Shikun & Binui Energy (TASE:SBEN) has just reported second quarter and first half 2026 earnings, giving investors fresh detail on how rising sales compare with a growing net loss and what that balance might imply.
See our latest analysis for Shikun & Binui Energy.
At a latest share price of ₪4.11, Shikun & Binui Energy has combined a 7.31% year to date share price return with a 66.26% total shareholder return over the past year, which suggests recent momentum has been strong as investors reassess both growth potential and risk after the latest earnings update.
If the earnings news has you thinking about what else could be moving in related areas of the market, this is a good moment to look at 39 power grid technology and infrastructure stocks
Shikun & Binui Energy is growing its top line while still reporting sizeable losses, and the share price has risen significantly over the past year. The key issue now is whether that combination is already fully priced in.
On a P/S basis, Shikun & Binui Energy trades at 11x sales, while the broader IL Construction industry and a defined peer group are both at about 1.1x. That is a large premium for a company that is still reporting losses.
The price to sales ratio compares the company’s market value with its revenue. It is often used when earnings are negative, since P/E cannot be applied, and it gives investors a quick way to see how much they are paying for each ₪1 of sales.
Here, the 11x P/S multiple is paired with a reported net loss of ₪268.84m on revenue of ₪367.29m and a negative return on equity of 14.11%. That combination suggests the market is willing to pay far more per unit of revenue for Shikun & Binui Energy than for the average construction stock, despite the company being unprofitable and earnings having declined by 49.6% per year over the past five years.
Compared to both the IL Construction industry average of 1.1x P/S and the same 1.1x peer group level, the stock’s 11x multiple is sharply higher. That means investors are currently assigning a much richer valuation to Shikun & Binui Energy than to similar companies based on revenue alone.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-sales of 11x (OVERVALUED)
However, investors also need to watch the continued net loss of ₪268.84m and the high 11x P/S multiple if sentiment toward Shikun & Binui Energy shifts.
Find out about the key risks to this Shikun & Binui Energy narrative.
If this mix of strong recent returns and ongoing losses from Shikun & Binui Energy leaves you unconvinced, act quickly and review the numbers for yourself. To round out your view, make sure you also consider the 2 important warning signs
If Shikun & Binui Energy has sharpened your focus on risk and reward, do not stop here. The next smart move is to widen your opportunity set using targeted stock ideas from the Simply Wall St screener.
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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