Harel (HARL) AI Stock Analysis

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Harel

(TASE:HARL)

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Rating:71Outperform

Price Target:ILA 21,846.00▲(20.96% Upside)

Action:upgraded

Date:09/07/26

The score is driven primarily by improved profitability and strong ROE, tempered by rising leverage and uneven cash-flow generation. Technicals are constructive with price above key moving averages, though overbought signals add near-term risk. Valuation is supportive with a reasonable P/E and an attractive dividend yield.

Positive Factors

Improved Profitability and ROENet income reached ~3.0B in 2025 and ~3.3B TTM, while net margin expanded to ~9.8% and ~10.3%. This improvement indicates stronger earnings capacity and gives Harel more internal resources to support operations, absorb variability, and invest across its insurance and savings franchises.

Negative Factors

Rising LeverageDebt increased materially to ~26.4B TTM, lifting debt-to-equity to about 2.0x from ~1.23x in 2023. Higher leverage makes earnings and capital more sensitive to adverse underwriting or investment outcomes and reduces financial flexibility during stressed conditions.

Harel (HARL) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 37.10B
Dividend Yield: 3.85%
Average Volume (3M): 308.77K
Price to Earnings (P/E): 11.3
Beta (1Y): 1.47
Revenue Growth: 14.74%
EPS Growth: 70.44%
Country: Israel
Employees: 5,000
Sector: General
Sector Strength: 55
Industry: Insurance - Diversified

Harel Business Overview & Revenue Model

Company Description

Harel Insurance Investments & Financial Services Ltd, established in 1933 and headquartered in Ramat Gan, Israel, is a leading provider of insurance and financial products operating across Israel, the United States, and Western Europe. The company st...

How the Company Makes Money

Harel makes money primarily through: (1) Insurance operations: It earns insurance revenue from policyholders in the form of premiums for life, health, and general (property & casualty) insurance products. Profitability in these lines is driven by und...

Harel Financial Statement Overview

Summary

Profitability rebounded strongly into 2025 and TTM with higher net income, expanding margins, and very strong ROE (~25%). Offsetting this, leverage has risen materially (debt-to-equity ~2.0x TTM) and cash-flow quality is volatile, including negative operating/free cash flow in 2024 and softer TTM free cash flow versus 2025.

Income Statement

78Positive

Balance Sheet

63Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.83B	30.63B	27.16B	24.86B	12.69B	27.49B
Gross Profit	30.50B	30.63B	24.73B	24.86B	10.70B	25.68B
EBITDA	6.47B	5.02B	2.45B	1.53B	2.06B	2.31B
Net Income	3.28B	2.99B	946.00M	485.00M	906.00M	1.21B
Balance Sheet
Total Assets	174.17B	163.63B	158.66B	144.81B	135.27B	137.67B
Cash, Cash Equivalents and Short-Term Investments	31.30B	2.74B	25.53B	26.50B	24.89B	26.25B
Total Debt	26.39B	22.27B	18.50B	10.95B	7.28B	7.14B
Total Liabilities	161.51B	151.44B	149.46B	135.85B	126.88B	128.78B
Stockholders Equity	12.63B	12.17B	9.12B	8.89B	8.34B	8.86B
Cash Flow
Free Cash Flow	2.24B	5.43B	-3.52B	3.02B	1.60B	1.13B
Operating Cash Flow	2.64B	5.47B	-3.06B	3.47B	1.98B	1.49B
Investing Cash Flow	-462.00M	-514.00M	-1.02B	-511.00M	-371.00M	-632.00M
Financing Cash Flow	-1.85B	-1.45B	1.45B	1.01B	-1.01B	581.00M

Harel Technical Analysis

Technical Analysis SentimentNegative

Last Price18060.00

Price Trends

50DMA19040.02Negative

100DMA17749.71Positive

200DMA17053.67Positive

Market Momentum

MACD-65.55Positive

RSI37.72Neutral

STOCH19.16Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HARL, the sentiment is Negative. The current price of 18060.00 is below the 20-day moving average (MA) of 19087.00, below the 50-day MA of 19040.02, and above the 200-day MA of 17053.67, indicating a neutral trend. The MACD of -65.55 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 19.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:HARL.

Harel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:HARL 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: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:AYAL	66Neutral	ILS 4.70B	9.93	―	2.83%	―	―
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:HARL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:HARL	Harel Insurance Investments & Financial Services	18060.00	7109.61	64.93%
IL:CLIS	Clal Insurance Enterprises Holdings	26900.00	9065.46	50.83%
IL:PHOE	Phoenix Holdings Ltd.	17000.00	4809.48	39.45%
IL:MMHD	Menora Mivtachim Holdings Ltd.	49390.00	18067.17	57.68%
IL:AYAL	Ayalon Holdings Ltd.	16580.00	9945.78	149.92%
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: Sep 07, 2026

Harel AI Stock Analysis