target: 3,214.00 ▲(5.69% Upside)

The overall stock score reflects a balance between strong operational efficiency and positive technical indicators, offset by high leverage, negative cash flow, and a high P/E ratio. The company's financial performance is the most significant factor, highlighting the need for improved cash flow and debt management. Technical analysis supports a positive trend, but valuation concerns suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Shapir Eng's services, supporting its market position and potential for future expansion.

Operational Efficiency

High EBIT and EBITDA margins reflect effective cost management and operational efficiency, enhancing profitability and competitive advantage.

Market Position

As a leader in infrastructure development, Shapir Eng benefits from a strong market position, enabling it to secure large-scale projects and partnerships.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability and growth.

Negative Cash Flow

Negative cash flow indicates challenges in liquidity management, which could affect the company's ability to fund operations and growth initiatives.

Profit Margin Challenges

Modest net profit margins suggest difficulty in translating revenue growth into higher profitability, which may affect long-term earnings potential.

Shapir Eng Business Overview & Revenue Model

Company Description

Shapir Eng (SPEN) is a leading engineering and construction company based in Israel, specializing in infrastructure development across various sectors, including transportation, water, and energy. The company is known for its innovative solutions and high-quality project execution, offering a wide range of services from project management and design to construction and maintenance. SPEN focuses on both public and private sector projects, contributing to significant infrastructure improvements and developments in the region.

How the Company Makes Money

Shapir Eng generates revenue primarily through contracts for large-scale construction and engineering projects. The company's key revenue streams include public tenders from government infrastructure projects, private sector contracts, and maintenance services for existing infrastructure. SPEN often partners with governmental bodies and private companies to secure projects, providing it with a steady flow of income. Additionally, the company may benefit from long-term maintenance agreements and operational contracts, ensuring ongoing revenue even after the completion of construction projects.

Shapir Eng Financial Statement Overview

Summary

Shapir Eng shows strong revenue growth and operational efficiency, but faces challenges with high leverage and cash flow management. The income statement reflects a stable and growing business, but the balance sheet and cash flow statements suggest potential risks that need to be addressed to ensure long-term financial health.

Income Statement

Shapir Eng has demonstrated consistent revenue growth over the years, with a TTM revenue growth rate of 3.84%. Gross profit margins have remained stable around 14-16%, and the net profit margin is modest at 3.59% TTM. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the decline in EBIT margin from 16.54% in 2024 to 15.56% TTM suggests some pressure on operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.02 TTM, indicating significant leverage, which could pose risks if not managed properly. Return on equity is relatively low at 6.43% TTM, suggesting limited profitability from shareholders' investments. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Shapir Eng's cash flow situation is concerning, with negative free cash flow growth of -84.08% TTM. The operating cash flow to net income ratio is low at 0.06, indicating potential cash flow issues. The negative free cash flow to net income ratio further highlights cash flow challenges, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.74B	5.08B	5.21B	4.55B	3.89B	3.48B
Gross Profit	837.00M	740.00M	724.00M	745.00M	712.25M	700.20M
EBITDA	1.24B	1.13B	1.05B	1.18B	959.00M	758.00M
Net Income	240.00M	178.00M	158.00M	383.00M	436.00M	330.00M
Balance Sheet
Total Assets	16.85B	15.53B	14.86B	14.33B	11.42B	7.71B
Cash, Cash Equivalents and Short-Term Investments	881.00M	1.06B	1.19B	1.11B	1.09B	1.01B
Total Debt	10.18B	9.10B	8.69B	8.12B	6.14B	4.51B
Total Liabilities	12.93B	11.66B	11.16B	10.78B	8.29B	5.64B
Stockholders Equity	3.17B	3.12B	2.99B	2.86B	2.49B	2.07B
Cash Flow
Free Cash Flow	-242.00M	-70.00M	290.00M	-697.00M	338.85M	321.74M
Operating Cash Flow	72.00M	183.00M	559.00M	-482.00M	523.90M	508.34M
Investing Cash Flow	-597.00M	-254.00M	-269.00M	-845.00M	-896.22M	-124.92M
Financing Cash Flow	391.00M	-71.00M	-235.00M	1.30B	527.96M	-30.40M

Shapir Eng Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3041.00
• 50DMA: Positive
• 100DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SPEN, the sentiment is Positive. The current price of 3041 is above the 20-day moving average (MA) of 2959.00, above the 50-day MA of 2866.58, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 12.45 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 87.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:SPEN.

Shapir Eng Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMON	65 Neutral	3.40B	52.69	―	1.01%	54.25%	-1.47%
SPEN	64 Neutral	10.88B	40.42	―	0.74%	19.23%	2139.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DNYA	63 Neutral	4.79B	27.63	―	3.41%	15.47%	-3.42%
LEVI	61 Neutral	2.39B	-632.19	―	0.96%	―	―
ELTR	55 Neutral	8.01B	43.71	―	1.16%	13.70%	-12.45%