ALTSHULER SHAHAM FINANCIAL LTD (ALTF) AI Stock Analysis

ALTSHULER SHAHAM FINANCIAL LTD

(TASE:ALTF)

Select Model

Rating:64Neutral

Price Target:ILA 611.00▲(4.69% Upside)

Action:reiterated

Date:09/11/26

Altshuler Shaham Financial scores moderately. The score is held back primarily by fundamentals: negative operating and free cash flow over two consecutive periods, a near-doubling of debt that lifted leverage to 1.6x equity, and a multi-year revenue and earnings downtrend from 2021 peaks — even though margins and roughly 21% return on equity remain respectable. Offsetting this, the technical picture is favourable, with the share price above all major moving averages and positive MACD momentum, and the valuation is appealing at a P/E near 13 with a 5.3% dividend yield. The key swing factors for investors are a return to positive cash generation and stabilisation of the top line; until then, the attractive valuation and momentum are balanced against balance-sheet and earnings-quality risk.

Positive Factors

Solid profitability and returnsStrong profitability and a roughly 20.7% return on equity indicate that the company is still converting its asset-management platform into attractive shareholder returns. Resilient margins provide internal capacity to invest, absorb operating pressure, and support earnings durability over the coming quarters.

Negative Factors

Sharp revenue contractionA declining and volatile revenue profile is a fundamental concern for an asset manager because management-fee income depends on client assets, flows, and market performance. Continued top-line pressure could limit operating leverage and make future earnings growth less dependable.

ALTSHULER SHAHAM FINANCIAL LTD (ALTF) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 1.16B
Dividend Yield: 6.79%
Average Volume (3M): 515.40K
Price to Earnings (P/E): 9.2
Beta (1Y): 0.78
Revenue Growth: -2.36%
EPS Growth: 9.75%
Country: Israel
Employees: 828
Sector: General
Sector Strength: 55
Industry: Asset Management

ALTSHULER SHAHAM FINANCIAL LTD Business Overview & Revenue Model

Company Description

The company specializes in the administration of various provident and pension funds. Its extensive portfolio includes savings provident funds, general provident funds, personal and central severance pay provident funds, study funds, and central sick...

How the Company Makes Money

Altshuler Shaham primarily makes money by charging fees for managing client assets across its investment and savings products. Key revenue streams typically include: (1) Management fees (asset-based fees): recurring fees calculated as a percentage of...

ALTSHULER SHAHAM FINANCIAL LTD Financial Statement Overview

Summary

Profitability remains solid — TTM net margin of 13.7%, operating margin of 25.5% and roughly 21% return on equity — but the quality of those earnings is questionable. Revenue has fallen about 37% from its 2021 peak and net income is roughly half of 2021 levels, despite recent margin improvement. The balance sheet has become materially more leveraged, with borrowings nearly doubling to 961 million and debt-to-equity rising to 1.58, high for a capital-light asset manager. The biggest weakness is cash generation: operating cash flow swung negative (-56 million TTM) and free cash flow is -62 million, meaning reported profits are not converting to cash, though the pace of the burn is narrowing.

Income Statement

63Positive

Balance Sheet

57Neutral

Cash Flow

31Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	902.19M	934.97M	918.16M	990.30M	1.29B	1.42B
Gross Profit	841.33M	795.73M	406.66M	446.42M	618.08M	652.13M
EBITDA	288.88M	282.82M	243.66M	288.88M	411.59M	427.78M
Net Income	123.52M	127.78M	113.06M	137.93M	213.12M	258.26M
Balance Sheet
Total Assets	1.72B	1.55B	1.21B	1.19B	1.33B	1.62B
Cash, Cash Equivalents and Short-Term Investments	241.97M	276.79M	83.99M	115.86M	100.06M	298.67M
Total Debt	961.13M	783.16M	515.86M	519.50M	109.12M	729.55M
Total Liabilities	1.09B	933.54M	664.25M	673.31M	834.95M	1.07B
Stockholders Equity	608.31M	595.00M	549.03M	520.28M	493.39M	551.52M
Cash Flow
Free Cash Flow	-62.49M	-128.27M	138.31M	211.73M	168.37M	166.62M
Operating Cash Flow	-56.12M	-125.05M	155.05M	232.94M	229.75M	206.93M
Investing Cash Flow	-39.01M	-10.96M	-40.56M	46.05M	-23.21M	-654.74M
Financing Cash Flow	115.48M	139.49M	-146.35M	-259.66M	-406.59M	-159.42M

ALTSHULER SHAHAM FINANCIAL LTD Technical Analysis

Technical Analysis SentimentNegative

Last Price583.60

Price Trends

50DMA640.91Negative

100DMA652.75Negative

200DMA644.89Negative

Market Momentum

MACD-21.00Negative

RSI41.57Neutral

STOCH34.96Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ALTF, the sentiment is Negative. The current price of 583.60 is below the 20-day moving average (MA) of 584.82, below the 50-day MA of 640.91, and below the 200-day MA of 644.89, indicating a bearish trend. The MACD of -21.00 indicates Negative momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 34.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ALTF.

ALTSHULER SHAHAM FINANCIAL LTD Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:ALTF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:GNRS	76Outperform	ILS 4.81B	2.67	―	2.47%	73.89%	616.40%
IL:MRIN	74Outperform	ILS 2.77B	19.39	―	5.41%	27.33%	20.29%
IL:ALTF	64Neutral	ILS 1.13B	9.21	―	6.79%	-2.36%	9.75%
IL:MTAV	57Neutral	ILS 9.46B	9.62	―	2.97%	28.78%	172.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:MPP	55Neutral	ILS 1.95B	24.09	―	3.72%	30.05%	24.67%
IL:MISH	42Neutral	ILS 3.57B	421.72	―	3.48%	-10.21%	-90.15%

* General Sector Average

Performance Comparison

IL:ALTF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:ALTF	ALTSHULER SHAHAM FINANCIAL LTD	583.60	-240.83	-29.21%
IL:MISH	Mivtach Shamir Holdings Ltd.	37050.00	7544.27	25.57%
IL:MTAV	Meitav Dash Investments Ltd.	11200.00	979.04	9.58%
IL:MRIN	Y.D. More Investments Ltd.	3850.00	-208.85	-5.15%
IL:GNRS	Generation Capital Ltd.	228.40	108.16	89.95%
IL:MPP	MORE PROVIDENT FUNDS LTD	1481.00	141.99	10.60%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 10, 2026

ALTSHULER SHAHAM FINANCIAL LTD AI Stock Analysis