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Fattal Holdings 1998 Ltd. (IL:FTAL)
TASE:FTAL
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Fattal Hold (FTAL) AI Stock Analysis

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IL:FTAL

Fattal Hold

(TASE:FTAL)

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Neutral 41 (OpenAI - Gpt-5.6Sol)
Rating:41Neutral
Price Target:
63,899.00
▼(-8.24% Downside)
Action:Reiterated
Date:09/24/26
The score is primarily constrained by high balance-sheet leverage and the steep drop in net profitability, despite healthy operating margins and positive operating cash flow. Technicals add further pressure with the stock trading below major moving averages and bearish momentum. Valuation is also a significant headwind given the extremely elevated P/E and no dividend yield data.
Positive Factors
Healthy Operating Margins
Strong operating and EBITDA margins indicate that the hotel portfolio continues to convert revenue into meaningful operating profit. This provides a durable earnings base, supports reinvestment in properties and services, and offers resilience even when demand or revenue growth moderates.
Negative Factors
Very High Leverage
The highly leveraged capital structure increases sensitivity to demand shocks, financing costs, and weaker hotel performance. Large debt relative to equity can restrict financial flexibility, divert cash toward obligations, and make future investment or balance-sheet repair more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy Operating Margins
Strong operating and EBITDA margins indicate that the hotel portfolio continues to convert revenue into meaningful operating profit. This provides a durable earnings base, supports reinvestment in properties and services, and offers resilience even when demand or revenue growth moderates.
Read all positive factors

Fattal Hold (FTAL) vs. iShares MSCI Israel ETF (EIS)

Fattal Hold Business Overview & Revenue Model

Company Description
Fattal Holdings (1998) Ltd owns and operates hotels in Israel and internationally. The company also manages and leases hotels under the Leonardo brand name. Fattal Holdings (1998) Ltd was incorporated in 1998 and is based in Tel Aviv-Yafo, Israel....
How the Company Makes Money
Fattal Holdings makes money primarily by operating hotels and earning revenue from the sale of hotel nights (room revenue). In addition to accommodation, it generates ancillary revenue from on-property services such as food and beverage (restauran...

Fattal Hold Earnings Call Summary

Earnings Call Date:Mar 26, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Jun 02, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive performance narrative: robust revenue growth, marked EBIT and margin expansion (notably driven by Coffee International and Três Corações), a return to positive free cash flow, and progress on productivity and strategic initiatives (SKU rationalization, innovation, capacity build-out and targeted M&A). Key challenges include commodity-driven pressure in confectionery, profitability setbacks in China water due to intense competition, higher finance/tax expenses and geopolitical uncertainty from the war in Israel, plus execution risk around the Yoki integration. On balance, the material financial improvements and strategic progress outweigh the highlighted challenges.
Positive Updates
Strong Top-Line Growth
Group net sales reached ILS 12.5 billion for fiscal 2025, up 11.6% year-on-year; Q4 net sales were ILS 3.2 billion, up 10.2% year-on-year. Growth was broad-based across core segments.
Negative Updates
Confectionery Margin Pressure from Cocoa Prices
Confectionery (Fun & Indulgence) underperformed due to elevated cocoa prices; operating income was pressured through the year. Management expects improvement in 2026 but 2025 confectionery weighed on full-year operating income.
Read all updates
Q4-2025 Updates
Negative
Strong Top-Line Growth
Group net sales reached ILS 12.5 billion for fiscal 2025, up 11.6% year-on-year; Q4 net sales were ILS 3.2 billion, up 10.2% year-on-year. Growth was broad-based across core segments.
Read all positive updates
Company Guidance
The company guided that it expects 2026 to build on Q4/2025 momentum while meeting its strategic targets: exceeding a 5% CAGR by end‑2026, moving margins toward the 10–12% target (Q4 2025 margin 9.6% ex‑kitchen; group Q4 EBIT margin 8.9%, FY EBIT margin 8.2%), and delivering productivity savings of ILS300–400m; management also flagged continued cash generation (Q4 FCF ILS554m; FY FCF ILS215m vs –ILS51m in 2023), moderate leverage (net debt ILS2.2bn; net debt/EBITDA 1.6x) and ongoing top‑line growth (FY25 net sales ILS12.5bn, +11.6%; Q4 ILS3.2bn, +10.2%) driven by Coffee International (FY sales ILS6.2bn, +31%; Q4 sales ILS1.6bn, +24%; Coffee FY EBIT ILS493m, Q4 EBIT ILS173m, Q4 margin 10.9%), with Brazil expected to normalize to an ~8–9% margin platform (Três Corações Q4 margin 12.9%, FY 8.9%); the Yoki acquisition (0.4x revenues) is expected to be turned around via distribution, logistics and SG&A synergies within 18–24 months, and the group aims for 85% of activity to be “core” by end‑2026 (core = ≥5% growth, 8–10% margins, #1/#2 market).

Fattal Hold Financial Statement Overview

Summary
Operating profitability and operating cash flow remain solid (TTM operating margin ~15.9%, EBITDA margin ~32.6%, and operating cash flow ~1.06B), but overall fundamentals are weighed down by very high leverage (TTM debt-to-equity ~5.37x) and a sharp deterioration in net profitability (net income down from 278M in 2024 to 53M in 2025 and near breakeven in TTM). Free cash flow is positive in TTM (~252M) but has been inconsistent.
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.41B7.65B7.44B6.93B5.47B3.04B
Gross Profit2.71B3.43B3.46B3.15B2.30B1.56B
EBITDA2.42B2.53B2.75B2.24B1.74B1.45B
Net Income12.78M53.30M278.22M45.19M-78.78M-226.16M
Balance Sheet
Total Assets28.67B29.68B28.50B26.61B23.56B20.80B
Cash, Cash Equivalents and Short-Term Investments996.98M931.36M660.19M904.26M915.16M776.33M
Total Debt21.97B22.63B22.11B21.31B19.25B17.28B
Total Liabilities24.31B25.05B24.35B23.26B21.00B18.84B
Stockholders Equity4.32B4.59B4.10B3.26B2.48B1.89B
Cash Flow
Free Cash Flow252.38M-438.14M503.95M830.53M-148.92M88.62M
Operating Cash Flow1.06B1.14B1.04B1.30B741.98M373.56M
Investing Cash Flow-1.38B-1.90B-1.75B-1.08B-1.33B-298.74M
Financing Cash Flow300.07M878.88M419.93M-185.55M621.41M-499.38M

Fattal Hold Technical Analysis

Technical Analysis Sentiment
Negative
Last Price69640.00
Price Trends
50DMA
68782.60
Negative
100DMA
72307.20
Negative
200DMA
68213.05
Negative
Market Momentum
MACD
-638.76
Positive
RSI
37.05
Neutral
STOCH
10.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:FTAL, the sentiment is Negative. The current price of 69640 is below the 20-day moving average (MA) of 70585.00, above the 50-day MA of 68782.60, and above the 200-day MA of 68213.05, indicating a bearish trend. The MACD of -638.76 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 10.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:FTAL.

Fattal Hold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
₪8.23B31.64―0.74%10.55%0.81%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
41
Neutral
₪11.18B880.260.42%1.01%-1.68%-92.92%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:FTAL
Fattal Hold
65,430.00
13,780.00
26.68%
IL:DANH
Dan Hotels
2,672.00
68.00
2.61%
IL:ISRO
Isrotel
13,490.00
1,760.00
15.00%
IL:ICHO
Ic Hotels
99.50
-1.90
-1.87%
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 24, 2026