Danel (DANE) AI Stock Analysis

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Danel

(TASE:DANE)

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Rating:64Neutral

Price Target:ILA 49,348.00▲(19.75% Upside)

Action:reiterated

Date:08/19/26

Danel earns a moderately above-average score driven by solid fundamentals: reliable cash generation, a strong earnings and margin recovery, falling leverage and a high return on equity. Valuation support comes from a well-covered 5.27% dividend yield at a reasonable 19.2x earnings. The main drag is technical: the stock trades below all key moving averages with negative MACD momentum, signalling a sustained downtrend. Structural risks — very thin margins in a labor-cost-sensitive industry and a history of volatile earnings — temper the score further.

Positive Factors

Profitability RecoveryThe sharp TTM revenue acceleration and recovery from the 2023 loss indicate renewed operating momentum. Solid EBITDA and operating margins provide a stronger base for funding services, supporting resilience and potential earnings compounding over the next several quarters.

Negative Factors

Margin VolatilityThe multi-year decline and subsequent modest recovery in gross margin indicate that profitability has not been consistently stable. Continued cost pressure could limit the durability of current operating margins and make future earnings more sensitive to changes in service economics.

Danel (DANE) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 2.46B
Dividend Yield: 5.36%
Average Volume (3M): 10.84K
Price to Earnings (P/E): 18.7
Beta (1Y): 0.83
Revenue Growth: 5.07%
EPS Growth: 504.91%
Country: Israel
Employees: 4,288
Sector: General
Sector Strength: 55
Industry: Medical - Care Facilities

Danel Business Overview & Revenue Model

Company Description

Operating in Israel, Danel (Adir Yeoshua) Ltd specializes in delivering a comprehensive suite of human resource solutions. The firm's core offerings encompass talent acquisition (recruitment and placement), payroll administration, and project oversig...

How the Company Makes Money

Danel makes money primarily by providing services under contracts and ongoing service engagements, earning revenue for delivering personnel and care rather than selling physical products. Key revenue streams generally include: (1) Home-care and nursi...

Danel Financial Statement Overview

Summary

Danel scores well on financial strength. Revenue has grown steadily to ₪2.98 billion on a trailing-twelve-month basis, and earnings have rebounded sharply from a 2023 loss to ₪130 million, with operating margin recovering to about 7.0%. The balance sheet is improving — debt cut to ₪316 million, debt-to-equity down to 0.62, and return on equity of roughly 24.6%. Cash flow is the strongest pillar, with consistently positive operating cash flow (₪244 million TTM) and free cash flow of ₪167 million that exceeds reported net income. Offsetting these strengths are thin gross (17%–21%) and net (~4.3%) margins in a wage-sensitive industry, a history of earnings volatility, and an equity base funding only about 38% of assets.

Income Statement

66Positive

Balance Sheet

72Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.98B	2.90B	2.77B	2.51B	2.36B	2.29B
Gross Profit	539.33M	492.05M	510.71M	458.31M	464.44M	492.51M
EBITDA	299.07M	304.07M	223.18M	84.01M	206.17M	328.16M
Net Income	130.50M	116.95M	20.51M	-11.22M	115.79M	174.15M
Balance Sheet
Total Assets	1.40B	1.42B	1.31B	1.30B	1.27B	1.13B
Cash, Cash Equivalents and Short-Term Investments	188.02M	213.43M	251.20M	185.15M	139.98M	81.09M
Total Debt	315.87M	326.89M	363.56M	376.07M	335.48M	262.58M
Total Liabilities	859.50M	907.58M	853.41M	816.38M	758.19M	729.68M
Stockholders Equity	530.80M	507.56M	452.26M	471.44M	493.17M	364.45M
Cash Flow
Free Cash Flow	166.75M	143.06M	187.65M	156.91M	141.66M	180.19M
Operating Cash Flow	243.99M	235.81M	223.06M	206.72M	205.71M	231.64M
Investing Cash Flow	-109.45M	-96.30M	-34.05M	-73.82M	-79.02M	-124.25M
Financing Cash Flow	-203.08M	-177.29M	-122.96M	-87.73M	-67.80M	-167.71M

Danel Technical Analysis

Technical Analysis SentimentNegative

Last Price41210.00

Price Trends

50DMA42795.60Negative

100DMA43199.80Negative

200DMA44048.09Negative

Market Momentum

MACD-739.66Positive

RSI44.90Neutral

STOCH52.01Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DANE, the sentiment is Negative. The current price of 41210.00 is below the 20-day moving average (MA) of 42744.50, below the 50-day MA of 42795.60, and below the 200-day MA of 44048.09, indicating a bearish trend. The MACD of -739.66 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:DANE.

Danel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:DANE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:AFHL	68Neutral	ILS 3.10B	29.41	―	1.73%	1.71%	35.58%
IL:DANE	64Neutral	ILS 2.45B	18.68	―	5.36%	5.07%	504.91%
IL:SLARL	59Neutral	ILS 1.96B	8.07	―	7.27%	5.80%	-24.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:ACKR	41Neutral	ILS 1.54B	33.77	―	3.43%	-11.25%	-65.58%
IL:ELCRE	38Underperform	ILS 1.18B	-5.49	―	―	5.23%	29.87%

* General Sector Average

Performance Comparison

IL:DANE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:DANE	Danel (Adir Yeoshua) Ltd.	41210.00	-3577.47	-7.99%
IL:PTBL	Property & Building Corp. Ltd.	23920.00	-10074.63	-29.64%
IL:AFHL	AFCON Holdings Ltd	51890.00	23568.74	83.22%
IL:ELCRE	Electra Real Estate Ltd.	1350.00	-2944.19	-68.56%
IL:SLARL	Sella Capital Real Estate Ltd.	784.00	-333.55	-29.85%
IL:ACKR	Ackerstein Group Ltd	506.00	-489.80	-49.19%

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 19, 2026

Danel AI Stock Analysis