Shapir Eng (SPEN) AI Stock Analysis

• Market Cap: 8.62B
• Dividend Yield: 0.88%
• Average Volume (3M): 289.04K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 1.53
• Revenue Growth: 13.23%
• EPS Growth: 286.08%
• Country: IL
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 13.10
• Shares Outstanding: 357,655,270
• 10 Day Avg. Volume: 305,528
• 30 Day Avg. Volume: 289,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 2,774.00
• Price Target Upside: 8.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: 2,774.00 ▲(8.49% Upside)

Shapir Eng's overall stock score is primarily influenced by its strong revenue growth and operational efficiency, but is weighed down by high leverage and cash flow challenges. The technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. These factors collectively result in a moderate overall score.

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 a diverse range of activities within the construction and infrastructure sectors. The company's primary revenue streams include contracts for public and private infrastructure projects, such as highways, railways, and commercial real estate developments. Additionally, Shapir engages in long-term concession agreements where it designs, builds, and operates infrastructure assets, generating steady income over the contract period. Strategic partnerships with government bodies and private entities also play a significant role in securing lucrative projects, thereby enhancing its earnings potential.

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, while 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	5.54B	5.08B	5.21B	4.55B	3.89B	3.48B
Gross Profit	809.00M	740.00M	724.00M	745.00M	712.25M	700.20M
EBITDA	1.16B	1.13B	1.05B	1.18B	644.00M	671.00M
Net Income	199.00M	178.00M	158.00M	383.00M	436.00M	330.00M
Balance Sheet
Total Assets	15.92B	15.53B	14.86B	14.33B	11.42B	7.71B
Cash, Cash Equivalents and Short-Term Investments	869.00M	1.06B	1.19B	1.11B	1.09B	1.01B
Total Debt	9.47B	9.10B	8.53B	8.12B	6.14B	4.51B
Total Liabilities	12.04B	11.66B	11.16B	10.78B	8.29B	5.64B
Stockholders Equity	3.13B	3.12B	2.99B	2.86B	2.49B	2.07B
Cash Flow
Free Cash Flow	-50.00M	-70.00M	290.00M	-697.00M	338.85M	321.74M
Operating Cash Flow	225.00M	183.00M	559.00M	-482.00M	523.90M	508.34M
Investing Cash Flow	-495.00M	-254.00M	-269.00M	-845.00M	-896.22M	-124.92M
Financing Cash Flow	-223.00M	-71.00M	-235.00M	1.30B	527.96M	-30.40M

Shapir Eng Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2557.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2557 is below the 20-day moving average (MA) of 2562.70, below the 50-day MA of 2643.00, and below the 200-day MA of 2648.15, indicating a bearish trend. The MACD of -42.26 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 47.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:SPEN.

Shapir Eng Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMON	76 Outperform	2.49B	40.39	11.34%	1.33%	29.73%	-20.63%
DNYA	63 Neutral	3.77B	21.14	22.20%	4.27%	19.91%	-3.45%
SPEN	57 Neutral	8.62B	37.79	―	0.88%	13.23%	286.08%
ELTR	54 Neutral	6.55B	30.10	11.60%	1.38%	11.97%	0.15%
LEVI	53 Neutral	1.85B	222.05	2.47%	1.16%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%