Stock Analysis

Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) Stock Rockets 27% But Many Are Still Ignoring The Company

TASE:DIMRI
Source: Shutterstock

The Y.H. Dimri Construction & Development Ltd (TLV:DIMRI) share price has done very well over the last month, posting an excellent gain of 27%. The last 30 days bring the annual gain to a very sharp 40%.

Even after such a large jump in price, Y.H. Dimri Construction & Development's price-to-earnings (or "P/E") ratio of 14.1x might still make it look like a buy right now compared to the market in Israel, where around half of the companies have P/E ratios above 17x and even P/E's above 26x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.

Recent times have been quite advantageous for Y.H. Dimri Construction & Development as its earnings have been rising very briskly. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

See our latest analysis for Y.H. Dimri Construction & Development

pe-multiple-vs-industry
TASE:DIMRI Price to Earnings Ratio vs Industry July 3rd 2025
Although there are no analyst estimates available for Y.H. Dimri Construction & Development, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Advertisement

How Is Y.H. Dimri Construction & Development's Growth Trending?

The only time you'd be truly comfortable seeing a P/E as low as Y.H. Dimri Construction & Development's is when the company's growth is on track to lag the market.

If we review the last year of earnings growth, the company posted a terrific increase of 63%. Pleasingly, EPS has also lifted 33% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.

Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 9.1% shows it's about the same on an annualised basis.

In light of this, it's peculiar that Y.H. Dimri Construction & Development's P/E sits below the majority of other companies. It may be that most investors are not convinced the company can maintain recent growth rates.

The Final Word

Y.H. Dimri Construction & Development's stock might have been given a solid boost, but its P/E certainly hasn't reached any great heights. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Our examination of Y.H. Dimri Construction & Development revealed its three-year earnings trends aren't contributing to its P/E as much as we would have predicted, given they look similar to current market expectations. There could be some unobserved threats to earnings preventing the P/E ratio from matching the company's performance. It appears some are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions should normally provide more support to the share price.

It's always necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Y.H. Dimri Construction & Development, and understanding these should be part of your investment process.

If these risks are making you reconsider your opinion on Y.H. Dimri Construction & Development, explore our interactive list of high quality stocks to get an idea of what else is out there.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.