Almogim Holdings (TASE:ALMA) Net Profit Margin Hits 2.3%, Challenging Bearish Profitability Narratives

Almogim Holdings (TASE:ALMA) just posted its Q3 2025 results, reporting revenue of 80.4 million ILS and basic EPS of 0.04 ILS. Looking back, the company has seen revenue climb from 53.6 million ILS a year ago in Q2 2024, while EPS over that same period moved from 0.02 ILS to 0.04 ILS. Margins came under the spotlight this quarter as investors weighed the numbers against historical trends.

See our full analysis for Almogim Holdings.

Now let’s see how these fresh numbers stack up against the wider market expectations and narratives. Some familiar stories may get challenged, while others could be confirmed.

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

Profit Margins Move Up to 2.3%

• Trailing twelve month net profit margin climbed to 2.3%, up from 1.6% the prior year. This marks a reversal after multiple years of margin declines.
• Recent profitability improvement stands out because bullish analysts claimed Almogim’s high-quality earnings could bounce back and now reported margins support this with:
  • Earnings up 123.1% year-on-year, sharply above the five-year average earnings decline of 19.8% per year.
  • Net income over the last year totaled 8.1 million ILS, compared with weaker profits in prior periods.

P/E Ratio Far Outpaces Sector

• Almogim’s price-to-earnings (P/E) ratio is 64.4x, which is more than triple the industry average of 13.9x and much higher than peers at 18.4x.
• This significant premium challenges the bullish valuation case as critics question if current momentum is enough to justify such a gap:
  • The share price of 10.82 ILS trades well above levels typically assigned to firms with similarly modest net margins.
  • A high P/E suggests investors are betting on sustained or accelerating profit growth despite the company’s multi-year history of earnings declines.

Interest Cover and Dilution Risks Linger

• Management notes that interest payments are not well covered by current earnings, and recent shareholder dilution adds to risk.
• The prevailing narrative cautions that while current profitability is encouraging, these ongoing risks highlight why some investors may remain cautious:
  • Shareholders experienced dilution over the past year, which could weigh on future per-share returns.
  • Financial coverage ratios could constrain flexibility if growth slows or rates rise further.

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 Almogim Holdings'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.

See What Else Is Out There

Despite Almogim's recent profitability boost, lingering concerns about shareholder dilution and weak interest cover pose challenges to its future stability.

If you want to sidestep those issues and focus on businesses with healthier financial foundations, check out solid balance sheet and fundamentals stocks screener (1938 results) that are built to withstand volatility and protect shareholder value.

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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