Ayalon Hold. (AYAL) AI Stock Analysis

Ayalon Hold.

(TASE:AYAL)

Select Model

Rating:76Outperform

Price Target:ILA 20,363.00▲(22.82% Upside)

Action:reiterated

Date:08/24/26

The overall score reflects solid but cash‑flow‑risky financial performance as the most important factor, combined with an attractive valuation and a strong price uptrend with firm momentum. The key upside drivers are low‑teens valuation metrics and improving earnings with reduced leverage, while the main risk that tempers the score is the history of volatile and recently negative operating and free cash flows, which may challenge the sustainability of current returns.

Positive Factors

Improved Profitability and ScaleRevenue and net income have improved meaningfully since 2023, showing recovery in the operating business and greater earnings scale. This stronger base can support continued investment and resilience, although the earnings trajectory remains cyclical rather than uniformly upward.

Negative Factors

Negative Operating and Free Cash FlowRecent earnings are not translating into cash, with both operating and free cash flow negative after positive results in 2024–2025. Persistent cash conversion weakness could increase reliance on liquidity or financing and constrain the company’s ability to fund growth internally.

Ayalon Hold. (AYAL) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 4.70B
Dividend Yield: 2.83%
Average Volume (3M): 91.31K
Price to Earnings (P/E): 9.9
Beta (1Y): 1.61
Revenue Growth: ―
EPS Growth: ―
Country: Israel
Employees: 1,369
Sector: General
Sector Strength: 55
Industry: Insurance - Diversified

Ayalon Hold. Business Overview & Revenue Model

Company Description

Operating through its subsidiaries in Israel, Ayalon Insurance Company Ltd offers a comprehensive range of insurance products. Their health coverage extends to nursing care, medical expenses, surgical procedures and organ transplants, dental services...

How the Company Makes Money

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Ayalon Hold. Financial Statement Overview

Summary

Strong revenue and earnings growth with high recent margins and returns on equity, supported by lower leverage, but the overall score is constrained by volatile and sometimes negative operating and free cash flows that raise questions about the durability of profits.

Income Statement

84Very Positive

Balance Sheet

78Positive

Cash Flow

43Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.08B	5.54B	4.37B	3.66B	2.35B	3.15B
Gross Profit	6.19B	5.54B	3.87B	3.19B	1.90B	2.73B
EBITDA	675.65M	777.74M	389.55M	283.39M	312.60M	1.62M
Net Income	442.45M	426.07M	144.41M	84.91M	166.68M	-114.09M
Balance Sheet
Total Assets	24.25B	20.07B	19.07B	15.94B	15.58B	16.02B
Cash, Cash Equivalents and Short-Term Investments	1.03B	2.71B	3.60B	410.07M	3.23B	3.08B
Total Debt	1.03B	690.27M	734.34M	697.08M	732.66M	793.57M
Total Liabilities	22.46B	18.55B	18.09B	15.24B	14.94B	15.34B
Stockholders Equity	1.79B	1.52B	971.34M	703.49M	638.27M	679.24M
Cash Flow
Free Cash Flow	-251.01M	187.87M	81.33M	-70.05M	227.81M	-389.21M
Operating Cash Flow	-174.68M	309.67M	208.64M	-65.06M	335.35M	-306.02M
Investing Cash Flow	-103.25M	-117.58M	-122.87M	-104.22M	-5.44M	-82.55M
Financing Cash Flow	391.05M	-54.50M	-49.60M	-8.96M	-66.42M	143.92M

Ayalon Hold. Technical Analysis

Technical Analysis SentimentNeutral

Last Price16580.00

Price Trends

50DMA17630.39Negative

100DMA15812.23Positive

200DMA14583.22Positive

Market Momentum

MACD-11.19Positive

RSI38.90Neutral

STOCH18.94Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AYAL, the sentiment is Neutral. The current price of 16580.00 is below the 20-day moving average (MA) of 17855.50, below the 50-day MA of 17630.39, and above the 200-day MA of 14583.22, indicating a neutral trend. The MACD of -11.19 indicates Positive momentum. The RSI at 38.90 is Neutral, neither overbought nor oversold. The STOCH value of 18.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:AYAL.

Ayalon Hold. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:AYAL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:IDIN	80Outperform	ILS 3.69B	9.99	―	7.59%	3.98%	14.95%
IL:MMHD	77Outperform	ILS 30.86B	12.32	―	3.24%	18.14%	49.80%
IL:AYAL	76Outperform	ILS 4.70B	9.93	―	2.83%	―	―
IL:PHOE	75Outperform	ILS 42.92B	12.94	―	3.25%	10.88%	24.40%
IL:HARL	71Outperform	ILS 37.11B	11.32	23.23%	3.85%	14.74%	70.44%
IL:CLIS	65Neutral	ILS 21.75B	9.05	―	1.84%	-30.50%	67.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:AYAL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:AYAL	Ayalon Holdings Ltd.	16580.00	9945.78	149.92%
IL:CLIS	Clal Insurance Enterprises Holdings	26900.00	9065.46	50.83%
IL:HARL	Harel Insurance Investments & Financial Services	18060.00	7109.61	64.93%
IL:PHOE	Phoenix Holdings Ltd.	17000.00	4809.48	39.45%
IL:MMHD	Menora Mivtachim Holdings Ltd.	49390.00	18067.17	57.68%
IL:IDIN	I.D.I. Insurance Company Ltd.	24950.00	6556.57	35.65%

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: Aug 24, 2026

Ayalon Hold. AI Stock Analysis