Energix (TASE:ENRG): Assessing Valuation After Profit Rise in Latest Financial Results

Energix, Renewable Energies (TASE:ENRG), just released its financials for the third quarter and first nine months of 2025, showing stronger net income and earnings per share even as sales and revenue dipped compared to last year.

See our latest analysis for Energix - Renewable Energies.

After a solid run-up in 2024 and some ups and downs throughout 2025, Energix - Renewable Energies’ shares are currently trading at $13.63. Momentum has picked up recently, reflected in a year-to-date share price return of 9.13%. The total shareholder return over the past year stands at an impressive 25.19%. This combination of growing profits and healthy long-term returns keeps sentiment firmly positive around the stock.

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With profits rising but sales softening, and a strong run in the share price already, the question for investors is clear: is Energix - Renewable Energies still undervalued, or is future growth already reflected in the price?

Price-to-Earnings of 27.6x: Is it justified?

The current price-to-earnings (P/E) ratio for Energix - Renewable Energies sits at 27.6x, slightly below the peer average but much higher than the broader Asian sector. At a last close of $13.63, this multiple suggests investors are willing to pay a premium for the company’s earnings. But just how justified is that compared to industry benchmarks?

The P/E ratio reflects how much investors are paying for each shekel of earnings generated by the company. For a renewable energy stock, a higher P/E can sometimes signal expectations for strong future growth or a belief in high-quality, recurring revenue streams within the sector.

Compared to the Renewable Energy industry’s average P/E of 38.1x, Energix shares trade at a discount, suggesting some value. However, when lined up against the Asian Renewable Energy industry average of 16.5x, the stock actually looks expensive. The market is assigning a substantial premium, possibly due to the company’s growth history or its position in the Israeli market. If the fair ratio is lower than the current P/E, the valuation gap could narrow as expectations converge back toward what is justified by fundamentals.

Explore the SWS fair ratio for Energix - Renewable Energies

Result: Price-to-Earnings of 27.6x (ABOUT RIGHT)

However, slowing revenue growth and the recent share price pullback could challenge ongoing optimism if fundamentals fail to keep pace with high investor expectations.

Find out about the key risks to this Energix - Renewable Energies narrative.

Another View: Discounted Cash Flow Raises Caution

Looking through the lens of our SWS DCF model, Energix - Renewable Energies appears to be trading well above its estimated fair value of ₪5.22. While profit multiples offer one signal, the DCF approach suggests the market is being a bit optimistic about future cash flows and returns.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Energix - Renewable Energies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 926 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Energix - Renewable Energies Narrative

If you have a different take or want to dig into the numbers yourself, you can analyze the key figures and build your own perspective quickly. Do it your way.

A great starting point for your Energix - Renewable Energies research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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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