Shapir Eng (SPEN) AI Stock Analysis

• Market Cap: ₪13.30B
• Dividend Yield: 0.71%
• Average Volume (3M): 324.99K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.53
• 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: 358,103,100
• 10 Day Avg. Volume: 367,007
• 30 Day Avg. Volume: 324,994
• PEG Ratio: 1.02
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -56.51
• 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: 54 Neutral
• Price Target: 3,723.00 ▲(19.33% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is held back primarily by financial quality: high leverage and inconsistent/weak free cash flow offset the return to revenue growth and positive profitability. Technicals are supportive with the stock trading above major moving averages and positive momentum indicators, but valuation is a drag due to a high P/E and low dividend yield.

Positive Factors

Demand resilience / Revenue Growth

Sustained TTM revenue growth signals resilient project demand and market position in engineering & construction. Over 2–6 months this supports backlog conversion, stable utilization of resources, and a more predictable top line that underpins medium-term operational planning and contract wins.

Improved operating cash flow

A materially stronger operating cash flow versus prior year demonstrates improving cash generation capacity despite sector cyclicality. Durable OCF helps fund working capital and capex, lowers near-term refinancing need, and provides a foundation for deleveraging or targeted reinvestment.

Positive sector-level profitability

Maintaining positive operating profitability in a competitive construction environment indicates pricing and execution capability. Even with margin pressure, sustainable operating profits give the company a base to absorb shocks, preserve credit access, and invest in project delivery capabilities.

Negative Factors

High leverage

Elevated and rising leverage meaningfully increases financial risk over the medium term. High debt loads constrain flexibility to bid competitively, amplify exposure to rising interest costs, and raise refinancing risk across project cycles, limiting capacity to invest or withstand shocks.

Multi-year margin erosion

Persistent margin compression reduces the earnings buffer that protects cash flow and returns. Over months this heightens sensitivity to cost inflation and contract pricing, undermining return on capital and making it harder to rebuild profitability without structural cost or pricing improvements.

Inconsistent free cash flow & weak cash conversion

Volatile and thin free cash flow signals that reported earnings do not reliably convert to durable liquidity. Over a medium horizon this impairs self-funding of projects, increases dependence on external financing, and raises the chance of liquidity stress during adverse timing or contract delays.

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

null

Shapir Eng Financial Statement Overview

Summary

Income statement is mid-range (revenue TTM +5.8% with positive profitability), but multi-year margin compression is notable. Balance sheet risk is elevated with high and rising leverage (debt-to-equity ~3.21x). Cash flow is the weakest area: free cash flow is thin and volatile and cash conversion indicators are weak, increasing overall financial risk.

Income Statement

Revenue in TTM (Trailing-Twelve-Months) grew 5.8%, improving from the slight decline in 2024, indicating demand resilience. Profitability is positive but clearly compressed versus 2020–2022: net margin is ~4.2% in TTM versus ~8.4% in 2022 and ~11.2% in 2021, and gross margin has also trended down from ~20% (2020) to ~14.6% (TTM). Operating profitability remains reasonable for the sector, but the multi-year margin erosion and volatility in earnings quality keep the score mid-range.

Balance Sheet

Leverage is the key constraint: debt-to-equity is high at ~3.21x in TTM (up from ~2.18x in 2020), leaving the company more exposed to project cycles and funding costs. Equity has grown over time, but debt has grown faster, and returns on equity have moderated to ~7.7% in TTM versus mid-teens levels in 2020–2021. The balance sheet is workable, but the elevated leverage meaningfully increases financial risk.

Cash Flow

Cash generation is inconsistent. Operating cash flow is positive in TTM (399m) and improved from 2024 (183m), but free cash flow is thin (75m) and has swung sharply across years (strongly positive in 2023, negative in 2024, positive again in TTM). The TTM cash conversion indicators provided are weak (very low operating cash flow relative to obligations and negative free cash flow relative to net income), suggesting earnings are not translating cleanly into durable cash after working capital and project timing effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.07B	5.08B	5.21B	4.55B	3.89B
Gross Profit	876.00M	740.00M	724.00M	745.00M	712.25M
EBITDA	720.00M	1.13B	1.05B	1.18B	959.00M
Net Income	235.00M	178.00M	158.00M	383.00M	436.00M
Balance Sheet
Total Assets	16.96B	15.53B	14.86B	14.33B	11.42B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.06B	1.19B	1.11B	1.09B
Total Debt	10.50B	9.10B	8.69B	8.12B	6.14B
Total Liabilities	13.18B	11.66B	11.16B	10.78B	8.29B
Stockholders Equity	3.23B	3.12B	2.99B	2.86B	2.49B
Cash Flow
Free Cash Flow	-198.00M	-70.00M	290.00M	-697.00M	338.85M
Operating Cash Flow	97.00M	183.00M	559.00M	-482.00M	523.90M
Investing Cash Flow	-800.00M	-254.00M	-269.00M	-845.00M	-896.22M
Financing Cash Flow	638.00M	-71.00M	-235.00M	1.30B	527.96M

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	₪5.90B	24.12	―	3.41%	15.47%	-3.42%
RMON	63 Neutral	₪4.35B	33.59	―	0.97%	54.25%	-1.47%
ELTR	55 Neutral	₪7.19B	80.34	―	1.14%	13.70%	-12.45%
SPEN	54 Neutral	₪13.30B	42.31	―	0.71%	19.23%	2139.29%
LEVI	54 Neutral	₪2.39B	96.73	―	0.96%	―	―