Kardan Israel (TASE:KRDI) Net Profit Margin Hits 9.1%, Challenging Bearish Debt Coverage Narrative

Kardan Israel (TASE:KRDI) has just released its Q3 2025 results, reporting total revenue of 120.577 million ILS and basic EPS of 0.19 ILS for the period. Looking back, the company has seen its revenue shift from 166.711 million ILS in Q3 2024 to this quarter’s 120.577 million ILS. EPS moved from 0.05 ILS to 0.19 ILS over the same timeframe. Net profit margins have picked up, demonstrating a punchier bottom line story for investors focused on profitability trends.

See our full analysis for Kardan Israel.

Next up, we set these latest results against the market and community narratives to see which storylines gain support and which get put to the test.

Curious how numbers become stories that shape markets? Explore Community Narratives

Net Profit Margin Triples to 9.1%

• Trailing twelve month net profit margin rose from 3.1% last year to 9.1%, according to the recent analysis.
• Kardan Israel’s swift earnings climb, driven by a 185% jump in net income year over year, aligns with the positive case that diversification across real estate types makes the business more resilient, with
  • this margin boost reflecting stronger performance in both residential and logistics developments, key segments cited as growth drivers
  • bullish arguments pointing to the 9.1% margin as a concrete sign that operational improvements are paying off, even compared to the company’s own five-year growth track

P/E Ratio Stays Below Market Average

• The company’s current P/E is 13.1x, which sits below both the IL market’s 15.1x and the sector’s 16.4x average.
• Consensus narrative notes that this relative valuation discount could appeal to investors looking for earnings growth at a reasonable price, but it is complicated by the fact that the current share price of 4.45 ILS is still above the DCF fair value of 1.52 ILS.
  • The gap between share price and fair value tempers pure optimism, since this premium suggests the market may already be pricing in some future growth
  • At the same time, the lower P/E signals better value versus peers, a key takeaway for investors focused on both growth and valuation comparisons

Recent numbers challenge consensus thinking. Kardan Israel’s strong margin improvement comes as its P/E dips below the market, but the valuation gap remains in focus. 📊 Read the full Kardan Israel Consensus Narrative.

Interest Coverage Remains a Key Watchpoint

• Despite profitability gains, interest payments continue to outpace coverage by earnings, flagged as a notable risk in the latest review.
• Bears argue that this ongoing coverage shortfall calls the sustainability of margin improvements into question, especially if debt service costs rise or profits falter, emphasizing that
  • while margins and growth are higher, incomplete earnings coverage of financing costs is a structural issue weighing on long-term confidence
  • Investors may look for clearer evidence of financial resilience as debt obligations continue to shape market sentiment

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Kardan Israel's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

Kardan Israel’s rising net profit margin and competitive valuation are clouded by lingering debt coverage issues that raise red flags about financial stability.

If you want to target companies delivering stronger financial health and resilience, see which stand out for robust balance sheets and dependable fundamentals with solid balance sheet and fundamentals stocks screener (1938 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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