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Fattal Hold
(TASE:FTAL)
Select Model
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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)
Market Cap
₪11.18B
Dividend Yield1.01%
Average Volume (3M)9.61K
Price to Earnings (P/E)880.3
Beta (1Y)1.20
Revenue Growth-1.68%
EPS Growth-92.92%
CountryIL
Employees5,946
SectorGeneral
Sector StrengthN/A
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.77
Shares Outstanding16,500,060
10 Day Avg. Volume11,755
30 Day Avg. Volume9,612
Financial Highlights & Ratios
PEG Ratio-2.49
Price to Book (P/B)2.34
Price to Sales (P/S)1.40
P/FCF Ratio-24.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Positive
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
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.41B | 7.65B | 7.44B | 6.93B | 5.47B | 3.04B |
| Gross Profit | 2.71B | 3.43B | 3.46B | 3.15B | 2.30B | 1.56B |
| EBITDA | 2.42B | 2.53B | 2.75B | 2.24B | 1.74B | 1.45B |
| Net Income | 12.78M | 53.30M | 278.22M | 45.19M | -78.78M | -226.16M |
Balance Sheet | ||||||
| Total Assets | 28.67B | 29.68B | 28.50B | 26.61B | 23.56B | 20.80B |
| Cash, Cash Equivalents and Short-Term Investments | 996.98M | 931.36M | 660.19M | 904.26M | 915.16M | 776.33M |
| Total Debt | 21.97B | 22.63B | 22.11B | 21.31B | 19.25B | 17.28B |
| Total Liabilities | 24.31B | 25.05B | 24.35B | 23.26B | 21.00B | 18.84B |
| Stockholders Equity | 4.32B | 4.59B | 4.10B | 3.26B | 2.48B | 1.89B |
Cash Flow | ||||||
| Free Cash Flow | 252.38M | -438.14M | 503.95M | 830.53M | -148.92M | 88.62M |
| Operating Cash Flow | 1.06B | 1.14B | 1.04B | 1.30B | 741.98M | 373.56M |
| Investing Cash Flow | -1.38B | -1.90B | -1.75B | -1.08B | -1.33B | -298.74M |
| Financing Cash Flow | 300.07M | 878.88M | 419.93M | -185.55M | 621.41M | -499.38M |
Fattal Hold Technical Analysis
Negative
69640.00
Price Trends
68782.60
Negative
72307.20
Negative
68213.05
Negative
Market Momentum
-638.76
Positive
37.05
Neutral
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
UnderperformOutperform
Sector (55)
IL:FTAL
Fattal Hold
65,430.00
13,780.00
26.68%
IL:DANH
Dan Hotels
2,672.00
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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.