Afcon Hold (AFHL) AI Stock Analysis

• Market Cap: 1.31B
• Dividend Yield: 1.5%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.88
• Revenue Growth: -16.04%
• EPS Growth: 1025.81%
• Country: IL
• Employees: 1,335
• Sector: Services
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 325.50
• Shares Outstanding: 5,307,353
• 10 Day Avg. Volume: 3,356
• 30 Day Avg. Volume: 2,414
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 27,022.00 ▲(7.32% Upside)

The overall stock score of 66 reflects a balance between strong technical momentum and moderate valuation against a backdrop of financial challenges. The company's declining revenue growth and high leverage are significant risks, but the positive technical indicators and reasonable valuation provide some support.

Afcon Hold Business Overview & Revenue Model

Company Description

Afcon Hold (AFHL) is a diversified conglomerate operating across various sectors including construction, infrastructure development, and energy solutions. The company specializes in delivering large-scale projects such as roads, bridges, and power plants, alongside offering maintenance and operational services. AFHL is renowned for its commitment to quality and sustainability, leveraging cutting-edge technology and innovative practices to meet the evolving needs of its clients.

How the Company Makes Money

AFHL generates revenue primarily through its construction and infrastructure development projects. The company secures contracts with government entities and private sector clients to design, build, and maintain critical infrastructure, which form the backbone of its income. Additionally, AFHL earns money through long-term maintenance contracts and operational services for completed projects, ensuring a steady stream of recurring revenue. Strategic partnerships with technology firms and energy companies further enhance its ability to deliver comprehensive solutions, contributing to its financial growth. The diversification into energy solutions, including renewable energy projects, adds another layer to its revenue streams, aligning with global sustainability trends.

Afcon Hold Financial Statement Overview

Summary

Afcon Hold's financial performance presents a mixed picture. The income statement shows operational efficiency but declining revenue and low profitability. The balance sheet reflects a stable yet leveraged position, while the cash flow statement highlights significant challenges in cash generation. The company needs to focus on improving cash flow and profitability to enhance its financial health.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is 12.73%, which is relatively modest. The net profit margin for the TTM is 3.25%, indicating a low level of profitability. Revenue has decreased from the previous year, showing a negative growth trend. Despite this, the EBIT and EBITDA margins are 4.13% and 8.53%, respectively, reflecting some operational efficiency.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio is 1.29, suggesting a balanced leverage. The return on equity (ROE) for the TTM is 10.47%, which is reasonable. The equity ratio stands at 26.98%, indicating a stable capital structure, although there is room for improvement in equity financing.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate and operating cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow issues. However, the free cash flow to net income ratio is also negative, suggesting difficulties in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.78B	2.15B	2.09B	2.11B	1.73B
Gross Profit	230.38M	222.07M	159.05M	140.86M	228.28M	153.34M
EBITDA	157.76M	146.48M	95.77M	46.35M	135.11M	77.04M
Net Income	66.31M	59.80M	-8.56M	-53.82M	119.41M	13.51M
Balance Sheet
Total Assets	1.95B	1.95B	1.86B	1.86B	1.95B	1.87B
Cash, Cash Equivalents and Short-Term Investments	118.79M	191.98M	197.94M	255.93M	508.28M	480.81M
Total Debt	712.69M	662.51M	627.34M	653.63M	582.46M	681.52M
Total Liabilities	1.39B	1.40B	1.39B	1.38B	1.40B	1.38B
Stockholders Equity	539.43M	529.42M	450.87M	455.72M	535.26M	492.18M
Cash Flow
Free Cash Flow	-22.63M	4.62M	52.92M	-146.73M	135.27M	52.71M
Operating Cash Flow	-5.97M	22.70M	72.27M	-130.03M	159.59M	76.19M
Investing Cash Flow	-34.46M	-22.30M	-38.87M	-77.89M	90.27M	-93.35M
Financing Cash Flow	51.57M	-8.84M	-71.37M	-43.79M	-187.41M	144.25M

Afcon Hold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25180.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AFHL, the sentiment is Positive. The current price of 25180 is above the 20-day moving average (MA) of 23921.00, above the 50-day MA of 22252.00, and above the 200-day MA of 19044.54, indicating a bullish trend. The MACD of 990.87 indicates Negative momentum. The RSI at 72.34 is Negative, neither overbought nor oversold. The STOCH value of 62.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AFHL.

Afcon Hold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAFR	―	730.29M	10.40	―	2.67%	8.57%	7.79%
AFHL	―	1.31B	19.43	―	1.50%	-16.04%	1025.81%
PRTC	―	2.72B	24.96	―	―	―	7.88%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%