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Isrotel Ltd. (IL:ISRO)
TASE:ISRO
Israel Market
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Isrotel (ISRO) AI Stock Analysis

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IL:ISRO

Isrotel

(TASE:ISRO)

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Neutral 58 (OpenAI - Gpt-5.6Sol)
Rating:58Neutral
Price Target:
13,312.00
▲(10.02% Upside)
Action:Reiterated
Date:08/30/26
The score is driven primarily by mid-to-upper financial quality—strong revenue growth and improving free cash flow—offset by clear risks from margin compression and higher leverage. Technicals add a mild headwind (negative MACD and below longer-term moving averages), and valuation further constrains the score due to a high P/E and low dividend yield.
Positive Factors
Strong Revenue Growth
The sharp increase in trailing revenue indicates strong demand and expanded business activity across Isrotel’s hotel portfolio. Sustained scale can support fixed-cost absorption and provide a broader base for future operating improvements.
Negative Factors
Multi-Year Margin Compression
The sustained decline in gross and net margins suggests that revenue growth is not fully converting into profit. Continued cost pressure or an unfavorable business mix could limit earnings growth and reduce resilience across the hotel cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp increase in trailing revenue indicates strong demand and expanded business activity across Isrotel’s hotel portfolio. Sustained scale can support fixed-cost absorption and provide a broader base for future operating improvements.
Read all positive factors

Isrotel (ISRO) vs. iShares MSCI Israel ETF (EIS)

Isrotel Business Overview & Revenue Model

Company Description
Isrotel Ltd. is an Israeli hospitality firm that both runs and oversees a collection of hotels throughout the nation. Its portfolio comprises 21 establishments, each boasting a broad spectrum of amenities. These include diverse lodging choices fro...
How the Company Makes Money
Isrotel makes money primarily by operating hotels and selling room nights to guests. Its main revenue stream is lodging (room revenue), which is typically influenced by occupancy rates, average daily room rates, seasonality, and the geographic and...

Isrotel Financial Statement Overview

Summary
Operating performance is solid but mixed overall: very strong TTM revenue growth (~283%) and improving free cash flow (~295M, ~38% growth) support the score, while material multi-year margin compression (gross margin down to ~29.7% from ~43.7% in 2024; net margin ~10.2% vs ~15.9% in 2024) and higher leverage (debt-to-equity ~0.86 vs ~0.56 in 2024) limit upside.
Income Statement
68
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.19B2.18B1.92B1.80B1.87B1.61B
Gross Profit666.87M673.43M837.91M751.48M765.84M696.42M
EBITDA600.21M609.73M617.09M527.80M515.63M492.97M
Net Income244.58M254.55M303.66M233.42M252.79M250.64M
Balance Sheet
Total Assets5.34B5.58B4.81B4.23B4.07B3.56B
Cash, Cash Equivalents and Short-Term Investments336.56M275.95M419.84M518.50M412.86M377.71M
Total Debt2.05B2.00B1.40B1.27B1.24B1.11B
Total Liabilities2.87B3.13B2.28B1.99B2.03B1.81B
Stockholders Equity2.44B2.42B2.51B2.22B2.03B1.73B
Cash Flow
Free Cash Flow295.50M184.38M28.61M241.15M416.79M462.51M
Operating Cash Flow570.38M495.26M573.81M488.50M554.83M545.18M
Investing Cash Flow-339.61M-232.00M-591.94M-480.77M-317.44M-84.15M
Financing Cash Flow-122.96M-240.20M-17.07M-136.12M-254.21M-89.43M

Isrotel Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12100.00
Price Trends
50DMA
12813.00
Positive
100DMA
13849.90
Negative
200DMA
14702.05
Negative
Market Momentum
MACD
204.11
Negative
RSI
67.49
Neutral
STOCH
93.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ISRO, the sentiment is Positive. The current price of 12100 is below the 20-day moving average (MA) of 12405.50, below the 50-day MA of 12813.00, and below the 200-day MA of 14702.05, indicating a neutral trend. The MACD of 204.11 indicates Negative momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 93.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ISRO.

Isrotel 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
₪8.04B30.920.66%10.55%0.81%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
₪12.44B979.480.42%-1.68%-92.92%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:ISRO
Isrotel
13,640.00
1,040.00
8.25%
IL:FTAL
Fattal Hold
74,990.00
21,860.00
41.14%
IL:DANH
Dan Hotels
2,749.00
132.00
5.04%
IL:QNCO
Queenco
820.00
47.89
6.20%
IL:ISTA
Issta
9,678.00
-455.66
-4.50%
IL:ICHO
Ic Hotels
106.80
3.30
3.19%
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 30, 2026