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Mizrahi Tefahot Bank Ltd (IL:MZTF)
TASE:MZTF
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Mizrahi Tefahot (MZTF) AI Stock Analysis

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IL:MZTF

Mizrahi Tefahot

(TASE:MZTF)

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Outperform 71 (OpenAI - Gpt-5.6Sol)
Rating:71Outperform
Price Target:
25,061.00
▲(8.16% Upside)
Action:Reiterated
Date:08/18/26
Overall score is driven primarily by solid fundamentals (strong margins/ROE and revenue growth) but tempered by cash flow volatility and leverage sensitivity. Valuation is a key positive (low P/E and strong dividend yield). Technical signals are neutral-to-moderately supportive, adding limited incremental strength.
Positive Factors
Strong Profitability
High profitability and mid-to-high-teens returns on equity indicate an effective banking franchise, supporting internal capital generation and resilience across the medium-term operating cycle.
Negative Factors
Margin Compression
Lower margins indicate that spreads, business mix, costs, or credit dynamics are becoming less favorable, which could limit sustainable earnings growth even if revenue remains strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
High profitability and mid-to-high-teens returns on equity indicate an effective banking franchise, supporting internal capital generation and resilience across the medium-term operating cycle.
Read all positive factors

Mizrahi Tefahot (MZTF) vs. iShares MSCI Israel ETF (EIS)

Mizrahi Tefahot Business Overview & Revenue Model

Company Description
Established in 1923 and headquartered in Ramat Gan, Israel, Mizrahi Tefahot Bank Ltd. operates as a full-service financial institution, delivering a broad spectrum of international, commercial, domestic, and personal banking solutions. It caters t...
How the Company Makes Money
Mizrahi Tefahot primarily makes money through banking intermediation and fee-based financial services. Its key revenue stream is net interest income: the bank pays interest on customer deposits and other funding sources and earns interest on loans...

Mizrahi Tefahot Earnings Call Summary

Earnings Call Date:Nov 18, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong credit growth, healthy mortgage demand, and robust financial performance, with net profits and cost efficiencies aligning with strategic goals. Despite challenges such as extra taxes and client relief impacts, the bank maintained strong capital reserves and a positive outlook.
Positive Updates
Strong Credit Growth
The bank reported very strong credit growth across most asset classes, including mortgages, corporate, and middle market, as part of its strategic plan.
Negative Updates
Impact of Extra Tax and Client Relief
The bank's results were affected by the extra tax imposed on Israeli banks in 2025 and the extensive Bank of Israel client relief outline.
Read all updates
Q3-2025 Updates
Negative
Strong Credit Growth
The bank reported very strong credit growth across most asset classes, including mortgages, corporate, and middle market, as part of its strategic plan.
Read all positive updates
Company Guidance
During the Mizrahi Tefahot Bank Third Quarter 2025 Business Results Conference Call, the bank highlighted a strong performance characterized by significant credit growth across various asset classes, including mortgages and corporate sectors, which aligns with their strategic plan. The net profit for Q3 reached ILS 1.483 billion, contributing to a total net profit of ILS 4.26 billion for the first nine months of 2025. The return on equity for Q3 stood at 17.6%. The bank maintained a cost-income ratio of 34.2% for the quarter, and the financing revenues from current operations amounted to ILS 2.822 billion. The bank's equity was reported at ILS 34 billion. The provisioning ratio for loans was 0.04%, while the Tier 1 capital ratio was 10.14%, with a total capital ratio of 13.04%. The bank plans to distribute 50% of its Q3 profit as dividends, reflecting a balance between growth and capital requirements.

Mizrahi Tefahot Financial Statement Overview

Summary
Strong profitability for a regional bank (TTM net margin ~18.8%, ROE ~16.3%) and meaningful multi-year revenue expansion (TTM revenue growth +56.3%). Offsetting factors are margin compression versus 2021–2022 highs, structurally meaningful leverage (~1.27x debt/equity), and notably volatile cash generation (TTM free cash flow down ~45.9%).
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue29.83B29.59B28.65B26.77B19.20B13.12B
Gross Profit14.38B14.39B14.67B14.74B13.24B10.25B
EBITDA9.37B9.41B9.27B8.16B7.29B5.37B
Net Income5.55B5.63B5.46B4.91B4.47B3.19B
Balance Sheet
Total Assets580.82B551.17B485.64B448.20B428.29B392.27B
Cash, Cash Equivalents and Short-Term Investments77.73B100.43B82.64B85.96B93.67B95.27B
Total Debt42.63B43.05B40.18B37.81B34.07B38.66B
Total Liabilities542.99B514.75B452.91B419.50B403.42B370.54B
Stockholders Equity36.10B34.77B31.29B27.46B23.78B20.77B
Cash Flow
Free Cash Flow6.90B16.08B13.77B3.09B3.51B3.79B
Operating Cash Flow7.54B16.68B14.38B3.53B3.90B4.13B
Investing Cash Flow-46.52B-57.10B-43.35B-20.46B-34.40B-25.12B
Financing Cash Flow39.20B41.36B25.08B9.84B28.24B30.24B

Mizrahi Tefahot Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23170.00
Price Trends
50DMA
22210.58
Positive
100DMA
21863.73
Positive
200DMA
22438.49
Positive
Market Momentum
MACD
444.31
Negative
RSI
67.31
Neutral
STOCH
91.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MZTF, the sentiment is Positive. The current price of 23170 is below the 20-day moving average (MA) of 23208.23, above the 50-day MA of 22210.58, and above the 200-day MA of 22438.49, indicating a bullish trend. The MACD of 444.31 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MZTF.

Mizrahi Tefahot Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
₪104.22B11.1515.13%3.73%3.03%12.52%
76
Outperform
₪116.45B11.2815.67%4.15%0.96%8.30%
71
Outperform
₪62.27B11.1916.87%4.45%0.78%0.99%
65
Neutral
₪43.80B10.9513.10%4.37%-4.38%-4.54%
64
Neutral
₪24.33B11.2815.81%7.13%6.44%-8.63%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:MZTF
Mizrahi Tefahot
24,000.00
3,210.44
15.44%
IL:LUMI
Leumi
7,970.00
1,968.34
32.80%
IL:FIBI
Fibi Bank
24,400.00
2,126.16
9.55%
IL:DSCT
Discount
3,628.00
523.29
16.85%
IL:POLI
Poalim
8,053.00
1,814.99
29.10%
IL:JBNK
Jerusalem
2,112.00
-266.25
-11.20%
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 18, 2026