Shapir Eng (SPEN) AI Stock Analysis

• Market Cap: ₪10.69B
• Dividend Yield: 0.71%
• Average Volume (3M): 324.99K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.50
• Revenue Growth: 19.23%
• EPS Growth: 2139.29%
• Country: IL
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 15.90
• Shares Outstanding: 357,999,180
• 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: 60 Neutral
• Price Target: 3,234.00 ▲(3.65% Upside)

The score is driven primarily by mixed fundamentals: strong operating margins and steady growth, but meaningfully pressured by high leverage and negative free cash flow. Technicals are supportive with price strength and positive MACD, though overbought RSI adds risk. Valuation is the main drawback due to a high P/E and low dividend yield.

Positive Factors

Strong operating margins

Sustained high EBIT and EBITDA margins indicate efficient project execution and cost control, a durable competitive advantage in engineering & construction. Over months, these margins support reinvestment, bid competitiveness and resilience against pricing pressure, improving long-term profitability.

Steady revenue growth

Consistent TTM revenue growth signals ongoing project wins and demand stability in the firm’s markets. Over 2-6 months this underpins backlog conversion potential, supports margin leverage and provides a base for cash generation if operational cash conversion and capital structure are addressed.

Moderate ROE and balanced equity ratio

A positive ROE with an 18.8% equity ratio shows the company earns returns for shareholders while maintaining a non-trivial equity cushion. For a capital-intensive E&C player, this balanced asset structure supports access to funding and operational continuity across business cycles.

Negative Factors

High leverage

A debt-to-equity ratio above 3x indicates substantial financial leverage, which raises structural interest and refinancing risk. In a sector with lumpy cash flows, this constrains strategic flexibility, increases default risk under stress, and can force asset sales or dilutive financing.

Negative free cash flow

Persistent negative FCF of -242m TTM is a durable concern: it limits the firm’s ability to deleverage, invest organically, or fund dividends without external financing. Until cash conversion turns positive, the company remains exposed to liquidity shocks and higher financing costs.

Poor earnings-to-cash conversion

An OCF-to-net-income ratio of 0.06 shows reported profits barely convert to cash, implying working capital strain or non-cash accounting items. This structural weakness undermines sustainable cash generation, complicating capex planning and reducing resilience to sector volatility.

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 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

Strong operating efficiency (EBIT margin 15.56%, EBITDA margin 20.94%) and steady revenue growth (3.65% TTM) are offset by high leverage (debt-to-equity 3.02) and weak cash generation (negative free cash flow of -242m TTM; operating cash flow to net income 0.06).

Income Statement

Shapir Eng's income statement shows a steady revenue growth rate of 3.65% TTM, indicating positive momentum. The gross profit margin is stable at 14.61%, and the net profit margin is modest at 3.59%. However, the EBIT margin of 15.56% and EBITDA margin of 20.94% are strong, reflecting efficient operations. Despite these strengths, the company faces challenges in maintaining higher net profit margins.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.02, indicating significant leverage, which could pose risks if not managed carefully. Return on equity is moderate at 6.43%, suggesting decent profitability for shareholders. The equity ratio stands at 18.83%, reflecting a balanced asset structure but highlighting the need for cautious financial management.

Cash Flow

Cash flow analysis shows a concerning negative free cash flow of -242 million TTM, despite a significant growth rate improvement. The operating cash flow to net income ratio is low at 0.06, and the free cash flow to net income ratio is negative, indicating challenges in converting profits into cash. This highlights potential liquidity issues that need addressing.

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: 3120.00
• 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 3120 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DNYA	63 Neutral	₪4.93B	28.46	―	3.41%	15.47%	-3.42%
RMON	63 Neutral	₪3.88B	61.89	―	0.97%	54.25%	-1.47%
SPEN	60 Neutral	₪10.69B	39.70	―	0.71%	19.23%	2139.29%
ELTR	55 Neutral	₪8.45B	46.14	―	1.14%	13.70%	-12.45%
LEVI	54 Neutral	₪2.86B	-764.73	―	0.96%	―	―