Azorim (AZRM) AI Stock Analysis

2 Followers

Azorim

(TASE:AZRM)

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Rating:53Neutral

Price Target:ILA 1,407.00▼(-3.10% Downside)

Action:reiterated

Date:08/27/26

The score is held back primarily by weak and persistently negative operating/free cash flow and elevated leverage, despite solid reported profitability. Technicals are also soft with bearish longer-term trends and negative MACD. Valuation is the main offset, with a moderate P/E, though the dividend yield is low.

Positive Factors

Solid ProfitabilityAzorim is generating solid reported profitability for its industry, with healthy gross and net margins that have remained broadly consistent. This provides an earnings foundation for ongoing development activity, although profitability must still be converted into cash over time.

Negative Factors

Persistent Negative Cash FlowPersistent negative operating and free cash flow creates a material gap between reported profits and internally generated liquidity. Continued cash outflows can increase reliance on external financing, reduce flexibility for new projects, and heighten funding risk during a cyclical residential market.

Azorim (AZRM) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 3.19B
Dividend Yield: 0.63%
Average Volume (3M): 299.10K
Price to Earnings (P/E): 13.6
Beta (1Y): 1.97
Revenue Growth: -13.83%
EPS Growth: 51.39%
Country: Israel
Employees: 117
Sector: General
Sector Strength: 55
Industry: Residential Construction

Azorim Business Overview & Revenue Model

Company Description

Azorim-Investment, Development & Construction Co. Ltd is an Israeli firm specializing in the design and construction of residential properties. The company's portfolio includes various housing types like garden apartments, compact penthouses, and ful...

How the Company Makes Money

Azorim’s primary source of revenue is generated from real estate development activities, mainly through the sale of residential units (and potentially commercial units) developed by the company. This typically includes (a) revenue recognized from sel...

Azorim Financial Statement Overview

Summary

Income statement profitability is solid (TTM net margin ~12.8%, gross margin ~25.8%), but the balance sheet is more leveraged (debt/equity ~2.03x) and cash flow is a major weakness with persistently negative operating and free cash flow (TTM OCF ~-1.17B; FCF ~-1.42B). Recent revenue decline (TTM ~-4.5%) adds pressure in a cyclical industry.

Income Statement

72Positive

Balance Sheet

46Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.71B	1.88B	1.75B	1.47B	1.10B	1.51B
Gross Profit	463.77M	471.76M	447.05M	356.51M	276.81M	304.39M
EBITDA	485.64M	517.02M	377.24M	393.01M	202.22M	445.15M
Net Income	226.63M	240.18M	162.68M	176.40M	171.54M	322.03M
Balance Sheet
Total Assets	9.26B	8.41B	7.69B	6.86B	6.92B	5.66B
Cash, Cash Equivalents and Short-Term Investments	398.84M	136.93M	233.67M	155.51M	305.32M	508.19M
Total Debt	5.15B	4.46B	3.72B	3.02B	2.72B	633.39M
Total Liabilities	6.66B	6.04B	5.46B	4.79B	5.04B	3.95B
Stockholders Equity	2.55B	2.37B	2.23B	2.07B	1.88B	1.71B
Cash Flow
Free Cash Flow	-1.37B	-809.07M	-600.90M	-819.39M	-519.74M	672.27M
Operating Cash Flow	-1.17B	-809.07M	-364.78M	-599.46M	-286.83M	817.54M
Investing Cash Flow	-278.96M	206.54M	-75.64M	324.21M	-448.48M	-831.69M
Financing Cash Flow	1.46B	549.28M	509.56M	122.69M	500.66M	294.92M

Azorim Technical Analysis

Technical Analysis SentimentNegative

Last Price1452.00

Price Trends

50DMA1598.44Negative

100DMA1576.84Negative

200DMA1767.74Negative

Market Momentum

MACD-31.52Positive

RSI41.95Neutral

STOCH58.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AZRM, the sentiment is Negative. The current price of 1452.00 is below the 20-day moving average (MA) of 1549.15, below the 50-day MA of 1598.44, and below the 200-day MA of 1767.74, indicating a bearish trend. The MACD of -31.52 indicates Positive momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AZRM.

Azorim Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:AZRM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:MVNE	55Neutral	ILS 9.47B	17.21	―	2.64%	-13.49%	-18.92%
IL:AZRM	53Neutral	ILS 3.19B	13.65	―	0.63%	-13.83%	51.39%
IL:DNYA	52Neutral	ILS 4.03B	24.85	―	2.73%	-2.12%	-9.77%
IL:ASHG	44Neutral	ILS 5.96B	98.94	―	1.68%	4.90%	-77.77%
IL:ALHE	38Underperform	ILS 6.22B	-20.25	―	3.60%	22.63%	-185.87%
IL:ELCRE	38Underperform	ILS 1.09B	-5.00	―	―	5.23%	29.87%

* General Sector Average

Performance Comparison

IL:AZRM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:AZRM	Azorim Investment Dev & Const Co. Ltd.	1452.00	-610.86	-29.61%
IL:MVNE	Mivne Real Estate (K.D) Ltd.	1308.00	-129.82	-9.03%
IL:DNYA	Danya Cebus Ltd	12250.00	-2178.09	-15.10%
IL:ALHE	Alony Hetz Properties & Investments Ltd.	2749.00	-957.64	-25.84%
IL:ELCRE	Electra Real Estate Ltd.	1300.00	-2994.19	-69.73%
IL:ASHG	Ashtrom Group Ltd.	5343.00	-2772.93	-34.17%

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 27, 2026

Azorim AI Stock Analysis