Land Development of Nimrodi Group's (TLV:ILDC) Profits May Not Reveal Underlying Issues
Land Development of Nimrodi Group Ltd.'s (TLV:ILDC) robust recent earnings didn't do much to move the stock. However the statutory profit number doesn't tell the whole story, and we have found some factors which might be of concern to shareholders.
The Impact Of Unusual Items On Profit
To properly understand Land Development of Nimrodi Group's profit results, we need to consider the ₪376m gain attributed to unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. Which is hardly surprising, given the name. Land Development of Nimrodi Group had a rather significant contribution from unusual items relative to its profit to September 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Land Development of Nimrodi Group.
Our Take On Land Development of Nimrodi Group's Profit Performance
As we discussed above, we think the significant positive unusual item makes Land Development of Nimrodi Group's earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that Land Development of Nimrodi Group's underlying earnings power is lower than its statutory profit. But at least holders can take some solace from the 47% EPS growth in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 4 warning signs for Land Development of Nimrodi Group (of which 2 can't be ignored!) you should know about.
Today we've zoomed in on a single data point to better understand the nature of Land Development of Nimrodi Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
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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.