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Newmed Energ Pu
(TASE:NWMD)
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Rating:64Neutral
Price Target:
1,826.00
▲(12.72% Upside)
Action:Downgraded
Date:08/20/26
The score is driven primarily by strong profitability but meaningful weakness in cash-flow quality and free cash flow, which is the main financial risk. Earnings-call commentary adds support via improving production, pricing, and visible infrastructure/growth catalysts, while technicals are mixed (short-term strength but below longer-term averages). Valuation is a modest headwind given the P/E, partially balanced by the dividend yield.
Positive Factors
Production and Revenue Expansion
Higher production across Israel, Egypt, and Jordan, combined with stronger realized prices, demonstrates improving asset utilization and regional demand. Sustained volume growth can support recurring revenue and operating leverage as infrastructure expands.
Negative Factors
Sharp Free Cash Flow Deterioration
Weak cash conversion means reported profitability is not translating efficiently into discretionary cash. Higher working capital, taxes, interest, or sustaining capital needs could constrain debt reduction, distributions, and funding for major projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Production and Revenue Expansion
Higher production across Israel, Egypt, and Jordan, combined with stronger realized prices, demonstrates improving asset utilization and regional demand. Sustained volume growth can support recurring revenue and operating leverage as infrastructure expands.
Read all positive factors
Newmed Energ Pu (NWMD) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪20.06B
Dividend Yield3.74%
Average Volume (3M)1.07M
Price to Earnings (P/E)26.0
Beta (1Y)1.17
Revenue Growth-18.59%
EPS Growth-52.07%
CountryIL
Employees24
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.22
Shares Outstanding1,173,814,700
10 Day Avg. Volume970,129
30 Day Avg. Volume1,073,299
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)3.51
Price to Sales (P/S)7.08
P/FCF Ratio21.80
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)0.48
Revenue Forecast (FY)₪1.04B
Newmed Energ Pu Business Overview & Revenue Model
Company Description
NewMed Energy - Limited Partnership is an energy firm engaged in the exploration, development, production, and commercialization of petroleum, natural gas, and condensate, primarily operating in Israel and Cyprus. The company holds significant int...
How the Company Makes Money
Newmed Energy primarily makes money by selling natural gas produced from its upstream interests (typically via partners/operators and joint-venture style arrangements) to customers under gas sales agreements. Revenue is generally driven by (1) its...
Newmed Energ Pu Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial improvements: production increased ~35%, revenues rose ~53% and net income ~44%, supported by higher gas prices and completed midstream works. Material infrastructure milestones (third pipeline, Ashdod–Ashkelon looping) and progress on major growth projects (Leviathan expansion on schedule, Aphrodite progressing toward FID) provide clear upside. Offsetting considerations include rising operating costs (+$21M), higher finance expenses (+$26M), net debt of ~$1.4B with an upcoming bond maturity in 2027, and some benefits that are timing‑lagged or accrue to partners rather than immediately to NewMed. Overall, positive momentum and meaningful value catalysts outweigh the noted financial and timing challenges.Positive Updates
Strong Production Growth
Q2 2026 production of ~2.7 Bcm vs 2.0 Bcm in Q2 2025, an increase of ~0.7 Bcm (+35%). All three markets (Israel, Egypt, Jordan) grew, with Egyptian volumes increasing by ~0.5 Bcm in the quarter.
Negative Updates
Rising Operating Costs and Depreciation
Costs and expenses increased by ~$21M year‑over‑year, mainly from higher operations costs and depreciation, partially offsetting revenue gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Production Growth
Q2 2026 production of ~2.7 Bcm vs 2.0 Bcm in Q2 2025, an increase of ~0.7 Bcm (+35%). All three markets (Israel, Egypt, Jordan) grew, with Egyptian volumes increasing by ~0.5 Bcm in the quarter.
Read all positive updates
Company Guidance
Management guided that Q2‑2026 results included production of 2.7 Bcm (vs. 2.0 Bcm in Q2‑2025, with ~+0.5 Bcm to Egypt), revenues of $293M (vs. $191M), net profit of ~$117–118M, average gas price $6.5/MMBtu (vs. $5.6), and a $60M dividend; net revenues rose ~$86M (≈$59M from higher production, $25M from higher price, $2.1M condensate) partially offset by ~$21M higher costs and ~$26M higher finance expenses, plus $6.8M other revenues and $7.7M discontinued‑operation income. Liquidity/financial guidance: net debt ≈$1.4B, $550M available bank facilities, ~$95M of bond buybacks to date, next bond maturity June‑2027. Capex/project guidance: third pipeline lifts peak capacity to 15.8 Bcm/year (from ~14.5, +1 Bcm), Ashdod–Ashkelon looping adds ~2 Bcm/year (allocated to Leviathan partners), Leviathan Phase‑1b on track for H2‑2029 with total cost ~$2.4B and ~23% complete and a rig to drill 3 wells by year‑end; FAJR+compression due EOY, Nitzana ahead of Phase‑2, Aphrodite FID targeted H1‑2027, and upcoming seismic surveys including a ~5,000‑node OBN survey.Newmed Energ Pu Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 915.60M | 938.07M | 1.14B | 934.60M | 1.14B | 882.50M |
| Gross Profit | 458.84M | 585.08M | 718.10M | 780.70M | 701.70M | 518.11M |
| EBITDA | 733.57M | 760.65M | 874.80M | 782.70M | 872.10M | 657.20M |
| Net Income | 263.65M | 371.29M | 524.60M | 433.60M | 469.70M | 404.90M |
Balance Sheet | ||||||
| Total Assets | 4.05B | 3.97B | 3.99B | 3.85B | 3.94B | 3.85B |
| Cash, Cash Equivalents and Short-Term Investments | 163.80M | 157.53M | 384.50M | 186.70M | 418.30M | 340.85M |
| Total Debt | 1.56B | 1.12B | 1.63B | 1.82B | 2.16B | 2.22B |
| Total Liabilities | 2.17B | 2.08B | 2.21B | 2.33B | 2.65B | 2.91B |
| Stockholders Equity | 1.88B | 1.89B | 1.79B | 1.51B | 1.29B | 938.54M |
Cash Flow | ||||||
| Free Cash Flow | 54.61M | 304.72M | 463.30M | 423.10M | 405.80M | 423.25M |
| Operating Cash Flow | 404.03M | 547.08M | 577.50M | 559.50M | 504.70M | 453.64M |
| Investing Cash Flow | -533.88M | 30.20M | -114.20M | 36.10M | -273.50M | 982.04M |
| Financing Cash Flow | -208.48M | -516.12M | -441.20M | -588.90M | -429.10M | -1.29B |
Newmed Energ Pu Technical Analysis
Positive
1620.00
Price Trends
1628.36
Positive
1680.40
Positive
1757.13
Negative
Market Momentum
19.62
Negative
58.60
Neutral
91.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NWMD, the sentiment is Positive. The current price of 1620 is below the 20-day moving average (MA) of 1658.51, below the 50-day MA of 1628.36, and below the 200-day MA of 1757.13, indicating a neutral trend. The MACD of 19.62 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 91.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NWMD.
Newmed Energ Pu Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₪2.26B | 17.41 | ― | 14.90% | -15.98% | -22.66% | |
64 Neutral | ₪20.06B | 25.98 | 24.33% | 3.74% | -18.59% | -52.07% | |
63 Neutral | ₪16.21B | 4.76 | 4.49% | 6.28% | -43.39% | 268.02% | |
63 Neutral | ₪428.42M | 23.78 | ― | 23.14% | -1.64% | 9.82% | |
59 Neutral | ₪16.09B | 17.14 | ― | 3.02% | 920.97% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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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.