New Risk • Apr 16
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 119% The company is paying a dividend despite having no free cash flows. Dividend yield: 2.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.2x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 119% Paying a dividend despite having no free cash flows. Earnings have declined by 40% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Upcoming Dividend • Apr 03
Upcoming dividend of ₪1.86 per share Eligible shareholders must have bought the stock before 10 April 2026. Payment date: 19 April 2026. Payout ratio is a comfortable 71% but the company is not cash flow positive. Trailing yield: 1.8%. Lower than top quartile of Israeli dividend payers (5.7%). Higher than average of industry peers (1.5%). New Risk • Dec 20
New major risk - Revenue and earnings growth Earnings have declined by 35% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.4x net interest cover). Earnings have declined by 35% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 30
Third quarter 2025 earnings released: EPS: ₪1.63 (vs ₪0.037 in 3Q 2024) Third quarter 2025 results: EPS: ₪1.63 (up from ₪0.037 in 3Q 2024). Revenue: ₪5.83b (up 10% from 3Q 2024). Net income: ₪44.0m (up ₪43.0m from 3Q 2024). Profit margin: 0.8% (up from 0% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Duyuru • Nov 28
Elco Ltd., Annual General Meeting, Jan 06, 2026 Elco Ltd., Annual General Meeting, Jan 06, 2026. Location: co. offices, Israel New Risk • Oct 05
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 38% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Earnings have declined by 33% per year over the past 5 years. Shareholders have been substantially diluted in the past year (38% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Reported Earnings • Sep 01
Second quarter 2025 earnings released: EPS: ₪1.12 (vs ₪1.79 loss in 2Q 2024) Second quarter 2025 results: EPS: ₪1.12 (up from ₪1.79 loss in 2Q 2024). Revenue: ₪5.45b (up 12% from 2Q 2024). Net income: ₪30.0m (up ₪78.2m from 2Q 2024). Profit margin: 0.6% (up from net loss in 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Duyuru • Aug 26
Elco Ltd. to Report Q2, 2025 Results on Aug 28, 2025 Elco Ltd. announced that they will report Q2, 2025 results on Aug 28, 2025 Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₪183, the stock trades at a trailing P/E ratio of 17.6x. Average trailing P/E is 20x in the Construction industry in Israel. Total loss to shareholders of 15% over the past three years. New Risk • Jun 08
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 111% The company is paying a dividend despite having no free cash flows. Dividend yield: 5.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 111% Paying a dividend despite having no free cash flows. Earnings have declined by 27% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Reported Earnings • May 31
First quarter 2025 earnings released: EPS: ₪0.87 (vs ₪1.34 loss in 1Q 2024) First quarter 2025 results: EPS: ₪0.87 (up from ₪1.34 loss in 1Q 2024). Revenue: ₪5.45b (up 11% from 1Q 2024). Net income: ₪42.0m (up ₪78.1m from 1Q 2024). Profit margin: 0.8% (up from net loss in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 100 percentage points per year, which is a significant difference in performance. Duyuru • May 26
Elco Ltd. to Report Q1, 2025 Results on May 29, 2025 Elco Ltd. announced that they will report Q1, 2025 results on May 29, 2025 Reported Earnings • Mar 26
Full year 2024 earnings released: US$1.52 loss per share (vs US$2.02 loss in FY 2023) Full year 2024 results: US$1.52 loss per share. Net loss: US$91.3m (loss widened 67% from FY 2023). Duyuru • Mar 24
Elco Ltd. to Report Fiscal Year 2024 Results on Mar 26, 2025 Elco Ltd. announced that they will report fiscal year 2024 results on Mar 26, 2025 Reported Earnings • Nov 30
Third quarter 2024 earnings released: EPS: ₪0.037 (vs ₪2.60 loss in 3Q 2023) Third quarter 2024 results: EPS: ₪0.037 (up from ₪2.60 loss in 3Q 2023). Revenue: ₪5.29b (up 8.2% from 3Q 2023). Net income: ₪1.01m (up ₪71.5m from 3Q 2023). Profit margin: 0% (up from net loss in 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Duyuru • Nov 29
Elco Ltd., Annual General Meeting, Jan 05, 2025 Elco Ltd., Annual General Meeting, Jan 05, 2025. Location: co. offices, Israel Duyuru • Aug 26
Elco Ltd. to Report Q2, 2024 Results on Aug 28, 2024 Elco Ltd. announced that they will report Q2, 2024 results on Aug 28, 2024 New Risk • Jun 08
New major risk - Revenue and earnings growth Earnings have declined by 5.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.8x net interest cover). Earnings have declined by 5.4% per year over the past 5 years. Duyuru • May 28
Elco Ltd. to Report Q1, 2024 Results on May 29, 2024 Elco Ltd. announced that they will report Q1, 2024 results at 9:46 AM, Israel Standard Time on May 29, 2024 Reported Earnings • Mar 28
Full year 2023 earnings released: ₪7.29 loss per share (vs ₪15.76 profit in FY 2022) Full year 2023 results: ₪7.29 loss per share (down from ₪15.76 profit in FY 2022). Revenue: ₪18.8b (down 1.6% from FY 2022). Net loss: ₪197.6m (down 146% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Duyuru • Mar 22
Elco Ltd. to Report Fiscal Year 2023 Results on Mar 28, 2024 Elco Ltd. announced that they will report fiscal year 2023 results at 9:46 AM, Israel Standard Time on Mar 28, 2024 Reported Earnings • Dec 02
Third quarter 2023 earnings released: ₪2.60 loss per share (vs ₪0.93 loss in 3Q 2022) Third quarter 2023 results: ₪2.60 loss per share (further deteriorated from ₪0.93 loss in 3Q 2022). Revenue: ₪4.89b (up 1.9% from 3Q 2022). Net loss: ₪70.5m (loss widened 181% from 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Duyuru • Nov 30
Elco Ltd., Annual General Meeting, Jan 07, 2024 Elco Ltd., Annual General Meeting, Jan 07, 2024, at 17:00 Israel Standard Time. Duyuru • Nov 27
Elco Ltd. to Report Q3, 2023 Results on Nov 30, 2023 Elco Ltd. announced that they will report Q3, 2023 results on Nov 30, 2023 Duyuru • Sep 18
Elco Ltd.(TASE:ELCO) dropped from FTSE All-World Index (USD) Elco Ltd.(TASE:ELCO) dropped from FTSE All-World Index (USD) Reported Earnings • Sep 16
Second quarter 2023 earnings released: US$1.35 loss per share (vs US$1.78 profit in 2Q 2022) Second quarter 2023 results: US$1.35 loss per share (down from US$1.78 profit in 2Q 2022). Revenue: US$1.25b (down 2.7% from 2Q 2022). Net loss: US$36.6m (down 175% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 04
Upcoming dividend of ₪0.74 per share at 2.2% yield Eligible shareholders must have bought the stock before 11 September 2023. Payment date: 21 September 2023. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Israeli dividend payers (7.4%). In line with average of industry peers (2.4%). Reported Earnings • Jun 05
First quarter 2023 earnings released: EPS: ₪0.48 (vs ₪10.98 in 1Q 2022) First quarter 2023 results: EPS: ₪0.48 (down from ₪10.98 in 1Q 2022). Revenue: ₪4.73b (down 1.1% from 1Q 2022). Net income: ₪13.1m (down 96% from 1Q 2022). Profit margin: 0.3% (down from 6.3% in 1Q 2022). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 29
Full year 2022 earnings released: EPS: ₪15.76 (vs ₪19.92 in FY 2021) Full year 2022 results: EPS: ₪15.76 (down from ₪19.92 in FY 2021). Revenue: ₪19.2b (up 27% from FY 2021). Net income: ₪429.5m (down 21% from FY 2021). Profit margin: 2.2% (down from 3.6% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₪127, the stock trades at a trailing P/E ratio of 4x. Average trailing P/E is 9x in the Construction industry in Israel. Total returns to shareholders of 2.6% over the past three years. Reported Earnings • Dec 15
Third quarter 2022 earnings released: EPS: US$1.52 (vs US$1.52 in 3Q 2021) Third quarter 2022 results: EPS: US$1.52 (in line with 3Q 2021). Revenue: US$1.36b (up 3.7% from 3Q 2021). Net income: US$41.2m (flat on 3Q 2021). Profit margin: 3.0% (down from 3.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 3 highly experienced directors. External Independent Director Shimon Heiblum was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: ₪6.58 (vs ₪3.75 in 2Q 2021) Second quarter 2022 results: EPS: ₪6.58 (up from ₪3.75 in 2Q 2021). Revenue: ₪4.75b (up 38% from 2Q 2021). Net income: ₪179.8m (up 75% from 2Q 2021). Profit margin: 3.8% (up from 3.0% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 3 highly experienced directors. External Independent Director Shimon Heiblos was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Dec 01
Third quarter 2021 earnings: Revenues and EPS in line with analyst expectations Third quarter 2021 results: EPS: ₪4.90 (up from ₪1.95 loss in 3Q 2020). Revenue: ₪4.22b (up 46% from 3Q 2020). Net income: ₪133.8m (up ₪187.2m from 3Q 2020). Profit margin: 3.2% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 05
Upcoming dividend of ₪0.73 per share Eligible shareholders must have bought the stock before 12 September 2021. Payment date: 03 October 2021. Trailing yield: 1.1%. Lower than top quartile of Israeli dividend payers (5.3%). Lower than average of industry peers (1.9%). Reported Earnings • May 24
First quarter 2021 earnings released: EPS US$1.05 (vs US$0.46 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$875.9m (up 11% from 1Q 2020). Net income: US$28.8m (up 128% from 1Q 2020). Profit margin: 3.3% (up from 1.6% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 28
Upcoming dividend of ₪1.46 per share Eligible shareholders must have bought the stock before 04 April 2021. Payment date: 12 April 2021. Trailing yield: 1.8%. Lower than top quartile of Israeli dividend payers (5.2%). Higher than average of industry peers (1.1%). Is New 90 Day High Low • Feb 03
New 90-day high: ₪172 The company is up 31% from its price of ₪131 on 04 November 2020. The Israeli market is up 18% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 22% over the same period. Duyuru • Jan 09
An unknown buyer acquired 4.2% stake in Electra Real Estate Ltd. (TASE:ELCRE) from Elco Ltd. (TASE:ELCO) for ILS 60 million. An unknown buyer acquired 4.2% stake in Electra Real Estate Ltd. (TASE:ELCRE) from Elco Ltd. (TASE:ELCO) for ILS 60 million on January 7, 2021. As per terms of transaction, Elco Ltd. sold 2.4 million share at ILS 25 per share. Post completion ,Elco Ltd. will hold 59.83% stake in Electra Real Estate Ltd.
An unknown buyer completed the acquisition of 4.2% stake in Electra Real Estate Ltd. (TASE:ELCRE) from Elco Ltd. (TASE:ELCO) on January 7, 2021. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improved over the past week After last week's 16% share price gain to ₪162, the stock is trading at a trailing P/E ratio of 18.3x, up from the previous P/E ratio of 15.9x. This compares to an average P/E of 15x in the Construction industry in Israel. Total returns to shareholders over the past three years are 134%. Is New 90 Day High Low • Dec 29
New 90-day high: ₪157 The company is up 21% from its price of ₪129 on 30 September 2020. The Israeli market is up 26% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Construction industry, which is up 20% over the same period. Is New 90 Day High Low • Dec 10
New 90-day high: ₪141 The company is up 18% from its price of ₪120 on 10 September 2020. The Israeli market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 14% over the same period. Reported Earnings • Nov 26
Third quarter 2020 earnings released: ₪1.95 loss per share The company reported a soft third quarter result with weaker earnings and control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: ₪2.88b (up 5.4% from 3Q 2019). Net loss: ₪53.4m (down 137% from profit in 3Q 2019). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Nov 09
New 90-day high: ₪136 The company is up 11% from its price of ₪123 on 11 August 2020. The Israeli market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is up 1.0% over the same period. Is New 90 Day High Low • Oct 04
New 90-day high: ₪133 The company is up 12% from its price of ₪118 on 06 July 2020. The Israeli market is up 6.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Construction industry, which is up 13% over the same period. Duyuru • Jul 22
Elco Ltd. To Be Deleted From Other OTC Elco Ltd. Ordinary Shares will be deleted from Other OTC effective July 22, 2020. The deletion was due to Inactive Security.